"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This well-established South African skin care brand is available for acquisition. The company has built a strong reputation and distribution network across the country, supplying premium products to health spas, dermatologists, and beauty clinics. With a loyal client base and consistent demand for quality skin care products, this brand represents an attractive opportunity for both strategic and financial investors.
How does the business operate on a daily basis?
Manufacturing: The entire product range is outsourced to two experienced, accredited manufacturing partners, ensuring consistent quality and flexibility in supply.
Distribution: Products are distributed nationally through a network of health and beauty professionals. Orders are fulfilled from a small dispatch office managed by a dedicated dispatcher/client liaison.
Logistics: Clients cover courier costs for smaller orders; however, courier fees are absorbed by the company on purchases above a certain threshold, encouraging bulk orders and customer loyalty.
What Advertising/Marketing is carried out?
The business currently allocates an average of R15,000 per month towards marketing. Increasing this investment presents a significant opportunity to strengthen the brandâs online presence and drive further growth.
What is the total staff complement?
The business currently operates with one employee responsible for dispatch and client liaison. To enhance customer engagement and expand the online presence, it is recommended that a dedicated sales representative and a manager be appointed.
Dispatch/Client Liaison: R15,000 p.m.
Sales Representative: R10,000 p.m. (excluding vehicle costs)
Manager: R15,000 p.m.
When does the current lease end?
The current premises form part of the sellerâs other business operations. A new owner would therefore need to establish their own dispatch facility or, alternatively, operate from home where feasible, as the space requirements are minimal (less than 100m²).
What are the main assets of the business?
Skin care formulas, packaging equipment, laptop, and tablets.
Strengths?
Recognised Brand: Well-established reputation within the professional beauty and wellness industry (health spas, dermatologists, and beauty clinics).
National Distribution: Strong existing footprint across South Africa with loyal professional clients.
Lean Operations: Outsourced manufacturing to two reliable suppliers reduces overheads and operational risks.
Scalable Model: Low space requirements (less than 100m²) make operations flexible and cost-efficient.
Customer Loyalty: Repeat business from professionals ensures steady demand.
Weaknesses?
Limited Staff Capacity: Currently only one employee handling dispatch and client liaison; no dedicated sales or marketing staff.
Marketing Investment: Current spend (R15,000 p.m.) may be insufficient to drive online growth and broader brand awareness.
Dependence on Outsourcing: Reliance on two third-party manufacturers may pose supply-chain risks if not managed carefully.
Lack of Online Presence: Underutilisation of direct-to-consumer e-commerce channels.
Opportunities?
E-Commerce Expansion: Launching or scaling online direct-to-consumer sales channels to capture retail demand.
Dedicated Sales & Management Team: Employing a sales representative and manager to increase customer engagement and expand market share.
New Product Development: Expanding product lines to cater to evolving consumer needs (e.g., natural/organic or niche treatments).
Geographic Growth: Opportunities to expand into regional African and international markets.
Strategic Partnerships: Potential collaborations with pharmacy chains, retail groups, or wellness franchises.
Threats?
Market Competition: Strong competition from international and local skin care brands with higher marketing budgets.
Economic Pressures: Consumer spending in luxury/premium segments may be affected by economic downturns.
Regulatory Environment: Compliance with evolving cosmetic, health, and safety regulations.
Supplier Dependency: Disruptions at outsourced manufacturers could impact product availability.
Substitution Risk: Customers shifting to cheaper alternatives or well-marketed international brands.
What is the reason for the sale?
The current owner is involved in other businesses and does not have the capacity to dedicate sufficient time and resources to grow this business.
Annual Turnover Amount between R 500 thousand and R 6 million
