Luvu Brands, Inc., based in Atlanta, Georgia, was founded in 1999. Our vision
is to build a distinctive family of brands by making products that people love
and delivering a superior customer experience. At the heart of our Company is
a passion for creativity, which is infused throughout all aspects of the business,
from product development and packaging to selling, marketing and merchandising.
Luvu Brands, Inc. is a vertically integrated US-based manufacturer that has
built several brands in the wellness, lifestyle and fashion seating categories.
Our products are offered in innovative vacuum eco-compressed packaging for retail
stores, mass merchants, drug and internet retailers worldwide. All of the Company’s
brands are headquartered in Atlanta, Georgia in a 140,000 square foot manufacturing
facility that employs over 150 people. Making products that people love, bringing
manufacturing back to the USA, sustainable manufacturing practices, and decreasing
the overall impact on the environment are core to the Company’s operating
principles.
The Company also manages, markets, and distributes its products directly to
consumers through several websites that include: liberator.com, theliberator.co.uk,
jaxxliving.com, and avanacomfort.com. We reach additional consumers through
a retail concept store located within our Atlanta factory.
Since inception we have used a vertically integrated business model, with manufacturing,
distribution, product development and marketing performed in-house. We believe
this allows us to create new products with reduced lead times at a lower cost
while enabling us to quickly respond to market and customer demands for our
existing products. For our wholesale accounts, being able to fulfill large orders
with shorter turnaround times allows us to capture business during December
and February when wholesale customers make just-in-time holiday purchases.
Our 140,000 square foot facility on eight acres is located in a suburb of metro
Atlanta, Georgia and includes manufacturing and distribution, sales and marketing,
product development, customer service and administrative staff. All of the Liberator,
Jaxx and Avana branded products are designed, produced and marketed from our
facility in Atlanta, Georgia where we currently employ over 150 people. As of
the date of this report, the Company employs 116 people in Production and Distribution,
3 people in Product Development, 15 people in Sales and Marketing, and 18 people
in Administration. The Company’s employment levels may change seasonal
based on current and anticipated order levels.
Our manufacturing operation has CAD controlled fabric cutting and foam contouring
equipment and two state-of-the-art conveyor unit production sewing systems.
Our in-house manufacturing capabilities have enabled us to achieve greater efficiencies
and cost savings, as well as strict control over the entire manufacturing cycle
including raw material procurement, finished goods production and logistics
optimization. In addition to providing us with greater production flexibility,
our in-house manufacturing provides us with the opportunity to improve fulfillment
response time, reduces the risk of out-of-stock situations, limits finished
goods obsolescence and improves overall operating margins.
In 2008, we implemented a state-of-the-art conveyor-based sewing system to manufacture
sewn products at the lowest possible cost in the United States. Because all
cutting, sewing, foam contouring, assembly and packaging are performed in-house,
we believe we can exercise greater control over product quality and respond
faster to changing customer demands, which gives us a competitive advantage
over companies that utilize out-sourced sewing services. We can source raw materials
from multiple domestic suppliers and we have supply contracts in place to produce
our specialty fabrics under specific quality control and performance standards
with just-in-time deliveries.
Our goals are to achieve long-term growth and profitability and diversify our
sales base. We plan to achieve these goals using the following strategies:
Delivering value to our customers. Our primary goal is to deliver the highest
value to every customer, before, during and after they purchase a product from
us. This means designing relevant products with the most utility and benefit,
creating an informative and efficient buying experience, and delivering on our
promises. We believe that serving the customer is the center of everything we
do, and by doing so we create value for our customers and wealth for our owners.
Manufacturing. To improve our business results, we constantly look for ways
to manage the impact of rising raw material costs by improving the productivity
of our manufacturing processes. We recently implemented modest price increases
for certain products, but are unable to predict if we will be able to successfully
pass on recent raw material cost increases to our wholesale and retail customers.
Wholesale Operations. Our goal is to increase consumer demand through advertising
and public relations while our wholesale operations expand our offering to distributors,
retailers and e-tailers across every channel of adult, mass market, drug and
specialty accounts. For wholesalers thinking about adding Sexual Wellness products
to their retail or online store, our Liberator product line is typically one
of the first “safer” products presented, as it can be promoted as
an assistive aid to sexual positioning. As the mainstream demand for Sexual
Wellness products grows, our sales staff is training and educating new resellers
on how to get started in this category. For retail display, we offer mainstream
packaging in a variety of sizes and price points to meet their customers particular
demographic. For e-tailers, we maintain brand continuity by providing rich product
content, photography and instructional videos for use on their websites. We
also provide fulfillment services and can drop-ship orders directly to their
customer, typically the same day the order is received.
Eco-Packaging. In fiscal 2013, we developed vacuum compressed packaging to reduce
our carbon foot print, make our products more convenient for the consumer and
easier to display for the retailer, and reduce our outbound shipping costs.
During fiscal 2014, we expanded the number of products that used Eco-Packaging
to include all shapes. In fiscal 2015, we further vacuum compressed our products
to even smaller sizes while adding more product marketing information to our
retail consumer packages.
Liberator Concept Store. Our 2,500 square foot Liberator exhibition store is
the retail extension of our Liberator.com website. Located at our Atlanta factory,
it is a gallery-like setting for sensual and erotic discovery, offering a presentation
of products that celebrate intimacy and romantic imagination. In our opinion,
Liberator and luxury pleasure objects are meant to go together. Our concept
store is a destination where customers can learn about, touch and purchase the
Liberator products. In addition to Liberator branded shapes, furniture and accessories,
the store features a range of better brands from around the globe including:
designer sex toys, masks, cuffs and intimate accessories. Also included are
limited edition hand-made items in glass and leather. We are dedicated to bringing
our customers a compelling in-store experience through knowledgeable associates,
interactive media displays and a high level of service, quality and innovation.
The store also serves as a laboratory to listen and observe consumer reaction
to new products and evaluate price points and merchandising techniques. Our
concept store has demonstrated the strength of the Liberator brand as customers,
both singles and couples, want to feel and experience our products and, although
we are located in an industrial park, they are willing to travel to the store,
return repeatedly and refer friends. We believe that a Liberator branded retail
concept is ready to be expanded beyond our single location to large metropolitan
areas, providing an upscale experience in-sync with the overall mainstreaming
of sexual wellness.
