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—March 2017 figures have already exceeded last year showing significant gains over the same months in 2016 and with April underway the company’s growth shows no signs of slowing down. With many of its reorders and top selling products arriving at the end of April, May is expected to show even stronger growth. In addition, Amazon has invited this company to launch on Amazon Canada, UK, Europe, China and Mexico with Amazon’s Chief of Staff handling its account to onboard the company strategically and effortlessly with reduced Amazon fees. As well this business has been approved as a featured seller on the Walmart marketplace which traditionally has a long waitlist. Accordingly, the company forecasts a large increase in its sales through these channels.
Sales are soaring...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, the new marketing efforts underway and the anticipation of the 4th Quarter, the company conservatively forecasts Gross Sales of $12M 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.