Halo Hair Extensions Brand with Proprietary Designs and Growing Profits – 107 Products
This eCommerce brand specializes in selling high-quality halo hair extensions. With their proprietary designs, they have gained a strong social following and have experienced year-over-year profit growth. Currently, they offer 107 different products within the hair extensions niche.
OPERATIONS
The company has been in operation for approximately 6.5 years and has consistently focused on innovating and creating new products within the hair extensions industry. They source their products from reliable suppliers and maintain an inventory of approximately $250,000 to $300,000. The current owner spends around 10 hours a week managing the business, supported by a capable team of employees.
The company sources their products from two reliable suppliers who have been working with them for the majority of their existence. They maintain an inventory of approximately three months’ worth of stock and utilize three 3PL warehouses to fulfill orders.
MARKETING AND KEY METRICS
The company utilizes social media platforms, such as Facebook and Instagram, to market their products to their target audience. They have a strong following on both platforms and also rely on PPC ads and SEO strategies to drive traffic and sales. Their SEO program includes a popular blog on their website, which generates over 55,000 monthly visitors.
The company primarily sells their products through their own website but has the potential to expand their sales channels to other eCommerce platforms like Amazon, Walmart, and eBay. They have experienced consistent sales year-round, with a significant increase in profits during the months of July to December.
The key metrics for this business include strong profits with a cash flow of $441,714 and a gross income of $1,661,610. They have a repeat customer rate of 25% and an average order value of $256. Additionally, they have over 250,000 contacts in their email database and a return on investment of 5.5x.
The company has a diverse customer base from the US, Canada, the UK, Australia, and New Zealand. Their products appeal to a broad range of customers who are seeking a convenient and easy solution for achieving fuller and longer hair.
BUSINESS MODEL & RESOURCES NEEDED
The current owner spends around 10 hours per week managing the business and is supported by a team of employees. The team includes a social media manager, a manager in charge of emails and graphic design, a supply chain manager, and five customer service representatives.
THE INDUSTRY
The hair extensions industry is a rapidly growing segment within the overall hair care and beauty industry. It is currently valued at $364 million in the US alone and is projected to reach $10 billion globally by 2023. The company has positioned itself as a top provider within this industry with their unique halo hair extensions, which offer a convenient and easy way for customers to achieve fuller and longer hair.
OPPORTUNITIES TO SCALE
There are significant scale opportunities for this business. They can expand their product offerings to include other hair categories and explore new sales channels. With the industry projected to reach $10 billion globally, the company has a strong foundation to capitalize on this growth.
Asking Price: $1,650,000
Gross Income: $1,661,610
Cash Flow: $441,714
Year Established: 2016
Employees: 9
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