So you might have heard about it on the news: Something huge happened at Indochino. We all know they are all about growth and have been quite since the start. They have been taking on a new CEO, Drew Green, a while ago and now the great news have arrived: Chinese Dayang group is investing $30 million. Indochino has received considerable investment (totalling around $17 million) before, but $30 million is clearly a new category.
Let's look at the deal. Who is Dayang group? They are a large Chinese clothing manufacturer. They are producing for quite a few of the big names including Ralph Lauren. They also own Trands, their brand creating menswear. Dayang/Trands is also active in the US market (http://www.trandsusa.com) but if you see the website you clearly understand why investing in Indochino makes sense for them. They have tremendous manufacturing know-how, but they are not good at communicating to the end customer. Indochino does, and Indochino's business model can be further scaled and needs a solid manufacturing base. Clearly, this deal makes sense, and it will have a significant impact that we will see within the next few months.
I have included a couple of sources from around the internet below if you want to read more in-depth news and for those who want a quick overview, here is what we can expect from Indochino within the next couple of months:
- Three new silhouettes: traditional, modern, slim
- 300 different suits, 150 different shirts
- 190 personalisation options
- Ten new stores in 2016
What do you guys think about the news? Curious to hear your thoughts!
Further reading & sources:
