Snap confirmed recently that it has acquired Berlin-based Fit Analytics, a technology startup that delivers accurate sizing recommendations to shoppers worldwide.
The social commerce journey that started with Instagram’s Shopping tags was quickly adopted by brands, influencers and consumers. Instagram, which enables consumers to discover new products and reach these products quickly, has also become an important source of income for influencers and brands.
Snap, who has been following Instagram’s steps behind in building new revenue models for many years, has so far mainly developed AR features. The company turned its eyes to e-commerce in 2021 with the acquisition of Fit Analytics.
Founded in 2011 as UpCload, Fit Analytics enables online shoppers to choose clothes and shoes that fit their size. Users are directed to choose the most suitable size for them by entering their height, weight and size details in the relevant fields.
In addition, Fit Analytics increases conversion rates with the personalization tools and analysis it offers to e-commerce companies.
Tools that support e-commerce companies in finding suitable size clothes have increased their popularity with the pandemic. Y Combinator-supported Drapr is one such initiative. Consumers’ buying clothes suitable for the right size eliminates return processes and reduces the costs of e-commerce companies. It also provides a significant increase in conversion rates.
Fit Analytics supports about 18,000 customers in this regard. Among the names served by the firm are Lacoste, Tommy Hilfiger, North Face, Asos, Bershka, Calvin Klein, Patagonia, Mango and Puma.
The reason Snap is interested in Fit Analytics is another visual-focused technology that the company is working on. Fit Analytics has been working on a technology for a while that consumers can upload their own images and virtually try on their clothes. This technology is perfect for Snap, which has been wreaking havoc with AR filters for many years. Social commerce powered by AR technology opens the door to an ambitious revenue stream for Snap.
Snap shared details of the research it conducted in partnership with Oxford Economics earlier this month, explaining how Gen Z will shape the digital economy. Generation Z, which forms the user base of Snap, will create 87 million workforce in 6 different markets in 2030 and spend 3.1 trillion.
A study by Piper Sandler shows that 33 percent of US youth spending goes to clothing, accessories and shoes in the fall of 2020.
For Snap, which made AR collaborations with NYX Professional Makeup and Ralph Lauren in the fourth quarter, this data and the acquisition of Fit Analytics are positioned as a harbinger of new opportunities.
The financial details of Snap’s acquisition of Fit Analytics are still confidential. Fit Analytics has received less than $ 1 million in investment so far, according to Pitchbook data. However, if we look at the customers of the company, we can say that it has a strong source of income.
With the acquisition, the 100-person team of Fit Analytics will join the Snap family. The team will report to Nima Khajehnouri, Snap’s Vice President of Engineering.
Sebastian Schulze, CEO and co-founder of Fit Analytics, wrote the following in the blog post announcing the deal:
“We are excited to announce that Fit Analytics will become part of Snap. This acquisition will strengthen Fit Analytics’ position as an industry leader in apparel and footwear technology. If you are a Fit Analytics partner, this is only the beginning. By leveraging Snap’s scale and capabilities, we will not only continue to service our existing clients, but also deepen our relationships and offerings with our brand partners and retailers. Our main focus going forward will be to scale the Fit Analytics business and work with Snap to grow their shopping platform, leveraging our technology and expertise. Our teams will be jointly executing on next-gen shopping, fashion and style offerings.”