Website Closers® presents a Direct-to-Consumer eCommerce brand in the Home Goods Sector, including Pillows, Bath Knee Pillows, Bathmats, Towels, Orthopedic Pet Beds, Eye Masks, Bath Stones and so much more. The brand has gathered an impressive sales track record with most sales generated on its Website (DTC) and a mix on Amazon, Walmart and eBay. The company stands out from the crowd by offering quality and innovation far beyond the standard in their field. Creativity and modernity drive this brand, and their client base has taken notice.
The brand’s pillows, for example, are designed to help customers get a deeper sleep in order to feel more energized the next day, and provide ergonomic support for the user’s head and neck. This pillow, manufactured exclusively for this brand, now makes up a growing portion of the company’s sales and has drawn rave reviews from customers who have said the product literally changed their lives by eliminating the often-severe neck pain they had previously endured while sleeping … something that bothers many households every day.
The company has a patent pending in the Bath Stone vertical and has multiple trademarks for the products it offers. What this brand has done, in an impressively short period of time, is take common household SKUs such as pillows and bathmats and transform them into something better with added benefits and higher levels of comfort. Along the way, sales have skyrocketed on their Shopify website while also rising at a fast rate on alternative sales channels such as Amazon, Walmart, and eBay. The company has invested heavily in Image and Video assets, accumulating over 1,185 images and 4,544 videos on the products they sell. It’s a business success story that’s both unique and enticing for any buyer looking for a company that starts out on a phenomenally strong foundation, and yet has some monumental opportunities for growth.
This is a Massively Profitable Industry. The global home goods market is a hugely successful one, which has brought in revenue of $616 billion, a number projected to rise to $838 billion by 2027. It’s difficult to overestimate how strong this market is, particularly as the real estate market remains so strong and new home décor items are in high demand for homes, businesses, and leisure travel resorts. Whether people are buying to decorate their own new living room, a second home, or designing the look of their office space where they greet guests, designers are rushing to find items that match what consumers are looking for. Buying home goods online has become more popular, with online retailers such as Amazon seeing furniture and home goods sales doubling in recent years. eCommerce sales have been particularly beneficial for smaller items such as pillows and bathroom items that can easily be shipped with ease.
This brand found its niche space. Since inception, the company had a mission of approaching this vertical with a difference. As a result, this brand provides quality items that transform the home into a soothing oasis, providing comfort, ease and luxury to their customers’ bedrooms and bathrooms. They have aimed to create innovative, evergreen products that help solve problems, such as pillows that make it easier to sleep and bath stone mats that are ultra-dry and don’t get soggy. Their products have matched what customers are looking for, resulting in sales that have exceeded $30 million on their Shopify website alone, while 5-Star reviews have become the norm among people who are wildly enthusiastic about the extra perks their 18 SKUs offer.
The Target Demographic is Strong in this Market. The company’s products are manufactured exclusively for them and are fully branded. Their average order value ranges from $48 to $186, and while sales are healthy throughout the year, sales surge 30% over the holiday season. Their customer demographics are highly desirable: Middle to upper middle-class consumers, largely women between the ages of 35 and 65, with plenty of disposable income. A rising percentage of their sales now comes from men between the ages of 55-64. Sales cross both different generations and genders.
To maximize customer service, the brand makes its SKUs available across multiple sales channels, with their growth on Amazon getting much stronger. To ensure a timely delivery, the company leverages Fulfillment by Amazon, Fulfillment by Walmart, and a third-party logistics center to service customers.
A Marketing & Operations Strategy that Wins. Direct Response Digital marketing that targets the Brand’s core customer personas is the foundation of the marketing strategy. Powerful channels like Facebook, Google, YouTube & Influencer Marketing drive the core of the demand generation model and are supported by a robust effort via email marketing, brand social and third-party marketplaces. Traffic is primarily driven by a mix of organic and paid ads on Facebook, Google, YouTube and Instagram. They currently have over 20,000 Instagram Followers and over 29,000 Facebook Followers.
Vertical integration, operational excellence and platform flexibility are at the core of the brand’s success. The fusion of customer centricity and a data-driven culture are the foundation of their operational blueprint. Internal staff, external contractor and strategic vendor partners deliver the experience. Operations for the company include Creative, Digital Advertising and Media Operations; Marketplace Marketing & Operations; Supply Chain and Logistics; Customer Service; and Finance, Accounting and Analytics. Currently, operations for the TTM run at 7.62% of revenue and will continue to gain leverage with additional scale.
From a logistics standpoint, the brand leverages Amazon FBA, Fulfillment by Walmart, and a Third-Party Logistics Center in Baja, Mexico to service customers. Primary transportation is managed via freight forwarding partners; primarily leveraging FCL 40HQ containers to the ports of Los Angeles/Long Beach and Ensenada. The logistics operations are managed by one US team member who is supported by two offshore logistics specialists.
Just the Tip of the Iceberg. The company’s ability to craft products has gone beyond standard offerings, which has resulted in a much stronger brand than what you might see in a brand-agnostic environment focused on Amazon. This highly enthused customer base is impressive on its own merits, and highly valuable. Scale opportunities for this brand are endless. On Amazon, the operation is in the early stages of scaling; substantial opportunity for growth exists for this channel. Additionally, expanded relationships with Walmart.com, Wayfair.com and new in-store relationships with partners like Bed Bath Beyond, Target, Costco, etc. are all possible.
Outside of Sales Channels, product expansion is another robust opportunity for growth. The company maintains a strong product pipeline that provides for many new products. Currently 6 new items are planned for 2022. Also, while 99% of sales are currently in the United States market, expanding into foreign countries is possible, especially with the large treasure trove of content, including image and video assets, the company has compiled over the years.
Finally, adding additional marketing channels is another growth initiative. Expanding beyond the current Facebook and Google advertising strategy offers additional opportunities. Channels planned for 2022 and beyond include Pinterest, TikTok, Influencer Marketing, TV & OTT, Podcasts and Affiliate Marketing.
With an offering providing the unbeatable match of recurring revenues, an expanding customer base and the ability to scale rapidly, this is an opportunity you don’t want to miss.
