Assembly Label Founders seek a pay day.

According to the AFR, Assembly Label is on the market after being privately held for 13 years since its inception.

Assembly Label founders, Damien Horan and Daniel Oliver, started the company in 2011 to fill a gap they saw in the market for high-quality, minimalist clothing that reflected the relaxed Australian coastal lifestyle.

However, current CEO Lee Thompson states, “[We] never thought when the business started that we would be in the position we are in today”.

So why was Assembly Label such a success?

Here’s the story:

The Very Beginning

Inspired by the concept of a capsule wardrobe, focusing on simplicity and sustainability, Horan and Oliver founded Assembly Label with the vision to create a brand that offered timeless and versatile essentials made from premium materials, but at an inclusive price point.

Damien Horan and Daniel Oliver, the co-founders of Assembly Label, each bring unique backgrounds and expertise to the brand.

Horan has an artistic background, with a keen eye for detail and design, which has helped shape Assembly Label’s aesthetic that blends modernist design principles with the laid-back Australian coastal lifestyle.

Oliver, on the other hand, has a background in clothing design. His experience in the fashion industry has been crucial in developing the high-quality, timeless pieces that Assembly Label is known for.

Together, they have combined their skills to create a brand focused on simplicity, quality, and sustainability, appealing to those who appreciate minimalist design and a relaxed lifestyle.

The brand started out wholesaling their products, but it quickly took off. They opened the first retail store in Bondi in December 2015. This store marked a significant milestone for the brand. It allowed them to create a dedicated space to engage with customers and showcase their full range of products in a carefully curated environment.

The Moment Of Growth

Assembly Label's growth strategy was multifaceted, focusing on brand identity and an effective marketing and digital presence.

They based their strong brand identity around:

• Minimalist Design: Maintaining a consistent minimalist aesthetic helped differentiate Assembly Label from competitors. This clear and cohesive brand identity resonated with consumers seeking timeless and versatile pieces.

• Quality and Sustainability: Emphasizing high-quality materials and sustainable practices aligned with growing consumer demand for ethical fashion, attracting a loyal customer base.

By moving from wholesaling to owning the retail shops, they had full control around this brand identity, not only through the products themselves but also in the shops that housed them.

The other key element of their growth strategy was the marketing and digital presence. This was done through:

• Social Media Engagement: Utilising platforms like Instagram and Facebook to showcase products, lifestyle content, and behind-the-scenes glimpses helped build a strong online presence.

• Influencer Collaborations: Partnering with influencers and fashion bloggers who shared similar values increased brand visibility and credibility.

• Content Marketing: Creating engaging content, such as blog posts, styling tips, and lookbooks, provided value to customers and reinforced the brand’s aesthetic and values.

The influencers Assembly Label partnered with strategically aligned with the brand's minimalist, sustainable, and coastal lifestyle ethos. This often meant partnering with micro-influencers, people with a following of under 100,000.

Partnering with micro-influencers offered Assembly Label higher engagement rates and cost-effective marketing, as they typically have more personal connections with their niche audiences, fostering greater trust and authenticity.

While still a relatively small brand when compared to Australian success stories like R.M. Williams and Country Road, Assembly Label still boasts a reported $47 million in revenue.

Here’s the Deal

The deal specifics aren’t known at this stage. Without more detailed financials, it is difficult to put a ballpark figure on the label. However, if we look back to Tattarang’s $190 million purchase of R.M. Williams in 2020, which had recorded $142 million in sales the year prior, we can expect Assembly Label to be valued at around $50 to $75 million.

Thanks for reading,

Archie Sampson, Founder of Prepped