Men’s Hat Manufacturing and Branding Business with Ecommerce, Wholesale, Private Label Sales and Full Staff
This established hat manufacturer and brand is a leading creator of one-of-a-kind headwear for men with over 80 years of industry experience. The business provides a premium selection of hats made from high-quality materials such as genuine leather, straw, and wool that provide customers with a luxury and comfortable experience.
OPERATIONS
The business sells its products primarily through eCommerce and wholesale channels with a robust D2C website for customers to purchase hats. The company has a streamlined online platform for wholesale customers to select and purchase hats that support both luxury and everyday brands. The company operates year-round with some concentration in sales during the summer and winter months, and it has low churn rates on its contracts.
The business employees highly efficient and established full-time staff of 50 people, who oversee most tasks, including working with factory supervisors on hat production, financial management strategy, as well as overseeing importation of hats and the selection and design of new styles. Additionally, the company has excellent supplier relationships with over 50 suppliers across China, Italy, the USA, and Ecuador.
MARKETING AND KEY METRICS
The business recently launched an SEO program to increase its website’s organic traffic, which serves as a primary sales channel for the eCommerce customer base. The company has not exploited influencer marketing opportunities, although paid social media advertising would prove successful inclusive of affiliate advertising and other sales channels. Customer satisfaction remains the Company’s best marketing tool, with quality and excellent craftsmanship that has propelled sales with thousands of top-star ratings.
The business has immense opportunities to scale its operations in multiple directions by implementing paid/digital advertising, affiliate marketing, and secondary sales channels to increase revenue. Additionally, the owner has built an extensive network of buyers that could be optimized for enormous licensing agreements and subsequent repeat business.
The business boasts over 300 hat styles and ships its high-end products to thousands of unique visitors each month. The company has impressive annual revenue and margins, which have been stable for some time. The average order value of its custom ranges is healthy, with repeat orders up to 22% with wholesalers, indicating customer satisfaction and brand loyalty.
The hat manufacturer appeals to a wide customer base, including luxury brands and everyday brands, generating thousands of positive reviews from satisfied customers. The company’s custom ranges command an incredibly healthy average order value; they strive to maintain their most significant asset, their customer base, by focusing on quality and craftsmanship for each hat produced.
BUSINESS MODEL & RESOURCES NEEDED
The business has an established team of 50 employees with highly skilled expertise over the years. The owner is willing to transition to a new role and work with the new buyer for an unspecified projected period based on their needs.
THE INDUSTRY
The fashion apparel market is for a highly profitable industry, with estimated earnings of $2 trillion by 2026, driven by global demand, especially in the United States and China. The hat industry has year-round consistent sales peaking during the summer and winter months. This business has maintained its status as a reputable hat maker for over 80 years, with a wide selection of men’s headwear.
OPPORTUNITIES TO SCALE
The new owner could quickly achieve tremendous success with this opportunity and scale the business to new levels of profitability by expanding into unexplored markets. For example, someone with eCommerce expertise could detonate D2C sales and retain and grow wholesale accounts while tapping into digital advertising and secondary sales channels.
Asking Price: $7,500,000
Gross Income: $4,381,277
Cash Flow: $1,601,351
Year Established: 1947
Employees: 50
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