From Scrubs to Triumph: Figs’ Remarkable Journey—LTBSM Insights

In 2021, two pioneering female entrepreneurs achieved an unprecedented milestone with record-breaking success in IPOs and mergers and acquisitions. At the heart of this achievement is Figs, a direct-to-consumer (DTC) brand specializing in professional medical apparel.

Upon its initial public offering, Figs achieved a valuation of USD 581 million, with an overall valuation of approximately USD 4.5 billion. Despite experiencing a significant drop in stock price post-IPO, Figs remains one of the few DTC brands from the same batch that has stayed profitable.

According to the U.S. Bureau of Labor Statistics, in 2022, 14.7 million people were working in the healthcare industry, with 46.8% being women. Interestingly, LTBSM found a phenomenon in the United States: many medical professionals choose to buy their own medical uniforms.

This trend stems from changes in the U.S. healthcare system over the past few decades, including how surgical uniforms are purchased and distributed. Many healthcare workers find that the quality of uniforms provided by hospitals is poor, causing skin irritation, prompting them to seek more comfortable alternatives and personal preferences in medical staff clothing.

Therefore, the birth of Figs was a response to an opportunity to create a modern, comfortable medical clothing brand that fits perfectly in the modern medical uniforms market, offering fashionable, high-quality, and affordable apparel for 150 million medical workers.

Figs’ tailored cuts, durable fabrics, and lasting wear have caught the attention of healthcare professionals, establishing the brand as a DTC leader for the younger generation of medical workers. Additionally, Figs offers unprecedented comfort and convenience to medical professionals across various fields.

In 2023, Figs' revenue reached USD 545.6 million, marking a 7.9% increase from 2022. The company's net income grew by 6.8% to USD 22.6 million, largely due to increased orders from both existing and new customers and a rise in the average order value (AOV). This notable growth highlights the effectiveness of Figs' strategic initiatives and their position as a leading player in the medical apparel market.

Figs has effectively disrupted the traditional wholesale model by selling directly to healthcare professionals, leveraging innovative strategies such as 'smart replenishment' and bundled sales. Their emphasis on high-quality, comfortable medical clothing and significant community engagement underscores their commitment to meeting the needs of healthcare workers.

The Figs brand demonstrates that a company can go beyond commercialization and fully integrate its values and mission. Instead of sticking to traditional scrub uniforms, Figs redefines medical apparel by offering human-centered, fashionable clothing.

Explore how Figs remains a top DTC medical brand by reading the full article: From Scrubs to Triumph: Figs’ Remarkable Journey—LTBSM Insights.

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