A highly regarded provider of nail art products to a global customer base consisting of over 80,000 consumers from the company's ecommerce website, with further active clients and monthly subscribers located across the UK, France, Germany and the USA. With a strong social media following consisting of over 300k followers on all social media platforms, the company has established a loyal customer base, which has resulted in a high customer satisfaction rate and a low product return rate of c2%. Partnering with globally renowned brands from a variety of industries, including fashion and entertainment, as well as establishing distribution partnerships with Boots and Superdrug, the company receives a consistent exposure which has contributed to regular growth.
Key Aspects
- Recurring revenue generation: The company offers a subscription-based service generating c.£255k in recurring revenue per annum with a low churn rate of c.11%.
- Excellent customer service: The company currently has c.80,000 active clients with a low customer returns rate of c.2%, alongside 8,000+ google reviews attributing to a positive 4.3 star rating.
- Innate adaptability in product offerings: With a focus on meeting customers demands, the company has been able to recognise both demand downturns and upcoming trends within the nail art industry in order to capitalise and establish itself as a first-mover within the market.
- Licensing agreements with major blue-chip companies: From the fashion and entertainment sectors, as well as distribution partnerships with Boots and Superdrug on their online platforms.
- Strong social media presence: Consisting more than 200k followers on Instagram and over 100k on Facebook.
- Loyal customer base: Supported by the creation of tutorials to ensure that customers know how to apply products.
Opportunities
- Expansion into international markets: Scope for further increased product outreach into underutilised high-potential markets such as the USA and Europe.
- Development of subscription-based products: Opportunity to bolster recurring revenue generation through the diversification of its existing products to cater to a larger prospective customer base.
- Bolt-on Opportunity: Potential for a beauty ecommerce business to diversify with additional product offerings through the acquisition of an established nail art business, enabling the opportunity for increased average order value (AOV) through complementary nail products.
- Geographical Opportunity: Opportunity for an international business to acquire a company with a strong foothold within the UK and major distributors.
- Potential to diversify client base: Multiple blue-chip brands including Warner Brothers and Universal Studios expressing interest in partnering with the company.
- Opportunity to expand sales in B2B channels: Particularly through nail bars, with the company being primed to leverage its previous experience in working with over 6,000 nail bars across Europe to generate new sales.
Turnover - £3.5m
Adj. EBITDA - £450k
