My Size’s Measurement Technology Uses Big Data To Solve Big Problem Of Apparel Returns, Further Boosting eCommerce Market
White label solution that can be branded and used by any retailer.
Game changer in apparel shopping.
Huge savings on returns related to sized issues for retailers.
Smart phones for Bigdata is a key driver that extends the value My Size creates.
Online apparel sales in 2017 amounted to $81 billion in the U.S. alone, according to Statista, and that number is expected to grow to $123 billion 2022. A major cost to retailers, an estimated 30% of online apparel purchases end up being returned. This translates into a whopping $24 billion in returns, 70% of which are due to size related issues, according to Drapers Etail Report.
Using smartphones and big data, My Size Inc.’s (NASDAQ:MYSZ) patented measurement technology platform can save retailers billions. A closer look at the technology reveals that beyond saving retailers money by reducing returns, My Size delivers big data-based business intelligence that can revolutionize how clothing is designed and sized to specifically fit targeted demographics.
A game changer in apparel shopping, MySizeID is a white label solution that can be branded and used by any retailer. A shopper uses the smartphone app to measure his or her size with accuracy and privacy, in less than one minute. These measurements are automatically fed into MySize’s proprietary algorithms that use big data, machine learning, and a retailer’s size chart to match the shopper with his or her recommend size for each retailer. The personalized user experience builds customer confidence in the shopping experience.
Greater confidence in selecting the correct sized apparel can increase conversions, reduce shopping cart abandonment which now stands at an average 69% for retail shoppers, increase brand loyalty, and reduce returns.
The explosive growth of mobile commerce is a natural fit with mobile app-driven My Size, as both measurement taking and purchasing can done on the same screen at the touch of a few buttons.
33% of ecommerce purchases in the US in 2017 were made on a mobile device. This number is expected to increase to more than 50% by 2021, giving My Size a huge advantage in capturing market share in the emerging measurement technologies space.
My Size estimates its apparel measurement technology addresses a $3.6 billion global market. The company reports they have signed letters of intent with a number of retailers to foster growth in 2018. They have a commercial agreement with Trucco, a Spain-based global retailer with over 240 shops. My Size recently announced it is preparing to launch the MySizeID app on third party ecommerce platforms, presumably including companies like Shopify and Big Commerce, that serve over 1 million smaller ecommerce sites. Each of these sites will want to minimize returns and MySizeID is a turnkey solution they can adopt.
A 50% reduction in online apparel returns can result from using a sizing technology, according to reports. MySizeID is not the only measurement tool out there. Competing products have drawbacks including: they only measure for apparel, most don’t measure the actual customer, and some use a camera, creating major privacy issues. MySizeID is the only one that uses smartphone sensors to accurately take measurements. It’s also the only one that serves multiple vertical markets in addition to apparel, including home goods, do-it-yourself (DIY), and shipping and logistics. This is My Size’s huge advantage with large retailers that sell a broad product range.
For department stores that sell everything from apparel to home goods like bedding, curtains and wall art, all items that need to fit the measurements within a home, My Size as a single source solution, has no competition. Companies like Target, Walmart, Dillards, Macy’s may start using My Size for its apparel technology, and then reap the benefit for its other product categories.
Big data is a key driver that extends the value My Size creates beyond saving retailers money on returns. All of that sizing data gathered by My Size, once it has been blinded to protect the individual user, can be harnessed to build intelligence around detailed sizing measurement for specific demographics. For the retailer, it can inform which sizes to stock in which physical stores. For the fashion designer, it can drive decision making on design and fit at the very beginning of the design-to-sale process, thus further improving customer satisfaction with comfort and size and resulting in further reduced returns.
Serving three billion dollar verticals, in apparel with MySizeID, DIY with SizeUp, and logistics with BoxSizeID, My Size reports it has preliminary installations in all three verticals including Trucco in apparel and Katz Shipping in logistics. The company’s business model includes percentage of sales, pay-per-click, and/or monthly subscription fees based on the vertical and usage application. Elegant patented technology, big data, and a solid management team come together at My Size as the company is headed to become the leader in measurement technologies that boost retail.
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