From sartorial to stock, is success in the bag for Stitch Fix?
Image credit: Shanna Camilleri
New data from Slice Intelligence suggests Stitch Fix found the magic formula that attracts high-income shoppers who are big online shoppers-- typically spending in excess of $5,000 per year online-- four times more than the average online shopper. These high-spending users are also more likely to adopt other new online subscription models as well.
Stitch Fix segment buyers spend more online
After Stitch Fix wowed the tech community with its IPO announcement, Slice Intelligence took a look at the shoppers behind its success. The most striking aspect we found was that Stitch Fix subscribers spend four times more than the average online shopper. We also discovered that Stitch Fix beat out Nordstrom in purchase frequency.
“The biggest question about Stitch Fix’s business is whether its novel shopping model will grow old once the novelty has worn off," said Ken Cassar, principal analyst, Slice Intelligence. "While it is too early to say anything definitively, the fact is that on a key measure of loyalty--purchase frequency, Stitch Fix is holding its own compared with Nordstrom, one of the hallowed brands in fashion retailing.”
Stitch Fix users embrace other categories in the subscription economy
Stitch Fix shoppers are also avid users of meal solutions, like Blue Apron and beauty box subscriptions, like Birchbox and Ipsy. Twenty-eight percent of Stitch Fix subscribers purchased beauty boxes--four times the average of seven percent across all online shoppers. Twenty percent of Stitch Fix users purchased meal kits versus an average of five percent across all online shoppers.
When data met fashion
Stitch Fix provides a sophisticated machine-learning and creative approach to selling apparel that helps them convert shoppers and preserve healthy margins. Wall Street has been skeptical of other subscription services, in the aftermath of Blue Apron’s challenges, yet Stitch Fix has posted impressive numbers. According to Recode, the fashion-forward company has brought in $977 million in revenue in its most recent fiscal year, and has reported over 2.2 million active users.
About the data
With a panel of 5 million online shoppers, Slice Intelligence gives the most detailed, and accurate digital commerce data available, and is reported daily.
Slice Intelligence is the only service to measure digital commerce directly from the consumer, across all retailers, at the item level, and over time. Our retailer-independent methodology precisely measures commerce as it happens. By extracting detailed information from hundreds of millions of aggregated and anonymized e-receipts, Slice can map the entire Purchase Graph, connecting each and every consumer to all their purchases.
Slice gets its data from e-receipts – not a browser, app or software installed by the end-user – so its measurement reflects comprehensive shopping behavior across multiple devices, over time which are key in an increasingly omnichannel retail world. Slice Intelligence is the exclusive e-commerce data provider for the NPD’s Checkout Tracking e-commerce service.