How does Stitch Fix Work?
Stitch Fix’s mission is to make shopping fun, simple, and empowering.
Katrina Lake was fond of fashion. After graduating from college, she wanted to be a part of a company that was involved in innovating clothing through technology. Not finding any, she chooses to join a venture capital firm, where she learned a lot about the business world. She also realized that if she wished to see a certain type of company, she could just start one herself.
She decided to go to B-school to learn about entrepreneurship, with the note in mind to launch her own venture by the time she graduated. She eventually started to assist customers with clothing purchases. Her sister was a buyer who used her knowledge to find suitable apparel. Lake felt that everyone should be able to have this chance.
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She started testing out her concept in her second year. With a $6,000 credit card, she purchased clothes from boutiques, then brought them to friends and relatives’ houses. She then had them try on the clothes and provide her views through surveys on fit, texture, colour, and styles. By doing this, she gathered enough information to provide a business case for a service that would help style consumers.
She next tried to obtain funding, meeting with potential venture capitalists. She landed funding of $750,000 from Steve Anderson (the very first investor of Instagram). Lake made use of the funds to launch her startup, which she called Stitch Fix, in 2011. She started a website and bought clothes at wholesale.
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Lake’s service worked by getting online feedback from customers about their styling preferences, body types, and budgets. Customers pay a $20 fee for styling, received the clothes, purchased the outfits they liked and returned the rest.
When Lake graduated she tried to obtain additional funding, but she faced difficulties. Anderson stepped up again into this, keeping her afloat. By 2016, Stitch Fix had grown to over 4,000 employees and had shipped out millions of orders.
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How does Stitch Fix Work?
Fill Out the Style Profile
Pick the Date Like to Receive Your Shipment
Try Everything on From the Comfort of Your Own Place
Buy What the User Like and Return the Rest
Remember to give us feedback on the products you received. Feedback from the customers tells the stylist of the Stitch Fix what are the likes and dislikes of a particular customer. Blog section has been given for customers to get the idea about how to convey the message to the stylist.
Recurring shipment is delivered to a customer if the customer chooses to get that on any scheduled date. The customer can stop regularly scheduled shipments at any time.
It is not required of membership fee or a monthly subscription.
So, this is the way How does Stitch Fix Work and now let’s move on to the value proposition of the Stitch Fix.
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Value Proposition of Stitch Fix
There are four value proposition of Stitch Fix: customization, convenience, pricing, and brand/status.
Customization
The company facilitates customization. Clients utilize its service by filling out an online survey specifying their style, size, and price preferences. A personal stylist then analyzes this data, as well as details from other references. These references include clients’ social media profiles (e.g., Instagram) and feedback on previous fixes if it is a retained client. These inputs are there to make educated guesses about the type of apparel clients would prefer – for example, stylists can pretend that a customer has a 40% chance of keeping a particular type of cotton. The stylist then chooses five pieces of clothing (“fixes”) that presents the best fit. Clients then schedule a day to get the products. If they choose to go for a subscription, they can also choose the amount of time between shipments.
The company provides convenience by making its service easy to use. Clients can buy the clothing they like while returning the rest. Each piece also comes with styling tips.
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The company has launched a strong brand due to its accomplishment. It has shipped millions of packages to clients since it has been begun. It offers a wide range of products, including sweaters, pants, shorts, skirts, dresses, shirts, jewellery, shoes, scarves, outerwear, and bags. These products are sourced from over 250 women’s wear brands and over 30 men’s wear brands, both established and up-and-coming. Specific women’s apparel names include Gorjana, Kut From The Kloth, Joie, and Citizens for Humanity.