Threadheads, a Victoria-based apparel and fashion company, has seen a 6,000% jump in online revenue in just two years. Threadheads claims to have made $6 million in revenue in 2021 alone, up from $95,000 in 2019.
So, how did they pull it off?
Threadheads is a Victoria-based e-commerce startup that began in 2017 as a custom t-shirt printing business. The company offers in-house and artist designs that are printed on-demand onto a range of premium tees and apparel that they claim are unique and cannot be found anywhere else in Australia.
Ace Reunis, the company’s founder and CEO, was 28 years old when he travelled the world and assembled a small, young team to launch Threadheads in partnership with Marcus Siegel.
However, the business did not always look this way for Ace and Marcus. Threadheads’ evolution has been notable, with various barriers overcome along the way. Threadheads began by selling printed T-shirts from dodgy printers and operated out of dilapidated buildings.
“We were initially set up as a marketplace, and out of desperation, we were selling ‘Kony2012’ t-shirts on eBay.
“Not only that, we encountered numerous issues with web developers ripping us off, to hackers virtually destroying our website leaving the business on its last legs.”
They made their first sale of $80 and did not make another for weeks. In mid-2018 the business experienced a pivotal moment when they met their first illustrator who enquired about custom t-shirt printing.
“This was a huge light bulb moment for us, which ultimately changed the direction of the business forever. We began to make the t-shirts in house by working with our incredible illustrator. This helped us transform from a marketplace into our own brand.”
During the height of the lockdown, Marcus Siegel and Ace Reunis saw an opportunity as online demand began to increase and Threadheads took off.
“When the pandemic hit Australia the business initially suffered from the harsh lockdowns, however, as online demand began to increase Threadheads took a turn for the better. From this point forward things got brighter for Threadheads.
“As the interest for graphic t-shirts increased, we began printing each day from the early hours of the morning right up until midnight. Our team of illustrators grew and we now have a team of 25 people working with us.”
The team continues to work to diversify its prints to meet the widespread appeal of graphic prints.
“Our goal is to continue to build an authentic brand that is unique, fun and memorable. We create prints that speak to our audience and at the end of the day, all we want to do is create garments that leave people with a smile.”
Threadheads’ revenue has increased by 6,055.08 per cent in the last two years. When comparing 2021 to 2020, their consumer spending for the age group 25-34 climbed by 91.33 per cent.
Moreover, the size of the workforce rose from three to over 25 employees during COVID-19. The company also formed alliances with well-known brands such as NASA and Bruce Lee.
Ace and Marcus told Dynamic Business that the key to their success was having a unique vision and assembling the right team to carry it out.
They also benefited from their online direct-to-consumer approach, which enabled them to capitalise on COVID-19-led stay-at-home orders.
“As we are a direct-to-consumer eCommerce brand, Threadheads’ sales exploded during the pandemic. Partner with the right people and build a team. Execute each day and your incremental progress will compound over time.”
They also attributed their success to using the right marketing channels, which helped them reach their potential customers.
“Facebook Ads, Google Ads, SEO and email marketing are our primary channels. We are best practice in all of these areas.”
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