Stitch Fix's Long Thread - The Flywheel

Stitch Fix shares its data with vendors to help them understand who is buying what kinds of clothes.

One of the reasons Katrina started Stitch Fix is because she saw that the penetration of apparel in eCommerce was stunning low (less than 20%)

Stitch Fix is likely a $100b company within 10 years. Quick thread:

Stitch Fix was cash-flow positive in 2014 and went from $0 to $1 billion in 5 years, and Katrina still had trouble raising money from VCs

Then there are new shopping and buying models entirely, such as Stitch Fix’s human-and-algorithm-personalized recommendations, and Rent The Runway’s subscription rental concept, to compete with.

An example is London-based Threads, which has quietly picked up $20M last year with Highland Europe, for its operation which courts millennial, with tailored selections of luxury fashion which it then sells to them directly on services like WeChat, WhatsApp, Snapchat, with a team of human shopping assistants!