Website Closers® presents a highly regarded eCommerce leader in the shapewear and compression garment industry, that has, due to a rise of interest in the North American region, found a particularly strong foothold in the United States.
Shapewear products have grown progressively more popular due to their ability to enhance body shape and provide a slimming effect, giving the wearer’s body a more streamlined silhouette that’s desirable among many consumers. Compression garments, meanwhile, are typically used post-surgery to expedite the healing process by providing valuable support to the treated area.
The specific combination of markets that the company serves has made them ideal for customers undergoing cosmetic procedures such as Brazilian butt lifts, liposuction, or tummy tucks, with their products helping to reduce swelling and promote faster recovery.
The company has readily tackled the surge of demand in their industry, growing into one of the most prominent wholesalers in the US. Though they own most of the brands they sell, they also have exclusive distribution agreements with various other popular brands, giving them a competitive edge in the market. As they source their products from Latin America, a region where specialized compression garments and shapewear are prevalent, they can successfully offer their customers authentic and high-quality products.
Their success can be further noted by their marvelous reputation on popular online platforms like Amazon, where they regularly enjoy top ranking in the Shapewear-Bodysuits category through the trust and credibility they’ve built up around their products.
Their manufacturers are primarily based in Colombia and Mexico, with each manufacturing plant having a specialized team. Management has negotiated exclusive safety stock with them, and over the past decade, many of their products have been exclusively manufactured for the company. They own the largest brands and distribute and sell some others, with many also having exclusivity contracts.
The company places their orders on a weekly and monthly basis, with favorable net 45 to 60-day payment terms.
They maintain over 60 days of sales inventory in their domestic warehouse and have the same amount hosted at Amazon FBA facilities. They also offer DropShipping for their wholesale customers, which cuts down on fulfillment costs.
They have a total of 7,000 SKUs spread out across roughly 500 products, with no concentration on any specific product. Their top 10 products are responsible for 40% of units sold, while the top 100 accounts for 83%.
The company’s wholesale channel accounts for 60% of their total revenue, with 930 active wholesale customers spending an average of $900 per order and providing the brand with both a 70% repeat purchase rate and a YOY growth rate of 15%. The remaining 40% is generated through retail, which is divided between their Amazon storefront, their company websites, Walmart, and eBay, with Amazon generating most of these sales at 67%. They have had a fantastic track record for 6 years, with each year seeing improved margins.
The brand sees little seasonality in their sales, as there is year-round demand for their products. They do, however, see a peak during March and April, which are months when plastic and cosmetic surgeries are most in demand. Management increased inventory levels by around 20% during this period.
Their digital marketing strategy consists of various tactics that differ across channels and has proven effective enough to attract over 2 million impressions every month. They use SEO, email and SMS marketing, influencers, social media ads, and PPC on search engines for their websites, and SEO, PPC, product placement, and special deals for Amazon.
They use many of the above strategies for their wholesale channels, which they complement with attending trade shows and outreach from a team of sales reps.
The company has 5 shareholders who work in the following capacities:
CEO
CFO
Head of Wholesale
Head of Retail, Data, and Operations
Head of Logistics and Customer Service
Nearly all the brand’s operations, logistics, app development, IMS, marketing, and content are performed in-house by various departments. Their team is incredibly seasoned and talented at what they do, with each department head having worked for the brand for an average of 6 years. They boast a great company culture, which is reflected in their exceedingly low turnover of critical personnel by industry standards.
The future for the shapewear and compression garment industry is bright, with the market poised to see significant growth and demand throughout the upcoming years. The products in this industry are progressively becoming more comfortable, versatile, and aesthetically appealing as fabric technology, design innovation, and focus on health & wellness marches on, fueling interest and sales.
