The nearly $1 trillion global fashion industry is no stranger to innovation.
Thanks to technological advancements in the e-commerce fashion industry, apparel, footwear and accessories sales ballooned in 2021, hitting $180.5 billion in the U.S. alone. The sector is expected to grow by 13% this year, with consumers set to spend $204.9 billion on fashion items online.
But while the industry looks promising, there are some disadvantages to shopping online — such as receiving an ill-fitting garment — that could affect the consumer experience and, ultimately, the sector’s growth.
With returns being a commonly potentially huge blow to retailers’ bottom lines, MySize Inc. (NASDAQ: MYSZ) has developed solutions that could benefit both sides of the shopping experience.
Founded in 2014, the company is an omnichannel e-commerce platform and provider of artificial intelligence (AI)-driven measurement solutions to drive revenue growth and reduce costs for its business clients.
The company recently launched FirstLook Smart Mirror, a mirrorlike touch display that provides in-store customers an enhanced shopping experience and contactless checkout.
MySize says Orgad, its online retail platform, has expertise in e-commerce, supply chain and technology, operating as a third-party seller on Amazon.com Inc. (NASDAQ: AMZN), eBay Inc. (NASDAQ: EBAY) and other sites.
To expand its portfolio and offerings, MySize announced on Oct. 12 that it acquired Spain-based Naiz Fit, a software as a service (SaaS) technology solutions provider that solves size and fit issues for fashion e-commerce companies.
Naiz Fit’s SaaS Technology
Naiz Fit’s SaaS technology acts as a digital tailor. It gathers more than 20 body measurements without asking customers to measure themselves by using its proprietary AI and computer vision capabilities to transform simple images into body measurements.
For customers who do not want to use photos, Naiz Fit implements statistical modeling algorithms to determine the size and fit based on height, weight, age, gender and fit preference.
MySize reports that Naiz Fit’s latest product — Smart Catalogue — will be launched following the acquisition. Smart Catalogue is designed to help retail products and design teams make the most informed decisions for their collections based on real-time customer data.
With over 40 clients in Spain, Italy, Germany and France, Naiz Fit brings MySize a substantial customer base, including Desigual, Moschino, El Ganso, Philosophy, Alberta Ferretti, Silbon and Boglioli Milano.
Naiz Fit’s revenue and financial results will be fully integrated into MySize’s consolidated results for the fourth quarter of 2022, according to the company.
As a result of the acquisition, Naiz Fit’s customers “will reap the benefits of a broader portfolio of products and solutions delivered by an unparalleled combined team of industry leaders with a deep understanding of the fashion e-commerce retail landscape,” the company said.
Naiz Fit expects an estimated $400,000 in 2022 revenue, with substantial increases anticipated for 2023.
MySize also anticipates its combined Naiz Fit and MySizeID sizing solution revenue to contribute an additional $1 million in revenues in 2023.
“Combining the MySizeID and Naiz Fit sizing solutions, we expect to gain significant economies in sales and marketing and to deliver unparalleled sizing technology to fashion retailers,” MySize Founder and CEO Ronen Luzon said.
“We believe the acquisition will be highly accretive in the near and long term as well as being a strategic play. By leading the consolidation of sizing solutions, MySize is positioning to build greater and broader offerings and become the leading technology provider in the industry.”
The acquisition of Naiz Fit could position MySize as a leading company in measurement solution technologies for retail, helping the company boost revenue and grow its customer base.
MySize, Inc. (NASDAQ: MYSZ) (TASE: MYSZ.TA) is an omnichannel e-commerce platform and provider of AI-driven measurement solutions to drive revenue growth and reduce costs for its business clients. Orgad, its online retailer platform, has expertise in e-commerce, supply chain, and technology operating as a third-party seller on Amazon.com and other sites. MySize recently launched FirstLook Smart Mirror, a mirror-like touch display that provides in-store customers an enhanced shopping experience and contactless checkout. FirstLook Smart Mirror extends MySize's reach into physical stores and is expected to contribute to revenues through unit sales and recurring service fees.MySize has developed a unique measurement technology based on sophisticated algorithms and cutting-edge technology with broad applications, including the apparel, e-commerce, DIY, shipping, and parcel delivery industries. This proprietary measurement technology is driven by several algorithms that are able to calculate and record measurements in a variety of novel ways. To learn more about MySize, please visit our website: www.mysizeid.com.
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Or Kles, CFO