Little Designer Club | Expressions of interest for LDC

Expressions of interest for LDC

Little Designer Club Pty Ltd

Website: https://littledesignerclub.com

Founded in 2017

Founders: Lauren Jauncey and Jacquie Sharples

Little Designer Club is a world first online design studio for children to design their own accessories.

Little Designer Club summary

Little Designer Club is an award winning, fun and unique business which is bursting with potential. Established in 2017 the Little Designer Club brand has a loyal customer base and a fantastic reputation for high quality products and customer service.

On our website kids can design their own accessories which are then delivered directly to their front door. Gift vouchers to our site are a popular birthday and Christmas gift.

The Little Designer Club website is a bespoke site built with Craft by award winning Australian designers.

As well as traditional e-commerce, we also have a relationship with Myer to do pop up retail activations in stores in the school holidays. Little Designer Club also offers in home birthday parties for kids. In particular this offering has huge potential for growth across Australia that has not yet been leveraged.

The business can be grown through all three of these revenue streams and we also have plans for other products that can be added to the range. Currently we sell a kids handbag and necklace. Satchels, backpacks, hat and other products can be added to the range. Over the years we have also had requests for more boy focused products.

The business has been run by two mums and friends, however we have only worked in the business a few days a week for the last few years. We have constantly re-invested money back into the business to build a solid foundation for future growth.

The unique business concept, bespoke website, branding and products and five star reputation are assets ready to be grow.

Awards

2018 – Best new online retailer, ORIAS

2019 – Finalist, Best in-store concept, ORIAS

How does your business make sales?

We make sales by selling products and gift vouchers via our website. We also make sales doing school holiday pop up shops and workshops (this is not reflected in the revenue in the last 12 months due to COVID). We also make sales hosting birthday parties in-homes in Melbourne (this is not reflected in the revenue in the last 12 months due to COVID)

Describe your purchasing and order fulfilment process

We source our products from manufacturers in China.

We then store the products at our warehouse.

We fulfill the orders as they come through online.

When we do retail activations and parties the products are made on the spot by the customers.

Why are you selling this business?

The business was started by two friends. One of us has now moved overseas and not able to be involved in operating and growing the business. The second founder has recently had an opportunity to move into another business when is more aligned with her skill set and interests. The business has never had someone working on it more than a few days a week and has so much potential.

Who would this business be perfect for?

This business would be perfect with someone with e-commerce, Marketing and fashion experience. It has been run as a part time business from home. It could be continued in this manner however there is great potential is someone had a full time focus on the business to grow it.

Stock and Inventory available

We have roughly 650 children’s handbags currently in stock. This isn’t exact as our products are in components – handbag bases, flaps, straps and keychains. At a retail value of $40 each this is $26,000 of saleable stock.

We have thousands of necklace beads in stock. Approximately enough to make up 650 necklaces. This isn’t exact as our products are in components – beads, thread and clasps. At a retail value of $20 each this is $13,000 of saleable stock.

We forecast that more stock will need to be purchased soon to refresh the options available on the site currently.

Currently we store our stock in a warehouse in Preston, Victoria. This arrangement will be available for the new owners if that location is practical. The cost is $110 per month. Alternatively the relocation of stock within Australia will be included in the price of the sale.

Our manufacturers and suppliers

Our stock is currently sourced from a variety of locations in China and more information can be provided as requested.

These contacts will be provided with the sales of the business.

Social Media and social proof

Facebook: 1.9K followers

Reviews on Facebook: All 5 star

Facebook pixel: installed on LDC site in mid 2020

Facebook Ads Manager: mature account with over $15,000 spent on the advertising account to date.

Instagram: 1.5K followers

Mailing List: 1.2K email addresses

Our mailing list is currently managed via Mail chimp.

Stamped (verified reviews): Started mid 2020. Currently 58 reviews. 5 star average rating

Social Media has not been a strength of the co-founders. We have done targeted facebook advertising since mid 2020. We have not done advertising on other platforms.

All social media accounts will be sold with the business.

Our Branding

Our branding was done by the team at S Group (https://sgroup.com.au). ; We have a brand identity document with our logo, brand colours and brand icons.

These will all be sold with the business

Our e-commerce site

Our website is built from the ground up using the platform Craft. Built by award winning designers S Group https://sgroup.com.au. The site cost $20,000 to build. S Group’s team are all based in Australia and very responsive with updates and support. The back end / content management system of the website is easy to use. Maintenance and emergency support is provided by S Group and charged per job.

Basic products can be added to the site by the users. New bespoke products that need to be created in the product builder need to be loaded by S Group. This needs to be included in the set up costs for new bespoke products.

The site has been kept up to date with all the latest software released.

Our site currently accepts payments via Stripe and Paypal with all major credit cards accepted.

The domain and the site will be sold with the business.

Site traffic

Data available from Google Analytics. Current statistics:

Page Views 6,268 p/mo

Unique Visits 1,329 p/mo

Traffic Health

Pages / Session 4.40

Avg. Session Duration 00:02:22

Bounce Rate 41.62%

Our Pop Up concept

Shortly after launching the business we secured a deal with Myer to have Little Designer Club pop up shops in Myer stores. We began with Myer Melbourne in the April school holidays in 2018. In the following year we did pop ups in Myer Sydney, Hobart, Chadstone, Melbourne, Highpoint, Southland, Eastland and at the Christmas Giftorium. We have also done pop ups in bespoke retail settings. Currently the agreement with Myer is a profit share with Myer charging 20% of the pop up sales. Myer also promote the pop ups via their social channels. Shopping centres such as Chadstone and Eastland also promoted the pop ups via their websites and social channels. Our pop up in Sydney was also attended and promoted by Myer ambassador Rachel Finch via her social channels.

The pop ups are also a great was to engage with micro influencers with children, with many influencers attending and promoting the pop ups in exchange for free product.

At the pop up the children design and build the products on the spot. We found it was a popular and special school holiday activity with parents.

Our pops ups received media attention from the Herald Sun, the Age and the Hobart Mercury.

We have not done pop ups in 2020 and 2021 due to COVID however we see this as a good strategy for sales moving forward. Partnering with other retails chains and shopping centres are other options moving forward.

https://businesschicks.com/lauren-jauncey-little-designer-club/

We have a mobile pop up shop which will be sold with the business. The pop up shop cost $7,000 to design and build.

Our LDC children’s birthdays

After many customers requested birthday parties we launched LDC birthday parties in 2019 in Melbourne and Hobart. The parties are conducted in homes. We have a one hour birthday party strategy and system that was run by staff with experience and an interest in working with children (eg: university students studying primary school teaching). They are popular with girls aged 5 to 11.

Currently the price per person for a party is $55 per child with a minimum of 8 children. Travel time is also charged depending on the travel distance. We have been told multiple times what amazing value for money this offering is.

Over the years we have had interest from various people across Australia asking if we would do the parties in other states and also from people wanting to run them for us interstate.

We have never run a marketing campaign in relation to the parties to date as we didn’t have the capacity in terms of staff to deliver on increased demand. We see LDC parties as another strategy to grow the sales and brand awareness.

We have not done birthday parties in 2020 and 2021 due to COVID however we see this as a potential area for growth moving forward.

Future product ideas

We have a sample of a backpack that similarly to the handbag would be designed by the little designers, with a base, flap, strap and keychain. We planned on this being a more premium product or price point at $80 to increase the profitability of the business.

We also have a sample for a satchel where the components are a base, flap, strap and keychain.

We also were working on a concept of a design your own hat. Kids would choose the type of hat, hand band and embellishments. We planned on this being another $40 product.

Increasing the product range would give LDC the chance to do better bundle deals, increase the average cart value and increase the returning customer rate.

Financials

Capital invested to start the business from co-founders: $70,000

To date all revenue from the business has been reinvested into the business, into activities such as purchasing more stock, investing in pop up shop setups and online marketing. The business has been operating at break even to date.

Data for previous 12 months

The losses that show in certain months in the data below appear because we used Job Keeper payments to spend more on marketing and Job Keeper is not shown in the revenue numbers. The revenue shown below is purely online sales. So although they appear to be losses they are not actually losses. We still continued to operate at breakeven. We could not do pop ups or birthday parties in this time period due to COVID restrictions.

Revenue Costs Profit
Jun 21 $1,257 $1,184 $73
May 21 $1,491 $3,028 -$1,537
Apr 21 $1,225 $1,557 -$332
Mar 21 $1,670 $1,682 -$12
Feb 21 $1,731 $2,356 -$625
Jan 21 $1,580 $2,508 -$928
Dec 20 $4,430 $2,292 $2,138
Nov 20 $6,138 $3,288 $2,850
Oct 20 $3,564 $3,305 $259
Sep 20 $5,004 $3,535 $1,469
Aug 20 $1,905 $3,955 -$2,050
Jul 20 $1,605 $3,182 -$1,577


Paypal and Stripe sales reports

Outstanding Debt

The business has no outstanding debts. The business was fully funded by the founders and revenue from the business.

Outstanding Gift Vouchers

Currently there approximately $5,000 worth of gift vouchers that are valid but have not been redeemed. Gift vouchers must be valid for three years under Australian Law. This equates to roughly 125 bags and we have more stock than that currently on hand. Gift voucher redemption rates also sit well below 100%.

Post sale support

Included for at least 30 days.

Summary of Assets

  • Brand assets – LOGO and branding
  • Contracts (written or verbal) with customers and suppliers
  • Custom technology
  • Customer databases
  • Domains
  • Existing manufacturing relationships
  • Hosting accounts
  • Inventory on hand or on order at the time of closing
  • Marketing materials and collateral
  • Policy and Process documents
  • Relevant email accounts
  • Social media accounts
  • Website files, source code and content
  • e-Commerce platform accounts
  • Pop up shop set up

Sale Price:

$30,000 ONO or by negotiation

For more information:

Please email Jacquie at jacquie@littledesignerclub.com or call on 0402 066 948