10 FT, 3 PT
Women's shoes control nearly half of the entire industry (40%), with women's business shoes increasingly taking over the market as more and more women find power positions in the business world. The stereotype of a woman with a closet full of shoes may be more accurate than you think! In 2016, women’s footwear sales reached roughly $24.6 billion worldwide, representing the largest segment in the shoe industry and is expected to keep growing. Any way you look at it, things are always looking up in the women’s footwear marketplace.
This business is an internet retailer offering the newest and latest in footwear and fashion. Continually researching the hottest products in the fashion industry, its brand has built a strong following among fashion conscious shoppers and bargain hunters alike. Its popularity is undeniable with a 250k+ client email list and a 50% customer return rate. Years of experience in the lady’s footwear industry has taught the company the value of marketing, brand and the importance of catching the wave as new trends rise and fall. The company has invested in creating a well-oiled machine of people, processes, vendors and offshore manufacturing to create its own line of very successful white labeled shoe products.
The company uses multiple sales channels to distribute its vendor name brand and private label products. The primary channel for sales by volume is Amazon.com (FBA) which accounts for over 70% of the top line sales. The remaining 30% is sold via their company website and various other marketplace platforms. Utilizing Amazon’s fulfillment centers across the US for the majority of inventory makes the process streamlined and keeps costs for 2-day shipping low. The current value of inventory on hand at FBA and its own warehouse is approx. $1.8M.
The team operates from its warehouse located in California segmented in three departments-Marketing, Warehouse and Customer Service. A new owner could take over operations utilizing the existing warehouse and majority of staff if desired. The business can otherwise be relocated to a new owner’s location or have product managed at a 3PL fulfillment center which would reduce the space & staff needed for operations.
The company is experiencing explosive growth with profits up by about 86% in 2016 over 2015! January and February 2017 figures have already exceeded last year showing significant gains over the same months in 2016 and the company’s growth continues to show no signs of slowing down. For Jan & Feb 2017, sales have reached nearly $800k...And this is the company’s slowest season. Accordingly, the company expects sales during its busiest season (4th Qtr Holiday Season) to skyrocket. With 2017 off to a booming start and the anticipation of the 4th Quarter, the company forecasts Gross Sales of $10M on Amazon alone.
This business has established a well thought out process for identifying “racehorses” in the ladies footwear marketplace and has created the brand & manufacturer relationships to exploit those trends creating strong growth and profits. It has proven sales, exploding growth, key relationships, streamlined business operations and a high-quality trademarked brand that has become popular with consumers as its products are easily relatable to the fashion trend of today. With its established foundation and lots of future potential for growth in a huge market, this business makes a great acquisition target for any entrepreneur to take its success to the next level.
Market Conditions & Competition
This company is experiencing tremendous growth! With all processes and systems in place, a new owner can easily continue to scale this business. Some strategies for future growth and profitability include: continuing to build the company’s brand by expanding women’s shoe styles and colors offered; expanding the brand further by branching into men’s and children’s footwear; and entering new marketplaces where its brand is not currently represented.
The company’s competitive advantage comes through its own brand which allows it to offer unique styles that can't be found elsewhere at competitive pricing and with lightning-fast shipping. It also has access to products from over 60 vendors carrying many premium name brands many of which are nearly impossible to establish resale accounts with today.
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Reason for Selling
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