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Outfittery and Modomoto have served nearly one million customers between them, achieving joint sales of €80 million in the past twelve months. Joining forces, they will be able to more effectively work the European market against the likes of Zalando – their main competitor.Handsome man shopping from home

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For smaller companies, getting together to control more of the market can be the best possible scenario to go up against the e-commerce titans like Amazon, Alibaba or Zalando. Outfittery and Modomoto are teaming up to have better chances against the big players. Reported by Reuters, the merger will be completed by the end of this year, with revenues targeted to be over €100 million in 2020. Outfittery is larger than Modomoto, accounting for 2/3 of the two retailers' sales. 

Co-founder and CEO of Outfittery, Julia Boesch, will be leading the combined company into the future. She wants to see the new company become the "European leader in personlized fashion shopping."

Menswear And Beyond

Outfittery got their start in menswear. They felt that men's fashion was always taking the backseat to ladies' fashion. This feeling really turned out to be successful, making Outfittery a bit different from the average personalized fashion e-shop. 

Modomoto will be keeping their management, with Andreas Fischer (CEO) becoming chief strategy officer whilst some colleagues end up in other senior rules.

Advice And Science

Expert advice and data science fit together to find out how old customers "feel" they are, as well as figuring out what kinds of fashion they like. One of around 200 stylists then review the feedback from the aforementioned survey and puts together a box to send to the customer. The customer may keep the goods and pay for them, or return them with comments. The data is then analyzed to help to improve recommendations over time.

Against Zalon

Zalando's bespoke fashion brand, Zalon, is Outfittery's main competitor, which was founded in 2015. Zalon was credited with helping to slow Zalando's profitability problem at the biggest online-only fashion retailer in Europe.

Outfittery Branding

The new company will operate under the Outfittery name in nine different markets: the German speaking countries, Benelux, Sweden and Denmark. Modomoto covers most of these markets, but also has a foothold in France.

The Boesch Prediction

Boesch, who was in international business development at Zalando until founding Outifttery in 2012, welcomes competition. When comparing the European market to the already well-established US market for curated fashion (with Stitch Fix being at the top of the US market), she had this to say: "In the US we've really seen the inflection point (of curated fashion). We are expecting the same to happen in the European market. You can see by Stitch Fix's expansion into the UK that they also believe that."