I Took A $2.5 Million Loan To Start A Fashion Brand — Now It Brings In $100 Million/Year
CNBC Make It・2 minutes read
Matt Scanlan founded Naadam, a cashmere clothing company, by borrowing $2.5 million using his parents' house as collateral. Naadam controls its entire supply chain by purchasing cashmere wool directly from Mongolian goat herders in the Gobi Desert, offering affordable cashmere attire that led to sales exceeding $100 million in 2022.
Insights
- Naadam, founded by Matt Scanlan, prioritizes affordability and transparency in its cashmere products, leading to substantial growth and revenue exceeding $100 million in 2022.
- Matt Scanlan's entrepreneurial journey with Naadam showcases the importance of quality, customer satisfaction, and perseverance in overcoming challenges like failed mergers, emphasizing the rewarding yet challenging path of building a successful brand.
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Recent questions
How did Naadam start?
Naadam started by selling sweaters from leftover yarn.
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Summary
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Naadam: Affordable Cashmere Success Story
- Matt Scanlan founded Naadam, a cashmere clothing company, by borrowing $2.5 million using his parents' house as collateral.
- Naadam purchases cashmere wool directly from Mongolian goat herders in the Gobi Desert, controlling its entire supply chain.
- The company offers affordable cashmere attire, with a $98 sweater costing $37.50 to produce, plus $10 to $15 for warehousing and shipping.
- Key numbers in Matt's story include $2.5 million borrowed for wool, $98 for the popular sweater, and $100 million revenue in 2022.
- Matt and Diederik started Naadam after selling sweaters from leftover yarn, driving sales through personal interactions and storytelling.
- Naadam's affordability and transparency led to significant growth, with sales exceeding $100 million in 2022.
- The company's most expensive item, a cashmere coat, sells for about $700, still relatively affordable compared to market prices.
- Naadam's focus on quality and customer satisfaction drives its success, aiming to create products customers love and recommend.
- Despite challenges, like a failed merger attempt in 2023, Matt remains focused on Naadam's profitability and brand identity, emphasizing the humbling yet rewarding journey of entrepreneurship.
