Website Closers® presents a D2C eCommerce Brand that has been a great fit in the Women’s Athleisure Wear industry. The brand is growing very quickly and is ready for the next step. Ownership is very bullish on this brand and is more than happy to remain involved with a new owner after close, including as an equity holder.
Known for their high-quality product line, they have diversified their product line across categories like leggings, shorts, tops, sets, and fitness gear. Additionally, they offer a fitness program that was created with a professional fitness trainer and nutritionist … something that combines the brand’s products with a service, which can be expanded on tremendously. These products work in tandem to assist their customers in their journey to obtain the figure that they’re happy with.
The company has grown so fast that it now able to offer 300 SKUs across 25 to 30 products. They pride themselves on a higher level of customer service than is traditionally found in eCommerce, along with a trustworthy reputation built upon the bedrock of promoting self-love and confidence among their female demographic.
Their products are sourced from 2 high vetted manufacturers, who customize the brand’s products to their specific requirements. Several of these products are made with a product proprietary design, and all their offerings are sold exclusively under their own brand name, further ensuring a strong brand identity to set them apart from competitors and fostering customer loyalty. The brand has an Average Order Value (AOV) of $47.64, with customers returning to them often enough that they enjoy a Repeat Customer Rate of 30%.
The brand has customers in every age group, from young and old alike. Their typical customer is a woman between the ages of 30 and 40, who is interested in enhancing her figure and self-confidence, and willing to spend the money needed for high-quality leggings for both their physical and psychological benefits. Their sales are
generally consistent throughout the year, and while they see a slight decrease in sales from April to July, their diverse product range and strategic marketing have helped them offset seasonal variances.
Business Broker Takeaways:
Scale Opportunities
Expansion is the name of the game with this brand. A buyer could start growing the brand by rolling out new complementary products to their existing SKU line such as fitness gear and digital fitness plans, or potentially expand to supplements. These new products would cement their status as a health-focused brand, improving sales, helping them appeal to a wider range of consumers, and, opening the possibility of subscription-based revenue options.
Their presence in the US could be further improved by establishing a US-based inventory with a 3PL, allowing them to improve their margins with greater quantity discounts, shorten delivery times, and increase customer satisfaction.
The buyer may also wish to explore additional sales channels to take advantage of the established brand presence and customer demand on other platforms. Some promising online channels include Amazon, Otto, and eBay, with the brand also showing potential for possible offline sales with the right buyer at the helm.
Finally, the tech side of the business could be further expanded by creating a fitness app with a subscription base that combines fitness for their audience with discounts on future products.
Operations
Current ownership primary focuses on delegating operations to the team, managing financial matters, and overseeing media buying strategies to enhance their market presence and sales. Outside of the owner, the company’s team includes a video and image content editor, an email marketer who handles general online shop tasks, an inventory planner responsible for supplier communication, and 3 freelancers who handle customer support staff.
Conclusion
This acquisition has several qualities that give them a leg-up over their competitors and would make them a great addition to the buyer’s portfolio. They have the potential to significantly grow their community, expand into several untapped storefronts, and further diversify their product line for greater profits. Additionally, the current owner and management team are very interested in staying involved with the brand post-purchase and continuing to participate in their growth, providing the buyer with an engaged management team.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3340