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Listing ID: 2495 Total Viewed: 2283

E-Commerce Business In Fast Growing Category

Central Area, Singapore

Asking Price : SGD100K - 200K

Revenue: SGD500K-1M

Cash Flow: Under SGD5K

Payable: Not Disclosed

Established: 2011

Gross Profit: SGD200K - 500K

Inventory: Not Disclosed

Receivable: Not Disclosed

Owner Role: Full Time

Net Profit: SGD10K - 20K

Liability: Not Disclosed

FFE: Not Disclosed

Staff: 2

* Revenue, Gross Profit, Net Profit, Cash Flow are based on Annual average

***NOT included in asking price

Reason To Sell
A lack of internet & online marketing skills is preventing us from maximising this opportunity
Business Description

The Market

  • The market is valued at approximately US$3 billion and is estimated to grow to US$25 billion by the mid 2020’s (includes Adult Toys, Lubricants, Massage Oils, Luxury candles, Erotica, Sexual accessories) *

  • 100 million women (aged 17-70 years) are regular users of sex toys.  In the next decade, 300-400 million women will buy some form of sex toy or accessory *

  • Nearly half of all women under the age of 65 use or have used a vibrator.  93% of women engage in solo sex & 75% do so regularly, with 46% using some form of sex toy while doing so *

  • 80% of all sex toy purchases are made by women *

  • A high % percentage of women do not like the current shopping environment, labelling it as ‘tacky’ with poor packaging being a major factor *

  • There are very few online sites or physical stores that appeal directly to the mainstream female consumer *

  • The sector is relatively immature.  Only about 8% of the market value in sex toys can be attributed to premium products & in general presents no brand value recognition to the consumer, which is due to, *

    1. Inadequate retail infrastructure

    2. A lack of understanding of the market and consumer

    3. A lack of branding and marketing

    4. The over 40’s age group is largely ignored in this category

  • There is a major difference between what shopping environments the female consumer would like and what is mostly on offer.  Over the last decade, the market for female erotic goods has succeeded in spite of the supply side/ retail environment, not because of it *


Business Summary

  • In 2011, after 10 years in the industry we started a new business & brand called Little Hussy.  The objective was to capitalise on the market opportunity that existed, which was to move ‘Adult Retailing’ into the mainstream retail environment & away from traditional adult retailing, focusing on health, wellness and the female consumer

  • The objective was to focus the business purely on e-Commerce & internet marketing

  • To fast track the brand & gain maximum exposure & recognition we successfully pioneered the introduction of this category to Australia’s two biggest e-Commerce retailers, Groupon Australia & Catch of the Day & also Groupon Hong Kong.  This was a major break through in changing the direction & perception of adult retailing

  • We developed our own brands.  Little Hussy | Love & Play | Love and Health which sold strongly when introduced to the market

  • Our main market is Australia.  New emerging markets are Hong Kong, Malaysia, Indonesia & Thailand mainly through 3rd party platforms such as Groupon HK, Lazada, & Ensogo etc.

  • In 2015, in developing the USA market & trying to give the brand more elasticity & a greater focus on health we decided to change the brand from Little Hussy to Love and Health.  We believed this was an important factor to the female consumer we were targeting.  This involved changing our URL from www.littlehussy.com to www.loveandhealth.com.au 


Business Positives

  • When we introduced the category to the major retailers we proved the marketing strategy & product positioning was correct, with the first year achieving strong sales

  • Unfortunately the retailers saw this new category as easy profits & against market research & our advice rapidly expanded their suppliers & product range & promoted a wide & often distasteful product offering which lead to customer complaints & category issues, ultimately leading to reduced activity

  • Our market & brand positioning is validated by other new multinational brands entering the market such as Honey Birdette eBoutique who have adopted a similar strategy but with a bricks & mortar/ online e-Commerce approach

  • While eCommerce has been our achilles heel, the highlight was Financial year 2012-/13

    • Traffic peeked in March 2013 with 33,100 visitors

    • Conversion rate average was 2.49%

    • Revenue was AU$160k

    • Average transaction value was $41

  • Key customers are set up and trading.  Groupon Australia/ New Zealand.  Catch of the Day.  OurDeals.com.auMyDeals.com.au.  Groupon Hong Kong.  Ensogo Asia.  Lazada Malaysia, Indonesia & Thailand.


Business Upside

  • Our background is FMCG & traditional bricks & mortar retail.  Due to a lack of internet marketing & eCommerce skills & experience we have been unable to make the eCommerce model work

  • An opportunity exists for an experienced eCommerce/ Internet marketing business/ person to take over an established business structure & eCommerce business

  • The business foundations are in place which would allow an experienced eCommerce/ Internet marketing business/ person to step in & immediately focus on increasing traffic and sales

  • Singapore & emerging Asian markets although smaller then western markets will continue to grow & the Love and Health brand is well positioned to take advantage of this growth


What is for Sale

  • USD$90,000 for the business

  • Stock at cost, approximately US$70,000 (valued at point of sale) 

  • Infrastructure

    • Brands - Little Hussy | Love & Play | Love and Health

    • High quality & reliable manufacturing factory for our own branded adult toy SKU’s, based in China

    • Relationship & account with Asian distributor for third party high premium branded toys for category extensions, based in Hong Kong

    • Relationship with reliable & quality Apparel supplier, based in China

    • Third party warehouse facility that manages our inventory & distribution, based in Hong Kong

    • A global distribution network which can manage bulk freight or door to door deliveries

    • In house brands which have established product packaging & sales include Love and Health, Little Hussy & Love and Play

    • Database 41,275 live email addresses

    • Facebook followers 12,784

    • 87 SKU’s under our own brands

    • 1,680 SKU’s under third party brands

    • eCommerce website built on Magento platform (Community) 

    • Xero Accounting 

    • Two staff:  E-commerce manager - full time position | Accountants & Administration - 1 day per week

    • Company and Business (company is optional)


Business Operations
Business Hour:
e-Commerce / Online / 24/7
Preferred Skills:
This business needs someone who has experience or a deep desirer to learn and understand the eCommerce & online marketing world.
Supporting and Training:
We can provide industry information and introduce the new owner to all key stakeholders, including factories in China and Hong Kong
Staff:
1 Foreigner, 1 Part Time
Property Information
Premise Status:
Work At Home
Relocatable:
Yes, it can relocate to other place
Home Base:
Yes, it can work at home
Other Information
Facilities:
USD$90,000 for the business Stock at cost, approximately US$70,000 (valued at point of sale) Infrastructure Brands - Little Hussy | Love & Play | Love and Health High quality & reliable manufacturing factory for our own branded adult toy SKU’s, based in China Relationship & account with Asian distributor for third party high premium branded toys for category extensions, based in Hong Kong Relationship with reliable & quality Apparel supplier, based in China Third party warehouse facility that manages our inventory & distribution, based in Hong Kong A global distribution network which can manage bulk freight or door to door deliveries In house brands which have established product packaging & sales include Love and Health, Little Hussy & Love and Play Database 41,275 live email addresses Facebook followers 12,784 87 SKU’s under our own brands 1,680 SKU’s under third party brands eCommerce website built on Magento platform (Community) Xero Accounting Two staff: E-commerce manager - full time position | Accountants & Administration - 1 day per week Company and Business (company is optional)
Competition:
Main competition is from other eCommerce online stores. Australia is our main eCommerce market. Singapore and South East Asian markets have not had any focus in terms of building our own e-Commerce sales.
Expansion Potential:
Singapore & emerging Asian markets although smaller then western markets will continue to grow & the Love and Health brand is well positioned to take advantage of this growth
Supporting Documentation

All the information in this listing has been provided by the business seller or representative. Our platfrom is not responsible for the accuracy of the information.

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