MANRAGS TAKES ON THE LOCAL AND GLOBAL SUBSCRIPTION MARKET
As more and more Australians turn to online retail for all forms of shopping, husband and wife team Michael and Tina Elias are tackling the men’s socks and underwear market with subscription service, MANRAGS.
Capitalising on the growing Aussie demand for subscription services, the couple launched MANRAGS three years ago and have seen it grow sales by 100 per cent year-on-year. Now the canny duo aims to take their brand global and are heading to the crowdfunding site, Equitise, in search of investors.
The global male subscription market is a rapidly growing sector. Currently male lifestyle and grooming subscription services, Dollar Shave Club has over 3 million subscribers while Birchbox boasts a million customers. The Elias’s hope to capitalise on men’s new obsession with quality hassle-free products delivered direct.
“Male consumers are increasingly more tech-savvy and aware of what is readily available both here and internationally. The rise in retail subscriptions is not limited to the female market, the increasing ease of online shopping is key to the rapid growth of the male market,” MANRAGS CEO, Michael Elias said.
Harnessing the power of subscription services, MANRAGS has become one of the fastest growing men’s essentials subscription clubs in Australia.
“We realised that men want quality socks and jocks that are affordable while taking the hassle out of shopping but at the same time providing customized pieces on trend,” Elias said.
“Our subscription model, developed and driven by the demands of our customers, enables members to choose their desired products and delivery frequency. We offer free shipping worldwide and services like the ‘Washing Machine Monster’ policy, replacing socks to ensure customers don’t end up with a drawer of single socks,” Elias added.
In a bid to expand their subscription service, the couple have issued their first round of shares for Manrags Holdings Ltd on Equitise, with the hopes of raising up to $900,000 to continue to expand their male line.
Driven by thousands of requests, the couple are also planning to launch a women’s brand, MS SOUS, after this capital raise.
“Over the next 12 months the company will continue to increase its range of essentials, launch the female subscription club, MS SOUS and build on a new distribution relationship with China’s Taobao, one of the world’s largest e-commerce platforms,” Elias explained.
In less than a week, the brand has already secured close to 50 per cent of its needed funding.
Chris Gilbert, Co-Founder of Equitise says the subscription e-commerce model is one of the fastest growing markets in retail, so it makes sense the brand is attractive to investors.
“Equity crowd-funding allows investors to not only be part of the growth, but a product and service that can use and wear every day.” Gilbert said.
Elias says since launching MANRAGS, the business has grown exponentially. He tells Kochie’s Business Builders, analyzing customer behaviour has been key to its success.
“The business has grown through the ongoing collation and analysis of consumer data. This has given MANRAGS unique insights into consumer behaviour, particularly around our core subscribers of men and women between 19-45, who make up 80% of our subscriber base,” he adds.
With a strong community of brand advocates behind them, there is little doubt MANRAGS is well on its way to becoming another iconic Aussie success story.