Vancouver-based custom menswear retailer Indochino has secured a strategic investment of up to $42 million from Dayang Group, a Chinese apparel manufacturer. The funding will support the company’s North American and global expansion plans and enhance its product offering, Indochino said. Along with the funding, Indochino has signed an agreement with Dayang to increase the company’s apparel selection and range of suit personalization options. Indochino reports achieving an average annual growth rate of over 100 percent since 2007. Its investors include Acton Capital Partners, Highland Consumer Partners, Madrona Venture Group and Version One Ventures.
Indochino Closes $42 Million Strategic Investment to Expand Its Omni-Channel Shopping Experience
Financing to Accelerate Growth, Create Operational Efficiencies and Enhance Product Selection
VANCOUVER, BC–(Marketwired – March 09, 2016) – INDOCHINO™, 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, Principal at Highland Consumer Partners. “This financing and strategic partnership solidifies the company’s position and ability to scale globally.” Highland Consumer Partners is a key investor in INDOCHINO.
“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.
This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements include, but are not limited to, Indochino’s financial forecasts, plans for expansion of the Indochino’s business and products, statements about potential market developments and trends, demand for Indochino’s products and services and other statements that are not historical facts. When used in this document, the words such as “will”, “plan,” “estimate,” “expect,” “intend,” “potential,” “believe,” and similar expressions are forward-looking statements. Forward-looking statements speak only as of the date on which they are made and Indochino disclaims any intention or obligation to update or revise any such statements. Although Indochino believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Furthermore, these statements are subject to risks, uncertainties and other factors, many of which are beyond Indochino’s control. Actual results could differ materially from the statements reflected in the forward-looking information. Recipients of this information are cautioned not to place undue reliance on these forward-looking statements
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