Unique Social Media-Driven Jewelry Brand with 30% Net Profits, Branded Website and Hybrid Inventory Model
This eCommerce retailer offers necklaces, pendants, rings, earrings, bracelets, anklets, and custom-made jewelry. The designs are influenced by the jewelry worn by the Queen of Scotland and the urban hip hop culture. All designs originate in Scotland, and the company has grown its product array to 150+. It has strong EBITDA margins in excess of 30%, an Average Order Value of $206 over the past six months, and 16,800+ Instagram followers who have posted a total of 204 images to date.
OPERATIONS
The company requires little to no sunk costs and can be run effectively from anywhere. It requires 2-4 hours of ownership oversight, and the owner is responsible for VA coordination, order tracking, new product design, and catalogue curation. This involvement level could easily be minimized with the addition of another VA for administrative needs. There is currently 1 VA working at this company who is willing to stay on.
The company leverages a highly impactful hybrid inventory model, and requires little to no sunk costs. The company is responsible for VA coordination, order tracking, new product design, and catalogue curation, and there is currently 1 VA working at this company who is willing to stay on.
MARKETING AND KEY METRICS
The company currently markets mostly through social media channels, utilizing a highly impactful hybrid inventory model. It has a dynamic marketing mix of Facebook and Instagram, organic use, and paid placements, and has achieved a whopping 3X ROAS. It also utilizes a strong e-mail marketing strategy with a database of 13,000 qualified contacts.
The company sells only through its own website, which has proven to be a wildly successful channel. However, extending the offers into spaces such as Amazon.com and brick and mortar retailers are strong opportunities to drive increased revenue. Additionally, this company could see a dramatic uptick in sales by building out their wholesale options and industry partnerships.
The majority of this company’s best sellers are necklaces, which currently account for 60% of profits, while bracelets follow at 30%, and both rings and anklets bring in 10%, respectively. It could increase its market awareness dramatically by working with other vendors and extending its offers into spaces such as Amazon.com and brick and mortar retailers. It currently sells only through its own website.
The company’s primary target market is females who are interested in fashion jewelry. Its products are influenced by the jewelry worn by the Queen of Scotland and the urban hip hop culture.
BUSINESS MODEL & RESOURCES NEEDED
There is currently 1 VA working at this company who is willing to stay on.
THE INDUSTRY
This eCommerce retailer operates in the women’s fashion jewelry industry. Female consumers are the primary target market. The global women’s jewelry market size was valued at USD 114.21 Billion in 2018 and is expected to reach USD 185.21 Billion by 2026, exhibiting a CAGR of 6.4% during the forecast period 2019-2026. Major players in the industry include Pandora, Tiffany & Co., and Swarovski. The industry is predicted to see continued growth due to increasing per capita income and changing lifestyles of women.
OPPORTUNITIES TO SCALE
This acquisition has a proven track record of growth, success, and effective customer care that can be further developed by a new owner. It could scale through wholesale offerings, diversified sales channels, additional SKU development, and transitioning the brand into adjacent verticals.
Asking Price: $565,000
Gross Income: $531,781
Cash Flow: $162,529
Year Established: 2019
Employees: 1
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