Scaling a Cosmetics Brand with a Powerful Social Presence, High Repeat Order Rate, and US Licensing Rights
This company operates under a licensing agreement and offers women’s cosmetic items to form a stunning revenue-generating machine that’s brought in millions in revenue in the last 12 months.
OPERATIONS
The current owner spends 7-10 hours a week running this business, with primary tasks that include managing Facebook ads, creating new Facebook creatives, and checking team messages. The owner employs several contractors including a full-time customer support manager, a dedicated agent in China and his employees, a part-time video editor, and a part-time public relations manager.
Sales are done entirely through the website on Shopify, with a hybrid inventory model for deliveries. Orders are air-shipped daily from a warehouse in China, through an agent who fulfills orders. This approach has provided the company with faster shipping times and daily fulfillment of orders by having the right amount of inventory available.
MARKETING AND KEY METRICS
Successfully leveraging social media to boost the brand’s name recognition, they’ve attracted 6,400+ followers on Instagram and an even more impressive 28,190+ followers on Facebook. The brand’s current campaigns focus on acquiring new customers, with the majority coming from the United States, Australia, and New Zealand.
The company primarily sells its products through its website and utilizes PPC ads on Facebook for promotion. There are opportunities to expand through advanced marketing techniques, such as launching an SEO program, starting a blog, and utilizing influencer marketing campaigns.
Since inception, the company quickly gained a highly receptive audience for its soft matte liquid foundation, which has earned outstanding reviews from customers. Leveraging an AOV of upwards of $27, revenues soared tremendously within the last twelve months; with projections that revenue will rise to even greater heights by the end of the year.
The average customers of this company are women in their 50s who regularly use makeup and foundation. The company has a high return customer rate of 16.2% and a large email database of 192,000+ engaged addresses.
BUSINESS MODEL & RESOURCES NEEDED
The owner employs several contractors including a full-time customer support manager, a dedicated agent in China and his employees, a part-time video editor, and a part-time public relations manager.
THE INDUSTRY
The cosmetic industry is worth billions globally, and there is a high demand for skincare products, especially anti-aging products. This company focuses on offering the best foundation available in cosmetics. Their soft matte foundation has a waterproof, oil-free, and lightweight formula that hides various imperfections. The company buys the products directly from the manufacturer and has a 10-year auto-renewing agreement to use the brand trademark.
OPPORTUNITIES TO SCALE
There are numerous opportunities to scale this company, particularly through advanced marketing techniques. Launching the company’s first SEO program to boost traffic organically and start a blog on the website would undoubtedly aid in expansion and increase profitability. The company could also continue to make effective use of both Facebook ads acquisitions and influencer marketing campaigns to boost traffic.
Asking Price: $4,500,000
Gross Income: $6,310,832
Cash Flow: $1,482,317
Year Established: 2020
Employees: 7
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