BUSINESS FOR SALE

Lux Hax is for sale and I believe it is a particularly exciting opportunity for a buyer based in the United Kingdom. Please watch the video and consider the information below. If you would like more information, please email hello@luxhax.com to request a non-disclosure agreement and feel welcome to share this page with others who may be interested.

Kylie talking about Lux Hax sale

 

Business overview

What is Lux Hax?

Lux Hax is a design and online retail business. The business is currently located on the Gold Coast, Queensland, Australia, with shipping to most countries.

What does Lux Hax sell?

Lux Hax designs, makes and sells Styl-Panels (also known in the industry as 'overlays') to fit popular flat-pack furniture, namely IKEA. Our Styl-Panels allow customers to customise affordable furniture into stylish looks and to "disappear" the IKEA-ness of their decor.

Product Range

We design and manufacture rigid overlays for IKEA’s most popular furniture ranges:

For the buyer, there is also an opportunity to sell adjunct products and product bundles in the form of accessory items - think: handles, adhesive vinyl, paints, furniture legs, tools and so on.

Materials we use

Lux Hax currently offers Styl-Panels in three material options:

  • 3 mm white paintable Foamed PVC (FPVC)
  • 3 mm mirrored silver Aluminium Composite Panel (ACP)
  • 3 mm mirrored gold Aluminium Composite Panel (ACP)

Manufacturing of these materials is done by a CNC router machine which we currently outsource to a local contract manufacturer. 

This selection of materials came after extensive material and market testing to find a high quality FPVC that matches well with IKEA furniture. Likewise, our Styl-Panels are supplied with easy to use, double-sided adhesive that is manufactured specifically for Lux Hax. The buyer would receive these details upon sale, suffice to say that the materials we use are manufactured in Europe and readily available. 

There is, of course, an opportunity for the buyer to expand the materials range.

Industry profile

Lux Hax straddles multiple growth sectors:

  • Online Retail: 19 percent growth in 2020, bringing total ecommerce sales worldwide to $4.206 trillion USD (source)
  • DIY and Home Improvement: The global home improvement market was valued at USD 849.31 billion in 2019 and is expected to reach $1155.79 billion USD by 2026 with a mean annual growth rate of 4.5% over the forecast period (source)
  • Home décor: The global home décor market was valued at $737.20 billion USD in 2020 and is expected to reach $1037.14 billion USD by 2025 with a mean annual growth rate of 6.6% (source)

Geographic markets

Wherever IKEA furniture is popular, Lux Hax is too. Our largest markets are the United States, United Kingdom, Canada, Australia and Europe.

Store traffic by location

Luxhax.com visitors and store sessions by location November 2020-2021

Website analytics

eCommerce platform

Lux Hax operates on Shopify, the world’s leading and "gold standard" ecommerce platform. The cost of setting up a Shopify store of Lux Hax’s size and scope is an estimated $10-$15K AUD (£5,500-£8,150 GBP).

Web traffic

The shop attracts 30K-40K sessions per month. This reliable flow of traffic represents a significant opportunity for a buyer looking for proven, stable web traffic. Business opportunities include product diversification, commercial sponsorships/ads, paid partnerships, consulting and design services, and so on.

Store sessions Nov 2020-2021

Luxhax.com store sessions November 2020-2021

Traffic sources

Store traffic comes from a mix of direct, social and search referral sources. After direct traffic, social is the biggest source of referrals. Pinterest alone accounts for nearly 80,000 referrals annually.

Social Media and Marketing Channels

Instagram (view channel)

  • 38,511 followers at 10 Nov 2021 (all organic growth and real profiles)
  • 1,221 posts and counting
  • Set up for Instagram shopping ($8,443 AUD attributed sales in 2020)
  • Customers and influencers tag Lux Hax every week
  • Numerous influencer collaborations have resulted in viral content
Instagram insights

 

Instagram audience insights 90 days Sep to Nov 2021

Facebook (view channel)

  • 9,409 people like Lux Hax at 10 Nov 2021
  • 9,944 people follow Lux Hax at 10 Nov 2021
  • Set up for Instagram shopping ($1,759 AUD attributed sales in 2020)

Pinterest (view channel)

  • High engagement at 1.6 million views and 66,000 engagements (clicks and saves) per month
  • 10,000+ outbound clicks per month
  • Pinterest is the top social referral source of shop traffic

YouTube (view channel)

  • Nascent channel with 142 subscribers
  • Opportunity to grow into more DIY decor content

Social sources of traffic

Social referral sources (Nov 2020-2021) and sales (Jan-Dec 2020)

Email Marketing

  • 10,560 email subscribers at 10 Nov 2021
  • Many high performing Mailchimp campaign templates already created for you

Reviews and automated loyalty program

Stamped.io is integrated with the Shopify store and set up to automatically request and reward customers who submit photo reviews. This is an ever-expanding source of user generated content. Lux Hax has a five-star average from 129 reviews.

Email marketing and review program

Business assets

Design and product assets

There are currently 71 panel designs. Each comes with a digital DXF cutting file (used in manufacturing), PDF technical drawing and CAD model. 

Not a technical person? Don't be put off. You don't need to be a CAD designer - you can create your own designs and cutting files using affordable, everyday software.

Image and graphic assets

One of the hardest—and most expensive—challenges of an interior design and décor business is developing a bank of quality product images. Not to mention social proof in the form of customer generated photos. The business comes with:

  • 500+ digital product images
  • Hundreds of graphic design templates and brand collateral files in Canva
  • Videos (YouTube, web hosted and video files)
  • Files already organised into Dropbox

Domains

In addition to the Shopify ecommerce store, the business comes with multiple domains:

  • luxhax.com (main)
  • luxhax.co.uk (UK)
  • luxhax.com.au (Australia)
  • luxehax.com (accounts for potential misspelling)
  • luxehax.com.au (accounts for potential misspelling)
  • stylkea.com (original domain)
  • stylekea.com (accounts for potential misspelling)

Trademarks

  • Australian trademark: 2048285
  • UK trademark: UK00003720680 (in application)

Knowledge assets

In addition to handover training, the following commercial knowledge will be transferred to the buyer:

  • Materials (tested materials, brands and suppliers)
  • Packaging (tested materialsbrands and suppliers)
  • Manufacturing (methods and suppliers - the right type of contractor)
  • Shipping (methods and carriers)
  • App integrations, including shipping, bookkeeping etc.

Physical assets

The buyer has the right to the balance of any physical assets, to be confirmed prior to settlement, including:

  • Print collateral
  • Packaging and shipping materials
  • Double-sided tape

Sales

Revenue in the last financial year (June 2020 to July 2021) was at $74,749 AUD, a 13% decline from the year before. The results reflects factors (see below) bearing on the business and the owner's life.

By comparison, sales in the 2019-2020 financial year 2020 were $85,804 AUD despite not operating for 10 weeks at the onset of Covid and the business being attended only part-time.

Revenue 2020-2021 financial year

Sales insights for last financial year (July 2020 - June 2021)

Considerations

  • The business is operated on a part-time basis with very little owner interaction due to other work commitments, especially so during Covid with home schooling and other work pressures.
  • Covid has significantly disrupted supply chains in Australia leading to extended shipping times, material delays and higher prices.
  • Despite Lux Hax being registered to collect UK VAT, Brexit has slowed sales with UK buyers being wary of importation rules.
  • Changes to European tax laws has made shipping to those countries (especially Ireland) more difficult - in fact, Australia Post has currently suspended all shipping to Ireland.

Sales by location

That being said, despite Brexit, Covid, price rises and shipping delays, overseas sales remained bouyant. Only can only imagine if those hurdles were removed from the equation.

Sales by location financial year 2020-2021

Sales by country for last financial year (July 2020 - June 2021)

UK buyer benefits

  • A turnkey business already up and running, which means you start earning from day one.
  • An established ecommerce website with consistent traffic over 30K users per month - lots of eyes.
  • Online shop already set up on the gold standard platform Shopify.
  • Established social media channels with 50K+ followers, high engagement proven click-through power and shopping channels already set up and bringing in sales.
  • 10K+ email subscriber list with email campaign templates and multi-step journeys already in motion.
  • A business based in the fast-growing DIY and home renovation segments.
  • Product photography, graphics, social media templates, print collateral, packaging methods, materials knowledge - already done for you.
  • Entry into a market where there are currently no notable UK competitors in the furniture overlays space.
  • Strong market potential, especially in the UK and Europe. IKEA UK reported pre-Covid sales of £2.120 billion in 2019 alone (source) and more than 60% of Brits report owning IKEA items (source).
  • Loads of opportunity to expand into new IKEA ranges, as well as adjunct products.
  • Excellent PR and media opportunities. The UK media loves IKEA hacking stories -  there are loads of examples like this Daily Mail article.
  • Brexit creates a competitive moat against potential non-UK competitors.
  • European materials will be cheaper and easier to source in the UK.
  • The UK is closer than Australia to the US and Canada for faster, cheaper shipping to those markets
  • Put in as much or as little work as you like. Focus on growing the business while you contract out manufacturing, packing and shipping or do some/all of the work yourself and pocket the savings.
  • Manufacture in bulk or manufacture to order - it's your call. The business demands manageable storage and working space making it suitable as a home-based business.
  • If you don't have manufacturing capabilities yourself, I'll help you identify a local manufacturing partner. CNC router machining is a common and affordable form of manufacturing.
  • Full training provided and I'm available to answer any questions as they pop up.

For more information, please email hello@luxhax.com to introduce yourself and include identification that confirms your name and address. Thanks for your understanding that all enquirers will be asked to complete a non-disclosure agreement.