Our firm presents a B2B wholesale designer and importer that has become a favorite of many Fortune 500 companies, working directly with enterprise-level businesses looking for an expert team to design and develop their products. This company is based in New York and has spent 10 years cultivating a client base among prominent retailers looking for someone to create new and specialized products. A key to this company’s success has been their ability to get products out much faster than large importers. That’s given this company a terrific reputation within the industry and enabled them to enjoy a loyal customer base that provides them with strong repeat business.
This brand has attracted sales from major brand name retail stores, and their products are easy to find in those retail shops. This company was founded in 2011 by a husband-and-wife team who brought to it more than a decade of experience in the product design field. Their goal was to create a one-stop shop where retail customers could get the kind of intricately designed products they were looking for, and to also be a place where those same retailers could throw new product ideas at based on customer feedback. With an expertise in designing specialized items, this brand’s profitability rose quickly as they developed a reputation for a fast and reliable delivery of new products in the catalog.
Once a requested item has been designed, the product is created by their manufacturing partners in China, and the products are then drop shipped directly to the client. All products remain proprietary and are sold under the company’s brand. Over the past decade, the brand has attracted major clients, including T.J. Maxx, Burlington Coat Factory, Ross, Dress For Less, CVS Pharmacy, HomeGoods, Marshalls and other off-price retailers who purchase large volumes of branded goods for their format based on discount pricing. They work directly with buyers across a wide variety of product segments.
This company works directly with their customers to review trends in key home product categories. Their expertise allows them to focus on creating items for upcoming promotions, and to approve new product designs as it relates to the retailers’ pricing. Those products are then sourced and shipped to the customer’s distribution center, providing the fastest and most efficient turnaround times. That’s helped develop a strong customer loyalty for this brand, since they’ve fully demonstrated the ability to get their clients’ products into their stores at a much faster rate than if the customer worked on it in-house. Not surprisingly, their churn rate is very low and the majority of their customers have been with them for years, giving them a valuable recurring revenue stream as those customers continue to reorder new items. The company now enjoys high profit margins. Since their overhead is low and their dropship fulfilment model is so effective, the brand has been demonstrating 22% profit margins over the past few years.
Operating out of a 7,500 square foot office space and showroom, customers can either visit their showroom or set up a Zoom meeting to discuss a product development strategy. At that point, their team can provide a detailed review of trends in that product category. Relying on their longtime clientele, repeat business, and plenty of referrals, the company has not done any marketing in the past. As a B2B business, they have not needed a website, either.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.