Re-defining the marketplace
WHETHER ONLINE OR BRICK SAND MORTAR, IN DO CHI NO CEO DREW GREEN SEES EXPERIENCE AND PERSONALIZATION AS THE KEYS TO SUCCESS
Indochino’s success story is all about disrupting the status quo. Ten years ago, the company set out to create a personalized — and affordable — online retail shopping experience for men’s wear. The brand delivered on its promise, offering a highly engaging online customer experience that outshines the competition.
Fast forward 10 years, and Indochino has grown to become the world’s largest dedicated made-to-measure men’s-wear company. Today, national and international customers alike look to Indochino to enjoy the luxury of a better fit and better quality materials at a better price than off-the-rack alternatives.
But this is no time for Indochino to rest on its laurels, says Drew Green, chief executive officer. For the past three years Indochino has been expanding beyond its e-commerce roots and building a family of storefronts in selected cities throughout North America.
“Indochino started with the premise that men don’t have to spend a fortune for custom clothing,” says Green. “It was an incredibly innovative and disruptive idea. Now, through our showrooms, we are disrupting the market once again. We are changing the way a generation of men suit up, and it’s incredibly exciting to see.”
The growth trajectory since introducing showrooms has been exceptional. In 2015, Indochino experienced 47 per cent year-overyear growth for its e- commerce and retail operations. In 2016, it was 55 per cent; this year, even higher numbers are expected.
“We started 2017 better than 2016,” Green reports. “In Q1 we’re already 10 per cent above our plan for the year. In fact, in March alone we were 17 per cent above it. Overall we project we will grow by over 50 per cent this year profitability, thanks to the strength of our repeat customers.”
The expansion started with pop-up shops. Once it was clear customers loved the idea, Indochino began opening dedicated showrooms in Vancouver, Toronto, Ottawa, New York, Boston, Philadelphia, San Francisco, Beverly Hills and the newest addition at West Edmonton Mall. Next on the roster are showrooms at Calgary’s Chinook Centre opening April 6; and at Burnaby’s Metrotown on April 27. The company also has its sights on major U.S. markets such as Chicago, Washington and Seattle. By the end of 2017, there will be 18 showrooms spanning North America. The ultimate goal, Green says, is to sell one million made-to-measure suits and open 150 showrooms.
The Indochino showrooms promise a luxury tailoring experience, where customers are paired with an expert style guide who tailors the appointment to their needs and helps them design their one- of- a- kind suit or shirt. The style guide takes measurements, assists with fabric selection and walks customers through endless custom options, from buttons and monograms to pockets and lapel styles. Each garment is then made to order and delivered within four weeks.
“It’s a completely personalized experience from end to end,” Green says. “Customers can design a one-ofa- kind suit to match their taste and personality, and create something they are proud to wear.”
Green says Indochino’s new-found growth is thanks to the many years of success of its e-commerce business. “Over time we have been able to hone the strategy and economics of the business to truly reach the mass market. We realized that in order for Indochino to be a disruptor again, we needed to focus on the same experience through retail.”
With any expansion of this nature, however, maintaining profitability is key, Green notes. “A lot of companies can grow their topline numbers but aren’t always able to do it simultaneously with becoming profitable. We’ve been able to do both by focusing on optimizing our supply chain and manufacturing processes. We continue to work on the back end to improve the cost of goods sold and pass those savings on to our customers.”
Ultimately, Green credits the company’s ability to gain and maintain global dominance to four key strengths: “We have an incredibly dedicated team that shares our mission and core values. We make and deliver a fantastic product that’s unique for every customer. We have a profitable path to growth, and we have key partnerships around the world that are equally passionate about what we are trying to achieve. We’re very proud of what we have accomplished together.”