Some more thoughts on $SFIX's evolving consumer proposition and how it's army of stylists may be an increasingly valuable asset.
#StylistsAreTheNewCAC
πππβ‘οΈπ
#StylistsAreTheNewCAC
πππβ‘οΈπ
Stitch has approximately 6,000 stylists on the payroll which probably costs something like $150 million annually. This is a relatively large expense for the company of this size.
This investment is unique in apparel ecom and I do not believe that it is currently thought of as a strategic differentiator by the investment community.
Now queue up previews which are coming to the U.S. in the near future. This was a standard offering on Trunk Club for years which of course makes perfect sense for an apparel in a box service.
Stitch already offers previews in the U.K. where 3/4 of consumers are utilizing the service. Driving the penetration of previews in the U.S. to U.K. levels could really open some new doors for Stitch.
Allowing consumers to self select items directly from the algo engine has the potential to free up a lot of time for stylists to reinvest into new revenue generating activities.
Redirecting stylists into new order/lapsed customer hunters may be an attractive way of generating increased sales and opening the service up to a larger audience.
Zoom styling sessions for super actives, more personalized attempts to reengage lapsed customers - Trunk Club did this well - or usage of $FB properties to create widely followed stylists could all be on the table.
Maybe Stitch will go to a zero styling fee to drive usage for the current service and continue to charge a styling fee for more personalized sessions.
Wall Street really hasnβt considered the untapped potential of Stitchβs large annual investment in stylists and previews may help change that.
Version 2.0 of the core fix product will either allow for far more productivity in this expense line item or the opportunity for greater revenue generation.
Stitchβs platform was created with a consumer facing service that was not initially optimized for mass appeal but as the service continues to evolve and improve the difficulty in replicating it will become increasingly clear.
A store-less, highly efficient model selling first run apparel may be very well positioned versus traditional retail/fast fashion giants.
Great execution will be required to evolve the service beyond its current state but the potential is clearly there.
Good execution, or the lack thereof, is a risk for any equity investment but for Stitch it is a particularity important part of the equation. I continue to believe this team and the board are more than up for the challenge.
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
