Upfront with Presize
Setting The Digital North Star Right
Leon Szeli (L.Sz): Based on our experience of working with more than150 brands and conducting dozens of consumer interviews every month is that (a) 50% of fashion revenue will be generated online in a few years and (b) consumers will expect the key points of an offline buying experience to also be available in e-commerce. Most fashion e-commerce still has a lot of homework to do in this regard. A good shopping assistant is consulting with you on the right fit and size, what looks good on you, and then recommends other products that fit your style, body, and the products you already have in your shopping basket. Also, you will have the option to try clothing on and to check how it looks. With 50% return rates in our German home market and 30% in other EU countries with size and fit being the #1 return reason, this topic is what we focus on at Presize. Virtual try-ons and personalized style consultation will be the next step.
L.Sz: Between 8% and 30% of the users on a website use our solution to receive a size recommendation from Presize. A traditional size chart is typically used by around 1%. We enjoy our positioning as a shop- and brand-independent solution provider and have seen multiple acquisitions in the 3D/sizing space from fashion companies in the last year which often leads to the technology becoming proprietary. Presize is currently growing at triple digits every year. We grew from three to 40 employees in two years. In 2022, we are expanding our product offering to provide size advice to users who do not use Presize by leveraging our existing data on “if a product runs bigger or smaller than expected”. Additionally, we want to solve the problem “does it look good on me” after we solve the “will it fit” problem.
About PresizeIn the fall of 2020, German multi-investor Carsten Maschmeyer invested €650,000 in the startup in exchange for a 15% stake. A welcome local marketing side effect: the pitch for the deal was aired publicly on the TV show "Höhle der Löwen" (equivalent to the US format “Dragon's Den”).
With its proprietary technology and business model, Presize had already convinced US accelerator and investor Plug and Play in 2019. The former promoter of Google and Dropbox also participated with a six-digit amount. With a total of €3 million in capital raised from investors, the Munich-based start-up should be well equipped for upcoming product development and marketing. www.presize.ai