Indochino seals $30 mn investment deal with Dayang
Chinese apparel giant Dayang Group, has taken a $30 million stake in Canada's Indochino, a startup selling made-to-measure menswear, mostly through its website, with measuring done by customers.
In a press release, Indochino said this investment will help accelerate the company's expansion plans, significantly enhance the product offering to its customers, and generate additional operating efficiencies within the company's 2016-2020 plan.
In conjunction with the investment, Indochino signed a five-year alliance agreement with Dayang Group that will enable the company to introduce three new suit silhouettes, to triple suit and shirt fabric selection, and to quadruple the range of suit personalization options for customers, both online and in its retail stores.
“My objective as incoming CEO of Indochino was to create a five-year business plan and associated investment strategy that would position the company to become an undisputed global market leader in made to measure apparel. This alliance is the first phase of our investment strategy, and we will continue to explore strategic opportunities that further accelerate demand and distribution for our brand and products,” explained Drew Green, CEO of Indochino.
Since its founding, Indochino has become one of the world's largest dedicated made to measure apparel brands, with an average annual growth rate north of 100 per cent since 2007, customers in over 130 countries, and retail showrooms in seven North American cities.
As part of its investment strategy, the company will significantly expand its retail footprint in North America and increase its media budget to help unlock the online business' vast potential in North America and globally.
“Indochino is one of those rare e-commerce companies that was early to multiple big trends, like online customization and online-to-offline retail, with the potential to fully capitalize on those trends in the months and years to come,” said Michael Cam-Phung, Principal at Highland Consumer Partners. “This financing and strategic partnership solidifies the company's position and ability to scale globally.”
As part of this financing, Indochino is entering into a long-term strategic alliance with Dayang Group. A leader in the suit category, Dayang manufactures suits for a range of global brands like Ralph Lauren, BCBG, J-Crew and Banana Republic. This vertically integrated partnership will significantly improve Indochino's business operations and margins by helping to reduce variable production costs, optimize fixed costs and enhance the virtual inventory model it has established through beneficial terms with fabric mills globally.
“Both Dayang and Indochino share the belief that made to measure is the future of apparel, so this strategic partnership came about quite naturally,” said Madame Li, Founder and Chairwoman of Dayang Group. “We were looking to increase our operations in this rapidly growing category, and Indochino had the expertise, along with a strong focus on growing its business into a global brand and leader in the made to measure category.”
A representative from Dayang will also join Indochino's board, the release said. (SH)
Fibre2Fashion News Desk – India