Dayang Group, a global apparel manufacturer, will invest up to 42 million Canadian dollars ($30 million) in Indochino, a menswear retailer based in Vancouver. In conjunction with the investment, Indochino signed a five-year alliance agreement with Dayang. Indochino has raised money from Madrona Venture Group, Highland Capital Partners and others.
PRESS RELEASE
March 9, 2016 – Vancouver, BC – INDOCHINOTM, the global retail pioneer in made to measure menswear, today announced an investment in INDOCHINO by Dayang Group, a global apparel manufacturer, of up to $42 million CDN ($30 million USD). 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. “The supply-focused partnership with Dayang Group combined with strategic investment strengthens our ability to achieve our 2016-2020 plan, and is a testament to our team, who was able to make this happen in just four months.”
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, INDOCHINO Board Member and Principal at Highland Capital Partners. “This financing and strategic partnership solidifies the company’s position and ability to scale globally.”
“INDOCHINO is fundamentally transforming how men get dressed. Our recent growth trajectory has proven that men look to INDOCHINO for their suiting needs, and we want that attraction to be global,” added Green. “I can’t overemphasize how having the right people, product strategy, partnership approach, and now resources, is critical to building a global brand.”
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. “The investment opportunity Drew and team presented provide our organization with multiple long and short term benefits. 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. We look forward to a long and mutually beneficial partnership for years to come.” A representative from Dayang will also join INDOCHINO’s board.
Founded in 2007, Vancouver-based apparel brand INDOCHINO is at the forefront of revolutionizing men’s fashion. By combining luxury fabrics, perfect fit and customized style, INDOCHINO creates one-of-a-kind suits that are a reflection of who you are and how you feel. Since its inception, INDOCHINO has grown from the first online business to provide custom tailored suits into one of the largest made-to-measure menswear brands in the market.
Through a seamless multi-channel approach to the customer experience, men are easily able to order high-quality, attainably priced made-to-measure suits and shirts plus accessories online, via mobile devices, or in-person at INDOCHINO’s showrooms in New York, Beverly Hills, San Francisco, Boston, Philadelphia, Toronto and Vancouver. Visit www.indochino.com.
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