Investment Thesis
The online retail industry is booming. Over the past decade, there has been a fast-paced shift online with pretty much anything that can be sold in a store being offered online. Firstly, margins are slightly better when there's no need for high maintenance expenses like facilities, expensive store locations and sales personnel. Second, there's a trend in recent years where productivity (or sometimes, yes, laziness) creates quick and easy solutions to time consuming problems. "Back in the day", when you needed a sweater for the upcoming winter, you needed to take your lunch break and go out to the nearest department store, but now, you can order one on your elevator ride up to work, and it'll be waiting on your door step when you get home.
For appliances, movies and other 'stuff', it's quick and easy to order online with little fuss, you know what you want and you get it. Clothing, on the other hand, requires measurements whereas most people who shop online just order something in a small, medium etc. where sizes vary from retailer to retailer. This issue created an unforeseen problem - returns, based on fitting issues, skyrocketed, and now, roughly 30% of all fashion items purchased online are returned.
Companies have put massive efforts in trying to solve this problem, and some have come very close with 3D body mapping through mobile device cameras and other applications and features. Most, until recently, have used user input and other more static measuring tactics to get a precise fit, but My Size (NASDAQ:MYSZ) have utilized a dynamic measuring approach, which is extremely accurate. Their goal is to create a decline in returns based on their patented algorithms which help consumers match their body types to the exact sizes that online retailers offer. They have a sky-high
