EComm Brand In The Automotive Lifestyle Apparel

Business Overview:

Website Closers® presents an eCommerce company that’s developed a loyal customer base in two of our fastest-growing industries, apparel, and car accessories. This company has a unique added benefit: in addition to selling their collection of print-on-demand apparel and car-related items, they have a highly valuable licensing deal with the Yu-Gi-Oh brand to offer products themed around the wildly popular animated series. This, along with the company’s smart and creative use of social media, has given them a secure position in these enormously profitable niche verticals.

The company has become a textbook case for how to effectively use social media to promote a unique clothing line. With more than 1 million followers on their social media accounts, the company is increasing profits through subscription-based revenue, giving them an impressive 40% Repeat Customer Rate.

Having grown to more than 150 SKUs and with affordably priced items (their Average Order Value is $87), the company is demonstrating that customers are always on the lookout for new and specialized clothing designs – if they can even find them amongst all the competing online clothing retailers! This company has demonstrated how to cut through the competition and stand out.

The evidence is clear that shoppers no longer need to try on a new article of clothing before purchasing it. In the U.S. alone, online apparel sales reached $159.46 billion in 2021, a 15.6% year-over-year increase from $137.94 billion in 2020.

Since the pandemic lockdowns, physical stores have worked hard to woo back a higher share of the apparel market buyers, but shoppers have continued to shop for clothes and accessories online long after the lockdowns ended. With perks such as a wide selection of items, totally proprietary apparel, free return shipping, and curbside pickup, eCommerce’s convenience has become an easy sell today. In 2021, 42.2% of all apparel sales in the U.S. are made online, up significantly from 33% in 2019.

The brand, which has expanded beyond apparel items, looks well-positioned for a major growth curve in the next few years. Let’s take a closer look at how they got to this enviable point.

The company sells an assortment of clothing items that include hoodies, crewnecks, long sleeves, and t-shirts, as well as products that include backpacks, keychains, and car floor mats.

They also appeal to their customer base through premium clothing mystery boxes that have become top sellers for them. Customers receive eight items of clothing from inside each mystery box, selected from multiple clothing categories. These boxes now account for 30% of their sales.

Outside of their licensing agreement with Yu-Gi-Oh, all their products are based on their own brand. They now offer 150 SKUs.

From their 3PL warehouse, the company enjoys steady sales and has been shipping 100 orders daily, enough that they now maintain $200,000 in inventory. While the vast majority of their sales are in the U.S., sales have expanded into Canada, the UK, and Australia, giving them a solid international reach.

Their customer base is diverse as well. While many are heavily into anime series, others are car enthusiasts looking for specialized items for their vehicles.

Their apparel items are inexpensive to produce since they use the print-on-demand method from their suppliers for at least 20% of orders.

As the company has grown its product line and attracted different kinds of buyers, their sales have remained steady throughout the year, giving them healthy recurring revenues. During the summer months and around the Black Friday holiday, their revenue shoots up significantly.

A growing percentage of their revenue comes from the subscription services available on their app, which has 10,000 subscribers who receive push notifications three times a week.

Launched seven years ago, the company has been able to perfect its marketing techniques, and social media has been the key force driving their sales.

The company posts twice a day to keep up engagement with their more than 1 million followers on Instagram. The company also runs PPC ads on Facebook, and benefits from an affiliate program that contributes to monthly sales.

Social media has been a key to expanding their customer base, although they do have additional digital marketing tools that they use. That includes 75,000 subscribers to their email database and an additional 25,000 who receive regular SMS text messaging. These tools are working as intended, giving the company 7,000 unique monthly visitors to their Shopify website.

The company has cultivated a strong reputation in the car community among their customer base, and these marketing tools have helped build the kind of brand loyalty that is giving them that 40% Repeat Customer Rate.

The company now has three full-time employees who manage daily operations, including a marketing manager, production manager, and customer service manager. The current ownership works just 20 hours per week, focusing on tasks that include creating new products, working with designers on creating new designs, and managing the employees.

This sale would provide a very smooth transition for a buyer since the team is in place to manage the company while the new owner focuses on releasing new products to their audience for upsells.

This Company is Represented by:
Website Closers
Tech, Internet & eCommerce Business Brokers
WC 2899

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