Facts and Figures
This Company is a leading branded fashion company that designs and manufactures unique bodysuits for women. Along with office professionals, the label has also found a niche among religious communities that follow modesty guidelines in clothing, including Orthodox Jewish and Muslim women. The business has done over $1,000,000 in sales since inception.
The website is built on the Shopify platform and has 50 uniquely designed clothing products, with hundreds of SKU’s across various sizes and color schemes. In addition to the Shopify store, the business has a customer list of 10,000+, as well as social media accounts with over 11,000 followers. Noticeably the business has 2,000 Pinterest followers with 1.9 million monthly views.
The brand has relationships with several large premium retailers such as Nordstrom and Bloomingdale’s, to name a few. In addition to these retail contacts, Tuxe also has relationships with several celebrity stylist’s and high-profile influencers. The brand has been featured in some of the largest entertainment and fashion publications such as Vogue, Refinery29, People.com, KimKardashian.com, amongst others.
The Seller of this business is looking to exit her investment because she is satisfied with the brand she has built and the growth she has achieved and is ready to move on to other ventures. This business is extremely attractive to anyone with women’s fashion industry experience or online marketing experience as we believe there is a lot upside to utilizing and optimizing digital advertisement – an area this brand hasn’t focused much on historically, with the majority of growth having been generated organically.
The business is currently operated by the owner and one part-time employee, who combined spend approx. 35-40 hours a week on the business. Their day to day activities involve:
● Owner (15 hrs/wk):
○ Communicating with corporate buyers and retail stores
○ Collecting payments from corporate buyers/retail stores
○ Scheduling marketing campaigns
○ Managing suppliers and manufacturing
○ Focusing on overall business strategy
● Part-time Employee (22 hrs/wk @ $1,200/month):
○ Order fulfillment
○ Customer service (phone, email, Facebook)
○ Product returns
○ Marketing, and some sales
Customer Profile and Segmentation
The brand has found a lot of success with business woman and office professionals in addition to Orthodox Jewish and Muslim women who are traditionally more conservative in nature.
Customers have historically been acquired through organic search as well as organic or “free” media exposure, such as the articles seen on Vogue, People, etc. The business does use ShareASale which has worked well for getting featured on popular online blogs. All of the ShareASale attention so far has been organic as the owner has never solicited affiliates. This is a big marketing opportunity.
Customers are occasionally sent marketing emails for new products as well as storewide sales. The business has an email list of 9,000+ buyers and has a returning customer rate of 41.8% which proves a strong brand presence and high quality product.
● Strong brand presence & value
● Blue-chip retail industry relationships (Nordstrom, Bloomingdales, etc.)
● Custom-designed, high quality products
● Backlinks from top fashion/lifestyle sites (Vogue, People, Kim Kardashian, etc.)
● 9,000+ customer email list
● Huge opportunity to increase marketing efforts
● Paid advertising: the business has historically done very little of this which presents a big opportunity for an experienced internet marketer
● Network with influencers: offer either free product or paid promotion for Instagram influencers to promote on their pages
● Drip email campaigns/email marketing: the owner currently only sends out emails when she runs discounts/promotions which is once a month at max. Implementing a drip marketing or automated marketing campaign could spark significant revenue increases given the strong (2%+) conversion rates seen from email
● Focus on retail relationships: this business sold $275k of product to retailers in 2017 but has sold less than $25k in 2018 since the owner has stopped the majority of retail orders to focus on the sale process and liquidating existing inventory
● Expanding product lines: the brand currently only sells body suits but the owner thinks there is a lot of opportunity, especially with existing customers, to enter into the hosiery and socks categories
The business performance year to date has been driven by “free” publicity through large lifestyle blogs. Meghan Markle is an avid wearer of this brand and has been spotted many times in the brand’s clothing, which has then been featured in top articles which has driven significant sales spikes.
As mentioned earlier, retail sales are a big opportunity going forwards as the business has stopped doing these in 2018 to focus on liquidating inventory and selling the business, after doing over $275,000 in retail sales in 2017.
- Celebrity stylist contacts
- Supplier relationships
- All product designs and marketing materials
- Existing Shopify store
- Social Media Accounts
- Domain Name and hosting
About the Seller
SaleAway is an online business brokerage focusing on websites and online businesses worth approx. $50k-$3mm+. SaleAway was founded after 3 individuals with strong financial backgrounds decided to combine their two passions: online business and buy-side/sell-side finance.