A Profitable Italian Beauty Brand with Over 500 Influencers and Celebrity Endorsements
This eCommerce business specializes in selling an advanced at-home device for blackhead and impurities removal that also firms and tones the skin. The company utilizes influencer marketing and offers excellent margins while also providing high-quality products and top-notch customer service.
OPERATIONS
The business primarily sells through influencers on Instagram and YouTube, utilizing a unique marketing strategy and maintaining a low cost per acquisition. The brand also offers free eBooks and discounts through influencer partners. The company employs three full-time employees, including a General Manager, Influencer Manager, and Customer Service Manager, with warehousing and fulfillment outsourced to a third-party logistics provider (3PL).
The hero device is manufactured in China, with the brand providing custom packaging. Replacement parts and filters are strategically offered to encourage repeat orders. Warehousing and fulfillment are outsourced to a third-party logistics provider (3PL).
MARKETING AND KEY METRICS
The company employs an effective influencer marketing strategy, with partnerships with over 500 influencers and approximately 1,000 influencer-generated videos showcasing the product’s effectiveness. The company has also secured celebrity endorsements from a variety of beauty industry professionals and personalities.
Sales and marketing are primarily driven through influencer partnerships and organic traffic. The company has an excellent cost per acquisition, a low refund rate, and loyal customers, allowing for stable growth. The business has also secured endorsements from prominent beauty industry professionals and celebrities.
The business has an 81% gross margin with COGS averaging $8.50, while the refund rate remains below 1%. Replacement parts and filters provide an opportunity to encourage repeat orders, and a Peeling Gel and a Clay Mask are sold individually or in a kit as complementary products. The primary product has the highest review rating on Trustpilot among its competitors.
The company caters to anyone looking for an innovative and at-home solution to blackhead and impurity removal, and has particularly resonated with consumers looking to try new beauty products.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a small but effective team of four, including an Influencer Manager, Customer Service Manager, General Manager, and primary owner. Minor projects are occasionally outsourced as needed.
THE INDUSTRY
The beauty industry is an incredibly lucrative market, with the global market expected to exceed $716 billion by 2025 and eCommerce sales projected to grow by 77% between 2021 and 2026. This company specifically offers an innovative and unique at-home solution to blackhead and impurity removal, with immediate visible results. Customers are more willing to try new products than before the pandemic, providing the company with enormous opportunities moving forward.
OPPORTUNITIES TO SCALE
The company has great opportunities for scale, with potential growth in offering moisturizers and expanding its eCommerce offerings. Additionally, the beauty industry is a rapidly growing market, and the company has developed a loyal customer base.
Asking Price: $633,000
Gross Income: $437,330
Cash Flow: $204,389
Year Established: 2021
Employees: 3
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