DTC scrubs on track for $100M
Shaan notes that FIGS, the fashionable medical-scrubs brand, went public and reached a $7 billion market cap, with the press hailing it as the next Lululemon or Nike.
“They went public. $7 billion. What? $7 billion market cap. What? If you go read any of the articles, it's like why FIGS is the next Lululemon, why it's the next Nike, why FIGS is, is a Starbucks for scrubs.”
Shaan pitches building a stylish direct-to-consumer apparel brand for an underserved working niche the way FIGS did for nurses, starting with construction and other outdoor trades that need specialty clothing but currently settle for generic defaults.
“FIGS for construction. So how many other industries have a large workforce that kind of need specialty clothing for doing what they do. And today they have like a generic default. And maybe you could build a sexier D2C brand like FIGS for construction. So this is the idea. This is the idea. FIGS for construction.”
Steal thisPick a large workforce stuck wearing generic uniforms (construction, trades) and build a flattering, branded DTC clothing line for them.
Shaan pitches building a stylish direct-to-consumer apparel brand for an underserved working niche the way FIGS did for nurses, starting with construction and other outdoor trades that need specialty clothing but currently settle for generic defaults.
“FIGS for construction. So how many other industries have a large workforce that kind of need specialty clothing for doing what they do. And today they have like a generic default. And maybe you could build a sexier D2C brand like FIGS for construction. So this is the idea. This is the idea. FIGS for construction.”
Steal thisPick a large workforce stuck wearing generic uniforms (construction, trades) and build a flattering, branded DTC clothing line for them.
Shaan points out that workwear brand Duluth Trading does $638M in annual sales yet carries only a ~$500M market cap, roughly double FIGS's revenue at a fraction of the valuation, suggesting the rugged-wear category is mispriced versus a hyped DTC story.
“Duluth, I looked up before this, they're $638 million in annual sales. It's only got a $500 million market cap. So double the revenue of Figgs.”
Sam argues niche apparel brands win by targeting a group with a chip on its shoulder. FIGS works because nurses feel overworked and underpaid, so a brand that makes them look and feel good taps an 'us against the world' identity worth far more than the garment.
“but you have to do like a brand and a niche where it feels like us against the world. So nurses feel— it's predominantly women, so they already have that little like segment of like, you know, we're, we're the underdog nurses. They probably think that they're overworked, underpaid. So you got that vibe going”
Steal thisAnchor a niche brand to a group that feels overworked or overlooked, then position the product as the recognition they deserve.
Sam cites a Wall Street Journal piece: FIGS, a 5-year-old direct-to-consumer scrubs startup, was on track to make $100 million in revenue — and that figure was from 2018.
“FIGS is a 5-year-old startup that's upending, upending the medical apparel industry with direct-to-consumer scrubs and splashy marketing campaigns. This year is on track to make $100 million in revenue. And that was in 2018.”
Shaan contrasts FIGS scrubs ($38-46, bought in bulk for daily wear, ~$500 lifetime spend) with Bala's $130 shoes, which customers buy far less often. The repeat-purchase frequency of consumable apparel caps how big a single-product shoe brand can get.
“these guys are selling these scrubs for $38 to $46 and you're gonna buy a bunch, right? Because you need scrubs for every day that you go to work. So once you decide to opt into this like life of better looking scrubs, you're gonna probably end up spending, I would guess, something like $500 at FIGS, whereas for Bala, $130 shoes, um, you're probably not gonna buy as many pairs of, pairs of these as you do your Scrubs. So I think that's kind of one natural limit that these guys have on this.”
Steal thisFavor product categories customers must repurchase frequently over durable one-time buys when picking a DTC niche.