Indochino, the Vancouver-based made-to-measure men’s brand, has a new partner.
The company has created what it is calling “a strategic partnership” with Postmedia, a Canadian media company representing more than 200 newspaper brands across Canada.
Under the terms of the deal, Postmedia has committed to invest more than 40 million Canadian dollars of media money in the brand over the next five years.
Postmedia will help Indochino grow its market share in Canada by promoting the company through print, digital and native advertising to its 13.4 million monthly unique digital visitors and 8.3 million weekly print readers in Toronto, Ottawa, Vancouver, Calgary, Edmonton and other emerging markets in Canada where Indochino has less of presence.
“We’re proud to be symbiotically aligned with Canada’s largest newspaper company, which provides credible sources of news via its digital and print network to two in three adults,” said Drew Green, Indochino’s chief executive officer.
“As part of our 2016-2020 plan, we’ve boldly sought out strategic alliances to help us achieve our business goals and this mutually beneficial partnership will no doubt have a profound impact on our growth in Canada.”
Green said the deal will serve to boost the brand’s marketing activities while lowering one of its largest expenses.
“Both sides have a vested interest in making the partnership work, which optimizes the chance of success and greatly reduces risk,” Green explained. “It’s a winning formula and one that I hope will pave the way for similar ventures in other markets.”
As part of the agreement, Postmedia will share an unspecified portion of Indochino’s sales in the Canadian market with the option to purchase its stock at current prices.
“This is a great opportunity for two companies to leverage each other’s strengths in order to grow their businesses,” said Andrew MacLeod, president and chief operating officer of Postmedia. “We believe it’s a perfect fit.”
The agreement actually kicked off in February and since that time, net orders in Canada are up 63 percent and sales have risen 77 percent in that country.
Postmedia’s print and digital brands include the National Post, the Vancouver Sun, the Ottawa Citizen and the Calgary Herald.
Indochino sells made-to-measure clothing and furnishings on its web site and in nine showrooms in major cities around the U.S. and eight in Canada.