ID : 37645
VULSINI operates in the ‘Health & Beauty’ sector and is the manufacturer and supplier of heating bags for hot stone and warm bamboo massage. VULSINI invented and patented the VULSINI Hot Stone Bag: a sophisticated, high quality bag with a built-in heating element and digital temperature controller, revolutionising the massage industry with its innovative and user friendly design.
Since launching in 2010, thousands of VULSINI heating bags have been sold and the VULSINI brand has become established in the UK massage industry, particularly with spas and beauty/complementary health schools who recommend the product to their students year after year – redefining hot stone heating for professionals across the UK and overseas. VULSINI Bags have now been sold in over 20 countries including the UK, USA, Germany, Australia and Taiwan to name a few.
VULSINI manufactures the heating bags in the Far East and in the last 2 years also launched a luxury range of British made heating bags working with a small leather bag workshop in Lincolnshire. The bag factory is also for sale and is being offered as an optional addition to the business. A potential purchaser would have the opportunity to either relocate the storage and distribution, or continue using the factory for part of the manufacturing and distribution.
VULSINI has been a victim of its own success and due to cash flow restraints cannot keep up with demand due to the long lead times in purchasing goods. It is continually running out of stock due to lack of funds and the inability for the business to raise enough finance to move forward. This scenario is stunting the growth of the business whose turnover could be doubled overnight if sufficient stock was on hand.
Opportunities:
• With 80% of sales currently from the UK, there is massive potential for growth overseas, particularly in the European and American markets, with an estimated 325,000 to 375,000 massage therapists and massage school students in the USA alone.
• The company is in a strong position to capitalise on its growing client base through offering more VULSINI branded products including a skincare range, which has been launched in 2018 with a range of massage oils.
• With finance in place, the company can substantially increase its gross margin through:
o lowering product costs by increasing order quantities.
o lowering shipping costs by ordering in advance and maintaining a constant stream of stock (the company now regularly suffers from stock shortages, having to fly in goods at exorbitant express shipping prices to satisfy demand).