Stitch Fix Is Worried About Amazon for An Unusual Reason

Stitch Fix Is Worried About Amazon for An Unusual Reason

Stitch Fix Is Worried About Amazon for An Unusual Reason

Startups in the retail space are facing a new fear. E-commerce giant Amazon has been eating up a major chunk of retail and online shopping space, causing niche startups to think about what areas to work on for better customer experience.

As startups get ready to face the likes of Amazon, Stitch Fix has filed its first IP prospectus on Thursday. Stitch Fix is a 6-year-old startup that provides personalized apparel to customers based on their measurements.

The only factor that differentiates Stitch Fix from Amazon is that Amazon is a wide marketplace that believes in next-day delivery, while Stitch Fix is all about custom-made clothing, shoes and accessories selections.

In this model customers receive a set of five items, selected by various combinations and algorithms, but they pay only for what they decide to keep. Amazon lacks in providing tailor-made solutions like those provided by startups like Stitch Fix.

An investor at a venture capital firm NEA, Rick Yang stated, “Amazon is all about efficiency. However, as it gets bigger, it will become a bit more impersonal.”

Yang further commented that Stitch Fix delivers an experience to a customer. This model protects it from large players like Amazon. However, the dominance by Amazon has forced a lot of investors to move out of the retail and e-commerce space. This is evident from the decline in investment in said sector, which has seen a three-year-low.

Anirudh Menon
Anirudh Menon
I have adorned multiple hats during my professional journey. My experience of 14 years comes in areas like Sales, Customer Service and Marketing. My journey as a professional writer started 5 years back, when I started writing for an in-house magazine for my employer. Having successfully delivered many in-house projects, it encouraged me to take my skill to the world. As on day, I have written articles, blogs website content for various industries like Information Technology, Start-up, Retail and Government. The subjects that I have covered range from Digital Marketing, SAP Cloud Platform, Cloud Computing, Content Marketing , Politics. Enhancement is a process and I constantly thrive to add more subjects in my portfolio. Over and above content writing, I also train language and communication to students who want to brush up their speaking skills. I am a part time trainer for IELTS coaching and also work as a budding voice over artist.

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