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We are an online based streetwear company that imports various brands such as Champion, RipNDip (Middle Finger Cat), Thrasher and many others. We have been operating for about 3 years.
We are currently on 3 online platforms and am consigning to a retail store at Far East Plaza.
Carousell with 100% 5 star reviews.
Lazada with 98% 5 star reviews. Top 90 percentile in Lazada.
Shopify website with 100% 5 star reviews.
Sales: Average $3-4k/month online (Carousell, Lazada, Website), $3k (Far East Plaza)
The retail store in Far East Plaza is run by a streetwear enthusiast. His store carries mainly Supreme and other limited supply brands which aren't readily available in Singapore.
We managed to generate a decent amount of sales through him and he takes a 20% commission.
Why buy/invest in this business:
- The streetwear business is booming especially in countries like China, check out Yo'Hood. If you're able to use this business to leverage, you can make tons of money. (Look at ASOS)
-These brands that we carry are established and so demand is proven with less need to prove if they sell.
- The distributors for the brands usually run on a referral basis. They don't actively seek out retailers and so there's quite a bit of networking to be done to get hold of them. (If you can do it, B2B wholesale is also another source of income)
- The initial hard work has already been done of getting reviews and establishing an infrastructure.
- If you are starting a new store selling streetwear, it's going to be very hard to stand out as there are many copycats and competitors. When we started, there was not much competition and so, managed to get reviews to stand out amongst the rest.
- We have spent a great deal into advertising for influencers and photos, all of which are assets for your use. (Influencer marketing is also another monetisation branch if you wish to consider). We've a relationship with one influencer, @vaneszs.ho who has 90k followers and took part in Star Search.
- By buying this business, your main role is to grow the business through partnerships or brand presence. The boring stuff has already been settled.
- Our target audience has been age 18-24 years majority and 25-34 minority, both age groups are interested in streetwear.
- Margins are usually around 50% or 2x. There will be MSRP and wholesale price. You can give discounts as deemed fit.
- Some are even higher. For e.g. a Champion t shirt costs around $10 USD after shipping, but we are selling at $45, which is the suggested retail price in Singapore.
- Fixed costs only at around $100/month for website. We have no fixed storage nor labour costs.
- We've outsourced our logistics to a partner company who helps to perform all shipping and fulfillment. Every parcel shipped out is charged at $6.90. ($3 labour and $3.90 shipping)
- Projected to do 80k in annual revenue. With around $300 in marketing costs per month.
- Conversions from Instagram ads are around 5x ROI.
- Our net profits are around 30% assuming there are no employees, which is higher than industry standards.
- The data from advertising and supplier info are easily worth 10-20k depending on how much you invest. For e.g. certain brands such as Champion can give you a large return should you be willing to invest more.
- These suppliers that i have contact with are usually on the lookout for more trending brands. So it won't be a 1 time relationship. But rather a continual one where you can keep increasing your brand offering.
- If you were to start your own inventory based business, most will be tied down from the inventory AND the fixed costs of labour+storage. With this business, it solves that issue.
- We are also official members of the Singapore Retail Association (SRA). It's basically a directory of established retailers in Singapore, e.g. Zara, Capitaland etc. There's a vetting process and entrance fee to join. This privilege is given to you if you're to takeover :)
FYI, If you wish to start an apparel business, these are some of the costs to take note.
- Starting Inventory (typically 1k-5k)
- Website (1k-5k) or you can DIY which i won't recommend.
- Time to build up reputation and reviews, usually 1-2 years depending on how much you invest into marketing (Ads and Influencers)
- Labour and storage (assuming bare minimum of 2k/month)
- Inventory management and accounting.
- Total costs will probably add up to almost 40-50k in 2 years easily. We have invested probably close if not more into the business.
This business is most suitable for:
1. Those who wish to start a streetwear/fashion business or have passion in one.
I've friends who started their own product line, and truth be told, most if not all have died. It's too difficult in the current age unless you have a strong social presence. Plus, most suppliers require an MOQ that is insanely high compared to the suppliers which I have.
It's much easier to leverage on existing brands to gain the trust of your customers and then produce your own line.
Do you need to continue in streetwear? Not necessary, with our system and reviews, you can branch out to luxury or female wear if you want, however I'll highly recommend to do it progressively, otherwise it might cause your customers to feel you are just selling "stuff".
2. Those who have a retail business in fashion.
These brands are great as a hook for drawing crowds. Because they appeal to youngsters, and youngsters have time, they are willing to drop by your store. Adults not so much. Plus, youngsters are the ones who spend money.
Also, if you wish to enter the online scene, and have a brick and mortar, this might be for you. You are investing into an existing system that works to save you time and money.
3. Those who have an existing online business and want to expand their brand offering.
There are other online businesses who have acquired other companies like mine to capture market share. For e.g. Zumiez and Zalando in the UK. If you deal in mainly underwear for example, perhaps you can consider entering the streetwear market to serve your customers better.
This business is NOT for:
Those looking for a get rich quick scheme. Although this business has the infrastructure already set up, you'll still need to put in work to grow the business. Such as planning for campaigns and increasing the brand offering, aka product variety.
Reason for selling:
The management team is ran mainly by me and I've ventured to other industries, like advertising. For this business to grow, I feel as long as there's some interest in streetwear/fashion or having a retail front, the potential is tremendous.
Alas, my interest lies elsewhere.
What you'll need to do after buying the business:
Online customer service. Continuous advertising and content creation (Influencers, social media posting and paid advertising). Uploading of new products to the various platforms.
So to put it simply, what you're really buying is a system of suppliers and logistics for established streetwear brands. How much you make is entirely dependant on how much stocks and marketing dollars invested. The business makes money, it's just how far do you want it to go.
Also, I do wish to point out that my network of logistics and suppliers found are quite valuable. It's not something that can be bought with money per se. Plus, it can be expanded to B2B wholesale if you're capable.
To anyone interested, business can be daunting and uncertain at times, but if you have the passion, courage and flair, it will be something worth pursuing and giving your 100% for! It's well worth the experience :)
If interested, please contact the seller through the form on this page.
Industrial Park for storage and fulfillment.
Far East Plaza for retail consignment.
Far East Plaza #03-42
Offering more brands/products to existing customer base/data. Age 18-35 interested in streetwear. Sponsoring more influencers to reach out further.
More locations for consignment.
Alcoholiday at Cathay and Bugis.
Interest lies elsewhere in other industries like advertising.
Warehouse operating hours: Mondays - Fridays 9am to 5pm.
Retail: Fridays - Sundays 2pm to 9pm
The whole process from inventory purchasing to customer acquisition and fulfillment will be given.
It's been made to be very simple and hands off.
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