Website Closers® presents an eCommerce Brand that has been recognized as a leading player in the shapewear and compression garment industry, particularly in the United States. The popularity of shapewear and compression garments has surged in recent years, and this trend is especially prominent in North America.
One of the key reasons for the popularity of these products is their ability to enhance body shape and provide a slimming effect. Shapewear is designed to smooth and contour the body, giving the wearer a more streamlined and flattering silhouette. Compression garments, on the other hand, are often used post-surgery to aid in the healing process and provide support to the treated area. These garments are required and the brand’s offerings are highly sought after by individuals undergoing cosmetic procedures, such as Brazilian butt lifts, liposuction or tummy tucks, as they help to reduce swelling and promote faster recovery.
A Powerful Brand …
This company has capitalized on the growing demand by becoming the biggest wholesaler in the US. It owns the majority of the brands it sells but also has exclusive distribution agreements with various other popular brands, giving it a competitive edge in the market. By sourcing products from Latin America, where specialized compression garments and shapewear are prevalent, the brand can offer customers high-quality and authentic products.
The business’s success is further demonstrated by its presence on popular online platforms like Amazon, where it consistently ranks as the top seller in the Shapewear-Bodysuits category. This achievement showcases the brand’s credibility and customer trust in its products.
Operations & Logistics
Products are sourced primarily from manufacturers in Colombia and Mexico. There is a specialized team in every manufacturing plant, and management has negotiated exclusive safety stock with them. For the past decade, most products have been exclusively manufactured for the company. They own the biggest brands and also distribute and sell some others, many with exclusivity contracts.
Orders are placed weekly and monthly, with favorable net 45 to 60-day payment terms.
The business maintains over 60 days of sales inventory in its domestic warehouse and the same amount at Amazon FBA facilities. Additionally, it offers DropShipping for wholesale customers, reducing fulfillment costs.
Around 500 products, totaling 7,000 SKUs, are offered without concentration on any given product. The top 10 products account for 40% of units sold, while the top 100 accounts for 83%.
60% of sales are derived from the company’s own brands, while the remainder is from third-party brands with whom the company has excellent relationships.
Furthermore, the company’s wholesale channel accounts for 40% of its revenue. The team has enjoyed an impeccable growth track record for six years, improving margins every year. Even as the global pandemic paused non-essential medical services, the business demonstrated strong performance and is expected to see further growth in the coming years as pent-up demand for these procedures will boost the market.
Over 1,400 registered wholesale customers spend, on average, $900 per order, with a 70% repeat purchase rate.
Retail sales account for 60% of revenue, with two-thirds of sales made on Amazon and the remainder from the company websites, Walmart, and eBay.
Notably, the business experiences little seasonality in sales, with year-round demand for its products. It has remained incredibly stable for the past ten years, with a predictable peak in March and April when plastic and cosmetic surgeries spike. Management increases inventory levels by around 20% for the period.
The brand’s digital marketing strategy is diverse and differs between channels, attracting over 2 million monthly impressions. SEO, email and SMS marketing, influencers, social media ads, and PPC on search engines are used for the websites. SEO, PPC, product placement, and special deals have proven highly effective on Amazon.
Wholesale strategies include many of the above as well as attending trade shows and outreach from a team of sales reps.
Five shareholders work in the following capacities:
In addition to the shareholders, there are 28 directors in middle management, and 175 employees. The business includes in-house sales, customer service, marketing, advertising, creative, logistics, and middle management teams. As a result, the brand receives over 2 million monthly impressions across channels, achieves excellent returns on ad spend, and can scale quickly and seamlessly.
Almost all operations, logistics, comex, app development, IMS, marketing, and content are performed in-house by various departments. The team is highly specialized, talented, and experienced, and each department head has been with the company for an average of 6 years. The company culture is excellent, evidenced by an incredibly low turnover of critical personnel by industry standards.
The future of the shapewear and compression garment market looks incredibly promising, as it is poised to witness substantial growth and increasing demand. With advancements in fabric technology, design innovation, and a growing emphasis on health and wellness, these garments are becoming more comfortable, versatile, and aesthetically appealing than ever before. As individuals prioritize fitness, body positivity, and overall well-being, the demand for shapewear and compression garments is expected to surge.
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