Stitch Fix: Will E-commerce Eliminate Brick and Mortar?

Get to know: Katrina Lake

In my previous posts, I have spoken about the combination of textiles and technology changing physical apparel. Today, I want to share with you how technology is also changing the business side of things. I cannot help but reiterate the fact that fashion and technology are forever evolving.

Katrina Lake is the Founder and CEO of Stitch Fix, a personal shopping subscription website. The company is based in San Francisco, California. It markets itself towards busy, working women who don't have time to go to a stand-alone store an shop. The company prides themselves on their avant-garde personalized shopping experience. A combination of data science and human stylists personally chose from over 200 boutique-brand clothing items for their clientele. Without having to take the time out of their busy day to look for items themselves, Stitch Fix searches for the perfect items per client and ships them right to their doorstep. Customers pay a $20 "styling fee" for the subscription service. Once the box of 5 personally selected items lands on their doorstep, the customer has the opportunity to try the items on at home. If they want to keep an item, they pay full retail price for it. If they decide not to keep it, they ship it back. Luckily, the $20 "styling fee" is credited to the customers account, which can be applied to the purchased items. Lake focuses her company on the idea of personalization. Because of mass production, searching for the right item can often overwhelm shoppers. So, this new, innovative way of direct styling makes that stress much easier on consumers.

Online shopping has been prospering over the last few decades and has been predicted to continually grow. E-commerce is a rapidly growing business. FORBES estimated that Stitch Fix rounded up about $250 million of revenue in 2015. FORBES also estimates that Lake is worth between $50 million and $120 million. Wow!

So, what does this mean for brick and mortar stores?

I, personally, work at Macy's Inc. I see hundreds of people pass through our store everyday. Out of those hundred of people, I estimate that roughly 25% of people actually buy something. Why? Obviously, the consumers passing through have the intention to shop, but the ones that do not buy, cannot find the item that will satisfy their need. At Macy's, I don't have the opportunity to personally make a connection with every customer that walks through our doors. In contrast, Stitch Fix knows that "anyone paying the $20 styling fee wants to buy something and is willing to fork over personal data to ensure that her experience is as good as possible." (Mac) The customer provides a lot of personal information in order for the company to find her pieces that will work for her, specifically. She provides her weight, bra size, and link to her Pinterest profile. Every item that is sent to the clients home is recommended just for them due to the information collected. Even returns are used as valuable data points. For example, one of the criteria that the data scientists chose items for clients is based on occupation and zip code (to predict climate). Hopefully the days are gone where customers have to try on 20 pairs of jeans just to fin the pair with the right fit. If Stitch Fix gets it right, the customers' will keep coming back. This personalized shopping experience is not as universal in brick and mortar stores as it is at Stitch Fix.

Need that perfect blouse for your date or blazer for your interview? Visit Stitch Fix to sign up!

Link below!

Reference: https://www.forbes.com/sites/ryanmac/2016/06/01/fashionista-moneyball-stitch-fix-katrina-lake/#3c3f19f259a2

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