High-Growth Furniture Brand with Wholesale, Ecommerce and International Sales Channels
This company is an industry-leading provider of indoor and outdoor furniture. They have been supplying retailers nationwide for over 20 years, offering exclusive wholesale private label products. With the recent shift to eCommerce, their DTC sales have grown significantly, and they have a strong reputation for value, affordability, and excellent customer service. Their operations include a team in China that handles sourcing, merchandising, and shipping. The industry is experiencing high growth, with the home furnishings market projected to reach $120 billion in 2021. The company has a large variety of sales channels, both wholesale and eCommerce, and has potential for scale with additional SKUs. They have a diverse customer base and are classified as an online furniture business.
OPERATIONS
The company operates through a combination of wholesale and eCommerce channels. They have a team in China that handles sourcing, merchandising, QA/QT, shipping, and accounting. The company’s products are designed and manufactured for them in China. They have two Shopify websites and two Amazon platforms. They use various digital marketing tactics, including PPC ads on Google and social media, SEO, and an educational blog. They ship products from their 50,000 square foot warehouse and offer dropship and direct shipping options for wholesale accounts.
The company’s supply and logistics operations are managed by a team in China. They handle sourcing, merchandising, QA/QT, shipping, and accounting. The company ships products from their 50,000 square foot warehouse and offers dropship and direct shipping options for wholesale accounts.
MARKETING AND KEY METRICS
The company uses digital marketing tactics such as PPC ads on Google and social media sites like Facebook and Instagram to attract new customers. They also run PPC ads on Amazon. They have an SEO program to improve search engine ranking and an educational blog to attract new customers. Their Repeat Customer Rate is rising, and they have positive reviews on their Amazon platform.
The company has a large variety of sales channels, including wholesale and eCommerce. They are experiencing impressive growth in DTC sales through their Shopify websites and Amazon platforms. They use digital marketing tactics to drive sales and have a rising Repeat Customer Rate. The company has the opportunity to further grow their sales channels by expanding their SKU offerings.
The key metrics for this company include sales revenue, repeat customer rate, average order value, and customer reviews. They also track metrics related to marketing effectiveness, such as PPC ad performance and search engine rankings.
The company has a diverse customer base that includes both wholesale and direct-to-consumer customers. Their products cater to anyone who owns or rents a home, and they have a strong reputation for high quality products, affordability, and excellent customer service.
BUSINESS MODEL & RESOURCES NEEDED
The company has 50 employees, including 20 in the United States and 30 in China. The US team consists of account managers, customer service representatives, a production team, an office manager, and a warehouse manager. The China team handles various operations, including sourcing, merchandising, shipping, and more. The company may also hire contractors for marketing efforts.
THE INDUSTRY
The company operates in the home furnishings industry, which is experiencing high growth due to the hot real estate market and increased spending on home renovations. The industry is projected to reach $120 billion in 2021 and is growing by 4%. There is also a growing interest in outdoor furniture, with the market projected to reach $6.7 billion by 2027. The company’s diverse catalog and focus on attractive and comfortable outdoor furniture position them well in this industry.
OPPORTUNITIES TO SCALE
There are significant scale opportunities for this company. They currently offer only 10% of the items available in their furniture catalog, leaving room for expansion and growth. By adding more SKUs to their existing sales channels, a buyer could expect massive growth. The company is also open to a partnership with a buyer who can help take the business to $100M in revenue and beyond.
Asking Price: $90,000,000
Gross Income: $50,193,005
Cash Flow: $14,439,495
Year Established: 2017
Employees: 50
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