High-Growth Men’s Grooming Brand: Ecommerce Retail & Growing Subscriber List
This company is a leading brand in the men’s grooming and beard treatment categories, with a strong focus on the male demographic. They have built a beautiful brand presence and offer a range of high-quality products including beard oils, balms, brushes, combs, shampoos, and conditioners. With thousands of positive reviews on Amazon, their products have proven to be well-received by male consumers. The company primarily operates through the Amazon sales channel using the Fulfilled by Amazon (FBA) logistics model. They have a growing subscriber list and are well-positioned for growth and scale opportunities in the industry.
OPERATIONS
The company efficiently manages inventory by using a mix of storage between a third-party logistics provider (3PL) and Amazon. All sales are currently fulfilled by Amazon, but as the company scales into other platforms, they plan to use the 3PL for shipping products to consumers. The average order value for their products is $13.50, and they have a repeat customer rate of 25%. They have also acquired over 25,000 subscribers, which is growing at a rate of 80 new subscribers per day.
The company currently uses the Fulfilled by Amazon (FBA) logistics model for storage, picking, packing, and shipping of all goods. They efficiently manage inventory by utilizing a mix of storage between a third-party logistics provider (3PL) and Amazon. As the company scales into other platforms, they plan to use the 3PL for shipping products to consumers.
MARKETING AND KEY METRICS
The company’s marketing strategy primarily revolves around the Amazon sales channel. They have established a strong presence on the platform with 7 of their products ranking in the top 20 in their breadcrumb. The company also has a 100% positive feedback rating on a five-star Amazon seller central storefront. They have the opportunity to expand their marketing efforts to other online sales channels, social media, and offline channels such as brick-and-mortar retail and wholesale.
The company’s primary sales channel is Amazon, and they have achieved exceptional month-over-month growth on the platform. They have a strong positioning within the Beard Conditioners and Oils category on Amazon, holding 7 of the top 20 products sold. As the company expands to other online and offline channels, such as Walmart and brick-and-mortar retail, there are significant opportunities for further sales channel growth.
Key metrics for this business include revenue, subscriber growth, average order value, repeat customer rate, and customer reviews. These metrics provide insights into the company’s performance, brand loyalty, and customer satisfaction levels.
The company has a growing customer base with over 4,000 lifetime account reviews and thousands of product reviews. Their target customer base is primarily male consumers who are interested in men’s grooming and beard treatment products. The company’s strong brand presence and positive customer feedback contribute to customer loyalty and repeat purchases.
BUSINESS MODEL & RESOURCES NEEDED
The company has a well-coordinated team and operations infrastructure in place. They have a hands-off 100% FBA fulfillment platform, allowing the team to focus on brand development and scale. Ownership is offering comprehensive transition training to the new owner, including new product launches and more.
THE INDUSTRY
The men’s grooming industry is experiencing significant growth, driven by increasing awareness and demand for skincare and beard treatment products among men. This trend is fueled by changing societal norms and attitudes towards male grooming and self-care. The industry includes various sub-categories such as skincare, beard care, hair care, and personal care. Examples of well-known brands in this industry include Harry’s, Dollar Shave Club, and Jack Black. The market is highly competitive, with a mix of established players and emerging brands.
OPPORTUNITIES TO SCALE
There are several scale opportunities available for this business. These include expansion to other global Amazon markets, such as Canada, UK, Australia, Europe, and Asia-Pacific, as well as expansion into other online sales channels. The company can also focus on social media marketing and driving traffic to their branded website. Additionally, there is the potential for expansion into brick-and-mortar retail and wholesale, targeting stores like CVS, Walgreens, and Sephora.
Asking Price: $17,500,000
Gross Income: $13,083,399
Cash Flow: $4,056,688
Year Established: 2017
Employees: 10
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