Details - Information last confirmed on April 16, 2021
Our firm presents an exciting opportunity to purchase a high growth Board Games company with a strategy alliance in Shanghai. This eCommerce Retailer has been in Business for 17 Years and is primarily an Amazon FBA Retailer, using the power of Amazon to further develop its product offerings and growth profile. Scale has been constant in this online business with another 20-25% growth planned for 2021 despite the fact that board games were the go-to home remedy for many during stay-at-home orders, resulting in phenomenal 2020 results. While 2020 certainly was an incredible year for companies that sell board games, this particular business was able to solidify its position on Amazon as a clear leader in the space, allowing it to grow even further going forward, despite the high bar set in 2020.
The company operates in several sectors within Classic, International and Traditional Board Games. With 4 in-house brands under management, the board games created by this business are known for their quality in not only materials, but also presentation. Add to that their defensive moat brought on by position ranking on Amazon’s search algorithm (A9), and you begin to see that the growth in this business is only yet begun.
In addition to board games, and because of the company’s lucrative, long term relationships with a number of Asian and European Suppliers, the company has started to expand its imports business from not just board games, but into classic Chinese Hardware for Furniture Restoration, Architectural and Interior Design projects; elegant European-Style Wood-Crafted Chess Sets; and unique Storage Solutions.
Carrying such versatile and unique product offerings has allowed this business to drive revenue and growth over their more than 17 years in Retail. The aforementioned vendor relationships are important for product development – there is a seamless and swift SKU expansion system in place with highly enviable payment terms. This company already stands at the top of each of its industries, however, there is immediate opportunities lined up for scale – and these vendors relationships are the key to it all. They are hard to get, and highly valuable. The company is able to prototype fast and maintain strict controls over Quality and Supply Chain through its China operation located in Shanghai. The advantage of this piece of the operation is being in the same time zone as its manufacturers and having a local team and facilities. Sourcing via this Chinese-based purchasing team secures better pricing, terms, manufacturer selection, and relations. Quality Control for all manufacturers are performed at a single point in the Shanghai facility before given added value, packaging, labeling, and other prep work. The products are stored and loaded on bi-weekly container shipments, direct to Amazon FBA, as needed for regular replenishment.
This company’s growth would be even more pronounced but for the multitude of supply chain and logistics issues that have come up since the Pandemic and impacted all import businesses, which has bled into 2021. Additionally, the company outperformed in December and January, causing a further constraint on inventory holdings. The company has recently taken matters into its own hands, which will result in a return to normal inventory levels within the next couple of months. The company’s products sell so quickly that managing inventory is a top priority.
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