February 2024
Case
HBS Case Collection

FIGS: Scrubbing the Status Quo

By: Jeffrey F. Rayport and Nicole Tempest Keller

Format:Print
| Language:English
| Pages:30

Abstract

In October 2023, FIGS had revolutionized the medical scrubs industry with its fashionable and functional designs, but the venture was at a critical juncture. The digitally native vertical brand (DNVB) had gone public in a successful IPO in 2021 and reached $500 million in revenue in 2022. Investors had dubbed FIGS the “Lululemon of healthcare apparel.” However, by 2023, FIGS was facing slowing growth, significant margin pressure, and a radical share price decline, exacerbated by macroeconomic headwinds and increasing competition. In response, CEO Catherine “Trina” Spear, who was also a co-founder, was contemplating three strategic growth initiatives to bolster FIGS’ competitive position: expanding international presence, targeting healthcare institutions (a move into B2B), and establishing retail stores. Each avenue of growth held potential. International was a large market opportunity, B2B could unlock a stable new revenue stream, and retail stores offered brand visibility and synergy with the online experience. Spear had to decide whether FIGS’s small team should pursue one or more of these opportunities, and, if so, whether to pursue them concurrently or with a phased approach.