Wholesale Fashion Accessories Business For Sale

Business description

Established by a husband and a wife team, this business offers a unique combination of a very successful wholesale fashion accessories business and a separately branded retail mail order business – originally set up as a way of off loading old stock – but which is rapidly developing a growing following all of its own.

Trading as a wholesale fashion business for the last nine years with the retail mail order operation launched several years later, this business, based around the lifestyle of its owners, offers a wide range of high quality fashion accessories with a broad appeal – customers’ ages range from 16 to 80!. From the classic to the eclectic including silver and semi precious jewellery, shawls, wraps and scarves right through to pashminas, bags and belts – this business offers them all - all designed, manufactured and imported from high quality suppliers. This business travels the globe in its search for beautiful handmade items, made in exotic places by master crafts people. Ethically based, the business visits its supplier factories frequently, ensuring it only collaborates with companies whose workers benefit from good conditions and have factories that are modern and considerately run.

This business caters for the discerning woman looking for something different, beautiful and special, with a particular emphasis on items suitable for travel and holidays. On the retail side the business operates a very well designed e-commerce site. On the wholesale side the business produces a very attractive, top quality, well designed and very successful catalogue, almost unique in its design approach – a retail design style concept despite being aimed at the wholesale market. This business has secured a customer base of approximately 300 shops, mainly independents – a third of which form the backbone of the turnover of the business – throughout the UK and Northern Ireland. In fact the products of this business can be found in the best retail independent outlets in the High Streets of most major towns throughout the country. Shops enjoy exclusivity to stock the range within a limited geographical area.

Perhaps the cornerstone to the success of the business however has been its personal approach. Not for this business an Interactive Voice Recognition system. Retail customers can speak to a real person at the end of a phone who knows the product range, where and how it was made, the sizes and colours available etc.

This is a very well established business which has consistently made profits. Combined turnover for the two operations exceeded £330,000 generating gross profits of approximately £146,000 for the year ending December 2005. As such it represents an excellent acquisition opportunity for a new entrant into the marketplace or alternatively an existing clothing business – retail, wholesale or Internet based, looking to broaden its operations and customer base.





Key Strengths:
Having always made a profit, this business has a clear understanding of the marketplace in which it operates and has established an excellent reputation for its quality range at very competitive prices. It has built excellent supplier relationships. Rather than negotiating prices down to the bare minimum this business knows it can allow its suppliers to make a fair margin with plenty still available in the wholesale and retail markets in the UK. Its suppliers respond accordingly - excellent supply lines are in place ensuring good quality product, delivered on time and presented to perfection on arrival in the UK.
This business has an enviable retail Client base of mid to upper priced independent retail outlets and independent Department Stores throughout the UK and Northern Ireland.
This business is rapidly developing as a brand both in the wholesale and retail sectors. The production qualities of its communication materials and website are excellent. Its well designed catalogue with high quality photography is planned up to 18 months in advance to ensure photo-shoots of product take place in the right season but more importantly to encourage forward orders from customers enabling the business to be much more certain in the orders it in turn places, minimizing excess stock and out of stock situations. Aimed at the wholesale sector whilst very much adopting a retail style, is very effective in generating orders from the customer base – and especially ‘top-up’ orders ensuring consistent turnover throughout the season.
Retail customers enjoy high levels of customer service and a highly personal approach from well motivated and trained staff with high levels of product knowledge and expertise. This personal approach pays dividends in relation to the financial management of the business – credit control is very good with the business suffering very few bad debts throughout its many years of operation.

Property information

Location:

The business operates from approximately 650 square feet of office and warehouse space. Located at the home of the Owners the business will need to be relocated post sale.

Other information

Expansion potential:

The market for fashion accessories grows increasingly year on year – as all women realise the addition of just one new accessory can transform any previously worn outfit. With a strong demand for its products, combined with a capacity to increase turnover, there is an outstanding opportunity to build on the existing products and customer base of this business. A new owner contributing fresh initiatives and enthusiasm will have every opportunity to build on an excellent platform.
There is certainly scope to increase awareness of the brand both within the retail and wholesale sector through advertising and possibly by re-visiting the public shows and exhibitions this business has attended in the past. Additional time spent on product research and design would enable this business to extend its product range and increase its penetration within the retail independent sector.
Although the retail side of the business has a very well designed and attractive e-commerce site, the wholesale side does not currently have a web presence and there is no doubt that a trade only accessible website would have a significant impact on turnover and profitability.
By far the greatest opportunity for growth however lies with linking this business with an existing clothing business – broadening the customer base as well as generating significant cross- sell opportunities on both the clothing and accessories side.

Competition / Market:

Not really looking to add to its current customer base at present, the business does very little by way of advertising, using as its main marketing tool a very high quality catalogue dispatched to its retail customer base. The catalogue also supports the sales activities of the business, with the owner and two Sales Agents visiting all retail stockists twice a year with the latest collection. Trade press advertising via Drapers Record and Womenswear Buyer, for example has proved very effective in generating additional retail stockist opportunities in the past. The retail side of the business has a very attractive, well designed and easy to navigate e-commerce site which performs very well in all the major search engines for all appropriate search topics. This side of the business has a very effective joint promotional calendar in place with excellent ‘Readers Offers’ in conjunction with very well chosen, up-market publications. The business has also had great success in the past by attending major trade and public shows such as Spirit of Christmas, Top Drawer etc.

Support & training:

The current Owners are happy to provide full business familiarisation, training and handover for as long as is required to ensure a smooth transfer of the business to new Owners – exact duration to be negotiated prior to the sale

Reasons for selling:

Having built the business back up to its current scale the current Owners believe it is time to hand the business on to new Owners who can build upon the excellent foundations that have been established and realize the full potential the business undoubtedly has.