All prices in USD
$850,000
  • Avg. revenue /month
    $31,045
  • Avg. sessions /month8,265
  • Avg. profit /month
    $10,000
  • Inventory value
    $750,000

Business Story

Why this business was started

Founded in 2012 by an accomplished Europe-trained fashion designer, this niche luxury nightwear brand is dedicated to giving its customers a luxuriously good night’s sleep. Early on, we recognized a white space in the market for sophisticated sleepwear that is comfortable, chic, and conservative with style. We are a female-led company whose size-inclusive products are ethically produced in Canada. Our key selling channels are direct to consumer and through wholesale accounts with a select number of premium International retailers. Our competitive advantages are that we are addressing a gap in the luxury sleepwear market, which tends to be saturated with silky/sexy nightwear, traditional pajamas, or fashion pieces that aren’t practical for everyday life. This is luxury apparel that is long-lasting, comfortable, chic, and easy to wear. The lounge-wear category has seen strong growth in 2020, 2021 and 2022, and the company has capitalized on this category, as well as producing chic pieces that can be worn by those who work from home. Our machine washable products last up to 600 wears, and are made for real-life – we make sleepwear that you can wear over breakfast with your in-laws, or on a Zoom call. Ethics and sustainability are core values of this business, which is why we manufacture in Canada and produce a size inclusive range of clothing that is made from certified sustainable materials.

The reason of selling this business

Personal and family concerns affecting the partners have led to the serious consideration of the need to exit the business.

What's involved in running this business

The company’s operating model is based on the development, design, manufacture and selling of all of its products. It is important to us that we sell ethically made clothing, which is why all of our manufacturing is done in Canada, by people employed in safe working conditions and paid above minimum wage. We visit our factories on a regular basis, both to inspect the premises and also to meet with our dedicated team. We choose to work exclusively with natural materials for many reasons - notably comfort, quality, and sensitivity to the environment. When our sleepwear reaches the end of its lifecycle (that’s after at least a few hundred wears) we want our products to biodegrade naturally. We are concerned about the environmental impact of synthetic fabrics, especially when they release micro-particles into the water when they are washed in a domestic washing machine, as such we ensure all of our clothing is primarily made from cotton, linen, or cashmere.

We have established long-term relationships and good terms with a handful of high quality fabric suppliers in North America, Europe, and Asia. Design is developed in-house on a seasonal basis. Styles and shapes are drawn and detailed prior to sample making when additional modifications for fit, detailing, and sizing are made. We work with both a pattern maker and grader to ensure the proper production of factory ready patterns for production. Manufacturing then occurs at our long-term production facility in Vancouver, where we discuss production, materials and perform quality control. Fabrics are ordered in advance and are shipped directly to the factory. Once production is completed, we quality control the production runs prior to the products being shipped to our warehouse and logistics partner, also in Vancouver. Our long-term relationship with the manufacturer is such that quality issues are few. DTC and Wholesale orders are then shipped to customers out of this inventory. On some occasions, we have asked the manufacturer to conduct quality control in-house, and this has not led to any quality issues. We have opened discussions with manufacturers in the US, Europe and Asia, several of which have produced samples that meet our pricing and quality requirements, should a new owner wish to explore other manufacturing opportunities.

The company’s marketing strategy focuses on marketing directly to the consumer, and through both digital and traditional media. The company has seen tremendous response from editorial mention in traditional media, as it believes its core customer responds to newspapers, magazines and online editorials. This has been a result of a focus on PR in the United States, Canada, and Europe. Press exposure further supports our wholesale retailers as it often drives customers direct to store. Press milestones include features in the Wall Street Journal, Globe and Mail, New York Times, Vogue, Elle, Financial Times, and Oprah’s Favourite Things. Social Media Advertising: The main channels of Company-executed direct and active communication with the consumer is through social media and email. The company operates active accounts on Instagram and Facebook, with ad spend targeted to women over the age of 35 in the United States’ most affluent postcodes, translating into more orders. We consistently and constantly test new markets and demographics, focusing on those campaigns where we see the best or most promising results. Current Facebook ROAS is at 3.5X with an average order value of $300. Active email campaigns also keep the company top of mind with our consumer. Read and response rates are high with our email list averaging an open rate of 32.83% and a click through rate of 21.3%, 11.64% of which convert to purchase. Instagram: 10,000 followers, with regular campaigns (giveaways and ads) to retain and grow followers, focus on lifestyle and keep the consumer engaged and part of our story. In addition, we often collaborate with social media influencers, several of which we have long-term relationships. Our strategy is focused on working with influencers who can bring brand awareness, and/or who can convert into sales. We use two affiliate marketing platforms to measure conversion success. We aim to work with a diverse set of influencers that represent a cross-section of multiple demographics including size, race, and gender.

The company's staff and contractors manage the following tasks: Product development: design of products and purchasing are done in-house by staff, while patterns, grading, and production is done by contractors and suppliers. Store management: on line store and customer service are done in-house by staff , while fulfillment and warehousing is done by an external logistics supplier. Marketing: photo-shoots, production of marketing materials, organic social media posting, and copy writing are done in house, while social media advertising, PR outreach and SEO are done by contractors and suppliers. Finance: payroll and accounts receivable is managed in-house while bookkeeping and accounting are managed by contractors.

This business was founded: about 10 years ago
Time to run this business: approximately 40 hours per week

Traffic and Performance

  • Avg. revenue /month
    $31,045
    Verified
  • Avg. sessions /month8,265Verified
  • Avg. profit /month
    $10,000
  • Inventory value
    $750,000
  • Profit Margin16%
  • Avg. sales /month250
Other details about profit: DTC revenues approximate 80% of annual sales with the 20% balance derived from wholesale orders. Wholesale sales average $150,000 per annum and are with premium EU retailers.
Last 7 years revenue
  • $2,794,043
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Last 7 years traffic
  • 743,876Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $71
      /month
    • Inventory warehouse
      $850
      /month
    • Employees
      $6,120
      /month
    • Domain
      $200
      /year
    • Klaviyo, Dropbox, Justhost
      $185
      /month
    • Facebook
      $9,700
      /month
    • Quickbooks, Zedonk
      $94
      /month
    • Rent, Insurance, Office Expenses
      $1,820
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      A sale will include digital files of all logo and branding assets, as well as all of the trademarks.
    • Personal support after sale

      Operational, marketing and design support will be available for six months. Additional support can be available through negotiation.
    • Domain

    • Product photos

      A sale will include digital files of all photography owned by the business. This includes thousands of professional e-commerce images and lifestyle images.
    • Social media

    • Suppliers

      Personal introductions will be made to all of the suppliers and support for managing these relationships will be provided throughout the transition period.
    • Mailing List

      10,000subscribers

    Seller‘s Advice

    How to grow this business

    Growth strategies for the company have always been focused on increasing our market presence and share in the US market. DTC sales in the US are on par with sales in Canada, although the US has ten times the market size. We believe that additional growth in the US market is a key driver for the future. Additional markets including Europe, Asia and the Middle East are also attractive and ripe for growth. At the start, creating a US dollar website would be a priority and the evaluation of US-based logistics may be warranted. Growth of US wholesale accounts would also be a driver of increased brand awareness. Further category expansion of the existing t-shirt, knits, or homeware may also be an opportunity for growth in adjacent product lines.

    Skills to have

    A new owner with design skills would be ideal although the founder is available for ongoing design and production support for a defined period of time. A new owner would ideally have some operational and marketing skills to be able to run the business. The current team and contractors have all of the skills needed to run the business, with the exception of senior management roles and responsibilities.

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