Premium Men’s Shoes Brand: Direct to Consumer Sales with 420% YOY Earnings Growth and Low Working Capital Requirements.
This company offers a collection of premium men’s shoes and accessories, highlighted by their fine craftsmanship and comfortable fits. Generating millions in lifetime revenues and seeing consistent 420% YoY earnings growth, they’ve built a strong customer base thanks to their marketing strategy, which includes an strong organic efforts and an excellent social media campaign. A footwear industry ripe with opportunity has allowed them to ship out nearly 300 products daily, with an AOV of $86. Little overhead thanks to a D2C model has made this business turnkey for its owners, who spend a mere 2-5 hours per week handling their work.
OPERATIONS
The company uses a strong organic marketing strategy consisting of social media, email marketing, and a thorough SEO program to attract new customers, leading to a steady influx of profit. Their Average Order Value now sits at $86, these sales quickly add up to massive profit for the business. The company now ships nearly 300 orders per day, and outside of a sharp spike during the holiday season, enjoys consistent sales year-round. The company has little in the way of overhead costs, as not only have they established strong relationships with all of their suppliers, but their key manufacturer can also provide 100% of its inventory. All products are DropShipped straight from the suppliers to the customer.
Little overhead thanks to a D2C model has made this business turnkey for its owners, who spend a mere 2-5 hours per week handling their work. They have constructed strong relationships with all of their suppliers, and their key manufacturer can provide 100% of inventory. All products are DropShipped straight from the suppliers to the customer.
MARKETING AND KEY METRICS
The company has constructed a fantastic organic marketing campaign through their use of social media. They have performed excellently on Facebook and TikTok, having over 10,000 followers on the former, and witnessing millions of views on their posts on the latter. TikTok has been especially effective in generating traffic, being responsible for over 10% of their total revenue. They also have a thorough email marketing campaign, which lets them make effective use of the over 120,000 subscribers available in their email database. The company sends out multiple newsletters every week to these contacts, with this strategy helping to produce up to 25% of their overall revenue. Another facet of their advertising plan is the SEO program that they have in place. This program includes multiple blog posts and backlinks, which improves their search rankings and the overall amount of attention.
The company is in a great place to scale shortly after purchase. They could easily boost sales by expanding to Amazon, Walmart, and eBay and using Amazon’s international platforms to pursue global expansion. They could also begin to hold their own inventory, which the current owner has determined would save about 25% COGS. They could also add new SKUs to their product line and expand on their existing offerings. They could start taking on wholesale accounts, broadening the number of customers they cater to.
The company’s key metrics include 420% YoY earnings growth, a $12 million valuation, an AOV of $86, and an organic marketing campaign that accounts for the majority of their customer outreach and nearly 25% of their total revenue. They handle nearly 300 orders per day over DropShipping, with no reliance on any one supplier for the entirety of their inventory.
This eCommerce Brand reaches a dedicated following within the immensely popular and highly evergreen market of Men’s Dress Shoes and related accessories. While most of their customers are made up of men looking to buy shoes for themselves, they also see attention from women purchasing gifts for their husbands, fathers, and other loved ones.
BUSINESS MODEL & RESOURCES NEEDED
The business is undeniably turn-key for its owner, who spends 2 to 5 hours per week tending to it. They are assisted by their qualified team of contracted employees, who handle the bulk of the company’s workload. The current owner is also available to help the buyer during the transition, making it much easier for them to get accustomed to the role and their new duties.
THE INDUSTRY
The footwear industry is a necessary product for consumers of any and all demographics. Different types of shoes are also needed for different situations, such as tennis shoes for exercise, or heels for formal occasions. And shoes need to be upgraded constantly – all of these things allow this industry to be evergreen in nature. Though footwear is a sub-category of the larger clothing and apparel industry, it is an evergreen market that features many different types of high-demand products. These include, but aren’t limited to, sneakers, sporting shoes, business shoes, and the pricier luxury shoes. Shoes may be a necessity for different situations, but many consumers also prefer to purchase a variety of types that best fit their personal styles and tastes, driving market growth even higher.
OPPORTUNITIES TO SCALE
With little competition, excellent SKUs, and low overhead costs and responsibilities, this business is ready to take the next step to success. They are already in the process of adding recurring revenue through a subscription-based VIP club for first-time buyers. By expanding to Amazon, Walmart, and eBay, using Amazon’s international platforms to pursue global expansion, and taking on wholesale accounts, they will have no shortage of opportunities to scale.
Asking Price: $3,300,000
Gross Income: $9,115,345
Cash Flow: $1,076,636
Year Established: 2020
Employees: 1
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
