We are CLIQ Products, and we are seeking inventory funding to expand our highly successful Direct-to-Consumer portable outdoor chair business onto the Amazon.com selling platform.
As you would expect, Covid-19 has had a negative short-term impact on our business - most notably in an increase in the online costs to acquire a customer. But we are a business with very low fixed operating expenses, and we were able to react quickly to scale back and still operate profitably. For example: We were selling roughly 1,000 chairs per week on our website prior to Covid-19. When marketing costs went up we quickly scaled back our marketing investments to maintain profitability, and are achieving run rates of about 500 chairs per week. We're slowly scaling back up as costs come back into line. For example, last week (3/29-4/4) we sold 631 chairs at 402% ROAS.
Our manufacturing operations in China have recovered from Covid-19 and are fully functional. We've arranged two fast boat shipments with our freight forwarder over the last two weeks and our current DTC fulfillment operations are running smoothly. In the event that we have problems loading inventory into an Amazon fulfillment center, we have an alternate Amazon fulfillment partner lined up who is already approved for Seller-Fulfilled Prime.
We introduced the world's best portable outdoor chair via Indiegogo in the fall of 2018 (formerly GoChair). Our campaign sold over 22K chairs and was in the top 1% of the most successful crowdfunding campaigns of all time. Since then, we've been busy selling the CLIQ Chair Direct-to-Consumer via our Shopify storefront, and building and operating a sustainable and profitable business. We have overwhelmingly positive product reviews (4.5+ stars with 281 reviews), and a vibrant and active social presence on Facebook & Instagram (https://www.instagram.com/cliqproducts/
). We delivered over $1.6M in revenue in 2019, and through March 31st this year we're on track to deliver against a conservative plan of $4M in 2020 (150% growth rate)
Having spent the last few months preparing, we are ready to launch on Amazon with a conservative launch plan given the current & changing economic conditions. We're seeking inventory funding specifically to help us bridge the gap in the cash conversion cycle that is introduced by needing to buy inventory 8-weeks prior to being able to recognize revenue from that investment.
The opportunity for this investment is now, as demand for camping chairs on Amazon is highly seasonal and peaks in the Spring and Summer season. For example searches for "Camping Chair" on Amazon increased by 2x-3x in April-July of 2018 & 2019. Additionally, CLIQ Chair is one of the most searched for chair brands in the sports and outdoor category.
Long-term, we believe the massive consumer shifts from physical retail to Amazon.com (accelerated by Covid-19) plays to our favor as an e-commerce company. And we expect the demand for outdoor camping chairs to remain robust (and grow even stronger) as people shift their travel plans from domestic & international to more local outdoor activities.
Given this, we are highly confident that we can achieve the 200 chair per week sales targets we've set for this inventory funding campaign, and enable our successful launch onto Amazon.com.
As we have multiple owners and investors, a personal guarantee doesn't fit our ownership structure. While we are not providing a personal guarantee, CLIQ is backed by more than 10 sophisticated investors, all of whom are accredited, per the SEC's definition (i.e., over $1M net worth or annual income exceeding $300,000 for joint income, for the last two years). These individuals are committed to the company's success and have the financial wherewithal to back the company, should we seek additional capital. These investors were attracted to the company because they believe in the executives' ability to create significant institutional value by designing and marketing a family of unique products that make accessing the outdoors convenient and comfortable.