Dive Brief:
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Made-to-measure menswear retailer Indochino announced Wednesday a $30 million strategic investment from China-based clothing manufacturer Dayang Group. Indochino previously raised more than $17 million from investors including Highland Capital Partners and Madrona Venture Group.
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The investment includes a five-year agreement with Dayang Group, including production of three new suit designs, tripling of suit and shirt fabric selections, and quadrupling of personalization options both online and in stores.
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Indochino said the latest funds will help accelerate the company’s expansion, including boosting its merchandise offerings and improving operating efficiencies.
Dive Insight:
As more established menswear retailers like Men’s Wearhouse struggle, smaller companies like Indochino are making waves by incorporating made-to-measure options, aided by technology and refined supply chain logistics. Both Dayang and Indochino executives say they believe that made-to-measure is the future of menswear retail.
“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," Indochino CEO Drew Green said in a statement. "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.”
Indochino garments are made-to-order and delivered within four weeks via FedEx. Beyond its online presence, the startup has opened showrooms in New York City, Beverly Hills, San Francisco, Boston, Philadelphia, Toronto and Vancouver. The showrooms not only drive sales in those stores but also can improve e-commerce sales in those cities as much as 700%, Green told TechCrunch.
Indochino will next expand its product line to include wedding attire. The firm plans to launch an online ordering system for wedding parties on Mar. 15.
Menswear sales are expected to grow 8.3% by 2017 to $110.3 billion, according to survey data published last month by public relations firm Boutique @ Ogilvy. American men now spend more money than women on clothing, the study added.
