WebsiteClosers® presents an assets sale for a nearly 10-year-old DTC eCommerce business operating in the Women’s Care Products vertical. The business is dissolving and shutting down operations, prompting the launch of this valuable asset sale. This offering includes a massive $2.5+ million in inventory, which enabled the company to operate without putting in new orders from its suppliers. This DTC company markets a line of underwear and sleepwear designed for teenage girls experiencing their first period, and their products have become popular with parents of girls between the ages of 8 and 13. That’s a huge market in the U.S. and globally, and this business has developed a loyal customer base that has given them a 45% Repeat Order Rate.
The assets sale includes additional valuable offerings, including a Shopify website and a relatively new Amazon store. It would be possible for an investor to focus entirely on growing the Amazon store in the future.
The company has proprietary brand products and is considered the inventor of its specialized Period Swimwear. This trademarked business has invested significantly in its brand equity over the years, which has become its biggest competitive edge. Their products are completely different from what competitors in this vertical are offering when it comes to design and utilization of related products, and this has enabled the company to bring in over $50 million in sales since first launching 9 years ago.
Here are Key Performance Indicators for this company:
• 9-Year-Old Company
• Works Directly with US Sourcing Company for all Products
• Fully Branded Products
• $101 Average Order Value
• Sales Peak in Summer
• Growing Wholesale Orders
• 500,000 Email Subscribers
• 45% Repeat Order Rate
With so many customers reordering their products, the business was able to achieve nearly $1.5 million in sales in recent years, even as they spent less than $250,000 on advertising, and that was on low-traffic channels such as Bing. This strong customer loyalty has enabled the company to earn gross margins in excess of 65%, and this is a business that does not require any special skills to operate.
Having its products listed on Amazon means a new owner can let that eCommerce giant handle marketing, inventory, shipping and customer service. The new owner starts off with a company that has excellent brand recognition and plenty of additional growth opportunities.
The company’s wholesale channel is an area of incredible upside. They have been serving a dozen boutique stores but haven’t devoted much time to developing this channel. Until now, the business has not focused on marketing to wholesale accounts and retail stores that sell women’s care products, and this represents a major opportunity in the future for an ambitious investor looking to grow this operation. With unique and branded products not available elsewhere, the company’s high repeat order rate among its loyal customers should give it a strong selling point to stores looking to attract customers through specialized products for women. The company recently created an email account for wholesale activity as new orders keep coming in.
A new owner could also consider opportunities to expand the product line. Right now, all SKUs are targeted to women, but the company has sold men’s underwear in the past, which sold out very quickly. The new owner could revisit that approach, which would rapidly expand their customer base. Similarly, the company has developed a line of athleticwear and even connected with well-known professional athletes to represent these products, but the project never moved forward. It’s a goldmine waiting for a new owner to launch.
There are also marketing assets to consider. The business has a huge database of 500,000+ email subscribers, which is a powerful tool for an investor to generate upsells and cross sells. The company’s Shopify website has an educational blog that gets updated regularly, and the website is fully optimized for SEO keywords. The business also maintains a massive 170,000+ followers on Facebook and Instagram, giving the company plenty of brand recognition for its products.
Digital marketing represents one of the best opportunities a new owner has to scale this business quickly. The company could launch an extensive email marketing campaign, particularly around holidays and special events such as Black Friday and Cyber Monday when shoppers are out in force searching for products online. Using the social media accounts more effectively would also drive sales higher, and that could include establishing partnerships with social influencers or launching an affiliates campaign to boost customer engagement and build up their brand recognition.
It’s important for an investor to keep in mind that this business operates in two highly lucrative verticals. The global Feminine Hygiene Product market is valued at $40 billion and growing rapidly, while the market for Women’s Apparel is also on the rise globally, projected to reach $963.39 billion by the end of 2025. The availability of a diverse selection of women’s apparel and the rising influence of social media are both contributing heavily to the profitability of this market.
An investor who acquires this company will start out with a large inventory waiting to be sold, excellent marketing opportunities, the potential for growth into B2B accounts and sales of men’s garments, and a chance to scale the business profitably on Amazon, even becoming a leader in the Women’s Care Market on that platform.
