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Artificial Intelligence Stitch Fix A Blue Ocean Retailer In The AI World

Solution Id Length Case Author Case Publisher
2260 758 Words (4 Pages) W. Chan Kim, Renee Mauborgne, Melanie Pipino INSEAD : IN1630
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Stich fix is an eCommerce-based company that has used the power of artificial intelligence and proposed a styling-based service to the customers. They search for clothing for customers with the help of artificial intelligence and professional stylists and prepare a box according to the sizes and demands. They have strength as the first fashion retailers who provide stylists to help the customers to pick their clothes, they also provide the option to buy or subscribe to the service as per customer need. They have their brick-and-mortar stores too. They have a strong relationship with stylists and customers but they have less brand recognition and marketing and people do not understand this service easily. Their operational cost is also high which is not attractive for most of the customers.

Following questions are answered in this case study solution:

  1. Introduction

  2. Demographics

  3. Competition: Overview 

  4. AI Enablers 

  5. Recommendations 

Case Study Questions Answers

2. Demographics

At the time of foundation, it was launched as a female service in America. The age group that was especially focused was from the 20s to 40s. Now they are providing services to all age groups, gender, fat and slim, kids, and plus-size people. They are providing dresses by the stylists for all the family members and all types of events. Customers are getting easiness with these services so their subscribers are growing day by day. They get time to decide what they want to wear or return back to the stitch fix. Women are spreading this service by word of mouth more and more because of getting enough satisfaction.

3. Competition: Overview 

At the start of the stitch fix, there was no competitor, it can be said that there was a Blue Ocean of this service. Amazon was the first organization that tried to jump into this Blue Ocean territory for the first time. Amazon offers a large range of brands that had free try, cheap prices, and easy returns. They captured a huge number of females who were their potential customers but then stitch fix went into the depth of the blue ocean by taking the help of technology. According to advisoryhq.com, the most popular competitors of this company are Le Tote, Trunk Club, and wantable.

4. AI Enablers 

They want to engage their customers using social media. They have generated a complete ecosystem with a large number of pages on Pinterest and they have millions of followers on it. They have their tutorials on Youtube too that have information on how they can create their account on Pinterest. Stich fix has created the algorithms for learning the preferences and body shapes of the customers. From these boards, they can find what their customer really wants. 

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