28 Year Brand in Cooling & Thermal Wear Products – 3,400 B2B Customers Database (Wholesale) – 90% Repeat Order Rate – Growing eCommerce Sales

Asking Price:
$375,000
Sales:
$247,703
Profit:
$129,297
Year Established:
1993
Multiplier:
2.9x

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A SellerForce offering, this thriving Headwear, Neckwear & Accessories Brand has 28 years of history in producing its own proprietary brand of products that are fashionable and stylish, but also have a significant added advantage – they are designed for cooling, to instantly help people living in hot and arid states, or those experiencing heat related issues, to feel cooler when worn. A key to their success has been the use of non-toxic polymer crystals that quickly expand to a gel when immersed in water. The products quickly dry to the touch, remaining hydrated, keeping the user cool (an effect of the slow evaporation of the gel).

Since 1993, the brand has designed and manufactured a wide variety of cooling products that includes hats and caps, neckbands, headbands, and visors, each one made with a crystal material. When the above-mentioned crystals are soaked in water for 5 minutes, they transform from crystalline to gel and slowly begin to evaporate, cooling the person wearing the piece. This process can be repeated multiple times, providing the same cooling result over and over again.

The appeal of cooling products has been obvious not just to the company’s DTC base, but to a much larger wholesale market. The company has successfully marketed to a diverse range of venues, including both brick and mortar retailers and a fast-growing industrial base. While the brand has achieved great success selling direct to customers through its website and on Amazon, wholesale make up 85% of sales. The brand has multiple opportunities to scale this business, on both the eCommerce side and especially among industrial customers.

The market for cooling wearables is a massive one, having generated $2 billion in 2020. This company has the enormous added benefit of marketing their own uniquely designed SKUs, and their huge B2B customer base demonstrates how many retailers recognize what an easy sell this is to a heat-weary public. This company has an interesting story to tell, which sheds plenty of light on how they got to this strong and enviable position. Since launching 28 years ago, the brand has continued to expand its SKUs, and now has more than 500 to offer. Their cooling crystal caps and hats are sourced now in Vietnam. The company ships its proprietary, USA-made cooling crystals to these factories for production. That said, the company proudly produces a substantial amount of its products in the United States.

When selling products through their eCommerce channels, the average order is $30. Wholesale orders, on the other hand, range from a minimum order of $100 to as high as $1,000 for reorders. Larger wholesale customers can place orders that range from $5,000 to $30,000 and higher.

Not surprisingly, the brand’s highest selling season is spring and summer when the heat is starting to pick up. However, the company has since expanded its original concept to now offer products for colder months, with a warming fabric made of lightweight thermal fabric. Since being launched in 2017, the winter fabric division has been steadily increasing in sales, and today their cooling and warming fabric products are 50% of sales.

A key to the company’s success has been the respect this brand has achieved over the past two decades, based not just on the quality of their products and their strong customer service, but also the longevity of each SKU. That performance has kept their customer base consistently coming back. In fact, while their repeat customer base has been 75% in recent years, last year it shot up to a stunning 90%. The company has cultivated 3,400+ wholesale customers, including some with multiple locations. Those customers include sporting goods stores, golf and tennis shops, country clubs, spas, fitness centers, and cycling and motorcycle shops, among many others.

Their growing industrial base includes construction contractors, oil and gas companies, air conditioning repair businesses, automobile factories, airlines and municipal fire departments. Inventory can quickly be refilled by a local supplier within a week since the materials are held in stock as well. Orders are shipped from their warehouse, and they use Fulfillment by Amazon as well. The brand stocks up to six months’ supply of finished goods.

The company’s marketing efforts have included a minor social media presence on Instagram, Facebook, Pinterest, and a blog on their website to boost organic traffic through SEO. The majority of products sales are a result of exhibiting at popular trade shows. However, a big part of their advertising has come from word of mouth. The brand’s social media platforms are underutilized and a more aggressive approach to social would drive considerably more traffic and sales to the site.  The same is true if the company launched an influencers campaign on its social media sites.

Video marketing offers another key opportunity. Videos that could include customer testimonials and demonstrations of the coolest effect of their products in the summer sun would be enormously beneficial for future sales. Running PPC ads on Amazon would help expand sales on that platform, while PPC ads on Google would do the same for the company’s own website.

The company has more than 17,000+ email subscribers and could use that to convince their already highly loyal customers to reorder their favorite products, and to upsell any newly introduced inventory that’s ready for sale. The company is working on getting new finished goods that will offer terrific opportunities to expand sales. The company has additional opportunities to continue marketing at trade shows and other special events. It’s important to keep in mind that the company’s brand reputation has brought them plenty of repeat business without much advertising. The genius of their product is to offer a hat that can do more than look good while you’re wearing it. With so many states experiencing record heat this summer, their products have never been better timed to appeal to a public desperately looking for ways to cool off. While digital marketing gives a buyer some smart paths for expanding the company’s brand recognition, there’s no question that the company’s huge existing customer base, both B2B and DTC, will likely play a key role in doing that for them.

 

 

 

Listing Number: SF31

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