Social Media-Driven Men’s Fashion Jewelry Brand: 6 Years in Business with 30% Repeat Order Rate
This Men’s Fashion Jewelry eCommerce Brand is a well-established online business that specializes in selling high-quality and trendy jewelry items for men. With a strong reputation for providing fashionable and on-trend products, the brand has developed a loyal customer base and a staggering 30% repeat order rate. The company has experienced significant growth, with a 34% year-over-year increase in gross revenues. The business operates primarily through its own Shopify website and has a strong presence on social media platforms like Instagram and YouTube. With the potential to expand into new sales channels and diversify its product offerings, this eCommerce brand offers significant scale opportunities for a new owner.
OPERATIONS
The operations of this eCommerce brand involve managing inventory, fulfilling orders, and providing excellent customer service. The company stocks items in a 400 square foot warehouse and averages about 10 orders a day. The owner spends 40 hours per week running the business, handling tasks such as social media management, researching growth opportunities, purchasing items low in stock, managing customer service, and writing texts for text marketing. The company has one employee, a shipping manager who packages orders, and uses a contractor to handle customer service emails.
The supply and logistics of this eCommerce brand involve managing inventory in a 400 square foot warehouse. The brand currently maintains about $140,000 worth of inventory, with new orders placed every few months. The company works with a manufacturer to create its specialized men’s hip hop/streetwear jewelry items.
MARKETING AND KEY METRICS
The marketing strategy of this eCommerce brand is heavily focused on social media, particularly Instagram and YouTube. The company has a massive following of 312,000 followers on Instagram and actively posts 2-3 times a day. Influencer marketing has also been employed to promote the brand. In addition to social media, the brand runs PPC ads on Facebook and Google, with a high return on investment. Email marketing is another effective tool, with a subscriber base of nearly 40,000. The brand could further expand its marketing efforts by implementing SEO strategies and launching a blog on its website.
Sales for this eCommerce brand are primarily conducted through its own Shopify website. However, there are opportunities for growth through diversification into other sales channels. Listing the brand’s products on eCommerce giants like Amazon, Walmart, and eBay would expand its reach and potentially result in significant sales growth. Additionally, the brand could explore wholesale opportunities and expand B2B sales by targeting retailers interested in men’s hip hop/streetwear jewelry. The company’s products are highly popular, and new product offerings based on trends in the hip hop culture and past sales trends could further drive sales growth.
Key metrics for this eCommerce brand include a 30% repeat order rate, a 34% year-over-year increase in gross revenues, an average order value of $100, and an average customer lifetime spend of $150-$200. The brand has a strong social media following, with 312,000 Instagram followers and 2,700 YouTube subscribers. The email subscriber base is nearly 40,000, and the company has experienced 300,000+ total video views on YouTube.
The customer base of this eCommerce brand primarily consists of 16-25-year-olds who are fans of rap music, fashion, and urban culture. While the largest ethnic demographic is African Americans, the brand also markets to Latinos and Caucasians. With an average order value of $100 and a high repeat customer rate, the brand has cultivated a loyal customer base. The average customer lifetime spend is around $150-$200.
BUSINESS MODEL & RESOURCES NEEDED
The eCommerce brand has one employee, a shipping manager who packages orders. Customer service emails are handled by a contractor. The owner spends 40 hours per week running the business, focusing on tasks such as social media management, research, purchasing, and customer service.
THE INDUSTRY
The men’s fashion jewelry industry is a lucrative and rapidly growing market. The global men’s wear market has grown faster in recent years than women’s wear, with a projected growth of $40 billion. Men’s interest in fashion accessories, including jewelry, has increased, and this brand has capitalized on that trend. With a focus on men’s hip hop/streetwear jewelry, the brand has attracted a primarily 16-25-year-old customer base interested in rap music, fashion, and urban culture. The brand has cultivated a strong following among African American, Latino, and Caucasian demographics. The popularity of rap music and the mainstream fashion trend of hip hop jewelry have contributed to the success of this brand.
OPPORTUNITIES TO SCALE
This eCommerce brand offers significant scale opportunities for a new owner. One potential avenue for growth is channel diversification, such as listing products on Amazon, Walmart, and eBay. This would expand the brand’s reach and potentially drive significant sales growth. Another opportunity is product creation, with the addition of new products based on trends in the hip hop culture and past sales trends within the company. Increased marketing efforts, including SEO strategies and a blog, could also drive organic traffic and sales. Finally, expanding into the wholesale market and targeting retailers interested in men’s hip hop/streetwear jewelry presents another avenue for growth.
Asking Price: $400,000
Gross Income: $401,694
Cash Flow: $137,616
Year Established: 2015
Employees: 3
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