SellerForce® presents a Baby Hat Business that has been in operation for 12+ years. Over those 2 decades, ownership has cultivated a strong following for their baby hats. The company operates under 2 well-known brands in the industry, one of which is focused on Direct-to-Consumer while the other is B2B.
The eCommerce Brand sells a wide variety of premium baby hats for all types of occasions in all sorts of material types. More recently, the company has become focused on Personalizing their Baby Hats, utilizing 4 embroidery machines, 2 sewing machines, and a heat press to personalize their hats. In addition, the company includes a large amount of inventory, including both complete hats as well as materials and accessories for constructing hats. The Brand is sold on a Shopify store, Amazon, and Etsy.
The B2B Brand is sold in over 500 retail storefronts across the United States with high repeat order rates and a low $150 MOQ. The focus for this brand is Newborn Hospital Hats made from super-soft, two-ply sock material in many variations. The company has sales representatives in all major metropolitan areas that sell from a growing catalog. They also have a strong organic following on social media where moms regularly post their babies in their newly purchased hats.
Both companies are equipped with thousands of brand assets, including photos and videos of real babies that have been developed over the years as well as many press postings. Most images and videos come from newborn photography shoots to ensure a lifestyle image instead of just a simple product shot with a white background.
The company once had a much larger footprint where it pushed sales from Facebook & Instagram advertising and competed in a higher volume, lower quality marketing. It has since then become a more organic presence with lower advertising and higher-quality products. Much more can be done on the advertising side to grow the business, but the company has not been a focus for current owners as it is but one division in a large portfolio of companies. There are tens of thousands of customers in the company’s databases, ranging from consumers to business owners and everything in between, so the company has all the tools necessary to begin scaling from here.
The company sources some products and materials from Asian Markets, while other materials are sourced within the US. For the Asian markets, the company utilizes a sourcing agent that they have been using for over 7 years for any headwear products necessary within the Asian markets.
Most products now sold by the company are constructed in the US and everything has been designed in-house. The design element of the business can easily be outsourced, but with hundreds of designs in the portfolio already, very little will be necessary for several of years. Current ownership is also willing to help as necessary in transition to ensure new ownership is put in a position to be successful after closing.
The business is sold with 4 embroidery machines, 2 sewing machines, many racks, and craft tables, 2 trademarks, multiple websites and accounts, a large amount of inventory (both finished and parcel), computers and printers, and a treasure trove of photographic assets. Everything necessary to take the complete DTC and B2B operations over will be handed over on the day of closing.
Value Propositions associated with this business include the aged history of the brands in search algorithms, supplier relationships, a loyal following after 15 years in business, a complete foundation to scale, and a large amount of image and video assets to expand sales.
At its current size, the business can be efficiently operated within a home environment and should not require a separate office. The business is being sold as an owner-operated business, which will require at least one helper to assist with shipping, sewing, and additional craft work. The current owner is not involved in the day-to-day operation of the business, but in order for this business to grow from here, it does require a hands-on operator, especially to keep labor costs low (at current revenue).
Only high-level direction is provided at the moment, and what the business need is a person that can roll up their sleeves and really focus on growing the company, which has the ability to grow to $10M in Revenue very quickly with the right investments and focus.
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