colorful photo of young adults wearing different clothes

Production Apparel Company: 11 Brands, 3.5M in Inventory, Growing Rapidly

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This business is a tech-enabled eCommerce and manufacturing apparel production company that owns and operates 12 in-house brands. They create and launch online brands to a worldwide direct-to-consumer audience, with all designs for all current products sold designed in-house and manufactured by the company. Sales are consistent throughout the year because of the range of products and brands, and additional markets in North America and Australia complement the primary demographic of European direct-to-consumer customers. The business also has significant growth potential in new sales channels and wholesale accounts.

OPERATIONS

The business owns all the machines necessary to produce the products they sell and operates as an apparel production company for their 12 in-house apparel brands. A stock model has been designed to optimize profits, and a proprietary eCommerce platform created and improved over the past 7 years is the primary sales channel. Additionally, the company uses proprietary software for production and storage.

The company owns all machines necessary to produce the products they sell in-house and uses proprietary software for production and storage. They have additional prospects in manufacturing and offering licensing agreements and renting out idle manufacturing facilities to other companies.

MARKETING AND KEY METRICS

Strategic digital marketing efforts drive customer acquisition, with social media advertising and influencer relationships achieving a healthy ROAS. Email subscribers comprise a quarter of a million individuals, and email campaigns showcasing new products, specials, and helpful information are consistent.

The business has significant growth potential in sales channels, including wholesale accounts and supplementary sales channels. Strategic digital marketing efforts and influencer marketing campaigns have been successful across all brands and present opportunities for expansion.

Some key metrics for the business include consistent sales throughout the year due to the range of products and brands, with some products created to order and other popular SKUs kept on hand. Sales channels and wholesale make up a quarter of total revenue. The business has additional opportunities to advertise its brands globally, with Amazon’s international platforms providing it with the most efficient means of doing so while enabling the company to reach potential clients in many new nations rapidly.

The typical shopper varies between all 12 brands, with most customers between young adulthood and their mid-thirties. They frequently utilize the internet and social media, have outgoing personalities, enjoy making a statement, and exhibit distinctive flair. Their annual income is the country standard or higher.

BUSINESS MODEL & RESOURCES NEEDED

The current owner has endeavored to promote talent internally whenever possible since the business’s inception. Extensive expertise is unnecessary for a buyer to continue expanding this successful, well-oiled operation, and the current owner is willing to help in whatever capacity necessary to ensure a smooth transition and ongoing proliferation.

THE INDUSTRY

The global eCommerce apparel market was valued at $553.1 billion in 2021 and is expected to register a compound annual growth rate of 8.6% from 2022 to 2030 due to the growing demand for clothing online from developed regions such as Europe and North America. The growth is also a result of evolving fashion trends, an increasing number of working women, a rising female population, and the abundant spending power of shoppers.

OPPORTUNITIES TO SCALE

The business has abundant scale opportunities, including global brand advertising, new brand introductions using the internal platform, and expanding wholesale accounts. Offering licensing agreements, renting out idle manufacturing facilities, and Amazon’s international platforms provide clear revenue opportunities.

Asking Price: $7,000,000
Gross Income: $12,103,105
Cash Flow: $1,945,669
Year Established: 2012
Employees: 150

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