Sew Repair debuted in 2011 to offer ladies with curated packing containers of clothes chosen for them by stylists. It was based by Katrina Lake. Sew Repair is a private styling service that prices a month-to-month one-time styling payment of $20, which may be utilized to any merchandise you purchase from the field. The shopper fills out a styling profile on-line after which a Sew Repair stylist chooses 5 gadgets to ship to the shopper. As soon as obtained, the shopper has three days to decide on to maintain some or all the gadgets or return some or all the gadgets. If the shopper retains all 5 gadgets, she will get 25% off the whole price. The “Repair” because the field known as, is scheduled by the shopper to come back as soon as a month, each two weeks, each two months, or nevertheless typically she desires it. Lake began Sew Repair out of her Cambridge, Massachusetts residence to present busy ladies a neater strategy to store.
Sew Repair’s inventory worth has skyrocketed throughout the pandemic as folks went on-line searching for secure methods to buy. In October 2020, Lake’s web value was simply $360 million. Shares in her firm have virtually tripled within the final three months, making Lake’s simply over 10% share in Sew Repair value $1.1 billion. Lake is one in all 19 self-made feminine billionaires within the U.S.
Katrina Lake was born on Christmas Eve 1982 in San Francisco. Her mother is a Japanese immigrant and public college instructor. Her father was a Jewish-American physician. She initially deliberate to comply with in her dad’s footsteps and turn out to be a health care provider. She enrolled at Stanford and acquired her BA in 2005. She turned concerned about economics and enterprise in school and went on to get her MBA at Harvard in 2011.
Lake created Sew Repair out of necessity. She wished to work in the way forward for retail. Previous to enrolling at Harvard and founding Sew Repair, she labored as a marketing consultant in enterprise capital, advising Kohl’s and different brick-and-mortar retailers. She realized nobody had efficiently merged trend with information but. They both did not have or had been unable to make use of information to know what their clients wished. She was additionally having a tough time discovering clothes she cherished, so she created Sew Repair. Within the early days, Lake collected information from her purchasers through SurveyMonkey to get a way of their type. She then hand-picked outfits to ship to her clients. She delivered the garments to their houses and took a $20 verify to cowl the styling payment.
In 2012, she was launched to Eric Colson, who was then Netflix’s VP of knowledge science and engineering. She wished him to turn out to be an advisor to her firm however he did not see the worth in her thought. Nevertheless, the concept caught with him. Just a few weeks later he referred to as Lake up, met her for a glass of wine, and by the point he had completed his glass, he was hooked on how good Lake was and the way effectively developed her plan for her enterprise was. It took Lake just some months to persuade him to affix the corporate as chief algorithms officer. Lake efficiently mixed information science and advertising to develop Sew Repair.
With Colson’s expertise in information science, the corporate was in a position to gather a loopy quantity of knowledge on its clients. Sew Repair claimed to trace physique dimensions, sample preferences, which garments from their packing containers they stored – and so they may additionally examine it to what gadgets of clothes different individuals who’d stored those self same garments additionally stored. With all of this data, Sew Repair was in a position to ship very correct predictions. Then, a Sew Repair stylist working from her residence in, or wherever – she may very well be in Chicago or Charlotte, Denver or Dallas – may log in, see what the algorithm delivered for the purchasers she was styling and create the “Repair.”
So this is the factor with Sew Repair: it isn’t a trend firm. It’s a expertise firm. The corporate’s information tells them rather a lot nevertheless it would not, as an illustration, filter for issues like “Busty, will need to have knit tops solely.” That is only one instance but when your proportions are out of the norm, you are going to get issues that do not match. The algorithm there’s the problem – a buyer can see an merchandise, say a jacket, a pal acquired from Sew Repair and request it till they’re blue within the face and by no means obtain it if it is not fed to their stylist through the algorithm.
Lake is without doubt one of the most clever founders in e-commerce. Because the retail apocalypse claimed 1000’s of brick and mortar shops over the previous years, Lake’s firm generated greater than $1 billion in gross sales in 2018. What’s extra, Sew Repair is without doubt one of the few e-commerce corporations that flip a revenue. Sew Repair has been turning a revenue yearly since 2015. In 2015, the corporate introduced in $21 million. In 2016, it introduced in $33 million. In Could 2017, the corporate raised $42 million from exterior buyers. In November 2017, Sew Repair turned the primary female-led firm to have its IPO in additional than a 12 months. The IPO valued Sew Repair at $1.6 billion. The corporate raised $120 million in its IPO to gasoline its development.
In 2019, Sew Repair had 8,000 workers. This included 5,100 stylists throughout the nation and over 100 information scientists. After which 2020 and COVID-19 occurred. In early June 2020, Sew Repair introduced layoffs for 18% of its workforce or 1,400 workers. The laid-off workers had been informed they may stay with the corporate in the event that they relocated. On the identical time, the corporate introduced it will rent about 2,000 stylists exterior of California, citing the price of residing in that state as the explanation for this. The corporate’s warehouses closed and it had hassle fulfilling orders. Nevertheless, Lake and her staff rapidly turned all of that round.
Sew Repair reported a very blowout quarter in December. The corporate had a ten% improve in income to $490 million. Sew Repair now predicts the corporate is on monitor to have between 20% and 25% development for 2021. Sew Repair is exclusive within the attire trade proper now. Clothes shops have seen a 26% decline in gross sales final 12 months. However, Sew Repair rapidly tailored to the athleisure tendencies that persons are working from residence in throughout the pandemic. The corporate’s athleisure choices have grown 150%. Its youngsters enterprise launched in 2018 and can be thriving within the pandemic because it offers dad and mom a neater means to purchase clothes for his or her continually rising youngsters. At the start of the 2020-21 college 12 months, orders from first-time clients for the children line had been up 60% from the identical interval within the 2019-20 college 12 months.
Recently, Sew Repair can be seeing a giant enchancment within the variety of happy and completely happy clients. Over the past two quarters, 80% of recent clients stored at the least one merchandise from their “Repair” and ordered a second field. This can be a five-year excessive for the corporate. Sew Repair is well-positioned to construct on the momentum the corporate has gained throughout the coronavirus pandemic.