Indochino attracts investment from Mitsui USA, plans to expand in North America
Feb 9, 2018
Vancouver-based made-to-measure menswear brand Indochino has received a strategic investment from Mitsui & Co. (USA), Inc. with an eye to building its North American operations and developing its global supply chain. The partnership will also involve strategic collaboration.
Commenting on the investment in a release, Indochino CEO Drew Green stated, “Our strong sales and earnings growth demonstrate that the Indochino brand resonates with consumers and has become a mainstream alternative to ready-to-wear clothing,” going on to say, “Mitsui’s global footprint and its expertise scaling and operating international businesses will be invaluable as we prepare for the next phase of growth and scale as a global apparel brand.”
Mitsui USA SVP Mr Iwai added, “We believe Drew and his team have done an outstanding job in building Indochino into one of the industry’s most innovative and dynamic companies, and are truly excited by the prospect of working together towards achieving the company’s long-term goals and objectives.”
Indochino is an online-first multi-channel retailer which aims to update traditional tailoring in order to offer made-to-measure menswear to its clients at a more affordable price.
The brand has been experiencing solid growth recently, having seen an increase in revenue of over 50% for the second consecutive year in 2017. The company also expanded its network of showrooms from 10 to 20 locations last year.
Along with its experiential approach, incorporating both online and offline channels, Indochino’s success can be seen to capitalize on a number of other changes currently affecting the fashion industry.
Menswear, for example, has been coming into its own in recent months, with US revenues expected to grow 5% in the next two years, outstripping progress in the womenswear category. Customization has also become a recurring theme in pop-ups and experiential retail initiatives, revealing a demand among consumers for personalized products.
It is perhaps unsurprising, then, that Mitsui is the third global corporation that Indochino has attracted to make a strategic investment in the last few years. The firm joins Dayang Group, the world’s largest suit manufacturer, and Postmedia Network Inc., a leading Canadian media company, which already hold shares in the brand.
Mitsui is a trading, investment and services enterprise with a diverse portfolio. It has a strong track record of supporting innovative business models and helping global businesses to grow.
Further details concerning the investment have not been revealed.
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