Snap, Inc. a camera company and on its flagship app “Snapchat”, that helps people share images of their daily lives. Snap, Inc’s revenue in 2020 was $2.5 billion and on 17 march 2021 the company made an acquisition on “Fit Analytics” to further take their camera reach in another direction by selling fashion. More specifically, they are thinking about e-commerce and shopping. The terms of the deal are not disclosed.
Fit Analytics, a technology startup that works with Artificial Intelligence(AI) is based in Berlin. They have built technology that can help shoppers find the right-sized apparel and footwear from online retailers. Moreover, they have a wider set of personalization tools and other analytics to help online retailers to figure out how to sell more and engage more traffic.
Fit Analytics already works with a number of global big giant retailers; including North Face, Asos, Calvin Klein, Patagonia, Puma, and many more. They are working with around 18,000 retailers already.
Fit Analytics also confirmed that it will be continuing its existing business, while also will work to help Snap build out its own e-shopping platform.
CEO and co-founder Sebastian Schulze of Fit Analytics said, “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.”
Using machine learning Fit Analytics technology; let people enter their own measurements into a tool that will match all the possible dimensions to find the best fit for clothes or shoes.
A tremendous job is done by Fit Analytics, that they have built a technology that can match clothing using images that customers uploaded themselves. So, Snap’s focus is on the visual experience that its users. Notably, there is a feature that lets people can play with different versions of themselves and so they can know how they look.
Snap’s acquisition of Fit Analytics can pull different ways of making money.
Snap is now making nearly $1 billion a quarter in revenues and the majority of that revenue is coming from advertising on Snapchat. Snap is just making another way to diversify its revenues.
In addition, Snap; till now is not commenting on how and when it is going to integrate Fit Analytics tools. Otherhand, Snapchat’s core audience is mostly under 30; who can be the major target for fashion brands.
Snap now has 20 acquisitions to date and they are covering areas mostly like advertising technology/location-based services, services related to AI and even they are into music. Fit Analytics can help them to implement their focus on shopping and e-commerce basically in the fashion industry.