couple at beach

20-Year Swimwear & Apparel Brand with 23% Repeat Customer Rate

This eCommerce business specializes in the sale of swimwear and swim accessories for both men and women. With its own proprietary brand of swimwear and accessory fashions, the company has successfully marketed and expanded its SKU to offer 125 products. The industry is valued at $18.8 billion as of 2018 and expected to grow to $29.1 billion by 2025, making it a lucrative market. The company has a 25% repeat customer rate and brought in over $450,000 in gross revenue last year. With sales across multiple eCommerce platforms and a strong social media presence, the company is positioned for rapid growth.

OPERATIONS

The company has a highly efficient system that requires minimal daily workload. The current owners only spend 15 hours per week running the business, which includes website and ecommerce maintenance, production oversight and product design assistance. They have three employees, who handle restocking inventory, handling packaging and shipping, and managing customer service inquiries. The company’s product line is released weekly between November and March, with new products continuously added to the line throughout the year.

The company has a 950 square foot facility that is used for production, warehousing, shipping, and administrative work. They also use Fulfillment By Amazon for their Amazon purchases. With a highly efficient system, the company only requires minimal daily workload. Restocking inventory, handling packaging and shipping, and managing customer service inquiries are all managed by the employees.

MARKETING AND KEY METRICS

The company’s marketing strategy includes a mix of paid and organic traffic through social media and blog posts. The company has a strong presence on social media with over 139,000 followers on Facebook, 3,600+ on Instagram, and 15,200 on YouTube. Email marketing has also been highly effective with a database of 15,000+ subscribers. The company averages 18 orders per day, with 83% of sales conducted on their website, 12% on Amazon, and 6% on Etsy. The company has used a highly effective social media campaign, combined with SEO enhancements to increase revenues by 21% last year.

The company’s sales are conducted on their website, Amazon platform, and on Etsy. Potential growth opportunities include expanding their product lines on Amazon and Etsy and increasing their social media presence. Only 15 out of their 125 products are currently listed on Amazon, with the majority of their products sold on their website. The company is approved to sell on Walmart and could use this channel for international distribution.

The company has a 25% repeat customer rate and had over 1.1 million visitors to their website last year. They have a gross profit margin in excess of 80% and return refund rates below 6%, both significantly better than the industry norm. Email marketing has proven to be highly effective, and the company has 15,000+ subscribers with up to 1,000 new subscribers added each year. The customer base rose from 11,200 in 2019 to over 15,000 in August 2021.

The company’s customer base consists of men and women between the ages of 45-65+. The majority of their buyers are men who make 55% of sales and are buying these products for women. With a 25% repeat customer rate, the company has a loyal customer base. They had over 1.1 million visitors to their website last year, and 4.4 million page views. Their email database has 15,000+ subscribers with bi-weekly email promotions sent out to them.

BUSINESS MODEL & RESOURCES NEEDED

The company has three employees, including a seamstress, a fabric cutter, and a shipping coordinator. Weekly tasks are managed by the employees, with the current owners only spending 15 hours per week running the business.

THE INDUSTRY

The swimwear and swim accessories industry is valued at $18.8 billion as of 2018 and expected to grow to $29.1 billion by 2025. This makes it a highly lucrative market, especially with vacations and beach resorts slowly opening up. Swimwear for both men and women is sold worldwide, with brands such as Speedo, Nike, and Billabong taking on a significant market share. The introduction of online swimwear stores creates an opportunity for buyers to increase their selection and purchase products online.

OPPORTUNITIES TO SCALE

The company could expand its sales channels by adding more SKUs to Amazon’s overseas platforms and Walmart. The company could develop a more aggressive social media campaign that focuses on platforms where their products are not currently being marketed and utilize keyword research to help expand organic traffic to their website. The clearest option for expanding profitability would be to continue to add new SKUs to the Amazon store, which shows significant growth trends. The company has already successfully used this strategy to balance seasonality and could continue to do so.

Asking Price: $600,000
Gross Income: $450,952
Cash Flow: $217,648
Year Established: 2001
Employees: 3

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