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A lot of chatter about $SFIX today.
Stock is up big today but still seems misunderstood so here’s a thread on Stitch Fix’s competitive advantages...
Stock is up big today but still seems misunderstood so here’s a thread on Stitch Fix’s competitive advantages...
1. Large majority of customers are “autoship” or on subscriptions, most often on a monthly basis. This is unique in apparel and creates a recurring revenue stream and a reliable customer base that’s a huge help during tough times like the pandemic.
2. A/B testing: Thanks to innovations like Style Shuffle, the company can A/B new clothes before making large orders. And it’s always A/B testing improvements to its algorithm.
B&M retailers that have to fill huge stores with inventory can’t do this.
B&M retailers that have to fill huge stores with inventory can’t do this.
3. Inventory control: As we saw during the pandemic, Stitch Fix has the ability to flex what it sells quickly. Athleisure sales are up triple digits now, and the company chooseswhat it sends you, giving a way of clearing inventory without markdowns and avoiding out-of-stocks
4. Data science: The company has been building sophisticated prediction models for nearly a decade, and this data science forms the foundation of Direct Buy.
Katrina Lake called this as 10-year advantage. Again, no other company is doing this to the same extent
Katrina Lake called this as 10-year advantage. Again, no other company is doing this to the same extent
5. Innovation- Stitch Fix is a much different company then it was when it IPO’ed three years ago.
It’s introduced Style Shuffle, Direct Buy, Fix Preview and other new features. There’s a ton of optionality here including entirely new product lines, ads, licensing, etc.
It’s introduced Style Shuffle, Direct Buy, Fix Preview and other new features. There’s a ton of optionality here including entirely new product lines, ads, licensing, etc.
Fun/convenience: This is kind of whimsical but shouldn’t be overlooked. It’s super easy to get clothes from Stitch Fix once you’ve done in the initial setup and it’s a nice surprise to get a box of clothes selected for you.
Ppl ask why buy clothes this way? It’s easy and fun
Ppl ask why buy clothes this way? It’s easy and fun
It’s very hard to do what $Sfix Is doing. The apparel industry is huge and there are inventory issues around style and sizing that don’t happen in other product lines. It’s highly personal.
These are big problems to solve. Ni one else is doing what SFIX is and the TAM is huge
These are big problems to solve. Ni one else is doing what SFIX is and the TAM is huge
