Indochino is an online retailer that is changing the way men shop for tailored suits. Founded in 2007 by Kyle Vucko and Heikal Gani, Indochino pioneered the concept of made to measure suiting by providing customized, high quality suits at an affordable price point. But how did the company come to be and what has led to its rapid growth?
Humble Beginnings: Identifying a Need in the Market
As university students studying in Vancouver, Vucko and Gani were on the hunt for well-fitting, stylish suits that wouldn’t break the bank. They quickly realized that off-the-rack suits failed to provide the perfect fit they desired, while custom suits from traditional tailors came with astronomical price tags and long wait times.
Seeing an opportunity, Vucko and Gani sought to find a solution that delivered customized suits quickly and affordably. They discovered that the latest technologies and a streamlined supply chain made this possible in a way that had never been done before.
With a vision in mind, they set out to make customized suiting accessible to men everywhere. Little did they know at the time what a revolutionary business idea it would prove to be.
Taking a Leap of Faith: Launching the Business
Armed with determination and a seed investment of $30,000 from friends and family, Vucko and Gani took the brave step of founding Indochino in 2007.
They launched the business as an e-commerce site out of Vucko’s Vancouver apartment. With no background in fashion, the entrepreneurs taught themselves the ins and outs of suit construction, fabric quality, and garment printing.
After six months of preparation, Indochino made its first sales in March of 2008. The initial offering included chinos, shirts, and ties along with suits. With a barebones budget, the founders handled everything from web design to sewing and even modeling the products for the website pictures.
The start was full of challenges – learning as they went and overcoming obstacles through perseverance and grit. But Vucko and Gani remained confident in the strong product-market fit and commitment to revolutionizing how suits were made and sold.
Gaining Traction: Proving the Model
In those early days when cash was tight, every sale counted. Vucko remembers hand delivering the first few orders just to ensure perfect fits and happy customers. Positive reviews started flooding in, providing social proof that Indochino could deliver.
Pop-up showrooms around Vancouver allowed men to experience the personalized product for themselves. By listening closely to customer feedback, Indochino was able to refine their offering and tailor the shopping journey for the ideal experience.
Within the first few months, customers were eagerly promoting the brand’s made-to-measure suits to colleagues, friends and family. By relying on word-of-mouth marketing from satisfied customers, Indochino gained the traction needed to sustain those critical early months and years.
Flash forward to 2022, and Indochino has facilitated over 2 million customizations for customers all over the world. Staying true to its customer-focused roots has remained paramount, even while growing into the leader of online custom suiting.
Gaining Investments: Scaling Up Operations
With orders streaming in, the founders focused their efforts on systematizing their operations and processes to scale effectively in those early years. Managing finances closely was crucial, and after the initial infusion from personal connections, Indochino secured additional financing from venture capital investors.
In 2010, venture capital firms SAP Ventures and Madrona Venture Group saw the immense potential for growth in Indochino’s business model. The $2 million investment allowed Indochino to expand inventory, hire skilled staff like master tailor Martin Green, and enhance the digital platforms to offer an even more polished customer experience.
Indochino’s popularity skyrocketed as suit enthusiasts caught on to the hassle-free and affordable approach to custom-made designs. Just two years later in 2012, a further $5 million was raised in funding and again in 2013 an additional $30 million.
Such considerable financial backing provided the resources to support Indochino’s rapid expansion plans while staying devoted to their product vision. Investors had seen the proof-of-concept and were now eager to help the company cement its position as an innovative leader in men’s fashion.
Going International: The Journey Continues
Today, Indochino operates showrooms in over 80 locations throughout North America. They expanded into Europe in 2016 with their first location overseas in London, U.K.
The company produces premium menswear at their factories in China, shipping completed garments directly to customers just four weeks after ordering. Their extensive selection of fabrics and customization options ensure guys can craft versatile, one-of-a-kind pieces that align to personal style preferences.
In 2021, Indochino was acquired by Chinese menswear giant Dayang Group in a $120 million dollar deal. The partnership has strengthened their supply chain while allowing creative freedom to remain dedicated to the vision that started it all.
The Indochino Difference: A Unique Approach
So what exactly sets Indochino apart in a competitive market? Their foundation of providing custom clothing directly to consumers while eliminating middlemen makes the purchasing experience incredibly efficient.
By leveraging technology to take body measurements, they produce garments that are tailored to each customer’s specifications. The accurate fit combined with affordable prices couldn’t be matched by off-the-rack brands.
Operating as an e-commerce driven company allowed Indochino to avoid the overhead expenses associated with traditional brick-and-mortar locations. Savings get passed along to buyers while also enhancing convenience through tech-forward processes.
Showrooms serve as tactile displays so guys can view, touch and try on products before deciding what designs work for their needs. Virtual appointments then facilitate ordering bespoke items from anywhere.
These differentiators fused with premium fabrics and stylish aesthetics are what distinguishes Indochino as a progressive menswear innovator.
Guiding Principles: The Indochino Way
Indochino has been recognized as one of Canada’s fastest growing companies, even earning top spot on the Growth 500 list. But awards and press features alone don’t lead to such monumental achievement.
Their ascent can be attributed to placing strong company values into practice from day one. As VS*the foundational principles driving culture and conduct, they enable innovation, evolution and exceptional experiences.
Visionary Leadership – having the courage to recognize and pursue opportunity. Building something remarkable requires bravery, intuition and conviction in your beliefs.
Sartorial Audacity – advancing the industry through relentless improvement. Refusing to settle for the status quo drives game-changing breakthroughs.
Adventurous Spirit – embracing the unfamiliar allows one to create something extraordinary. Pushing boundaries with childlike curiosity moves cultures forward.
Obsessive Service – fulfilling customers goes beyond transactions. Understanding people’s needs fosters meaningful relationships beyond sales.
Indochino has undeniably disrupted an age-old industry through a bold new approach. But stunning apparel is only one aspect of the business. Their ability to simultaneously produce beautiful garments while adhering to values-driven leadership is what sets them truly apart.
Positive Impact: Improving Lives
Indochino believes in using business as a force for good to support causes close to their hearts. The corporate responsibility program Suits for Change donates professional attire, time and mentorship to charities around the world.
They partner with organizations that help men re-entering the workforce to provide suitable interview clothes and build confidence. By leveraging their skills to equip men with not just garments but readiness to add value in the jobs marketplace, Indochino enacts social change through style.
The juxtaposition of delivering exceptional products while bettering communities displays an ethically conscious corporation. Indochino serves as a prime example of a company integrating philanthropy into the very fabric of its brand.
What’s Next: The Future Looks Bright
In just over 15 years, Indochino has grown from a scrappy startup to leading a global movement around personalized menswear. Not just bent on selling suits, their disruptive thinking moves the needle for how apparel can be bought and sold.
They now aim to outfit men with clothing for all of life’s moments – from weddings to the workplace and everywhere in between. Using technology to their advantage, Indochino is broadening their product catalog while retaining specialty in suits.
The direct-to-consumer strategy continues allowing fair costs despite rising inflation, economic uncertainty and supply chain challenges. Plans are also underway for experimenting with brick-and-mortar shops featuring virtual fitting rooms.
By tackling clauses through innovation, Indochino is setting up to dominate market share across every possible channel where men buy tailored clothes.
Though the future holds immense opportunity on the horizon, Indochino remains committed to the ideals established at the start. Their growth trajectory shows no signs of slowing by sticking to foundational values and continuously improving. If the last fifteen years are any indication, Indochino is certain to remain at the forefront of customized menswear for decades yet to come.
