How many times have you returned something you bought online because it didn’t fit? Probably more than you care to remember.
This issue is exactly what inspired Ronen Luzon to create My Size Inc. My Size enables consumers to create a secure, online profile of their personal measurements to get the right fit – in turn reducing the number of returns for retailers, saving them resources and money.
We spoke to My Size Inc. Founder and CEO recently, where he discussed the inspiration behind My Size, how the online apparel business is changing during COVID-19, and what makes My Size an interesting investment opportunity.
Tell us a bit about your background and how My Size got started.
RL: My Size started back in 2014. The idea actually came from my son. He was (and still is) a huge NBA fan, but back then his favourite team was changing every week! This resulted in me buying a lot of different NBA merchandise online. The problem was, I was getting the wrong sizes for him, especially as he grew!
It also proved difficult to return the clothing items back to the U.S from Israel. I was responsible for the shipping fees to send the items back. I ended up giving a lot of the clothes that didn’t fit my son to neighbours and friends. That was a lot of money that ended up going to waste.
So that got me thinking about what I could do to solve this issue. The more research I did, I realized that this problem (apparel returns due to incorrect sizing) is huge. It affects both retailers and consumers, and also ties into sustainability issues in the apparel industry.
I started My Size with the vision to change the way people buy clothes online.
People using My Size simply need to move their mobile device over their body (across your arm, waist, hips, chest, etc.) to get their measurements and Size ID. There’s no camera involved, no pictures, no questions. Just imagine using your mobile device like a ruler. The technology we developed is very simple, very fast, and accurate.
My Size makes the process simpler for the millions of consumers who shop online every day. Today, My Size is targeting three different segments, because the technology we’ve developed here is not only for the apparel industry – We also work within the logistics and DIY markets!
How is My Size managing during the pandemic?
RL: My Size has been doing well and growing during this pandemic. Even though retail stores are opening back up in the U.S, many are choosing to keep their fitting rooms closed. The amount of customers taking their shopping online has jumped through the roof! And since online shopping is ramping up, the number of returns pick up as well.
Imagine that today in the U.S, almost every second item is being returned at about 50 percent return rate. The retailer is paying a fortune for these returns – especially if the returned items are damaged!
As online business is ramping up, the problems that retailers face are ramping up as well. We look at retailers like Adidas that (up until the pandemic) had the majority of their business in brick and mortar stores. So, when COVID hit, most of their business was shut down in one day.
And their small percentage of online sales needed to ramp up – quickly! Just imagine how many issues they had to deal with while trying to get their online business set up in such a short period of time.
We know that going forward from this pandemic, a lot of businesses are going to understand the importance of an online arm of their business, and utilizing a technology like My Size ID to ensure their customers have a smooth shopping experience!
Where do you see my size five years from now?
RL: This year, we started ramping up. Even now with COVID, we can see an increase in our size recommendations. Since we license our technology, customers pay as they use our solution. We charge the retailer, not the consumer. When a customer clicks on the My Size button installed on their favourite retailer’s website, they get their size recommendation.
We declared that by 2020 we will reach 20 million size recommendations. I foresee that by 2021 we will reach about 150 to 200 million size recommendations that will go through our engine. And I believe that in three years, time will be around a billion size recommendations. That’s where I see My Size going, especially since more people will be doing their shopping online.
Based on Shopify’s success, we see it’s become relatively easy to open your own online store. Thanks to Shopify, after a couple of clicks, you can have your online store. I think going forward we’ll have more and more designers and small online stores that will sell us garments. And one of the main things that these guys need is technology. Shopify is helping them to build their online presence but My Size will give them everything to do with the size and fit solution that they need.
I think the online apparel market will increase dramatically in the coming three to five years, which would be excellent news for My Size.
And because we are a publicly-traded company, we can finance ourselves and have enough funds to grow and to create more technologies. We are opening more offices around the world. We recently opened in Russia, France, and Germany. We’re in the Netherlands, Istanbul, and the U.S of course. With all these sales offices opening, our growth and expansion are well on the way to increase greatly in the next five years.
What would you say to investors who don’t understand the potential of My Size?
RL: Well, firstly, we have an enormous amount of knowledge – Patented technology, algorithms and a knowledgeable team. We have a product that is selling.
The retail market is changing and adapting to be online. My Size’s technology is not only for one segment – We are apparel, we are logistics, and we are DIY. Going forward, these three markets and their online presence must change and they will change. We see it going in that direction now during the pandemic.
I believe in this company. We are a game-changer in this industry.