The personal care products industry is an overcrowded space, with numerous large and small players offering a wide range of product lines. So how does Revive Procare (OTCQB: RVIV), a relatively new brand, stand out?
CEO Jeff Toghraie explains that while most products available in the market are developed after undergoing 6-8 months of research, Revive Procare’s flagship hair loss prevention product was the result of about three years of formulation. Notably, the CEO has about 15 years of experience in the industry, including eight years of validating formulations of skincare products.
Interestingly, the El Monte, California-based firm has seen its sales double during the six months ended November 30. The company also tasted profitability in the most recent quarter, despite higher spend on marketing. The CEO said:
If you look at our historical, our losses have actually decreased year over year, as we maintain 100% growth. We are determined to have our growth be manageable and have a steady growth pattern as far as sales and profitability.
The management believes brand familiarity is necessary to drive sales, irrespective of how effective the product is. And therefore, the company aims to converge its efforts on the same this year, so that the upcoming products are met with high enthusiasm. Marketing spend had tripled during the first six months of this fiscal year, and the company expects to see high ad spend going forward.
Revive, which depended heavily on clinics and hair treatment centers, was hit hard when the pandemic shut down most of its clients last year. The management then quickly shifted gears to a direct-to-consumer business model, which proved to be highly effective. The direct-to-consumer unit has witnessed a triple-digit quarter-over-quarter growth since then.
As we increase our end-user customer base, we are easily able to develop a relationship with customers where we can introduce new products, build trust and understand us by the effectiveness of the product. It’s really about how many end users get to try the product, how soon we can become market leaders in this segment.
Revive Procare has an international distribution network, through which it sells products to Canada, Europe and Asia, besides the United States. As far as the US is concerned, the company currently has a blend of distribution salon sales and direct to consumer, which is either through third-party platforms including Amazon, or its own website.
Healthy balance sheet
As on November 30, the company had $579,498 in cash. The CEO expressed confidence in scaling the company with the current cash flow, adding that fundraising is not on the radar at the moment.
“We tend to have more positive cash flow as we switch more to end-users than a distribution model. So we are confident that we can fuel our growth as far as pay for advertisement and marketing expenses are concerned.”
As on February 3, the stock was trading at $0.34 in the OTC market.
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