Fabulosa: Father and son cleaning brand on a growth journey

In a cleaning products market dominated by established household names, family company Fabulosa has carved out a vibrant niche, bringing a fresh selection of fragrances to the shelves. Launched in 2019, the UK-based manufacturer is rapidly growing into a global brand. It now boasts 22 different product categories, with ambitious plans for further international expansion. HSBC UK is partnering with Fabulosa on this continued journey, going beyond essential trade financing to also provide strategic guidance and access to a global network.

A rapid rise

Fabulosa’s story began with a simple idea: infuse everyday cleaning products with unique, luxurious fragrances, moving beyond the traditional selection used in the category. Founded by Mike and James Sharpe, a father-and-son duo with deep roots in the cleaning industry, the company launched its first disinfectant products just before the outbreak of the COVID-19 pandemic.

“At that time, everyone was at home, and certainly more conscious of keeping their houses clean,” explains Tom Mitten, Fabulosa’s Group Finance Director. “We were a new, colourful brand on the market, with fresh fragrances, which gained a lot of traction.”

This initial surge in demand, particularly from discount retailers, quickly established Fabulosa as a brand known for quality and value. However, the company’s vision extended beyond the UK – with Europe, and later the US, presenting significant opportunities for its distinctive product range.

Navigating growth challenges

As Fabulosa’s international ambitions grew, its existing financing structure began to show some limitations. The company’s previous lender had a low appetite for overseas trade, restricting Fabulosa’s capacity to fulfil export orders.

Fabulosa was struggling to finance large international orders, impacting its ability to seize opportunities. The business also needed to hedge against foreign exchange fluctuations. With existing operational capacity strained by new orders, the company’s financing had to rapidly expand, as it sought to add third party manufacturing capacity. This placed further demands on Fabulosa’s cash flow.

A partnership beyond lending

Recognising Fabulosa’s potential, Zubayr Atcha, Senior Global Relationship Director at HSBC UK, worked closely with the business to grow the partnership, building on long-established trust and HSBC’s deep knowledge of Fabulosa’s business. HSBC UK's approach was holistic, designed not just to provide one-off financing, but to enable sustainable, long-term growth.

“We provided a receivable finance facility of £10 million on day one for both UK and overseas buyers, with a much higher cap on their buyer and export sales concentration,” explains Zubayr. This improved Fabulosa’s liquidity, giving the company the confidence to pursue international sales. “I don’t think it’s an understatement to say that the relationship we’ve got has allowed us to continue in trade,” says Tom.

In addition, HSBC introduced a TradePay facility, a new solution for Fabulosa. This allowed the business to increase stock levels and move from a ‘made-to-order' model to having finished goods readily available. “The TradePay facility gave access to a liquidity pool that Fabulosa had never had before on the purchasing front,” Zubayr notes. This was instrumental in securing a 12-month contract with a major European retailer, a significant step forward from previous short-term agreements.

To address operational constraints, HSBC UK facilitated an innovative operating lease with a third party, enabling Fabulosa to invest £9 million in a state-of-the-art, fully automated production line, which is expected to come online in 2026. This is expected to quadruple manufacturing capacity, boosting output to 4-5 million units per week, as well as unlock new retail partnerships, including with a leading UK supermarket chain.

Beyond these core financing solutions, HSBC’s Global Markets team introduced Fabulosa to strategic FX hedging, protecting its business margins from currency fluctuations. For the first time, Fabulosa secured a 12-month hedge, allowing it to invoice in Euros and convert strategically.

HSBC UK also leveraged its international network, connecting Fabulosa with US-based experts for market insights and advice on marketing insights and requirements for opening overseas bank accounts. “It’s been quite refreshing for us that we can see HSBC UK as a one-stop shop,” says Tom.

The future is Fabulosa

With HSBC UK’s multi-faceted support, Fabulosa is now well-equipped to realise its ambitious future growth plans. Quadrupling manufacturing capacity opens doors to major retailers in the US, a market it is actively exploring. The company is also considering replicating its highly successful TikTok Shop model in Europe, with potential operations in France and Germany.

“If you stand still, you go back,” says Tom. “We want to keep pushing and growing the brand, and why not? Five years ago, we probably didn't think we would get to where we are now.”

HSBC UK continues to be a trusted partner, providing the financial infrastructure and strategic advice that allows Fabulosa to innovate, expand, and grow.

Tom's tips for international growth

1. Differentiate your product offering
   Stand out in a crowded market by offering something unique. We infused everyday cleaning products with luxurious fragrances, creating a fresh and appealing niche that resonated with our customers.
2. Adapt to market opportunities
   Leverage external circumstances to your advantage. We found an increased demand for cleaning products during the COVID-19 pandemic, so our brand quickly gained traction.
3. Team up for growth
   Work with partners who have your back. As well as financial support, we received guidance on things like our operations, and access to network that could help us grow.
4. Ready to scale?
   Invest in the right infrastructure and operational capacity. We committed to automated production, which helped transform our manufacturing capabilities, which in turn helped us unlock new markets, and secure major retail partnerships. The possibilities are endless when you scale smartly.

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