Amazon recently launched its subscription box Amazon Prime wardrobe, and other competitors have launched subscription models on top of existing e-commerce platforms. Stitch Fix will need to continually refine its algorithm and data science-human feedback loop to offer a superior product offering. The company benefits from enormous market potential in which there will be many winners, and remains well-positioned to drive leadership in the subscription marketplace. Customer growth and retention. Stitch Fix has successfully scaled its active user base at a 103 cagr since 2014, reaching.2 million in July 2017. The company has grown efficiently with impressive unit economics and marketing costs at only 7 of net revenue, and will need to find new, efficient methods to continue to scale its customer base. Stitch Fix also needs to maintain high retention through continual improvement of its algorithms and superior customer service. The company needs to recruit and retain high quality stylists for new product categories and its existing core womens business in the face of increasing competition for high quality part-time workers with the growing popularity of sharing-economy services.
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Stitch Fix meaning theatre also effectively leverages data to increase business efficiency by informing demand forecasts, merchandise optimization, fulfillment center assignment, and new style development. Stitch Fix took a highly disciplined approach to growth, optimizing unit economics and perfecting its core product offering. The company achieved profitability in 2014, just three years after launching, and with only.5 million equity capital. The team then expanded into new categories, including petite, maternity, mens, plus size, shoes and accessories. Revenue increased at 137 cagr from 2014 to 2017. In 2017, revenue increased by 34, up from 730 million to nearly 1 billion. Adjusted ebitda increased from a loss of 4 million in 2014.5 million in 2017, representing an ebitda margin. Stitch Fix also increased gross margin from 35 in 2014 to 44 in 2017, largely driven by the launch of its higher margin Exclusive brands product built from its extensive data on merchandise preferences and attributes. Stitch Fix exhibits financial metrics in line with best-in-class e-commerce businesses, which will have a positive impact on its long-term upside potential. The next level, how does Stitch Fix continue its path toward market leadership? Stitch Fix will face increased competition from the marketplace with growth in e-commerce and new entrants in ai-driven curation models.
On a unit basis, Stitch Fix breaks even on its acquisition cost with a single average order of 125, assuming 30 contribution margin. By achieving attractive unit economics, Stitch Fix has the flexibility to scale the business efficiently while investing in growth opportunities. Data science as assignment a foundation. Stitch Fix has perfected the combination of data and contextual human judgment, and improving algorithmic recommendations, driving a positive virtuous cycle of increased conversions and higher retention. The average Stitch Fix client directly provides over 85 meaningful data points through her style profile. This data combined with other sources enables Stitch Fix to provide highly personalized customer experiences. The company had repeat purchase rates of 83 and 86, respectively, in. The company indicated that 70 of clients returned for a second fix within 90 days and 39 spend over half of their apparel wallet share with the service as evidenced by a 22 increase in 2017 of the number of items purchased since 2014. Stitch Fix used this massive data set to launch their Exclusive brands, a higher margin private label that accounted for 20 of revenue in 2017.
Incumbent retailers and brands have struggled to win the millennial and Gen Z demographics that expect personalization. These consumer preferences are driving a shift to a push approach to shopping curation and personalization rather than the traditional browsing-focused shopping experience. Stitch Fix is a leader within the subscription, personalized e-commerce space, and represents only less than 2 of the us e-commerce market with significant room to gain market share. What can entrepreneurs and investors learn from Stitch Fixs path to ipo? Virtuous cycle of sustainable unit economics. Stitch Fix generates attractive unit economics, allowing it to scale more rapidly and profitably than typical e-commerce businesses. The company grew its customer base by a compounded annual growth rate (cagr) of 103 from.3M in 2014.2M in 2017, while maintaining marketing costs at 3 and 7 of net revenue in 20, respectively, well-below industry norms in the mid- to high-teens. Using Second measure data, yardage we estimate Stitch Fixs user acquisition cost is roughly 35-40.
Stitch Fix is at the forefront of a retail macro shift from a browse-all model to a curated, convenience-driven model. The company addresses consumer pain points in the shopping experience by gathering personal preferences on style, fit, and size to offer a curated box containing a combination of hand-selected items that clients can try on in the convenience of their home. Stitch Fix employs over 3,400 stylists, in addition to over 75 data scientists who develop proprietary algorithms that power the customer experience, new style development, and business operations. The market Opportunity, the. Apparel, shoes and accessories market is massive at 353 billion in 2016. According to euromonitor, the e-commerce portion of this market was 55 billion, representing.5 of the total market, and is expected to represent.3 of the total market by 2021. Over the last several years, traditional retailers have been challenged by highly personalized and convenient tech-enabled commerce services.
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Degree in Economics from The University of Manchester. Oluwaseyi adedeji Analyst Oluwaseyi is proposal an analyst on ccas investment team where he works across all aspects of the investment process, including sourcing, due diligence, transaction execution, and portfolio company support. Degree in Economics from covenant University. Home to a huge breadth and depth of knowledge and expertise ranging from the medieval period to the current century and covering every major world economy. We are one of the largest specialist departments in the country, with 25 full- and part-time time teachers, as well as visiting academics and researchers. Please read the important disclosures at the end of this document. Goodwater Thesis is designed to help entrepreneurs understand the winning Strategies that successful startups leveraged to reach the ipo threshold, and the key milestones they must achieve to reach The next level of a durable, category-leading franchise.
Executive summary, stitch Fix your ( m ) is a data-driven, personal styling service that is transforming the retail experience. The companys combination of data science and human judgment differentiates it within the highly competitive e-commerce sector, enabling Stitch Fix to provide personalized retail at scale. Founded in 2011, the company became profitable in 2014 after raising.5 million of equity capital an impressive feat within owned-inventory e-commerce. As of July 2017, the company has grown to almost 1 billion in revenue and.2 million active users. As Stitch Fix enters this new phase of growth post-ipo, stitch Fix will be focused on growing its customer base, innovating on its proprietary data science capabilities, and expanding into new markets. Transforming Retail, stitch Fixs mission is to transform the way people find what they love, one client at a time and one fix at a time.
Prior to cardinalStone, shirley worked at Oliver Wyman in New York and Dubai. Degree in Management Science and Engineering from Stanford University, and an mba from The Wharton School of the University of Pennsylvania. Folashade dapo, legal and Investor Relations, folashade is an Associate at cca and the head of Legal investor Relations. Previously an Associate at Udo Udoma belo-Osagie for 5 years, she was a member of the firms private equity and general corporate advisory teams. Prior to joining cca, folashade was an Experienced Analyst at arm group where she served as a member of the legal team advising arms affiliate companies, including arm investment Managers and arm trustees. She holds a bachelors degree in Law from Ahmadu bello University and a bl from the nigerian Law School.
She is a barrister and Solicitor of the supreme court of Nigeria, and a member of the nigerian Bar Association. Abiola Olasoji, associate, abiola is an Associate on ccas investment team where she works across all aspects of the investment process, including sourcing, due diligence, transaction execution, and portfolio company support. Degree in Economics from Obafemi Awolowo University. Femi fayose, analyst, femi is an analyst on ccas investment team where he works across all aspects of the investment process, including sourcing, due diligence, transaction execution, and portfolio company support. Prior to this, he served as a pioneer financial controller for Crest Agro Products, one of ccas portfolio companies. Degree in Accounting from University of Lagos. Damilare is an analyst on ccas investment team where he works across all aspects of the investment process, including sourcing, due diligence, transaction execution, and portfolio company support. Eyituoyo ajuyah Analyst eyituoyo is an analyst on ccas investment team where he works across all aspects of the investment process, including sourcing, due diligence, transaction execution, and portfolio company support.
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Prior to cca, yomi was a founding Partner and head of Principal Investments at CardinalStone partners where he led the development and execution of several principal investments on behalf of the firm. Prior to cardinalStone, yomi held roles at avante capital in Lagos, bain company in New York and Motorola Incorporated in Florida. Degrees in Electrical Engineering from Virginia tech, and an mba from The Wharton School of the University of Pennsylvania. Femi Ogunjimi, partner, femi is a co-founder and Managing Director at cca. Prior to cca, femi was a founding Partner and Managing Director at CardinalStone partners, where he served as the ceo of the firm, led the firms Investment Banking division and drove two of the firms principal investments. Prior to cardinalStone, femi held roles at Goldman Sachs in New York and Pricewaterhousecoopers in Lagos. In Accounting from University of Lagos, and an mba from The Wharton School of the University of Pennsylvania. Shirley somuah, vice President, shirley is a principal at cca where she is a member of the firms leadership team. Prior to cca, shirley served as a vice President in the Principal Investments division of CardinalStone partners, where she was responsible for leading the investment team on investment execution and portfolio company oversight.
Community, at cca, we believe in responsible investing and mba in fostering inclusive growth for the communities within which our businesses operate. Throughout our existence, we have strived to cultivate a culture that encourages our employees and companies to harness their unique competencies towards uplifting and giving back to their host communities. Although our people and companies develop programs based on their chosen passions, from our unique perspective of the key challenges of our markets, we particularly encourage programs targeted at education and infrastructural development. Over the years, our programs have supported the academic training and sponsorship of several students as well as the construction or rehabilitation of several roads, borehole systems and classroom facilities within our host communities. Careers, our people are at the centre of all that we do; working passionately and diligently to create value for all our stakeholders. We invest in our people and are continuously creating opportunities for them to have dynamic careers. As a team, we work hard and play hard together, encouraging and celebrating excellence, while at the same time, always challenging the ordinary. We invite you to join our team; apply here for current openings. Partner, yomi is a co-founder and Managing Director at cca.
to the spin-off, the cca team operated as the Principal Investments division of CardinalStone partners where they executed 5 investments across different sectors. These investments cut across the financial services, building materials, agribusiness, logistics and storage services sectors of the nigerian economy, and were carried out in line with the same thematic philosophy with which we continue to invest today. Through this, the cca team has developed significant professional chemistry working together, while also amassing considerable practical investment experience and a strong relationship network across the local and regional business communities. Team, partner, yomi jemibewon. Partner, femi Ogunjimi, vice President, shirley somuah, operations Manager. Kayode temenu, legal and Investor Relations, folashade dapo. Associate, abiola Olasoji, analyst, femi fayose, analyst. Damilare Olutola, analyst, eyituoyo ajuyah, analyst, oluwaseyi adedeji.
All programme topics are discussed from the perspective of the Union Customs Code. Rulings under eu court of Justice cases issued under the community customs Code (applicable until ) will also be discussed in writing detail, given that most of these rulings remain relevant under the Union Customs Code. Successful completion of the post-master will require you to write and defend a thesis. Efs modules are taught by renowned professors and prestigious guest speakers, whose experience, expertise and reputation in their specialised fields guarantee high educational standards. Pmc participants work in a variety of fields, including for multinationals, in international trade and consultancy, in legal practice or the academic world or judiciary, and for tax or customs authorities. For more information, martijn Schippers. Programme coordinator 31 (0). Download brochure, video, testimonials, i decided to study in Rotterdam because its a big trading hub and a door opener into the. I chose efs because of the truly international audience, which allows a great debate between the participants both in and outside the course, and because of the high level of expertise of the teachers, coming not only from advisors but also from customs authorities and.
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Efs, erasmus University rotterdam post-Master in eu customs Law (in English). More about efs, efs is the only institute to offer a post-master in eu customs law in English. The interactive programme, focusing on international business and with opportunities for international networking, will ensure you are completely up-to-date with the world of eu customs law. Module 1 will be held from Monday 24 to Friday 28 September 2018, and module 2 from Monday 5 to Friday 9 november 2018. The programme introduces you to the Union Customs Code and provides you with a detailed understanding of general issues in eu customs law, as well as in-depth training in relevant strategic and business issues. The first module will discuss general issues within eu customs law. It also includes a tour of Rotterdam Harbour so that you can experience one of the worlds largest ports in all its glory! The second module focuses on strategic and business issues in customs. You will also complete a course examining the influence of customs law on multinationals, and visit the dutch Customs Authorities at the apm terminals maasvlakte ii site in Rotterdam.