Go Global has been exploring the purchase of Mod Cloth for the past few months after a long discovery process Go Global decided to acquire the Mod Cloth brand as they believe they can help them across the board.
In an interview with Christian Feuer, Managing Director, Go Global mentioned, “Mod Cloth is a great brand, with established e-commerce (digitally native), that has the opportunity to fundamentally grow much faster”.
The company feels the brand has a clear profile with a vintage background that separates Mod Cloth from other brands. Go Global believes they can help the brand operationally across the board.
One of the key determining factors for this transaction was that ultimately the senior executives at Go Global were intrigued by the opportunity, as it was a compliment to all parties involved.
This was Go Global’s first acquisition of a brand, but they are looking to expand its brand portfolio. The long-term vision of Go Global is to acquire brands where they see opportunities to improve performance not only strategically but also beyond the status quo.
Mod Cloth has over 200 employees and it will remain a separate entity and stay based in Los Angeles.
Go Global management recognizes the opportunities to focus on their existing customers by offering them a more diverse product offering.
As the brand matures, it will continue to explore its product offerings with the help of AI (artificial intelligence) to enhance the work of employees to maintain and improve customer satisfaction.
The brand will continue to evolve as they review their products with increased new product and collection offerings. Go Global believes newness is extremely relevant in fashion.
The strongest category for Mod Cloth has been their dresses; prices will remain the same; the product will be modified to be more attractive with more styles, more frequently, as they continue to align their pricing strategy.
The vast majority of Mod Cloth sales are through online channels; they are a digitally native brand with a small portion of their business through the traditional B2B model.
Today Go Global will focus on the online business and in the future, they may consider opening their own retail stores.
The plan is to open the business internationally while improving the supply chain with its deep and intricate knowledge in order to improve the overall performance.
Christian mentioned, “ He believes in the management of Mod Cloth, and 1+1 = 3”
Go Global plans to expand its business internationally with a focus on new customer acquisition with substantial followings on social media. Making the brand more relevant by focusing on brand message techniques.
The best advertisement is happy customers; Go Global will work extremely hard to make the products better as they believe word of mouth will drive the brand.
They will work with aligned partners to expand the use of artificial intelligence and predictive analytics.
Besides the United States presence, Mod Cloth has a strong following in Canada, Australia, and New Zealand. Go Global is looking to grow the brand into Europe, the UK, and Asia.
In the next five years, they plan to double the size of the business, improve the supply chain, AI, predictive analytics, and the bottom line.
About Go Global Retail
Founded in 2016, Go Global Retail is a brand investment platform for strategic investors in the consumer sector.
The company is laser-focused on identifying attractive targets, investing appropriate capital, and creating value for both investors and companies they acquire.
Go Global partners include Investment, Retail, and Operational Executives working together to create a holistic approach to investing in the ever-evolving world of global retail.
For additional information, visit https://www.goglobalretail.com/
About Mod Cloth
Mod Cloth derives from a digitally native lifestyle brand and is committed to inspiring personal style by helping women feel like the best version of themselves.
Mod Cloth’s lifestyle-driven assortment includes its signature line of feminine, vintage-inspired apparel, offered in a full range of sizes (XXS-4X) at price points with surprising value.
Founded in a college dorm room by high school sweethearts Susan Gregg Koger and Eric Koger in 2002. ModCloth has since set up offices in Los Angeles and Pittsburgh.
Additional information about ModCloth can be found at https://www.modcloth.com/