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Luxury Organic Clothing Brand for Women – 15 Years in Business – SBA Pre-Approved – 60% Wholesale & 40% eCommerce (DTC)

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Website Closers® presents a rare opportunity to break into the the highly profitable, niche field of luxury resort wear eCommerce with a stunning, SBA pre-approved opportunity. A decade and a half of experience and superior quality products have netted this stunning retailer a loyal following for its pioneering, ultra-fine organic cotton wear – a resource that has become hard to come by in today’s fashion landscape. The company took on the insightful strategy of searching for a small cooperative of family farms in India that were milling the ideal fabric, and then contracted with them to get the material needed. This ultra-fine, in-demand fabric is delivered to U.S. factories that manufacture their lightweight cotton dresses, cover ups, lounge pieces and intimates. Over the past decade, this business has grown its customer base handsomely, and are now dressed for success as a well-loved clothing brand offering people an enduring, effortless style that never goes out of fashion.

People know what the brand name means. Launched 15 years ago as a passion project for the owners, it has come a long way. This company’s name means something to its loyal customer base. It’s become recognized as a reliably faithful source in the stainable luxury and resort wear categories – which have been cited by The Wall Street Journal as two of the hottest categories in fashion today.
This brand now brings impressive strengths and resources to bring to the table that are likely to make any buyer quickly take notice. A significant aspect of their appeal was the development of its own luxury brand literally from scratch, taking high-quality material from the factories in India to manufacture their outstanding clothing line. Everything the brand makes is uniquely their own. They design each piece, finessed with local patternmakers and graders for sizing. Their top selling pieces have become their bloomers and core intimates, and with an Average Order Value of $350, customers know they’re getting quality. For more than a decade, this brand has been giving people the impression that they’re getting and wearing something rare, and entirely unique.

Wholesale accounts are thriving as well. With 60 SKUs, 60% of the company’s gross profits are from wholesale, and 40% is DTC through their eCommerce site. But their wholesale accounts are growing quickly. In the past, the company had around 70 wholesale customers, often placing smaller orders. But that channel is evolving as more specialized e-tailors have started reaching out to them. In response, the brand has started making exclusive goods for some top online retailers.

Take the case of their main wholesale account, which has made immediate re-orders atypical of the industry, and shown an interest in expanding into the fall/winter clothing line. The brand now has a staggering 80+% sell through on Matches, which delays markdowns of what they have left for months longer than most brands. Matches has also requested more XL, plus and full-figured sizes. More recently, the brand was invited to be part of Maisonette, a platform for moms that markets maternity pieces. The researching phase of designing for this market has started, offering the brand an opportunity to take their proven quality SKUs and design them specifically for expecting moms.

The market for their ultra-exclusive product is unlimited. Not only has that enabled this brand to cultivate an exceptionally loyal customer case, but one that enjoys purchasing from them again and again. That strong loyalty has given the brand a Return Customer Rate of 51.5%. They continue to look for ways to innovate, and recently partnered with a manufacturer in Madagascar that specializes in ultra-fine traditional handwork and finishing. The enterprise also plans to re-introduce perfumes and collaborate with jewelry designers and makers of housewares for an SKU expansion that will enable them to appeal to a much wider range of retailers.

At the same time, the company is shifting its focus to a stronger DTC approach, with the projection that new customers can drive top line revenue. Two years ago, the organization decided that their net bottom line strategy didn’t need to focus so heavily on wholesale, so they initiated a restructuring plan to grow DTC sales.

Marketing represents amazing scale opportunities. This brand has tremendous opportunities to grow rapidly by fine tuning their marketing efforts. To date, the brand has relied on email marketing, and with a database of 5,200+ subscribers that has provided the company with 20% of their online sales. At the same time, social media marketing through their Instagram account (with 35,000+ followers) helped drive organic traffic to their site. In 2020, their website received 77,000+ visitors and experienced 87,000+ sessions, terrific numbers for a company eager to grow further.

That leaves plenty of options for a stronger digital marketing plan. Expanding their presence on other social media platforms such as Facebook, Pinterest, YouTube and TikTok would enable the company to cast a wider net and increase organic traffic, as would an influencer campaign on those accounts.

The push into maternity pieces gives the brand a phenomenal opportunity to use social media to build up this emerging market. A goal of adding another 100k website visitors to their subscriber list is a reasonable plan for the new year, which could lead to double-digit growth, while a solid expansion plan would include also creating a targeted print catalog focusing on their signature intimates and core pieces, an essential way to introduce their SKUs to new customers.

Why is this an unparalleled opportunity? Luxury, recognized fashion houses like this one enjoy brand recognition and loyalty like no other niche in the clothing industry. The current owners are open to remaining onboard post-acquisition in either a consulting or designing arrangement to ensure the transition is a smooth one and that this business remains a financial success.

A buyer has the opportunity to bring a new vision to this brand. Until now, the owners have chosen to remain small, running it as a cash flow business without initiating massive expansion plans with lofty financial projections. But that doesn’t mean a buyer can’t take the exact opposite approach.

Now is the opportunity to learn more about why this luxury apparel brand has performed so well, and how your investment can send this business skyrocketing to new heights.

This eCommerce Business is Represented by:

Website Closers

Tech, Internet & eCommerce Business Brokers

Listing ID: WC2527

Asking Price
$ 1,000,000
Cash Flow
$ 518,000
Gross Income
$ 823,105
Year Established

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