Specialized eCommerce Brand in Hair Removal Handsets – AOV $243- Branded Products – Exceptional Scalability Opportunity

Asking Price:
$255,000
Sales:
$280,000
Profit:
$85,000
Year Established:
2020
Multiplier:
3.19x

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SellerForce® presents a niche eCommerce brand that markets Intense Pulsed Light Hair Removal Handsets and related accessories to the rapidly growing Trans community, at a time when the purchasing power of the LGBT community is estimated at $3.7 trillion globally. This brand has found a highly receptive market for their products, particularly among those transitioning from male to female, and customer loyalty has helped drive profits higher as their digital marketing plan continues attracting new buyers within the transgender community.

With a strong emphasis on influencer marketing and videos on YouTube, the company has made a lasting connection with the Trans community and enjoyed not just rising profits but highly enthusiastic reviews for their laser hair removal products and additional SKUs. Those reviews are helping to build up their brand recognition and give them a thriving reputation within this niche space for first-rate products and services.

Operating on their Shopify website, their Average Order Value has grown from $216 to $243 as they become better known within the Trans community and word spreads about the quality of their products. Now marketing 14 SKUs, their new and advanced IPL handset remains their top-selling item, bringing in 75% of their gross revenue. But several newer products represent a rising percentage of their overall sales, including a hair removal kit that sells for $697 and represents nearly 5% of their gross revenue. This is giving the brand a terrific number of scale opportunities, from expanding their sales onto larger eCommerce platforms such as Amazon and Walmart to launching an affiliates campaign and using email marketing for upsells.

This company is likely to enjoy considerable growth in the coming years not only because they’ve built up a strong business model, but also because their customer base is certain to continue expanding. It’s now estimated that between 1.9% and 3% of adult Americans identified as transgender, but more importantly, this represents a generational shift. A rising number of Gen Z young people identify as transgendered today, double the number in recent years. This is being driven by an openness about exploring their gender identities in ways that older generations were not comfortable with.

In addition, $300,000,000 is spent each year on laser hair removal procedures in the U.S., giving this brand an immensely profitable vertical to be operating in.

This has dramatically increased the number of businesses providing services and products to the Trans community, and this brand has certainly been a trailblazer in that field. A closer look at how they accomplished this will help demonstrate that fact.

Target Market

Launched in January 2020, the brand was created to offer a range of products tailored to the needs of self-identified transgender women or men looking to transition to female. Their products are designed to help customers reach those goals.

In addition to their multi-function IPL handset, additional products now include a body & face hair growth inhibitor cream, clay mask, hair removal spray, comfy tuck gaff panties, facial brush set and skin rejuvenation and acne treatment lamps. Having initially set out to create a firm position in the laser hair removal industry by offering customers a more affordable alternative, the brand’s success has enabled them to continue launching new products, making their site even more appealing to customers.

These products are sold under the company’s brand name, and three of their 14 SKUs are certified reseller-approved. There are no seasonal factors to the company’s sales, which remain steady throughout the year. Their customers mostly make purchases because they need the brand’s products and services and are looking for the best option for removing unwanted facial and body hair.

They appeal to a wide demographic group, with customers who range in age between 18 and 65.

The fact that products are being made available on a recurring basis is one of the factors that raised their AOV to $243.

Effective Marketing

The company has built a significant amount of its credibility through influencers who are trusted within the Trans community. The brand’s influencer marketing campaign on YouTube has enabled them to get directly in front of their target audience through the videos they post.

This strategy has been highly effective since YouTube is a key site where members of the Trans community search for information on products related to their transition period. Reviews are also crucial to them, which is why the company’s influencer strategy has been responsible for bringing in 80% of their revenue. The brand now partners with several dozen influencers.

Additional digital tools are being used to drive sales higher. Video ads on YouTube have enabled them to re-engage with their existing customers and attract new ones. The company also runs PPC ads on Google and has an SEO program to maintain authority in this vertical, with the strategic use of keywords related to laser hair removal inquiries. The company also uses PPC ads to target transgender hair removal search campaigns, which lead those doing these searches back to their landing page.

Low Workload

Highly automated, the business now requires no more than 5-7 hours per week to run, as the current ownership focuses on tasks such as communicating with influencers, providing customer support, checking remarketing ads and inventory management. There are no employees for this company, which continues to grow on the strength of their influencer campaigns.

The emerging Trans community has certainly encouraged businesses to commit to products that assist in their transition, with laser hair removal becoming one of the mostly highly in-demand products. This brand has a strong story to tell about how to succeed and profit within this niche space.

Contact SellerForce today to get more details on the enormous scale potential this brand has based on their track record of building up a faithful customer base.

 

Listing ID: SF240

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