Website Closers® presents an eCommerce Brand that is Women-Owned, specializing in GOTS Certified Organic Cotton Textiles within the Women’s Fashion & Travel Accessories verticals.
The company is a well-run, highly profitable boutique enterprise offering exclusive, branded designs. And this is no ordinary brand – this is one of those product lines that, when you see it, you recognize the brand immediately – something many other brands fail to capture. That brand development is just one of the many exciting factors that make this a great acquisition target.
The company has a robust direct-to-consumer and business-to-business sales platform, excellent margins, and a commitment to creating accessories that make women feel chic, sophisticated, and comfortable wherever life takes them.
The inspiration for the products was born on an international flight, so it’s no coincidence that travel is at the brand’s heart. After boarding flights with organic cotton throws for comfort, the two owners realized that there had to be a better way to stay cozy on the go. They wanted something versatile, machine washable, and crafted from environmentally friendly organic cotton. What transpired was the flagship travel scarf as the solution, and customers immediately lauded the design for travel and everyday wear. From overseas vacations to Monday zoom calls, they reached for it as their go-to accessory to feel instantly put together. From there, management has added various popular silhouettes, colors, and fabrics.
The environmentally-friendly range was developed as an extension of the owners’ beliefs, but its impact has resulted in tremendous sales. Organic cotton production in 2019 and 2020 rose by 31% over the previous reporting period as consumers began to seek socially responsible products. 70% of consumers now say they want to know what brands are doing to address social issues and 46% pay close attention to a company’s social responsibility efforts before purchasing.
The company enjoys three revenue streams, all of which are growing.
eCommerce is the business’s fastest-growing division and has expanded from under $25,000 in 2019 to revenue of almost $2.3 million in 2022. Management has stabilized ad expenses to create profitable onboarding and a lucrative customer acquisition cycle.
Wholesale, too, has proven successful. The business has established relationships with more than 75 independent and specialty stores throughout the US and Canada, and that number is steadily climbing.
Additionally, the company is leveraging its market position as a leader in organic cotton textiles to create key account collaborations. Ongoing seasonal partnerships with prominent furniture and home décor stores, high-end shopping malls, and premier baby and children’s brands have proven profitable and drastically increased brand exposure.
All products are sold under the brand name, and non-compete agreements and vendor routing guides with suppliers prevent them from selling the designs elsewhere. This thriving lifestyle brand imports and sells its textiles directly through the eCommerce site and to strategic wholesale partners throughout the US.
The business makes use of a 100% stock inventory model. Typically, 30 to 90 days’ inventory is maintained at the 1,000-square-foot warehouse. Major purchase orders are placed quarterly, with occasional additional orders based on how forecasts align with actual sales. Payment terms are 0% down and the total amount before BOL release.
The typical customer is a female between 35 and 54, ranging from urban to suburban. She enjoys dining out, traveling, and is interested in fashion trends, beauty, and wellness. She is a frequent online shopper, uses a mobile phone to make purchases, regularly visits Facebook, and has a lifetime value of $112.
Sales are steady throughout the year, with peaks in October through December. Key gift giving holidays such as Valentine’s Day and Mother’s Day are also busy, while day-to-day sales increase in the summer as more people travel.
The digital marketing strategy primarily involves advertising on Facebook, Instagram, and Google. Additional marketing tactics include video marketing, seasonal sales, ‘Buy More, Save More’ offers, and post-purchase upsells. These efforts achieve a 300 to 500 percent ROAS—depending on the time of year— and drive 58,000 monthly visitors to the website.
Customer acquisition costs around $30, and these numbers have allowed the company to remain profitable even during the customer acquisition phases.
The two directors work primarily on more significant company planning and management of the marketing teams. One is in charge of operations and finance, while the other oversees brand creativity and marketing. The business has been set up to continue thriving without the existing owners or needing to hire staff to replace them.
A full-time operations manager oversees all operational aspects of the business, including manufacturing, quality control, importing, and wholesale distribution. She manages the relationship with the 3PL to ensure they adhere to all established contractual fulfillment obligations. Furthermore, her duties include:
Determining preliminary forecasts monthly and quarterly
Sending purchase orders to the factory and maintaining weekly communication on the progress
Managing polybag label creation
Managing product listings on the D2C website and B2B portal
A final employee works part-time in customer service, assisting with all tickets, responding to online social media comments, and managing website reviews.
Agencies are used for social media ad management, web development, and email marketing.
This business has consistently shown year-over-year growth and has unlimited proliferation opportunities for an ambitious buyer. Excellent systems, relationships, financials, and an insatiable customer appetite for its products attest to the promising future of this listing.
