Retail

Indochino lands $42 million from Chinese manufacturer

By Felicity Stone /

THE#BCBIZDAILY
Custom menswear retailer and global garment manufacturer sign five-year agreement

Dayang Group, a China-based garment manufacturer, has invested $42 million in Vancouver menswear retailer Indochino, making it one of the company’s top five shareholders. The investment will help the company accelerate its growth, significantly expand its retail footprint in North America and introduce a series of new product lines for both its online and retail stores. Indochino’s mission is to deliver a million suits by 2020 and it plans to open more showrooms in 2016 with as many as 150 by 2020. 

Founded by Victoria natives Kyle Vucko and Heikal Gani in 2007 as an online retailer, Indochino now has customers in more than 130 countries and retail showrooms in seven North American cities. Vucko stepped down as CEO in December 2015, with retail and Internet veteran Drew Green stepping in to take his place.

China’s leading garment manufacturer and exporter, with over 7,000 staff, 10 manufacturing factories and annual capacity of 10 million pieces of clothing, Dayang manufactures suits for global brands including Ralph Lauren, BCBG, J-Crew and Banana Republic—plus billionaire Warren Buffet, who gets his own suits from the company. One of its factories will be dedicated to Indochino, along with a team who will work exclusively on the brand. Indochino, which already manufactures in China, plans to retain its current team in the country.

In response to an email asking whether Indochino might go public, Green said, “Indochino is focused on growing its business and a successful business gives us options. An IPO [initial public offering] could certainly be something we consider in the coming months and years.” 
 

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