Top 5 Fashion Tech Startups, Innovating The Fashion Industry
Here we have our selection of top five fashion technology startups working on improving the fashion industry. These startups cover a broad range of activities and business models, from innovative, ways in cutting down on inventory bloat, to using AI and helping retailers understand what to produce or stock to reach maximum profits per investment.
1. Fashion Tech Startups – Fittery
Fittery is a big data startup, founded by Catherine Iger and based on the idea that the recommended sizing tools for customers shopping online are inaccurate. It is a problem “worth” $18 billion in returns every year.
Fittery’s perfect fit idea is based on the actual garment measurements, rather than the standard sizes, and then, curates the garments to the buyer’s specific measurements.
“We are going to show the buyer only the items that fit,” said Catherine Iger, the founder of Fittery. Thanks to her idea, the sizing is 34 percent more accurate and has shown in market tests that it can also cut down on retail return rates from 40 percent for online purchases to only 6 percent.
2. Fashion Tech Startups – Genostyle
This startup aims to take on the product recommendation problem by applying machine learning to the shopping process. Genostyle, examined 5 million products, 6.500 brands and has designed a new taxonomy to categorise them, based on 15 different of so-called “style genomes.”
The co-founder Veronica Cabezas details the “style genomes” as the glam, sporty, active, bohemian and gothic. The customers using a style platform receive a style code that indicates the degree to which they skew away or toward each of the styles, allowing the fashion retailers target them with personalised offers.
Genostyle can also examine the retailer’s inventory and what sells best and how the client can optimise its stock. For example, if your fashion retailing business has 50 percent “glam” merchandise but “glam” category accounts for only 5 percent of your revenue, then you have a problem and Genostyle can help.
3. Fashion Tech Startups – Closet Collective
The inspiration behind Closet Collective comes from the Millennials embracing the sharing economy and the almost $100 billion worth of clothing never worn, hanging in our closets. Closet Collective is a peer-to-peer fashion platform, created by the co-founders Seema Gohilthat and Claire Allison to help women rent out the unworn garments taking space in their closets.
“We are still at the beginning of this rental trend,” said Claire Allison. The platform allows their renters earn that extra money with the existing so-called stock, but also invest and expand into a renting business.
For example, one client made $5.500 by renting out her closet and used the profit to enhance her collection further with 300 new pieces with the intention of renting them out. Closet Collective also recommends the renting prices, at about 5 to 10 percent of the retail value of the garment.
4. Fashion Tech Startups – Smartzer
Getting the return on your investment is always problematic but more so when your company features promotional video content on your websites with the idea of driving sales and not because hiring models, renting locations and shooting promotional videos is expensive.
“The secret with branded content is to obtain as much as you can out of it,” said the chief marketing officer at Halston, Suzanne Hader and this is where Smartzer, founded by Karoline Gross, can help a lot.
Smartzer is, in fact, an interactive type of digital video player that lets users click on videos to find the garments and accessories that people wear in the movies, learn more about them and eventually buy them online.
Karoline’s startup has big fashion brands in its portfolio, including Barbour, Puma and QVC, who wanted to make their videos more profitable. The results are impressive: at least 19 times more engagement, 9 times more click-through than classic videos, and, most important, a conversion from browsing to buying rate that is five times more than the pre-roll videos, conform to Karoline Gross.
5. Fashion Tech Startups – Thursday Finest
Custom, personalised fashion is a key trend, and Thursday Finest, in partnership with Macy’s, created a vertically integrated brand that helps people customise their fashion accessories.
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The company, held a pop-up store in SoHo where they can make men’s ties and knit scarves, on the spot, using 3D printers.
“Not only that we create individual designs and patterns, but we are also able to make them ready for our customers in just minutes,” said the co-founder of Thursday Finest, Veronika Harbick.
The vice president of Strategy and Innovation at Macy’s thinks that this on-site 3D Printing concept is in line with putting the customers at the centre of the decision-making: ”This is an excellent example of how the “on-demand manufacturing” is going to change the future of fashion,” said Leslie Revitt.