Digital Brands to use $10mn IPO to create apparel company juggernaut

Last month, as part of its IPO, DBGI had acquired Harper and Jones LLC, a custom and made-to-measure suiting and sportswear company that offers full-closet customisation options. The other brands by the company include DSTLD, ACE Studios and Bailey 44.

The company wants to acquire quality brands that can be sourced, developed and sold at high margins. The three brands already under management are bringing fashion-forward, socially conscious, bespoke designs direct to the consumer, Soulstring Media said in a press release.

CEO Hil Davis had recently presented an overview of his strategy at the Emerging Growth Conference 8, highlighting how his digitally-focused apparel company is changing the rules for how high-fashion is sourced, created and sold. And with ample cash in the bank following his completed IPO, his success at acquiring compelling brands is quickly adding to an already impressive apparel brand portfolio.

Digital Brands is on the move to create shareholder value through a streamlined, low overhead, vertically integrated business that controls a transaction from procurement to sale. That means there are very few intermediaries that touch the product and drive the costs up, the release said.

DBGI is leveraging a business strategy that can on-board and offer numerous brands on a direct-to-consumer and wholesale basis by utilising its founding method to be successful as a digitally native-first vertical brand. Digital native-first brands are brands founded as e-commerce driven businesses, with online sales being the significant contributor to revenues.

DBGI utilises technology to cultivate its client base, focusing on owning the customer's ‘closet share’ by leveraging shared data and purchasing history to create personalised, targeted content and styles for that specific customer. It is taking steps to increase buyer loyalty and become a shopper's personal stylist. The DBGI approach to sales keeps a ‘digital salesperson’ working 24/7 to bring fashion to its customer, the company said in the release.

DBGI also strategically expanded into an omnichannel brand, offering styles and content online and at selected wholesale and retail storefronts. The strategy here is to capitalise on peripheral opportunities that can successfully drive Lifetime Value (LTV) while increasing new customer growth. Added at the right time and right place, these locations can add considerable revenues to the company.

DBGI is taking advantage of a consumer products and apparel market that is expected to surge in the back half of the year as COVID restrictions finally ease.

Fibre2Fashion News Desk (KD)