- Rapid Expansion of Market Presence from RGNP Continues with Launch of New Jewelry Collection by Social Media Star Jen Selter
- Company on Track for $1 Million in Sales in First Full Year in Operation and High Margins in 50 to 60% Range, Signaling that Product Launches are Resonating with Consumers and RGNP is Executing on New 2016 Business Plan
- Business Strategy Underway, and RGNP Could be Positioned for Big Upside in 2018 as Launch Coincides with Gift-Giving Season
Just over 18 months since launching their inaugural jewelry line, Reign Sapphire Corporation, (OTCQB: RGNP) is bringing a new, celebrity-led line to market with the help of one of the world's most networked social media stars globally. On Dec 12, the company announced the first pre-sale event for the new ION Collection, spearheaded by brand ambassador Jen Selter.
Selter, who has an online following of over 33 million people will promote "the ION Collection x Jen Selter" as a casual athletic leisure jewelry brand targeting millennial and Instagram-savvy consumers - the perfect customer target in today's digital world. It's been done successfully before using high-impact social media influencers, and the launch of ION this holiday season could be the beginning of big things for RGNP in 2018.
Jen Selter Collab Steps Up Social Media Influencer Campaign in A Big Way:
Reign purchases rough sapphires in bulk directly from commercial miners in Australia, and then oversees each step of the refining process as the stones go from the miners'-gate to the consumer as finished Reign Sapphire jewelry, including Reign Sapphires, Le Bloc Jewelry, the Coordinates Collection, and now the ION Collection. Shortly into this business launch in 2016, the company is on track to do over $1 million in sales in 2017, with impressive gross margins over the last nine months of 61%.
How? Reign is taking a unique approach that combines a well-conceived consumer marketing program with a vertically integrated "miners-gate to retail" model for gemstones and fine jewelry.
Jen Selter is one of the biggest stars of social media, named by Forbes as the second most influential fitness personality in the world. Jen has been recognized for her incredible following of over 33 million social media followers, which is growing by over 250,000 a month. Soon, she will be promoting the ION Collection to her millions of followers, which could resonate as this is the audience for whom Reign has designed the collection.
This kind of social media influencer campaign involves the influencer promoting the product in question, and it's been paying off for Reign. The company indicated this summer that they are now seeing a 4.2x Return on Customer Acquisition Cost, and a 114% ROI. As a result, the company announced this September that they'll expand the influencer campaign by four-fold!
The Selter collaboration is a big step in that plan. For example, capturing just 0.25% of her audience, at an average price point of $99 per customer and with a 10% assumed payout to Selter for the collaboration, could result in an astounding $7 million in sales, or about 7 times the company's trailing twelve months of sales! Further, at 0.5% of her audience converting to paying customers, this number looks closer to $15 million.
This hinges on great execution, and great conversions. But these kinds of growth figures would result in a rapid re-rating of the Reign share price higher as the company gets a growth multiple on sales and a growth multiple on valuation, perhaps 2-4x today's stock price more in line with other growing online retailers.
Influencer Marketing Can Have Tremendous Outcomes:
This path has been trod before by another accessory company called Daniel Wellington, which markets watches inspired by expensive luxury brands but at a more approachable price point for the average consumer: $100 to $200, like Reign's jewelry lines. CEO Filip Tysander launched the company with $15,000 of his own money in 2009 and refused to pay for traditional advertising, instead working with social media influencers to grow the company. This tack paid off, and Daniel Wellington did $220 million in 2015 sales, about 6 years after the company was launched!
It remains private, which is why many investors aren't familiar with the brand or marketing approach. But Wellington's success can be mostly attributed to this savvy marketing vision, and with the same plan at Reign, the company could be in for a big 2018.
Importantly, the Selter launch is coinciding with the holiday season AND just in time for the 2018 Valentine's season - it's an ideal time to be launching jewelry in front of major gift-giving periods, especially with a strong promotion effort from Selter herself. Selter built her 33 million followers in just a few years as a frontrunner for social media use among millennials - she's a clear star at social media promotion and should have no problem selling this jewelry.
Look at what bitcoin mania has done to stocks like Interactive Brokers Group (NASDAQ: IBKR), which has been a darling all year in the advance of futures trading launching for bitcoin. IBKR has climbed an astounding 100% since this summer based mostly on expectations that the company will take advantage of bitcoin futures trading at the end of this year, which just launched. It's this kind of anticipation, much like General Cannabis Corp. (OTCQB: CANN) in front of Canadian and Californian marijuana legalization, that can lift stocks ahead of big, expected events, like the ION Collection x Jen Selter promotion.
Microcap companies like Reign have their risks: the company has no history of profitability, and they may need to finance their ongoing efforts in 2018. Marketing is never guaranteed to pay off, and success hinges on great execution by the company's management. Nevertheless, this is the right kind of name for investors who realize the possibilities with great brand marketing.
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