Eastern World Solutions Inc (OTCMKTS:BANJ)
Eastern World Solutions Inc (OTCMKTS:BANJ) trades under the clothing brand Banjo & Matilda. The company has built a luxury, global lifestyle brand that, they claim, offers the public products at a non-luxury price. Banjo & Matilda specializes in designing clothing lines using cashmere wool for the modern, busy woman.
Today, Eastern World Solutions Inc (OTCMKTS:BANJ) released an announcement addressing the company’s future. Per a strategic review of the company’s operating performance and market trends, the Board and Management of Eastern World Solutions Inc (OTCMKTS:BANJ) have jettisoned the traditional wholesale business and developed a more efficient, and higher margin, e-commerce business model that goes direct to the consumer. According to the press release, the new model has already proved to be significantly more profitable. Additionally, Eastern World Solutions Inc (OTCMKTS:BANJ) boasts of a unique competitive advantage – it provides a comparable product to traditional luxury brands at less than half the price. Traditional brands, which operate with expensive legacy wholesale-business models, cannot achieve comparable and competitive price points due to pricing restrictions caused by the retailer’s required mark-up.
Eastern World Solutions Inc (OTCMKTS:BANJ) is able to provide numbers to back up their claims of improved efficiencies and margins. They admit a reduction in sales howver that is more than made up by a 60%+ increase in gross margins. Banjo & Matilda also enjoy many metrics that rank in the top 5% of e-commerce specialty retailers who follow the “Digital Vertical Brand” model.
- $678 Customer lifetime value (CLV)
- $321 Average order value (AOV)
- 48% Repeat purchase rate
- $43 Customer acquisition cost (CAC)
- 75% Customer satisfaction Net Promoter Score (NPS)
Eastern World Solutions Inc (OTCMKTS:BANJ has been focused on completing the transformation to a digitally centric vertical brand. The company points to other recent examples of digital vertical brand success stories including Bonobos, Everlane, DSTLD, AllBirds and others. The company believes that following the model of capital injection to secure the model’s success will lead to a brand that has rapid growth and profitability.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.