Website Closers® presents a rising eCommerce business based within the Smart Home Technology Vertical. This company does an excellent job of filling the niche space of Smart Lighting and Smart Plug Subcategories with their wi-fi connected, APP-controlled lighting products. They offer an impressive 30 unique SKUs, and with their 14 patents, they have successfully created a CPG moat that protects their products from the competition. Everything they sell is branded and well packaged under their name. They’ve found massive success on Amazon, as not only do they have a 99% Positive Seller Rating, but they also happen to be rated the Amazon #1 Best Seller (as of the date of this listing) in the Smart Dimmer category as well. With more than 300,000+ users of their mobile app, this company is large and growing fast. In the hands of the right buyer, this could develop into a common, household name. But with 300,000 App Users – maybe it already is?
The brand has developed a strikingly large following thanks to the variety of IoT smart products they offer, in a market that sees less competition thanks to their investments in IP. Their products include, but are not limited to, dimmer plugs and switches, color bulbs, and ceiling fan control. All these offerings can be controlled with Google Home and Alexa, giving customers the convenience of changing how bright or lively their home is from the comfort of their couch. The brand has cultivated hundreds, if not thousands, of positive reviews on their products, along with a truly remarkable Repeat Customer Rate of 28.4%.
The global market for smart homes and related technology is enormously profitable and seeing increasingly stronger demand with time. It was valued at $79 billion USD in 2020 alone and is projected to reach an astounding $313.95 billion USD by 2026 at a CAGR of 25.3%. For many real estate and home construction businesses, it’s become standard to offer the latest and greatest innovations in home automation in an effort to bring in a customer base that has developed a strong interest in smart technology and conveniences. As technology is polished further to offer even more monitoring solutions and automation functions to the average consumer, this interest among the general population will continue to see exponential growth.
Though the company has its own website, currently all its sales are performed through their Amazon storefronts. They also utilize many other benefits to the Amazon platform, such as Fulfillment by Amazon for their deliveries, and PPC advertisements across the site. Given their massive success and connections with Amazon, it would be a natural next step for the company to expand into international channels such as Amazon Europe to market their products to a global audience.
The company could expand outside of the Amazon network and into other secondary online markets, such as Walmart and Target. While many customers rely on Amazon for most of their online shopping, this would guarantee that the products would reach as wide of a consumer base as possible.
The company could go even further by launching wholesale and B2B sales with major retailers and big box stores. Combined with their other means of expansion, that could drastically increase profit margins.
Another way that the brand could grow would be by improving upon their existing advertising. Though they see no shortage of customers through current marketing tactics, they could increase their promotions and PPC advertisements on Amazon, and even invest in ads on other platforms such as Google and Facebook.
They could utilize the contacts among their 300,000+ strong app users for feedback on future features and new products, which would allow them to develop a stronger connection with their audience, and also serve as excellent marketing for upcoming product lines.
They could even use social media platforms such as Instagram, Pinterest, and Facebook to drive organic traffic, and develop a more loyal and dedicated consumer base.
Social media would also have the benefit of making it much easier to do marketing campaigns and share any special deals or new products that the brand rolls out, increasing their popularity and boosting their reputation.
The company would also profit by releasing new products to offer consumers. While they already have 8 new SKUs that they plan to roll out soon, they could benefit by adding more onto their product line. For instance, they could expand into other valuable Wi-Fi connected home devices, such as smart locks, sensors, and other products that might appeal to their tech-savvy consumer base.
Another benefit to this fantastic acquisition is that it already has a strong and capable staff line-up. It boasts 10 full-time employees who focus on sales, customer service, graphic design, and supply chain management for the company. The current ownership handles finance, product planning, marketing, and a few other responsibilities, but a buyer could lighten the workload by hiring on more staff dedicated to these tasks.
The company has also cultivated some rather enviable customer demographics. Though their products are enjoyed by all age groups, they have seen great popularity among customers in the 35 to 44 year and 45-to-54-year age range, with the two groups making up roughly 26% and 22% of the company’s customer base. This isn’t particularly surprising, since these two age groups are the prime home-owner demographics.
They also span across income levels, targeting customers with salaries of around $50,000 to those earning well over $250,000 USD. The gender of the customer is irrelevant to sales as well, showcasing that this brand is beloved by a wide variety of consumers.
With progressively more people choosing to work from home instead of heading into the office, it stands to reason that they would want to make their homes a more convenient environment. Orders for smart home devices are set to double now through 2023, and surveys show that more than 65% of homeowners are willing to spend more on smart home technologies. This brand has an edge over the competition given that, due to its patents, most other companies in the smart home business operate mostly within an offline channel. Online shopping and eCommerce is also highly valued for its convenience, which overlaps nicely with a consumer base that prioritizes convenience and automation.
The smart home market is set to experience rapid and exponential growth very soon, and this acquisition gives buyers the chance to capitalize on it and build this company alongside these rising trends. If you’d like to learn more about this once-in-a-lifetime opportunity, contact Website Closers today.