Walmart Acquires Zeekit: Virtual Clothing Try-On Technology

Walmart Acquires Virtual Try-On Technology Provider Zeekit

Walmart, the prominent retail corporation, has announced the acquisition of Zeekit, a Tel Aviv-based startup. Zeekit specializes in enabling customers to virtually try on clothing while shopping online.

How Zeekit's Technology Works

The technology employed by Zeekit utilizes a sophisticated combination of real-time image processing, computer vision, and deep learning. This allows shoppers to visualize how garments would appear on their bodies through a simulation. Key factors considered include body dimensions, garment fit, size, and fabric characteristics.

Financial Details and Funding

The specific financial terms of the acquisition have not been publicly revealed. Initial reports regarding Zeekit’s funding, sourced from PitchBook, were found to be inaccurate. The company secured a $9 million Series A funding round in 2016, bringing its total funding to $16 million since its inception in 2014.

Existing Retail Partnerships

Prior to the acquisition, Zeekit had established collaborations with numerous retailers and brands. These included Walmart, Macy’s, Asos, Tommy Hilfiger, Adidas, and others. The company previously partnered with Rebecca Minkoff during Fashion Week to enhance the shopping experience for show attendees.

Zeekit's Founding and Core Mission

Founded in 2013, Zeekit was created by Yael Vizel, Nir Appleboim, and Alon Kristal. Their central idea was to address the issue of online clothing returns. By allowing shoppers to virtually see how clothes would fit, they aimed to reduce returns caused by ill-fitting or unflattering items.

Brands Available on Walmart with Zeekit

Walmart plans to integrate Zeekit’s technology to offer virtual try-on experiences for a wide range of brands. This includes Free People, Champion, Levi Strauss, ELOQUII Elements, Free Assembly, Scoop, Sofia Jeans by Sofia Vergara, and Walmart’s own private label brands like Time and Tru, Terra & Sky, Wonder Nation, and George.

The Virtual Try-On Experience

Customers visiting Walmart.com will have the option to upload a personal image or select from a diverse range of models. This allows them to visualize how clothing will look on a body type that closely resembles their own. The intention is to replicate the in-store try-on experience.

Social Sharing Integration

The new integration will also enable shoppers to share their virtual outfits with friends for feedback. This feature reintroduces a social element to the online shopping process.

Future Applications of the Technology

Beyond virtual try-on, Walmart envisions utilizing Zeekit’s technology to develop additional fashion-related experiences. This could include a virtual closet feature, allowing users to mix and match different styles.

Zeekit Founders Joining Walmart

Following the completion of the acquisition, Zeekit’s three co-founders will be joining the Walmart team.

Walmart's Vision for Innovation

Denise Incandela, Walmart U.S. EVP of Apparel and Private Brands, stated the company is confident that Zeekit’s expertise in image technologies, computer vision, and artificial intelligence will drive further innovation for customers. The goal is to establish Walmart as the leading destination for fashion.

Walmart's Past Apparel Investments

Walmart has previously made significant investments in the apparel sector. This included acquiring brands like Bonobos, ModCloth, and Eloquii, and even offering dedicated shops for brands like Nike on Walmart.com. However, not all of these ventures proved successful. For example, ModCloth was sold after facing challenges and remaining unprofitable.

Challenges in Online Apparel Retail

The apparel industry has historically presented challenges for online retailers. Difficulties in selecting items that fit unique body shapes and inconsistent sizing standards contribute to these challenges. Clothing sizes can vary significantly between brands, even when customers order their usual size.

Impact of the Pandemic on E-commerce

The COVID-19 pandemic accelerated the growth of e-commerce, as retailers closed physical stores and consumers shifted to online shopping. During this period, Amazon surpassed Walmart as the top apparel retailer in the U.S., with apparel and footwear sales exceeding $41 billion in 2020.

Launch Timeline and Transition Plan

Walmart has not yet announced a specific launch date for Zeekit’s technology on its website, stating it will be available “soon.” Post-acquisition, Walmart will not continue Zeekit’s existing business operations, and Zeekit will assist its current clients with a transition plan.

Updated 5/13/21, 11:05 AM ET with corrected funding information. Previous data from PitchBook was inaccurate and has been verified directly.