How Does FIGS Company Work?

How did FIGS redefine medical apparel?

FIGS transformed scrubs into a premium, digitally native brand focused on performance and style, attracting over 2.7 million active customers and nearing $600 million in annual net revenue by 2025.

FIGS operates a vertically integrated, DTC model combining in-house design, data-driven marketing, and proprietary fulfillment to capture higher margins and repeat purchases.

How does FIGS company work? It leverages direct online sales, subscription and ecosystem offerings, and brand-led community engagement while optimizing supply chain agility; see FIGS Porter's Five Forces Analysis

FIGS combines proprietary fabric innovation with a DTC digital engine to serve healthcare professionals with performance-driven apparel and a strong emotional brand connection.

Technical Innovation

The company centers on FIONx fabric offering four-way stretch, moisture-wicking, and antimicrobial properties tailored for clinical intensity.

Product Design

Designs include functional features such as zippered pockets and reinforced seams to meet the workflow needs of 'Awesome Humans'.

Digital-First Sales

By mid-2025 the mobile app accounted for over 60% of sales, enabling real-time preference data and drop-based product launches.

Supply Chain & Margins

Partnerships with tier-one manufacturers in Asia and South America support quality control and a gross margin near 68%.

Controlling fabric R&D through final-mile delivery allows the company to capture full retail margin, reduce reliance on intermediaries, and optimize inventory turnover.

Operational Highlights

The FIGS business model focuses on proprietary materials, direct-to-consumer distribution, and data-driven assortment to lower CAC and increase repeat purchases.

• Proprietary FIONx fabric and in-house R&D for product differentiation
• Digital platform and app-driven sales with personalized merchandising
• Tier-one manufacturing partners in Asia and South America for scale and quality
• Drop model and limited editions to drive urgency and community engagement

Related reading: Brief History of FIGS

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FIGS generates most revenue from direct sales of healthcare apparel while diversifying into lifestyle items and B2B solutions to boost average order value and recurring income.

Core Product Sales

Core scrub sets (tops and bottoms) account for about 78% of revenue as of late 2025, forming the backbone of the FIGS business model.

Lifestyle Expansion

Lifestyle items—lab coats, underscrubs, outerwear, footwear—contribute roughly 22% of sales, lifting average order value to around $118.

B2B TEAMS Platform

The TEAMS platform enables bulk ordering and staff-branding for clinics and hospitals, providing stable, recurring revenue and lower long-term customer acquisition costs.

Geographic Mix

The United States remains primary; international markets (UK, Canada, parts of EU) now contribute about 14% of total revenue.

Pricing & Loyalty

Tiered pricing and a loyalty program boost retention: over 70% of annual revenue comes from repeat customers, lowering CAC and improving lifetime value.

Channel Mix

Direct-to-consumer e‑commerce dominates, supplemented by TEAMS B2B sales and selective wholesale/partnerships to broaden reach and margin control.

Revenue composition and monetization tactics reflect FIGS operations explained through product mix, channel strategy, and customer retention metrics; see Revenue Streams & Business Model of FIGS for additional context.

Key Monetization Levers

FIGS leverages product diversification, B2B scale, pricing sophistication, and loyalty to grow AOV and stabilize revenue.

• Core scrubs: 78% of revenue
• Lifestyle & accessories: 22% of revenue
• Average order value: $118 (up from $112)
• International revenue: ~14%
• Repeat-customer revenue share: >70%

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FIGS' trajectory pivots on its 2021 IPO, rapid category expansion, and the 2024–2025 rollout of physical Community Hubs that blend digital convenience with in-person experiences to reduce returns and deepen community ties.

Key Milestones

Founded as a DTC disruptor, FIGS went public in 2021, reached annual revenue north of $300M by 2023, and opened multiple Community Hubs in 2024–2025 to scale offline presence.

Strategic Moves

Priority moves include aggressive category expansion, international scaling, and hybrid retail via hubs in high-density medical markets (Philadelphia, Houston) to improve fit, lower return rates, and increase LTV.

Competitive Edge

FIGS leverages a first-mover premium DTC advantage, strong brand equity, and community-driven marketing to sustain a superior LTV to CAC ratio versus peers like Jaanuu and legacy uniform makers.

Operational Strengths

Data-driven inventory management yields high full-price sell-through and resilience during supply-chain disruption; technology underpins demand forecasting, fulfillment, and CRM.

FIGS business model centers on direct-to-consumer premium apparel, diversified revenue streams including product, subscriptions, and enterprise partnerships; community marketing and ambassador programs drive repeat purchase behavior and high customer lifetime value.

Why FIGS Sustains Advantage

The company combines brand authenticity (real clinicians in campaigns), hybrid retail Community Hubs, and tight inventory control to defend market share and margin.

• First-mover brand equity in premium medical apparel
• Community Hubs lowered online return rates and increased conversion in 2024–2025
• Superior LTV:CAC driven by ambassador and referral programs
• High full-price sell-through via data-led inventory and pricing

Further reading on FIGS target customers is available at Target Market of FIGS.

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FIGS holds a leading position in the premium healthcare apparel market, dominating the direct-to-consumer channel while facing rising customer acquisition costs and competition from athletic brands entering professional workwear. Strong liquidity and no long-term debt support continued R&D into smart fabrics as management pursues a broader healthcare lifestyle strategy.

Market Position

FIGS business model centers on premium scrubs sold primarily via FIGS direct to consumer channels, capturing brand loyalty among healthcare professionals and commanding higher ASPs than legacy uniform providers.

Competitive Landscape

FIGS faces pressure from generalist brands like Lululemon and traditional uniform suppliers; digital-first marketing and design differentiation remain key defenses.

Financial Resilience

As of FY2025 management reports cash and equivalents sufficient to fund operations and R&D, with no long-term debt on the balance sheet, lowering solvency risk during demand shocks.

International Expansion

Targeting 20% international revenue by 2027, the company is localizing platforms and supply chains to capture growing global healthcare workforce demand.

Key risks center on rising FIGS customer acquisition cost and macroeconomic headwinds that can depress discretionary spending on premium apparel, while opportunities include adjacencies in healthcare technology and wellness products.

Strategic Priorities & Risks

Management’s roadmap emphasizes expanding beyond apparel into a healthcare lifestyle ecosystem, leveraging digital infrastructure and product innovation to defend margins.

• Focus on R&D for next-gen smart fabrics and wearable integrations
• Mitigate rising social media CAC with diversified marketing and wholesale channels
• Scale international operations to reach targeted 20% revenue mix by 2027
• Maintain balance sheet strength to absorb macroeconomic volatility

For context on competitors and positioning, see Competitors Landscape of FIGS

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