Website Closers® presents an SBA Pre-Approved eCommerce business that has developed a loyal customer base along with thriving sales in one of the most lucrative industries: fashion jewelry. The global jewelry market is valued at $280 billion and growing rapidly, with manufacturers catering to an increasingly large market. This company has developed a strong reputation over the past 6 years for providing high quality and on trend products. Interestingly, while women are often the largest purchasers of jewelry products, this brand has cultivated a strong following among men. The Company’s niche array of men’s jewelry items have given them a plethora of positive feedback, incredible word of mouth growth and a staggering 30% repeat customer rate.
This brand has understood from day one what men are looking for to make a fashion statement. In fact, men are becoming an increasingly large share of the customer base for this industry. The global men’s wear market has grown faster in recent years, by 4.5%, than women’s at 3.7%. Men’s wear sales are projected to grow by another $40 billion and gone are the days when male shoppers seemed interested only in watches and wedding rings. There has been a sharp increase in men buying fashion accessories, and stores are extending their men’s offerings in response, and that includes jewelry items.
Taking off in 2015, this company promotes the current owner’s line of specialized men’s hip hop/streetwear jewelry. This invaluable portfolio includes necklaces, bracelets, watches, glasses, earrings, pendants, and rings. There are multiple items that the owner has designed and had a manufacturer create.
The company has been a clear success story, with gross revenues experiencing a 34% year over year increase, which has enabled the brand to expand to more than 320 listings. Once these SKUs are broken down for colors, lengths or other options, the business now has more than 4,000+ products available. This form of hip hop jewelry has become the hottest niche within the men’s jewelry field. Iced jewelry has become particularly desirable because of the popularity of rap music, and there’s no question that what was once a small subculture has become a mainstream fashion trend with tens of millions of followers. These trends have worked to this brand’s advantage.
Over the past few years, the brand’s expanding customer base has primarily consisted of 16-25 year-olds who are fans of rap music, fashion, and urban culture. While the largest ethnic demographic is African Americans, the brand does market to Latinos and Caucasians as well. With an average order value of $100 and so many different SKUs to choose from, the brand’s high repeat customer rate has translated into the average customer lifetime spend at around $150-$200.
Their SKUs perform well year-round, with a peak during the holiday season. The brand’s targeted audience shares another characteristic: they spend a lot of time on social media. That’s exactly how this company has been able to attract such a large customer base, through a very active presence on social media. Instagram has been particularly useful as a marketing tool for this brand. The company has developed a massive following of 312,000 followers on that site, and they have an active posting schedule of 2-3 posts every day. The brand has also employed Instagram influencers to help promote their offers.
YouTube is another top marketing channel for this brand, which has a following of 2,700 subscribers on the channel, but more importantly, they have experienced 300,000+ total video views on the site. In the past 3 years, 3-4% of sales have come directly from seven YouTube videos. TikTok is similarly successful for them, as the brand has recently started posting videos on this site as well.
In addition to social media, the brand has helped drive sales by running PPC ads on Facebook and Google, with revenue generated by these ads far exceeding the initial investment. One of their other marketing tools has been email marketing. The brand has compiled an email database of nearly 40,000 subscribers, and the list has been growing by an average of 1,500 new subscribers each month. The company’s email pop-ups have a 15% opt in rate, which has helped drive sales.
There are other marketing tactics the company could use to help expand the customer base even further. One would be to launch the brand’s first SEO program. The use of keywords in product descriptions has been enormously powerful when it comes to boosting rankings in search engines, and the brand could also start a blog on their website to drive more organic traffic.
A few highly promising options for scaling this business rapidly include channel diversification, product creation, and increased marketing efforts. Right now, all sales are conducted on the brand’s own Shopify website, but the company could begin listing on eCommerce giants such as Amazon, Walmart, and eBay, which would be become a huge game changer for them.
Listing on Amazon would enable the company to do an international expansion on Amazon’s overseas platforms and use PPC ads on that site to generate customer traffic and sales.
This brand has the option to expand into the wholesale market, which they have already done. The company now has one consistent wholesale client who has spent more than $30,000+ on orders, and with some creative marketing, the brand could quickly drive more B2B sales in the future.
Finally, knowing that the company’s products are highly popular, a new buyer could continue adding to the SKIs, offering new products based on trends in the hip hop culture and past sales trends within the company.
This is a well-established business. The company stocks items in a 400 square foot warehouse and averages about 10 orders a day. The brand currently maintains about $140,000 worth of inventory, with new orders placed every few months.
The owner spends 40 hours per week running the business, focusing on tasks that include handling social media, researching growth options, purchasing items low in stock, managing customer service and writing texts for text marketing. The company has one employee, a shipping manager who packages orders, and uses a contractor to handle customer service emails.
With jewelry remaining one of the fastest growing fields today, this company has demonstrated a tremendous appeal and business acumen in the niche field of men’s jewelry. The company’s many strengths are easy to build on, depending on how quickly a buyer wants to increase profits.
