Website Closers® presents an eCommerce Brand that has taken a solutions-oriented approach to helping women with some of their more common struggles. In the span of only a few years, they have raced up the ranks of the Women’s Protective Undergarments niche to become a top seller in their native Germany. They offer high-quality and affordable alternatives to traditional products, and their commitment to combining comfort with function has given them a Repeat Customer Rate that has rapidly reached 22% and over 9,000 enthusiastic reviews across their product line.
This deal is a great opportunity for a US entrepreneur, as they can gain immediate access to the European market to start cross selling their own products, and then expand the brand into the US and UK. As their consumer base is female, there are many different product types that would make for excellent cross sells. Their operations are also highly turnkey, which will allow a buyer to invest more of their attention towards scale opportunities.
The brand has marketed their 19 SKUs through a curated digital marketing campaign, with a key strategy being their exclusive arrangements with many of Germany’s top trusted influencers. This tactic allowed them to achieve rapid market penetration and, due to offering such high-quality and affordable alternatives to what was available in Germany at the time, sent demand for their products skyrocketing. They bolster the traffic they generate through influencers by utilizing their over 488,000 email and SMS text subscribers, which makes it easier for them to engage with their customers and strengthen their brand/buyer relationship.
Their innovative underwear products, which feature numerous top sellers, generated strong brand awareness within a remarkably short timeframe. They have grown increasingly popular in Germany through their enthusiastic customer reviews and testimonials, as well as the fact that their products can’t be found anywhere else. Their rapid-fire growth and rise in interest have convinced the brand to expand into men’s leakproof and functional sportswear to tap into a larger potential consumer base.
Business Broker Takeaway
1. Proprietary Product Range. Their proprietary product line, which is sourced from suppliers with whom they have established and exclusive relationships with, are fully trademarked and sold under their brand name and logo. These inclusive underwear products tackle common issues such as incontinence while being comfortable, functional, and sustainable. The success of these products, coupled with the fact that the global women’s night and underwear market is currently thriving, makes their plans to expand into men’s clothing a highly promising prospect.
2. Strong Marketing Platform. Their influencer marketing has been the backbone of the brand’s marketing strategy and has allowed them to scale as rapidly as they have. They have established long-term exclusive deals with their influencers and have an influencer marketing team dedicated to studying the bond between an influencer and their target audience. They complement this strategy with Facebook ads and Google PPC, which have also been a major driver behind their rising profits.
Additionally, the brand makes active use of their sizable subscriber database, which features over 488,000 subscribers divided between their 285,000+ email subscribers and 244,000+ SMS text message subscribers. Their email newsletters typically educate subscribers about their products and provide special offers in an effort to build a sense of community with their customers. They add to this through social media marketing on TikTok and Instagram, as well as an educational blog on their website: both of which provide them with organic traffic. Their marketing campaign has led to the brand having a rate of over 358,000 unique visitors and online sessions to their site every month.
3. Notable Growth Opportunities. Outside of international expansion, the brand could easily benefit from implementing new storefronts, as doing so would diversify their revenue and give them access to more customers than ever. They could achieve this by branching off into other eCommerce storefronts like Amazon and Walmart, or by shifting from DTC sales to B2B by targeting brick-and-mortar and online retailers.
They could also boost their Repeat Customer Rate by introducing a subscription service for their more dedicated buyers, and market their new and old channels alike by exploring new marketing channels such as TikTok and Facebook sales.
The Company
The brand’s lineup of products is excellent for customers looking to replace their tampons and pads with sustainable-yet-affordable alternatives, with their underwear achieving that and then some. They have also launched relevant accessories such as leakproof nursing bras and period care products such as heating patches. They have an Average Order Value (AOV) of 61 Euros, or $65.51, and while they enjoy steady sales year-round, their profits do rise during the summer months due to their introduction of leakproof period beachwear.
While they have excelled in Germany, they also see sales in Switzerland and Austria. Their average customer is a woman between the ages of 25 and 35, who is typically a mom looking for products that will help her feel good about her body. Their average customer is also very invested in sustainability and eco-friendliness, which is a central theme of the company’s brand image, and something they have leaned into by shipping their products in a biodegradable plastic bag.
Operations
Current ownership has put together a large and experienced team that includes 7 full-time and 17 part-time employees who work as general contractors. The team is responsible for all daily tasks, from customer service to the coordination of influencer marketing, to supply chain management and product designs. This team has been vital in keeping the brand as successful as they are. The brand handles their inventory through a 3PL, with new orders being placed at least every 2 months.
Conclusion
This acquisition’s business model has proven successful in Germany and is now ready to be replicated across new countries, sales channels, and B2B. With the right strategies, fresh marketing tactics, and the right buyer at the helm, this brand could quickly reach new heights.
