FIGS, Inc. (FIGS): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into what makes the apparel company's strategy tick in late 2025, and honestly, it's a masterclass in premium brand building. After years of rapid growth, the focus has clearly shifted to margin health and brand equity, which you can see right away: their Gross Margin hit 69.9% in Q3 2025, largely because they've been smart about pulling back on broad promotions. This isn't just about selling more core scrubwear, which still generated $127.0 million in that quarter; it's about selling better apparel, like those featuring the new FIBREx platform, through a disciplined mix of DTC e-commerce and strategic 'Community Hub' stores. If you want to see exactly how they are balancing technical product innovation with a premium price point and targeted promotion to defend those high-margin targets, you need to check out the full breakdown below.

FIGS, Inc. (FIGS) - Marketing Mix: Product

The product element for FIGS, Inc. centers on technically advanced apparel and lifestyle products specifically engineered for healthcare professionals. The company's core offering remains its scrubwear, which is the primary revenue driver.

Financial performance for the core segment in the third quarter of 2025 shows substantial contribution:

• Core scrubwear generated $127.0 million in Q3 2025 revenue.
• Non-scrubwear net revenues were $24.6 million in Q3 2025.

Non-scrubwear is an expanding category that includes items such as footwear, outerwear, and underscrubs. The overall product mix is evolving, which directly impacts pricing realization.

The trend of a product mix shift is demonstrably driving higher average unit retail prices, as seen by the increasing AOV growth rate, even as the absolute AOV figure fluctuated across the quarters. For instance, the Q1 2025 increase in AOV was explicitly attributed to a higher rate of full-priced sales and higher average unit retail due to product mix. The Q3 2025 AOV growth of 6.0% year over year was primarily due to higher average unit retail.

FIGS, Inc. maintains a focus on technical innovation to differentiate its offerings. This commitment is evidenced by the introduction of new fabric platforms designed to enhance performance for the wearer. The company introduced its new FIBREx fabric, which blends durability and design, debuting in the custom Team USA Medical Team kit. Furthermore, product extensions like the FLOAT™ Outerwear are engineered to address specific environmental needs, such as keeping the cold out.

The foundational design philosophy for all apparel is centered on the needs of healthcare professionals. This means the apparel is designed to emphasize both comfort and function, built upon the concept of Technical Comfort™. Key operating metrics as of September 30, 2025, show a community of 2.8 million active customers.

• Apparel is made with proprietary fabric technology core-spun for maximum durability.
• Designs solve real problems faced daily by healthcare professionals.
• The brand seeks to ensure design, comfort, and function are non-negotiable.

FIGS, Inc. (FIGS) - Marketing Mix: Place

The Place strategy for FIGS, Inc. centers on maintaining a digitally dominant, direct relationship with the healthcare professional while strategically layering in physical and institutional channels to broaden accessibility and scale the business.

The primary channel remains Direct-to-Consumer (DTC) via e-commerce and mobile app. This digitally native approach allows FIGS, Inc. to control the entire customer journey, from product feedback to final delivery, which supports the brand's premium positioning and margin structure. As of the end of Q3 2025, the active customer base stood at 2.8 million, with international net revenues contributing $24.3 million in that quarter, representing an 11.7% year-over-year increase.

Physical presence is being strategically deployed through 'Community Hub' stores. These are not traditional retail outlets; rather, they function as physical touchpoints in key markets to drive customer acquisition and brand immersion. Locations mentioned include Century City and Philadelphia. Management noted that investment in these community hubs is accelerating, which is expected to further improve margins into 2026.

B2B growth is channeled through the 'TEAMS' platform, which targets hospitals and large organizations for standardized uniform purchasing. This platform is confirmed to be accretive to the bottom line on a profitability basis. Institutions represent a significant segment, accounting for about 15% of all medical professionals.

International expansion is a major focus area for scaling beyond the U.S. base. As of mid-2025, FIGS, Inc. has expanded its reach to 34 countries. The 2025 focus has included new entries into Asian markets, specifically Japan and South Korea. International net revenues showed strong growth, increasing by 19.8% year-over-year in Q2 2025.

Underpinning this multi-channel approach is a significant investment in logistics infrastructure. The company moved to a larger, state-of-the-art distribution center in 2024. This facility upgrade was explicitly designed to support the company's scaling efforts toward a target of $1 billion in revenue.

Key Distribution Metrics and Targets:

The DTC channel is supported by the core customer base metrics as of September 30, 2025, which showed 2.8 million active customers. The Average Order Value (AOV) for Q3 2025 was $114, an increase of 5.6% year-over-year.

The operational shift to the new fulfillment center in 2024 resulted in transitory expenses, with operating expenses as a percentage of net revenues increasing in Q4 2024. However, by Q3 2025, operating expenses as a percentage of net revenues had decreased to 63.6% from 73.2% in the prior year period, partly due to lower fulfillment expenses.

The company's international footprint includes:

• Geographic Expansion Focus: Japan and South Korea.
• Reported International Net Revenues (Q2 2025): $22.7 million.
• Reported International Net Revenues (Q3 2025): $24.3 million.
• Total Countries Served: 34.

The TEAMS platform's distribution capability is designed to serve institutions, which represent a substantial portion of the total addressable market for healthcare professionals.

FIGS, Inc. (FIGS) - Marketing Mix: Promotion

You're looking at how FIGS, Inc. is talking to its audience right now, late in 2025. The promotional strategy is definitely shifting to protect the price integrity of the product, which you can see reflected in the financial results.

Intentional pullback on broad-based promotions to reinforce premium brand health

The move away from heavy discounting is clear when you look at the margin performance in the third quarter of 2025. Gross margin hit 69.9%, a solid increase of 280 basis points year-over-year from 67.1% in Q3 2024. Management specifically cited a lower mix of promotional sales as a key driver for this gross margin improvement. This focus on full-price selling is helping the bottom line, as the Net Income Margin for Q3 2025 was 5.8%, a significant swing from the (1.2)% loss margin in the prior year period. Overall operating expenses as a percentage of net revenues dropped to 63.6% in Q3 2025, down from 73.2% in the same period last year.

The table below shows how the focus on full-price sales is impacting key financial metrics:

Heavy investment in digital advertising, including over 60% of Google Ads budget on YouTube

FIGS, Inc. continues to lean heavily into digital channels, using a full-funnel approach across Google Ads. While I don't have the exact 60% figure for YouTube allocation in the latest reports, the company has historically allocated a substantial portion of its Google Ads budget to YouTube and Google Shopping Ads. You should note that marketing expenses were comparatively lower as a percentage of revenue in Q3 2025 versus the prior year, which saw higher brand marketing expenses last year in conjunction with our Olympics campaign. This suggests a deliberate shift in spend allocation, moving from large, event-based marketing to more sustained digital performance marketing.

Grassroots ambassador program with over 250 healthcare professionals for community building

The grassroots ambassador program remains a core component of their community-building efforts. The company has built a strong community structure around its professional base. You should know that this program has historically involved over 250 healthcare-oriented ambassadors, focusing on authentic content from real professionals rather than paid influencers. This approach helps drive emotional connection and brand loyalty within the niche.

High-profile partnership with Team USA to outfit the medical team for the 2026 Winter Games

While the outline mentions the 2026 Winter Games, the most recent financial commentary pointed to the impact of a prior major event. Specifically, Q3 2025 operating expenses were lower partly due to higher brand marketing expenses last year in conjunction with our Olympics campaign. This demonstrates the company's willingness to engage in high-profile partnerships to drive brand awareness, even if the associated spend is cyclical.

Marketing is data-driven, focusing on personalized messaging and emotional connection

The entire marketing engine is designed to be data-informed, focusing on metrics like AOV and customer lifetime value (LTV). The growth in AOV to $114 (a 5.6% increase) and the rise in active customers to 2.8 million (a 4.0% increase) in Q3 2025 show that their targeted messaging is resonating and driving higher spend per customer. The focus is on using data to refine personalization, which supports the premium positioning by ensuring the right message hits the right healthcare professional.

The key promotional takeaways for you are:

• Gross margin improvement to 69.9% due to less discounting.
• Active customer base grew to 2.8 million in Q3 2025.
• AOV increased 5.6% to $114 in Q3 2025.
• Marketing spend is being optimized, with prior year marketing costs higher due to an Olympics campaign.
• The ambassador program is rooted in a community of 250+ professionals.

Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Marketing Mix: Price

You're looking at the pricing structure for FIGS, Inc. as of late 2025. The company operates with a pricing strategy that reflects its brand positioning, which is supported by product quality and a premium perception in the healthcare apparel space. This is evident in the strong profitability metrics achieved, even while navigating external cost pressures.

The Average Order Value (AOV) shows clear upward momentum. In the third quarter of 2025, the AOV increased to $114, marking a 5.6% increase year over year. Honestly, a key driver for this AOV growth is the higher rate of full-priced sales you've been seeing, which means fewer items are moving at a discount.

Here's a quick look at some key pricing and margin indicators from Q3 2025:

The Gross Margin hit 69.9% in Q3 2025. That's a 280 basis point increase year over year, and management noted this was primarily due to a lower mix of promotional sales, alongside improved return rates and processing, and lower duty rates, partially offset by higher tariffs.

When it comes to future pricing actions, FIGS, Inc. has taken a cautious approach, especially considering external cost dynamics. Management has explicitly stated their stance on pricing levers:

• No pricing action was taken in 2025, citing healthcare affordability considerations.
• Pricing remains an optional lever for 2026 if needed.
• Tariff headwinds are a known factor, with a potential 440 basis point annualized impact expected in 2026 if unmitigated.

Finance: draft the 2026 pricing sensitivity model based on the potential 440 bps tariff impact by next Wednesday.