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How Did FIGS Revolutionize the Healthcare Apparel Industry?
Imagine a world where healthcare professionals are not only equipped with the best tools but also feel confident and comfortable in their uniforms. FIGS, a company that started with a simple observation, has fundamentally changed the landscape of medical apparel. This FIGS SWOT Analysis reveals how this scrub brand transformed a stagnant industry into a dynamic, lifestyle-focused market.
The FIGS company story is one of innovation and disruption, born from a clear understanding of the needs of healthcare workers. From its founding in 2013, FIGS history is marked by a commitment to quality, design, and community building. The company's success in the medical apparel sector highlights its effective marketing strategy and its ability to resonate with its target audience, setting it apart from competitors. Understanding the brief history of FIGS provides crucial insights into its current market position and future potential.
What is the FIGS Founding Story?
The story of the FIGS company began in 2013, driven by a clear vision to revolutionize the medical apparel industry. Founders Heather Hasson and Trina Spear identified a significant gap in the market, aiming to address the discomfort and lack of style in traditional scrubs. This led to the creation of a brand focused on modern, high-quality, and comfortable healthcare clothing.
Heather Hasson, with her fashion background, and Trina Spear, bringing financial expertise from Blackstone Group, combined their skills to disrupt the status quo. Their goal was to provide healthcare professionals with apparel that was both functional and fashionable, a stark contrast to the outdated options available. The direct-to-consumer (DTC) model was a key part of their strategy, allowing them to control the entire process and build a strong brand.
The Growth Strategy of FIGS was built on a foundation of understanding the needs of healthcare workers. They started by selling their innovative scrubs directly from their car, gathering immediate feedback and refining their products. This hands-on approach was crucial for product development and building a loyal customer base. In the initial years, they secured funding to support production and expand their reach.
The Founding of FIGS
FIGS was founded in 2013 by Heather Hasson and Trina Spear, aiming to transform the medical apparel market.
- Hasson, with a fashion background, and Spear, with finance experience, saw an opportunity to create better scrubs.
- The initial capital came from their personal savings, and they raised a $2 million seed round in 2013.
- They employed a direct-to-consumer (DTC) model, which was innovative in the healthcare clothing sector.
- The company's early success was fueled by their commitment to quality and direct engagement with healthcare professionals.
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What Drove the Early Growth of FIGS?
The early growth of the FIGS company was marked by its innovative direct-to-consumer model, focusing on product innovation and community building. Founded in 2013, the company quickly secured funding rounds to fuel its expansion. This early period set the stage for the scrub brand's future success and its impact on the medical apparel industry.
Funding Rounds and Early Investment
After initially bootstrapping, FIGS secured a $2 million seed round in 2013. Further funding came in 2014 and 2015, with an additional $3 million. In 2016, the Lululemon-backed venture capital fund, Campfire, led a Series A round, raising $5 million. This early investment was crucial for the company’s initial growth phase.
Series B Funding and Expansion
A significant milestone was the $65 million Series B funding round in January 2018, led by Tulco. This brought FIGS's total funding to $75 million. This capital injection was essential for scaling operations and accelerating growth, enabling the company to expand its product offerings and reach a wider audience.
Marketing and Brand Building
FIGS leveraged social media and influencer marketing to build brand awareness and connect with healthcare professionals. This strategy fostered a loyal customer base, crucial for the brand's growth. The company's approach helped differentiate it from other scrub brands and establish a strong market presence.
Product Line Expansion and Retail Presence
The company expanded its product line beyond core scrubs to include lab coats, underscrubs, and accessories. In 2019, FIGS launched its first retail store, expanding beyond online sales. This omnichannel approach aimed to foster community engagement and bridge online and offline experiences, enhancing the brand's appeal.
Revenue Growth and Financial Performance
By 2020, FIGS's revenues dramatically increased to $263 million, reaching $545 million in 2023. This growth demonstrates the company's successful business model and market penetration. The financial performance reflects the effectiveness of its strategies and the strong demand for its products.
Social Responsibility and Community Impact
FIGS demonstrated a commitment to social responsibility through its 'Threads for Threads' initiative, donating scrubs to healthcare professionals in need in over 35 countries. By 2019, over 500,000 sets were donated. During the COVID-19 pandemic, FIGS donated 30,000 sets of scrubs to New York hospitals and contracted the production of over one million N95 masks for donation. For more information on the company's ownership and stakeholders, see Owners & Shareholders of FIGS.
International Expansion
As of 2024, international sales represented 15% of total revenue, growing 31% year-over-year. This indicates significant expansion into global markets, showcasing the brand's increasing international presence and appeal. The company's ability to grow internationally highlights its strong brand and product demand.
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What are the key Milestones in FIGS history?
The FIGS company journey has been marked by significant achievements, transforming the medical apparel industry. From its inception, the company has consistently aimed to improve the experience of healthcare professionals through innovative design and strategic business decisions. The
FIGS history
is a testament to its growth and adaptation in a competitive market.| Year | Milestone |
|---|---|
| 2018 | Ranked Number 21 on Inc. Magazine's Inc. 5000 list of fastest-growing companies. |
| May 2021 | Completed Initial Public Offering (IPO), significantly increasing visibility and providing capital. |
| Ongoing | Maintains a community-centric approach, fostering strong customer loyalty through campaigns featuring real healthcare professionals. |
One of the most significant innovations is the proprietary FIONx fabric technology, which introduced four-way stretch, antimicrobial, anti-wrinkle, and moisture-wicking properties to scrubs. This technology improved comfort and durability, setting
FIGS scrubs
apart.
FIONx Fabric Technology
The development of FIONx fabric, offering four-way stretch, antimicrobial properties, and moisture-wicking capabilities, revolutionized
medical apparel
.
Specialized Collections
Launched specialized collections, such as the 'Extremes' line, designed for healthcare workers in demanding conditions.
Despite its successes, the company faces several challenges. While overall top-line growth was 2% year-over-year for 2024, the domestic market shows signs of stagnation. The company is also addressing increased operating expenses, partly due to a transition to a new fulfillment center and higher shipping costs.
Market Stagnation
The mature domestic market has shown signs of stagnation, with growth heavily reliant on international expansion.
Competitive Threats
Faces competition from brands like Jaanuu and Fabletics, which offer lower prices, impacting market share and pricing strategies.
Inventory Management
Experienced stock-outs in its footwear category in Q3 2024, highlighting inventory management challenges and supply chain issues.
Strategic Pivot
Implementing a strategic pivot with fewer discounts and more brand investment to reinforce its premium positioning and protect margins.
Sustainability Goals
Committed to sustainability, with targets such as reducing greenhouse gas emissions by 50% by 2030 and having 75% of scrub fabric from recycled materials by 2030.
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What is the Timeline of Key Events for FIGS?
The FIGS company, a prominent name in the medical apparel industry, has a rich history marked by strategic growth and innovative approaches. Founded in Los Angeles, California, by Heather Hasson and Trina Spear, the company quickly gained traction, securing initial funding rounds and expanding its reach. It has revolutionized the healthcare clothing market. Their journey from a seed-funded startup to a publicly traded company reflects their successful evolution and impact on the healthcare sector.
| Year | Key Event |
|---|---|
| 2013 | FIGS was founded in Los Angeles, California, and secured a $2 million seed round. |
| 2014-2015 | The company raised an additional $3 million in funding to support its growth. |
| 2016 | Lululemon-backed Campfire led a Series A funding round, contributing $5 million. |
| 2017 | Thomas Tull invested $65 million, becoming a majority owner of the company. |
| January 2018 | FIGS closed a $65 million Series B funding round, bringing total funding to $75 million. |
| 2018 | The company was ranked 21st on Inc. Magazine's Inc. 5000 list of fastest-growing companies. |
| 2019 | FIGS launched its first retail pop-up shop in Los Angeles and initiated the 'Threads for Threads' program, donating over 500,000 sets of scrubs. |
| Early 2020 | The company donated 30,000 sets of scrubs and facilitated the production of over one million N95 masks during the COVID-19 pandemic. |
| May 2021 | FIGS went public on the New York Stock Exchange (NYSE: FIGS). |
| 2023 | Reported $545 million in revenue, an 8% net revenue growth year-over-year. |
| 2024 | Reported $555.6 million in net revenues, a 1.8% increase year-over-year, with international sales representing 15% of revenue. |
| Q1 2025 | Achieved 5% net revenue growth year-over-year, reaching $124.9 million. |
International Expansion
FIGS plans significant international expansion, with planned market entries into Japan (Q2 2025) and South Korea (second half of 2025). This strategic move recognizes that over 80% of healthcare professionals globally are outside the U.S., presenting a vast market opportunity for the scrub brand.
Product Innovation and Diversification
Product innovation remains a central pillar, with plans to diversify offerings beyond scrubs into new categories like outerwear, footwear, and loungewear. The launch of innovative fabrications such as FORMx is also planned. These initiatives aim to expand the product range and enhance customer experience.
TEAMS Program and Community Hubs
FIGS is developing its TEAMS program, targeting healthcare institutions, and hired a dedicated leader for this initiative in January 2025. The company also intends to deepen connections with customers through personalized products and expand its retail presence by opening at least three new 'Community Hubs' in the second half of 2025.
Financial Strategy and Outlook
FIGS is strategically reducing promotional activities to reinforce its premium brand image and improve profit margins. The company maintains a strong cash position, with $251.2 million in cash and cash equivalents as of Q1 2025. Analysts project FIGS's earnings to grow by 40.2% per year and revenue by 2.5% per annum, with earnings per share (EPS) forecast to reach $0.08 for FY 2025 and $0.14 for FY 2026.
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