Young LA: From Reselling to $176 Million Activewear Brand
Key Concepts:
- Direct-to-consumer (DTC) activewear
- Limited drop model
- Athleisure and streetwear blend
- Fitness influencer marketing
- Brand building through social media (Instagram, TikTok)
- Supply chain and product development
- Brick-and-mortar expansion
Origins and Early Business Ventures
- Young LA was founded in 2014 by brothers Ger (33) and Dashit Chopra (37).
- The brothers immigrated from India to the US with their family, eventually settling in Los Angeles.
- Early entrepreneurial ventures included selling iPhone cases on Craigslist and reselling items like soccer jerseys and vape cartridges on Amazon and eBay.
- Initial investment of $5,000 yielded nearly $500,000 in profit in 2016.
- Ger Chopra worked at Ernst & Young as an auditor but quit after 8 months, stating, "I absolutely hated it."
Launching Young LA and Product Development
- In 2017, the Chopras launched their first original product: men's gym shorts on Amazon.
- The brand name "Young LA" was inspired by a DJ named Young California.
- The initial focus was on activewear, gradually expanding into lifestyle clothing.
- Ger Chopra emphasizes the importance of personally testing every product before launch: "I spend half of my day in here. Whatever we launch I've tried every single piece on."
Marketing and Growth Strategies
- Transitioned from selling on Amazon to a direct-to-consumer model through their own website.
- Acquired the Instagram username "Young LA" for $800 and built a following.
- Partnered with fitness influencers and athletes, particularly on TikTok, to promote the brand.
- Benefited from the increased interest in at-home fitness during the COVID-19 pandemic.
- Implemented a limited drop model for bi-weekly clothing releases, creating hype and urgency.
Business Model and Financial Performance
- Young LA's revenue reached $176 million.
- The company is equally owned (50/50) by Ger and Dashit Chopra.
- Half of the annual revenue comes from streetwear sales (jeans, hats, etc.).
- The brand's success is attributed to blending streetwear and athleisure styles.
- Comparison to other brands: Gymshark ($780 million revenue in 2024), Supreme ($538 million revenue in 2024).
Expansion into Brick-and-Mortar
- Young LA is expanding into physical retail with its first store opening in the fall.
Key Influences and Comparisons
- Supreme: Emulates the limited drop model to create hype and urgency.
- Gymshark: Utilizes fitness influencers and affiliate marketing.
Conclusion
Young LA's success story highlights the power of direct-to-consumer sales, strategic influencer marketing, and a keen understanding of the athleisure and streetwear markets. The Chopra brothers' journey from reselling on eBay to building a $176 million activewear brand demonstrates the potential of online commerce and the importance of adapting to evolving consumer trends. Their focus on product quality, brand building through social media, and strategic partnerships with influencers has propelled Young LA to significant growth and expansion into physical retail.
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