Stitch Fix SWOT and PESTLE Analysis
COMPANY PROFILE -Stitch Fix
Business Sector :Apparel Retail, E-Commerce
Operating Geography :United States, North America, Global
About Stitch Fix :
Stitch Fix is a personal styling business based in San Francisco, California. Katrina Lake and Erin Morrison Flynn, a former J.Crew buyer, launched Stitch Fix in 2011. The company was originally known as Rack Habit, and it operated out of Lake's Cambridge, Massachusetts apartment. Initially, the firm solely catered to women, but it has now expanded to include men's clothes, plus sizes, maternity wear, and children's clothing. The Firm uses a combination of data science and human expertise to provide one-to-one personalisation to its clients. It employs data science in many aspects of its operations, including styling clients, providing customised direct buy alternatives, estimating purchase behaviour, forecasting demand, optimising inventory, and designing new apparel. A custom-built, Web-based styling application helps the company leverage its advanced analytics. Clients can shop immediately from the company's website or mobile app based on a personalised selection of outfit and item suggestions. The company also offers a direct-buy option, which allows customers to shop for things without having to go through a Stitch Fix stylist (Fix). As of early 2023, Stitch Fix employed over 7920 people.
Stitch Fix's unique selling proposition lies in its being a NASDAQ-listed company with a significant client base of over 3.5 million customers in the United States and the United Kingdom, and its ability to leverage technology. The mission statement of Stitch Fix reads, "It’s our mission to change the way people find clothes they love by combining technology with the personal touch of seasoned style experts".
Stitch Fix Revenue :
US$ 2,101 million - FY ending 31st July 2021
US$ 1,712 million - FY ending 1st Aug 2020
Competitive Analysis of Stitch Fix
Strengths | Weaknesses |
1. Highly personalized apparel service with on-boarded premium & exclusive brands and stylists 2. Powerful, growing client base with millions of active clients and strong client retention 3. Stitch Fix heavily integrated Data Science and proprietary predictive algorithms in its business model 4. Differentiated Value Proposition to clients and brand partners | 1. Inefficient inventory management by the company 2. Stitch Fix is involved in various legal proceedings 3. Optional cookie requirements may affect company’s ability to analyze consumer data |
Opportunities | Threats |
1. Geographic expansion in the U.K through increased fulfillment centers 2. On-board new clients and brands to increase client offerings 3. Personalization to be the ‘Next Wave’ in online retail for relevance | 1. Rise in costs of raw materials and other inputs can affect business 2. E-commerce and fashion retail industry is becoming increasingly competitive |
Complete Report
USD 15.53
- Debit/Credit card
- PayPal
Detailed SWOT Analysis of Stitch Fix
Strength
1. Highly personalized apparel service with on-boarded premium & exclusive brands and stylists: Stitch Fix’s differentiator from other online apparel retail companies is its unique personalized shopping experience. The company is reinventing the shopping experience by delivering one-to-one personalization to their clients through the combination of data science and human judgment to provide a better client experience and a more powerful business model than either element could deliver independently. With numerous segments such as women, men, plus size and kids clothing, Stitch Fix has a model with used AI enforced algorithms to connect its clients with brands and stylists. Stitch Fix has 6000+ stylists and thousands of third party and exclusive brands on board with them, including premium brands. As compared to usual apparel shopping sites, Stitch Fix utilizes AI algorithms to identify customer preferences and style to provide suggestions and use predictive algorithms to allow stylists to serve clients perfectly. The company makes extensive use of cookies and data points to curate their suggestions and manage their inventory, as well as to improve customer experience through actionable client data.
2. Powerful, growing client base with millions of active clients and strong client retention: The number of active clients is a key indicator of our growth and the overall health of the business. An active client is defined as a client who checked out a Fix or was shipped an item using their direct-buy functionality in the preceding 52 weeks, measured as of the last day of that period. A client checks out a Fix when they indicate what items they are keeping through Stitch Fix’s mobile application or on their website. The company considers each Men’s, Women’s, or Kid’s account as a client, even if they share the same household. Stitch Fix had 3,522,000 and 3,236,000 active clients as of August 1, 2020, and August 3, 2019, respectively, representing year-over-year growth of 8.8%. Stitch Fix has had 4.1 million active clients till date and continues to grow that number.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Ascena Retail Group
- Le Tote
- Wantable
- Trunk Club
- DAILYLOOK
- Thread
- ThreadLab
- Amazon’s Personal Shopper by Prime Wardrobe
- Nora Gardener Style Box
Major Brands :
- Stitch Fix
- Stitch Fix International (Cayman), Ltd
- Stitch Fix International (Delaware), Inc..
- Stitch Fix Gift Cards, LLC
- Partner In Style, Ltd.
Complete Report
USD 15.53
- Debit/Credit card
- PayPal
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Stitch Fix:
-
Stitch Fix Porter's Five Forces Analysis -
Stitch Fix VRIO Analysis -
Stitch Fix Value Chain Analysis -
Stitch Fix Covid-19 Impact Analysis -
Stitch Fix BCG Analysis -
Stitch Fix Segmentation, Targeting and Positioning (STP) Analysis -
Stitch Fix Ansoff Matrix Analysis
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Get this report delivered straight into your email inbox for free. You also agree to receive email updates from us on our new reports and solutions.
Check Out Analysis of Other Relevant Companies
References used in Stitch Fix SWOT & PESTLE Analysis Report
1. Annual Report - https://investors.stitchfix.com/static-files/e6b7dcbd-3ef1-4d8e-bdc5-0631e5c8721d
2. Investors Presentation - https://investors.stitchfix.com/static-files/01c3262e-8900-44df-a960-e8a262b587e3
3. Covid-19 impact: US personal spending plunged 7.5% in March amid shutdowns - https://www.business-standard.com/article/international/covid-19-impact-us-personal-spending-plunged-7-5-in-march-amid-shutdowns-120050100413_1.html
4. Personalizing the customer experience: Driving differentiation in retail - https://www.mckinsey.com/industries/retail/our-insights/personalizing-the-customer-experience-driving-differentiation-in-retail
The detailed complete set of references are available on request in the 'Complete report' on purchase.
How to Reference This Page?
You can use the following in your reference section in order to give credit to the source. For different referencing styles and detailed guidelines, please click here.
Stitch Fix SWOT and PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2024). Stitch Fix SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/stitch-fix/ [Accessed 08 Sep, 2024].
In-text: (SWOT & PESTLE.com, 2024)
Copyrights and Disclaimer
Stitch Fix SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting.
Copyright of Stitch Fix SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.