Naadam, a thriving cashmere apparel brand, boasts an origin story as unique and unexpected as its business model. Matt Scanlan and Diederik Rijsemus, the masterminds behind Naadam, found themselves stranded with Mongolian goat herders in the Gobi Desert during a post-college adventure in 2013. This unexpected turn of events sparked a business idea: to eliminate middlemen in the cashmere trade and offer high-quality cashmere apparel at accessible prices by sourcing wool directly from herders.
Despite lacking industry experience or substantial funding, Scanlan and Rijsemus were determined. In 2015, with a crucial $2.5 million loan secured by Scanlan’s parents’ home as collateral, they embarked on a daring venture. They transferred the funds to Mongolia, withdrew the entire amount in cash, and ventured deep into the desert in an SUV packed with 32 plastic bags overflowing with bills. This unconventional shopping spree yielded Naadam’s first 50 tons of raw cashmere wool.
Fast forward to 2022, Naadam has become a major player in the cashmere industry, generating a staggering $100 million in revenue. Their product range extends beyond their top-selling $98 sweater, encompassing sweatpants, tank tops, and a variety of other cashmere apparel. Naadam has established a robust sales network, encompassing online sales, partnerships with prestigious retailers like Saks Fifth Avenue, and even operating three brick-and-mortar stores in New York and Los Angeles.
Naadam’s CEO, Matt Scanlan, readily acknowledges the outlandishness of their origin story. The inherent risk of their desert cash purchase, coupled with their lack of prior business experience, led to numerous moments of doubt. “There were many moments,” Scanlan admits, “when we had no idea how we were going to pay back that loan.”
But Naadam defied the odds. The next section of the story would likely delve into how they achieved this success, perhaps explaining their strategies for sourcing, production, marketing, and building a loyal customer base.