Unique Men’s Pants Brand with 5 Straight Years of Growth in Europe and US
This direct-to-consumer eCommerce brand specializes in unique and modern trousers, jeans, shorts, and tops designed in-house with high-quality stretch materials. The company has a strong online presence with 197,000+ Instagram followers and an impressive 30%+ repeat order rate.
OPERATIONS
The company focuses on the Male Demographic and offers distinctive, new designs that match the needs of their specific customers. The company operates a 100% stock inventory model and maintains a sufficient inventory of around $200,000 to continue consistent revenues for at least two to three months. A primary manufacturer based in China produces 80% of the goods, while the rest is ordered from Turkey. The company has developed excellent vendor relationships with both manufacturing and delivery partners.
The company operates a 100% stock inventory model, where orders are placed every second month on a 30% deposit payment term. Production of goods takes 4 to 6 weeks, and orders are shipped from the Netherlands or the US-based 3PL.
MARKETING AND KEY METRICS
The marketing strategy involves a combination of organic marketing efforts (SEO) and paid media advertising (SEM). The company invests heavily in content and branding, working with photographers and famous models to stand out in the fashion niche. The team also pays close attention to stock levels to ensure that all advertised products are available when advertised.
The company generates 300+ daily shipments, with little seasonality in sales. It experiences a peak in Q4 due to black Friday, Christmas gifts, and holiday shopping. To create further growth, the company could expand its inventory to meet existing demand and also explore other sales channels, such as Amazon and other online marketplaces.
The company has an impressive 30%+ repeat order rate, a customer lifetime value of over $200, and an average order value of $110. The brand has a strong online presence, with 197,000+ Instagram followers, a 300+ daily shipment rate, and excellent product reviews.
The typical customer is a male between his late teens and mid-forties, living in the western world and looking for modern apparel with an excellent fit and stylish look. After ordering a pair of trousers or jeans to try, new customers often return for a larger order, resulting in a customer lifetime value of over $200.
BUSINESS MODEL & RESOURCES NEEDED
The owner works only two hours per week, focusing primarily on talking with managers, analyzing data, and strategizing future endeavors. Additional part-time staff includes a general manager, customer service manager, customer service team, and an all-around creative person.
THE INDUSTRY
The e-commerce clothing industry is highly competitive and lucrative, with both established and emerging brands vying for a share of the market. However, the company specializes in the trousers category, offering modern and unique designs that target the male demographic. They have successfully filled a gap in the market, providing customers with premium-quality trousers that fit perfectly and are ideal for different occasions.
OPPORTUNITIES TO SCALE
There are several opportunities for the company to scale, including the expansion of inventory to meet existing demand, opening a US-based 3PL, and exploring other sales channels. With a capital injection, the company could see an immediate boost in revenue of up to 200%. Given its highly automated nature, no specific skills are necessary to run the business.
Asking Price: $4,900,000
Gross Income: $6,233,246
Cash Flow: $1,636,157
Year Established: 2018
Employees: 7
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