Industry Overview
The global beauty and personal care market itself is incredibly lucrative, having been worth $422.72 billion in 2020, and with projections to grow at a CAGR of 4.82% to hit $558.12 billion by 2026. Makeup and cosmetics, being widely relied on by customers to boost their self-confidence and express themselves, have acquired a share of over 60% in the market, making for a valuable niche for companies to fill.
Business Description
A rare hybrid company specializing in the beauty and personal care industry.
They operate as both an agency and eCommerce business, acting as the exclusive Amazon retailer to beauty supply brands that don’t sell on Amazon or that are seeking to improve their presence on Amazon. This high growth company has already acquired exclusive contracts with 9 US based brands and has 3 more already on the way.
They have a high 27% Repeat Orders rate, a $500,000 Average Contact Value since its inception, and a highly optimized marketing campaign that has generated over $5,000,000 in their third year in business.
The structure of the company allows it to be high- margin, while still remaining incredibly lean and efficient. They specialize in identifying the most relevant and trending products to sell, allowing them to better sign on successful brands. All of their current product suppliers are based within the US, making for incredibly smooth partnerships overall.
Their contracts with their clients ensure that no other resellers are allowed to supply the same products on Amazon, giving them absolute exclusivity, and excellent security for the business and its profit margins.
In exchange for these exclusive rights, the company handles the optimization of search ranking, manages their product pages, sources professional product images, and polishes the listings to make them as profitable as possible. Each is done on annual basis, and are automatically renewed if their financial goals are met.
Other benefits that the company offers its clients include the ability to outsource all of the heavy
listing and technical know-how required to sell on Amazon FBA – By doing this, brands are able to focus on increasing their product catalog and enhancing the quality of their offering which benefits both parties tremendously.
Much of the success of this business is due to the quasi-partnership structure that is established with each client. The arrangement with clients is much more of a business partnership as it is a B2B service, which helps build strong rapport for long- lasting symbiotic business relationships.
They have kept an overwhelming majority of their clients since they signed on, bringing the number of SKUs that they sell from their Amazon page to a staggering 200.
2-Full Time Employees manage the business.
Notable Brands Include:
Moroccan Gold
VERB
REAMIR
PETER COPPOLA
Leonor Greyl
