SBA Pre-Qualified eCommerce Brand – Men & Women’s Athletics Accessories – Headbands, Bandanas & More – Licensing Agreements with Major Sports Leagues

Pending

Website Closers® presents a flourishing business in the sports apparel and athleisure sector. While many new brands have jumped on the sector bandwagon, this business has the history, knowledge, expertise, and customer base that only longevity in the industry provides. They’ve adapted over time and found a niche sector in a large market, where they’re enjoying the fruits of their labor. The brand is known as a leader in the sweatband industry. However, over the years, it has developed a more comprehensive range of products that are also highly popular. Its top-selling SKUs include, but are not limited to, custom and non-custom headbands, multifunctional bandanas, and football hand warmers.

The business peaks from the beginning of summer until October, but it has astutely lessened the impact of seasonality by introducing winter products such as football hand warmers and winter headbands.

SBA Pre-Approved. This SBA pre-approved business allows a buyer to potentially acquire the company for as little as a 10% down payment, amortized over an entire decade. Given the historically low interest rates, it’s an appealing consideration, with the benefit of freeing up cash flow for rapid expansion or other business interests.

First-Rate Logistics. Over time, management has systemized this business to the point where the owners spend little to no time running daily operations. The purchasing, distribution, sales, and day-to-day operations are taken care of with ease and offer a potential buyer the joy of seamless and stress-free integration.

Custom products are shipped to the US warehouse from China and then to the customer. Non-custom products are stocked in their US warehouse, and Amazon FBA is utilized.

The business is Seller Fulfilled Prime approved, allowing them to fulfill from their warehouse. Since inventory is coded FBA and FBM, they were able to fulfill orders during Covid through that warehouse, capturing sales that may have otherwise been lost. At any given time, 30-40% of all inventory is in FBA.

Efficient and Established Team. The company employs a highly efficient full-time team of 5 that handles most tasks. One member handles B2B sales; two manage warehousing in different capacities; another manages customer service, production management, and operations, while the fifth deals with all design work. In addition, outside contractors handle search engine PPC marketing for all sites.

Excellent Supplier Relationships. The brand’s products are sourced and produced in Asia. They have an 11-year relationship with the primary supplier, and all products are made specifically for them and sold under their brand.

The special payment terms are an enticing selling point. Sea orders are placed twice annually, and terms are 50% upfront and the remaining 50% 60 days after delivery. These relationships with suppliers are remarkable and will extend to a new owner, maximizing cash flow and allowing time and budget to be spent on scaling the business.

Licensing Partnerships. The business has impressively acquired the notoriously difficult-to-obtain licensing contracts with major sports leagues, an impressive number of colleges, and UFC Fighting, which has grown 100% year on year and is expected to continue in that vein.

The business has recognized the unique opportunity in that sector and is leaning into those licensing partnerships and working on quickly launching them to their eCommerce channels and then selling via B2B wholesale accounts.

Growing Industry. In 2020, North America dominated the global athleisure market. The rising fitness and health consciousness trends are generating demand for comfortable and fashionable activewear.

Furthermore, companies like this that concentrate on specific activewear product categories and offer tailored gear best suited to individuals tend to outperform the competition. The rising participation of working women in domestic sports and fitness activities in the US is expected to drive the market going forward. The eCommerce industry across North America is rising, and consumers are increasingly buying products through online retail channels.

The rapid penetration of eCommerce provides growth opportunities for athleisure brands as it helps them cater to a more extensive customer base. Furthermore, the growing influence of lifestyle blogs and celebrity endorsements in marketing athleisure items to a broader customer base should progress the sector further.

As a result, the athleisure market is expected to grow from $411 billion in 2021 to $793 billion by 2028. It is estimated to grow at a CAGR of 9.9% from 2021 to 2028.

Enormous Expansion Opportunity. Given the brand’s success in the USA, international expansion is a highly profitable prospect. The owners are already looking at expanding their Amazon sales to the UK, Japan, and Germany, and their status and history on the platform will make this relatively seamless.

Several of the brand’s products carry the Amazon Choice badge and rank as top sellers.

As successful as the business is, they have not yet tapped into the industry’s colossal influencer marketing opportunities or focused much on paid social media advertising.

Both options have shown a great return on investment with focused campaigns. Their custom range, which boasts such an enormous average order value, hasn’t yet been added to their Amazon store and is an incredibly viable opportunity.

Based on the success of the existing licensing agreements, the likelihood is that those will grow with additional sports leagues and boost revenue and marketing organically.

The brand has been a supplier to 28 of the 32 NFL teams since 2020, and in 2021 it generated over $100,000 in revenue from these teams. Expanding product offerings and adding new SKUs based on market trends is another expansion opportunity waiting to be utilized.

If you’d like to hear more details about this business and the vast amount of scale potential it has, contact Website Closers today.