By Hilary Milnes.
Contemporary luxury brands are hooking up with Stitch Fix, a new type of wholesale seller, in an effort to minimize the effects of department store slowdown — and get some customer data in the process thanks to Stitch Fix’s vast database.
On Tuesday, contemporary luxury brands like Alice + Olivia, Theory, Helmut Lang and John Varvatos are launching a selection of clothing, shoes and accessories to sell through Stitch Fix, raising the price per item to between $100 and $600 and adding more brand-name recognition to the company’s arsenal. Until now, brands sold through Stitch Fix were more moderately priced, running between $20 and $150 per item. A few premium brands like Joie, Kate Spade and Rebecca Minkoff, went live earlier this summer.
More expensive brands will grab the attention of wealthier customers who are in position to make more regular purchases from Stitch Fix. The online styling service works by charging members a monthly fee of $20, and uses a combination of data algorithms and human stylists to send members clothing they think they’d like. Customers then pay for what they want and send the rest back. As the company prepares for a forthcoming IPO, its valuation is between $3 and $4 billion, according to Reuters.
Read more at Glossy.