![]() “Nobody wants to wear a bad experience for 14 hours a day. ![]() Once healthcare professionals experience the Figs difference, they never want to go back to generic scrubs. Virtual Monopoly on Healthcare Workers’ Entire Work Wardrobe Some 60% of Figs’ business comes through word-of-mouth, the most effective and least costly means to acquire new customers. ![]() We don’t have to pay for that,” Spear said They are acquiring our next customer for us because they are trusted colleagues. When just one nurse or doctor shows up at work in Figs, they stand out, sparking conversation. A lot of times, new styles sell out in a day,” she said. And we launch new products every week on a Tuesday or Thursday, and healthcare professionals on the night shift dial in at midnight to see what’s new. “Our customers come back over and over again to replenish their wardrobe. Some 70% of company revenues come from repeat customers. They look put together and professional throughout, not sloppy,” Spear related. “We help professionals look good and feel good on their 12-hour, 16-hour and sometimes double shifts. And once more professionals learn about the Figs comfort and style advantage, high customer retention and repeat purchases are virtually guaranteed. Competitive AdvantagesĪs impressive as Figs early results are, all that pales in comparison with the opportunity ahead as it leans into its distinctive and differentiated competitive advantages: Passionate Customer Loyaltyįigs has only scratched the early-adopter surface of its total addressable market. Non-scrubwear revenues, including lab coats, are nearing 20% of revenues and advanced 14% year-over-year. Plus, all those committed Figs customers are clamoring for their Figs fix for other lifestyle needs, like outerwear, underscrubs, activewear, loungewear, compression socks and footwear. Full disclosure: my son is an ICU nurse, so I know much about his workwear needs, though we never talked brands until I asked him about Figs. Active customers in the first quarter totaled 2.4 million, which grew from 1.5 million in March 2021 right before it went public.Īnd it’s still got a long runway, especially among male professionals, who make up 25% of the workforce but less than 20% of the company’s revenues. In the U.S., where it got its start in 2013, Figs has already reached over 10% of its total addressable market of 20 million healthcare workers. First quarter international revenues were up 45% year-over-year. “It doesn’t matter if you’re a healthcare professional in Kentucky, Turkey or Mumbai you have the same work apparel needs, and we’re the brand that stands alongside them wherever they are,” Spear said. Surely, it got a bounce from the pandemic, but revenues were up 9% in first quarter fiscal 2023, and it sees blue skies ahead by capitalizing on its established competitive strengths and continuing to expand its reach to the 118 million healthcare workers across the globe. For fiscal 2023, it guides on revenues growing mid-single digits, but CFO Daniella Turenshine said in a statement that is “not representative of the growth we believe we can achieve long term.”Īnd Spear added, “We believe we have the scale and balance sheet to take our business to the next level, making strategic, disciplined investments in our future as we aim to double our annual net revenues to $1 billion.” ![]() It also was profitable in 2022, to the tune of $22.1 million, up from a $9.6 million loss the year before. Net revenues nearly doubled from $263.1 million in fical 2020 to $505.8 million in fiscal 2022. The company’s stated mission is “To celebrate, empower and service those who serve others,” and if its financial results are a measure of that service, it is doing it quite well. “We’ve built a brand in an unbranded, commoditized market.” By The Numbers We’re the brand that shows up every day to make sure they have what they need to do their jobs,” Spear shared. “Our main goal is to make the lives of healthcare professionals better. The styles are also functionally designed with plenty of pockets to hold everything medical professionals need to do their jobs.Īnd also distinctive from its competitors, Figs sells exclusively direct-to-consumer, not in out-of-the-way strip mall stores where medical apparel might be sold next to bedpans, knee braces and other medical supplies.įigs created a virtual destination that’s always open whenever healthcare professionals can fit shopping into their busy schedules. Figs offers body-conscious, style-forward designs with innovative fabrics for easy-care, long-wear and comfort with four-way stretch, plus anti-odor, anti-microbial and moisture-wicking properties.
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