Large-scale personal styling. With sales over 1.500 million € it is not a niche market
Product customized by stylists with the support of data that matters. Artificial intelligence and personal touch
Growth and large size. It is not a niche market
- Stitch Fix individually personalizes the looks (5 pieces) of clothing and accessories that it sends to its clients thanks to a large number of stylists (5,100) and with the support of the detailed information that its clients provide. It is not a subscription service and the customer returns, without obligation, everything that is not to your liking. It has no physical store.
- The business started its activity in San Francisco (USA) in 2011 and has been publicly traded since November 2017.
- With annual growth of over 25%, it has achieved sales of USD 1,577 million in the last fiscal year of 2019. Unlike other companies in its segment, it obtains operating benefits.
- The gross margin with which he works is 45% and he obtains an excellent inventory turnover greater than x6 per year. The investment in communication is high (10% of sales).
- The assortment is aimed at women, men and children with an extensive portfolio of external brands, exclusive (medium / high level) and a small number of private brands.
- It has 3.4 million active clients distributed in a wide range of ages, being the most important segment of 30-50 years.
- He is focused on USA and has recently started his activity in the UK (2019).
Customer experience differentiation. Data that matters
The great differentiation of Stitch Fix is the detailed information available:
Customer (initial set of 90 detailed attributes)
- Socioeconomic profile and context
- Size and fit
- Product types and categories
- Styles Colors. Prints
- Prices. Marks Purchase Guidelines
Relevant detailed product attributes
Specific customer feedback at the individual product level received and planned (85% of customers participate)
- The stylists have the support of this model that facilitates the selection of the looks for each client that receives in 3 days.
- These proposals have a 63% probability of success that is gradually increasing by incorporating the real feedback from the client (+ 21% to the sixth look the client receives).
- It began with Women, later joining man and child.
Direct actions with good acceptance are being incorporated, such as the proposal of an additional color for a garment that the customer has previously acquired and extra accessories to the look already sent.
Competitors with different origins and channels
The list of competitors is increasing with different origins and approaches among which are:
- Trunk Club Belonging to the Nordstrom chain of department stores
- Personal shopper. Amazon Ward Wardrobe subscription service extension
- Le Tote. With an alternative rental component. On-line
- MM Lafleur. Showrooms and online
rganization and structure adapted to the business
- Stitch Fix has 8,000 employees, among which the 5,100 stylists who work part-time and remotely stand out.
- These stylists are supported by a strong Artificial Intelligence department that has more than 125 analysts and a team of 280 people managing the client experience.
- They have a total of 7 distribution centers (Usa and Uk).
Stitch Fix is pointing the way to customize, on a large scale, a fashion business based on the advice of stylists with the support of artificial intelligence fueled by continuous feedback from its customers.
Retail chains have before them the challenge of incorporating in a relevant way for each business and sector, this approach that flees from a mass and indiscriminate volume of product that the client considers less and less attractive.
Artificial intelligence and personal touch (large scale)
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