Opportunity to Own a Profitable Long-Standing Business in the Soap & Body Care Industry
Australia’s oldest family-owned soap manufacturer that quickly became influential in the vertical and continues to garner immense respect from consumers, the wholesale gift industry, and the manufacturing industry at large. Originally started in 1983, this company is chiefly a manufacturing and eCommerce operation but also imports an accessories gift line. Historically, sales were predominantly B2B, typically generated through regular trade fair attendance and in-house sales. However, throughout the pandemic, management adeptly established multiple new revenue streams through directly managed eCommerce websites, including a wildly successful eco-friendly range of solid haircare and body care products that aim to eradicate the need for wasteful plastics in the bathroom and beyond. That brand focuses primarily on direct retail, giving it access to higher profit margins. It has witnessed enormous growth since its launch in 2018 and has been featured in major publications such as Sydney Morning Herald, Better Homes and Gardens, Channel 10, and New Idea.
OPERATIONS
The company has a broad customer base, including gift shops, department stores, and pharmacies. It is focused on the thriving eco and health food audience. The diverse range of wholesale customers, spanning over 3,700, supports the business year-round, and the company is associated with several highly respected distributors. Across 1,900 SKUs, the business enjoys average order values of $65, $650, and $10,000 from retail sales, wholesale, and distributors, respectively. Furthermore, it boasts a repeat customer rate of 75% and an extensive email database of 63,000 subscribers. The manufacturing capabilities are impressive and encompass an abundance of products. Most raw materials are sourced from Australia, allowing quick turnaround times on contract orders and in-house stock. The company also holds a chemical import license and directly imports some of its components. All products are manufactured on-site at the company’s facility, from where 150 to 200 orders are dispatched daily.
Most raw materials are sourced from Australia, allowing quick turnaround times on contract orders and in-house stock. The company also holds a chemical import license and directly imports some of its components. All products are manufactured on-site at the company’s facility, from where 150 to 200 orders are dispatched daily.
MARKETING AND KEY METRICS
Digital marketing is straightforward yet effective. Social media advertising on Facebook, Instagram, and TikTok drives traffic and new prospects to the website, in addition to influencer partnerships. The business achieves strong sales throughout the year. However, the original brand enjoys a peak from September through February when wholesale customers stock for Christmas and re-stock in January. The second brand and other direct retail avenues are generally evergreen throughout the year.
The business achieves strong sales throughout the year, with the original brand experiencing a peak from September to February. The second brand and other direct retail avenues have consistent sales year-round. There are multiple growth opportunities in expanding the eCommerce channels, introducing new product lines, and tapping into international markets.
Across 1,900 SKUs, the business enjoys average order values of $65, $650, and $10,000 from retail sales, wholesale, and distributors, respectively. The company boasts a repeat customer rate of 75% and an extensive email database of 63,000 subscribers.
The customer base includes gift shops, department stores, pharmacies, and the thriving eco and health food audience. The business has over 3,700 wholesale customers and a diverse range of retail customers.
BUSINESS MODEL & RESOURCES NEEDED
Thirteen employees work in various capacities including machine operators, dispatch and warehouse staff, HR, office manager, data entry and customer liaison, general data entry, and digital marketing manager.
THE INDUSTRY
The soap and body care industry is a thriving market, especially with the growing interest in eco-friendly and sustainable products. This business has positioned itself as a leader in this space with its range of solid haircare and body care products that aim to reduce plastic waste. Other examples of companies in this industry include Lush Cosmetics, Dr. Bronner’s, and The Body Shop.
OPPORTUNITIES TO SCALE
With a strong customer base, extensive product range, and successful eCommerce channels, there are significant scale opportunities for this business. For example, expanding the eco-friendly product line, entering new markets through international expansion, and potentially opening physical retail locations.
Asking Price: $500,000
Gross Income: $1,383,502
Cash Flow: $163,070
Year Established: 1983
Employees: 13
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