Licensed & Unlicensed Accessories Retailer with 65% Direct-to-Consumer & 35% Business-to-Business Sales
This eCommerce retailer operates under a variety of well-known brands that have become leaders in its niche of licensed and unlicensed products and novelty accessories. It designs, manufactures, and distributes its range of products from its Midwest warehouse operation, with valuable licenses from the likes of Disney, Dream Works and other well-renown studios. The company’s 40+ workforce provides an excellent platform to bolt on additional eCommerce companies through a shared services model.
OPERATIONS
The company’s in-house design team controls the design of all products it produces. The focus is on quality, and the company has close-knit relationships with suppliers throughout Asia to ensure high-end product quality. The company is moving from a B2B to DTC sales model, with Amazon making up more than 95% of all eCommerce sales that occur in the USA. Licensed products currently account for 60% of all product sales.
The company controls its products’ design with its in-house design team and holds close relationships with suppliers throughout Asia through its Asia-based employees. This helps to ensure that highest quality of products available.
MARKETING AND KEY METRICS
The Mature Retailer has a strong presence on both its website and through the Amazon sales channel. However, there is immense opportunity for growth via other online channels like Walmart. As an effective move to reduce Customer Acquisition Costs, it aims to move from a B2B to DTC sales model, focusing firstly on the Amazon platform®.
The company has made a shift from B2B sales to DTC sales, with Amazon making up most of its eCommerce sales. They are moving to focus on more profitable DTC sales, which helps reduce Customer Acquisition Costs.
The company’s focus is very niche-specific, and its highly valuable and aged licensing relationships help create unique, proprietary designs that are specific to its industry. The focus on quality has enabled the company to win licensing rights with brand owners for an extended period.
The company sells branded accessories and novelty wear to customers across the US through its DTC and B2B sales models, targeting a niche audience of people that are passionate about their favorite characters from DreamWorks and Universal Studios.
BUSINESS MODEL & RESOURCES NEEDED
The company has built an excellent team to handle logistics, marketing, product design, administration, and customer services tasks.
THE INDUSTRY
This company specializes in the retail of licensed and unlicensed accessories and novelty wear. They sell products like branded mugs, apparel, toys, and games by acquiring valuable licensing rights from renowned brands like DreamWorks and Universal Studios.
OPPORTUNITIES TO SCALE
With well-tested foundations in both domestic and international sales channels, this eCommerce retailer is positioned to be a ‘push-button’ scale opportunity, especially with its already established Amazon presence. Acquiring other eCommerce brands will be a viable growth strategy, and the use of this company’s human capital, logistical abilities, and systems will make that growth much more natural.
Asking Price: $8,500,000
Gross Income: $15,000,000
Cash Flow: $2,125,000
Year Established: 1993
Employees: 45
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