Background
Stitch Fix is basically a personal shopping service and online subscription. The company was founded by Katrina Lake in the year 2011. Stitch Fix has been a personal styling service that looks to send individually picked accessories and clothing for one time styling fee. Stitch Fix offers its customers to fill out a survey online about the style they are looking for.
Based on the survey filled, a company’s representative or the stylist picks five items and sends it to the customers. Stitch Fix has been working with approximately 200 brands and labels since it has started its operations. These brands include Kut, Sanctuary Clothing and also 41 Hawthorn[1].
The company’s headquarter is located in San Francisco where it has 60 people employed. However, 200 other employees have been operating from its warehouse which is also located in San Francisco. The stylists for the company are operating from around the working, which are almost 300 stylists.
These stylists are mostly women who have strong fashion understanding and generally work from home. In the year 2014, the company raised an amount of $12 million through funding by Benchmark. This actually suggests that the company has been a major revolution in the market.
The market leader is online stylist service has been Stylit. The company started its operations in the year 2012. The total investment for the company, which has amounted almost $400,000 has been raised by Tal Simantoy.
The total market share that has been covered by Stylit has been almost 30% of the overall market share. The reason why it has been with the highest market share in the online stylist market is because of the unique business formula it uses where the product offerings are with respect to all the different industry products.
The current market position of Stitch Fix has been quite integral to its success because the revenues the firm has been generating in the online stylist market. The company has been nearing an amount of $150 million revenue run rate. The company has been doing reasonably well with the customers actually preferring the concepts and the services offered by Stitch Fix.
Along with this, another major reason, which has ensured that the company is a successful one, is that the investments offered by the external sources confirm that the company has been a successful in the market. Moreover, the company has been offering a feedback form also. Over here, the customers who have used the services offered by Stitch Fix are made asked to comment to improve the services in the future[2].
Finally, it can be said that the company has been a preferred brand in the market because of the stylists the firm has been hiring. They tend to look after the needs and want of the customers and deliver the products and services that actually fulfill the demand of the customers. In this regard, Stitch Fix has been considered one of the top brands in the online stylist industry which has been a new induction in the market.
Market Environment
Market Trends:
The market of online stylist service has been one of the fastest growing markets in the fashion industry. The reason is simple, the services, the products and the element of feasible approach actually have made the market a viable and a profitable one. Customers across the country have been approaching services offered by online stylists such as the Stitch Fix and the Stylit.Stitch Fix Case Solution
Moreover, with the convenient use of the internet, the success of online shopping has become one of the fastest growing markets. Customers prefer shopping through online portals because they tend have a vast selection process. Therefore, people purchase and acquire online stores to fulfill their fashion needs in the fast moving world.
Since online stylist industry is not a very old one, therefore, the revenues and the overall profit margins are not extraordinary. However, in the coming five to ten years, the profit margins and success ratio of these firms is all set to expand......................
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