Stitch Fix pumps up marketing, promotes new non-subscription model as sales surge

At a time when consumers can buy subscriptions to nearly everything—now even tacos—one of the earliest subscription service clothiers is expanding beyond the model into a direct-buy program. Earlier this month, Stitch Fix unveiled the new offering, called Freestyle, which gives non-members an option to buy personalized recommendations. Now, the 10-year-old retailer is debuting a new campaign designed to promote the offering and expand the brand to more potential shoppers at a time when many are diversifying back-to-the-office wardrobes. The new push, called “We’re So You” from agency R/GA, focuses on Stitch Fix’s ability to curate selections based on each consumer’s size and style preferences. The campaign includes TV and online video that will run through October, while the overall marketing platform should continue into 2022, according to R/GA. The new marketing comes on the heels of stellar earnings released last week for the quarter ended July 31. Stitch Fix reported a 29% jump in revenue to $571.2 million compared with the year-earlier period, along with net income of $28 million. The retailer had reported a loss in the fiscal fourth quarter of last year of $44.5 million. Executives said they are investing more in brand marketing to spread awareness about Freestyle. This month, Stitch Fix increased advertising spend relative to its most recent fourth quarter on new channels including search and SEM marketing. The increase in marketing investment is expected to continue moving forward, according to Chief Financial Officer Dan Jedda on a recent earnings call with analysts. “We really are just turning on our brand campaign,” said Elizabeth Spaulding, who was promoted to chief executive from president earlier this year, on the call. She noted the company is experimenting with product listing ads and new ways to attract first-time customers to Stitch Fix. “The new brands, the new offerings that we’re unveiling through the experience, I think gets us really excited because we know we’ve seen traction in some of these less-penetrated product categories with fixes already through our current base. And so, the coming quarters will really be the focus of building this brand awareness.”

Stitch Fix pumps up marketing, promotes new non-subscription model as sales surge

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