Website Closers® presents an eCommerce Brand that has, in the past 12 months alone, generated $12.5 million in sales with their Apple Watch straps and other aesthetic accessories. With new smartwatches being introduced year after year, and jewelry being as massive of a market as it is, the company has successfully established themselves in two growing industries with 74 products sourced from a diverse mix of suppliers.
Their skyrocketing growth rate speaks for itself. Their year-over-year (YOY) revenue growth rate sits at 420%, while their YOY EBITDA growth is 318%. Their core demographic, relatively wealthy and fashion-conscious middle-aged women, are the type that will gladly spend a premium for high-quality or fashionable straps, and often purchase multiple straps for different outfits and occasions. As a result, they have a dedicated customer base with a fairly high lifetime value and an Average Order Value (AOV) of $52.78, contributing to their strong financial performance.
Their primary storefront is their branded Shopify website. However, they have also set up an Amazon storefront, which is now leading to additional revenue growth and channel diversification.
Business Broker Takeaways:
- Varied Brand Assets. The backbone of their reputation has been their range of brand assets, which has distinguished them from other companies in their market and made them all the more appealing to consumers. These assets include their trademark, stock images, videos, and email campaigns which have encouraged 228,000 of their 331,000 subscribers to be active in the last 120 days. They have paired these assets with a polished, user-friendly website that improves their overall customer experience.
- Strong Team. The brand’s employees consist of 10 people, with 2 working in leadership positions. These workers include, but aren’t limited to, a director of operations, a finance manager, and customer support agents. The company works with agencies to run their paid advertising, and, while they maintain their own warehouse overseas, their domestic inventory is handled by a 3PL and, in the case of their Amazon storefront, Amazon itself. This leaves the ownership to handle tasks such as marketing, product sourcing, order management, company management, and logistics.
- Strategized Marketing Plan. Along with their email marketing campaign, the company has several other advertising strategies in place. These include paid ads on Facebook and Google managed by the agencies they work with, an ambassadors’ program that pays ambassadors 10% of commission on sales, and some SEO tactics on their website. The brand also works to create quality usergenerated content (UGC) and professional photos to further bolster their appeal.
Scale Opportunities
There are several promising growth opportunities available to this business, which the right buyer can use to send them skyrocketing. The first possible option would be to expand the product line through other types of smartwatch straps. This could include straps for smartwatch brands they don’t yet feature, as well as straps that use different styles, materials, and colors.
Another method that a buyer could use would be to invest more in marketing and advertising efforts. The company has a wealth of data and tested creatives available on Meta that they could implement into their strategy. They are also already planning to enlist more content creators, utilize YouTube influencers, and post articles on their site to improve their SEO, and are actively starting to work with influencers. The new ownership could build upon this by continuing to invest in social media advertising, email marketing, and influencer partnerships.
Finally, they could consider partnering with other brands in the market to crosspromote their products. This could involve strategies such as co-branded marketing campaigns or product bundles, making it easier for them to reach a wider audience.
Conclusion
This acquisition is on the fast track to success in a market that is projected to see continued growth. With new smartphone models coming out every year, the demand for fashionable, functional straps that fit will rise, and the brand is already making moves to continue developing and taking advantage of consumer interest. Their excellent financials are a testament to their ability to attract and retain customers, and a buyer proficient in marketing could bring attention to their quality and make them truly shine.
