Nov 13 2012
Indochino
Indochino was founded by UVIC students Kyle Vucko and Heikal Gani in 2007. Gani realized a business opportunity after being unable to find a reasonably priced, good quality suit that would fit without the need for extensive (and expensive) alterations. Today, Indochino is the market leader in online custom menswear.
So, I’m sure you are wondering how Indochino is able to offer their high-quality, custom merchandise at reasonable prices.
Their business operations advantage is based on the concept of disintermediation. Essentially, Indochino directly deals with their essential manufacturing partners. They do not need to deal with an extensive variety of wholesalers, distributors and retailers. A typical retail product passes through a variety of these aforementioned intermediaries who all mark up merchandise. The end result is an inflated rack retail price.
An Illustrative Graphic From Indochino
Furthermore, Indochino doesn’t need to manage excessive amounts of inventory as each clothing item is made to order. The only downside with custom-made merchandise is it takes time. If you would like an Indochino suit, it will take just under a month from the time of your order until it is delivered to your door.
Last eMarketing class, Chris and a colleague (I can’t recall his name) from Indochino’s marketing department took the time to speak to our class about Indochino and some of the strategies they have implemented to overcome the inherent challenges of the online clothing business. They were really engaging speakers and offered some unique insights.
Challenges/Solutions
Accurate Measurements
- Offer free tape measure and online measuring guide
- Offer customers $75 local alteration credit and remake suit if necessary
- Traveling Tailor Events where professionals record your measurements
Demonstrating product quality to customer without physically seeing the item
- Offer sample kit
- Traveling Tailor Event has complete suits
- Clear photos and descriptions
An inherent challenge Indochino faces is the time required for a suit to be custom made. It is not feasible for orders to be rushed as staff do not simply grab an item from a warehouse and expedite shipping. Most guys leave things until the last minute. I advise trying to plan in advance to ensure Inochino is still a feasible option when searching for a suit.
Also, I noticed that after researching Indochino, I receive a lot of targeted Google ads directing me to Indochino’s website…
I’m not a guy that is REALLY into fashion, but I am into getting a deal. After the presentation, I won one of Indochino’s Suit Utility Kits.
I must say that I was really impressed with the quality of all the items, especially the handmade 100% silk tie! The fabric felt so soft and it looked incredibly sharp (just as shown online!) If you are in the market for purchasing a tie, tie clip, pocket square or cufflinks, I would highly recommend this set!
Next time I need a suit, I’ll definitely check Indochino. Being tall and slim I have a difficult time finding clothing that fits well from a store rack. If you are on the fence about trying Indochino, go for it. For my next suit purchase, I certainly will.
One of Indochino’s biggest challenges moving forward will be overcoming the misconception that all Chinese products are poor quality. Today, most designer-branded products are manufactured overseas. Until Indochino develops a strong brand recognition like Tommy Hilfiger or Jones New York, they will rely heavily on word of mouth to expand their rapidly growing business.