The eCommerce brand has been in the hair products industry for 13 years and sells 16 proprietary formulas through its Amazon, DTC and wholesale sales channels. The business is achieving almost 2X year over year growth by offering affordable hair products that build body and create touchable hold for women with fine and thin hair. The products use natural oils, extracts and botanicals to create UV protection and deliver performance-driven results. The business has steady year-round sales with its typical customer being a 45-60 year old woman located in the Southeast, Florida, and Texas.
The business has four streams of revenue, including a Shopify-built website, wholesale channels, Amazon Seller Central, and distributors. The Shopify website drives revenue and accounts for almost 50% of all sales by offering tutorials, testimonials, rewards, and bundles via email campaigns, ad campaigns, and subscription models. Consistent orders from salons and stylists through the wholesale channels develop long-term relationships and account for the second highest sources of revenue. The business has established itself on Amazon, offering products sold Prime generating $21,000 – $25,000 monthly, and utilizes distributors for approximately 7% of sales.
The business maintains a volume of three months inventory at any given time that equates to 10% of total revenue. The business handles orders ranging between 50 to 200 and ships its products from its warehouse in Florida. The owner outsources the website maintenance, email and advertising campaigns, brand strategy and design, and packaging design to external agencies. The warehouse employs two personnel who fulfill administrative and sales duties and warehouse-related tasks.
MARKETING AND KEY METRICS
The business focuses on marketing efforts on Facebook and through their company blog for SEO purposes and the content for both is developed strategically between the owner and advertising agency. The target demographic of women aged between 45 and 60 is frequently engaged with video tutorials on Facebook and email campaigns with segmented flows. The business also operates an affiliate program through Shopify, subscription models, and a customer referral program.
To continue to scale, the business focuses on developing new long-term business relationships with salon owners and stylists, restructuring and expanding the Amazon Seller Channel, utilizing more influencers and affiliates, expanding the brand’s geographical footprint globally, and introducing products developed with the brand’s 4th generation of very successful formulas.
The business has recorded almost 2X YOY growth with $918,498 of gross income generating $285,909 in cash flow. The business has maintained three months of inventory, and posts all orders between 50 and 200 per day, shipped from a warehouse in Florida. The products are sold year-round, and the typical customers in the Southeast, Florida, and Texas are aged between 45 and 60 years old.
The business’s customer demographics primarily consist of middle-aged women with fine and thin hair who require affordable hair products that build body and create touchable hold. The typical customer is between 45 and 60 years old and lives in the Southeast, Florida, and Texas. The customer base operates through several sales channels, including DTC and wholesale channels, and accounts for 50% of the business’s total revenue.
BUSINESS MODEL & RESOURCES NEEDED
Human resources in this industry require knowledge of hair and beauty products. Skills and services required by the owner of this business include basic knowledge of the salon business, customer service, product forecasting for inventory, sourcing vendors for packaging, and product development.
The hair industry focuses on providing hair products for different hair types and skin conditions. The hair care industry has an estimated value of $87 billion by 2023 and the market is expected to grow over 7% annually until 2025. Industry direct competitors include Aveda, Bumble and Bumble, Kerastase, Dapr and Rusk.
OPPORTUNITIES TO SCALE
The business offers inspiring scale opportunities in creating its new derivatives, hair thickening SKUs, and expanding the brand’s international reach globally to revive the business’s stock life cycle. Further opportunities exist in expanding the brand’s direct-to-consumer channels, reseller relationships, and utilizing the brand’s influencer network for increased product visibility.
Asking Price: $915,000
Gross Income: $918,498
Cash Flow: $285,909
Year Established: 2009