My Size, Inc. (MYSZ): PESTLE Analysis [Nov-2025 Updated]

You're trying to figure out if My Size, Inc. (MYSZ) is set up for a breakout year in 2025, and honestly, the external landscape is a minefield of opportunity and risk. The macro picture shows massive consumer frustration with apparel returns-estimated near 35%-which is a huge tailwind for their tech, but that same tech brings serious legal headaches around data privacy compliance. So, we need to look past the stock chart and see how political shifts, economic tightening, and the race for better AI sizing will actually impact their bottom line this year. Dive in below to see the six forces shaping MYSZ's next move.

My Size, Inc. (MYSZ) - PESTLE Analysis: Political factors

Geopolitical Trade Tensions and Supply Chain Risk

Geopolitical tensions in key e-commerce markets, like the US-China trade relationship, could affect supply chains for apparel partners, defintely impacting My Size, Inc.'s client base. When a major retailer faces a 145% tariff spike on Chinese imports, as seen earlier in 2025 before the temporary reduction, their focus shifts entirely to cost mitigation.

This is a double-edged sword for you. On one hand, your clients are under immense pressure. On the other, your core value proposition-reducing returns by 14% with Naiz Fit-becomes a critical cost-saving tool to offset those rising import duties. The removal of the de minimis loophole for low-value Chinese imports, effective May 2, 2025, further compounded costs for e-commerce platforms, making your solution an essential part of their new logistics math.

Here's the quick math: if a client saves 14% on return logistics, that directly counters a portion of the new tariff burden. That's a clear, actionable opportunity for your sales team.

European Regulatory Landscape (DSA/DMA)

The European Union's regulatory environment, particularly the Digital Services Act (DSA) and the Digital Markets Act (DMA), is creating a more standardized, but also more demanding, playing field for e-commerce. Since My Size, Inc. is actively expanding operations across Europe with its Orgad platform and Percentil marketplace, these regulations are a major factor.

The DSA mandates greater platform accountability and requires online marketplaces to ensure sellers provide verified identity information, which is a subtle but powerful tailwind for your business. This push for transaction integrity and traceability de facto favors technology that reduces fraud and, crucially, minimizes the sale of non-compliant or incorrectly described goods-a category where incorrect sizing often falls. The EU is not messing around; they want a safer digital space.

• DSA compliance drives demand for solutions that ensure product accuracy.
• My Size, Inc.'s European entities (Orgad, Percentil) must adhere to these new, stringent rules.
• Standardized EU market simplifies cross-border e-commerce for your clients.

Political Stability and Operational Risk in Israel

My Size, Inc.'s operational base in Israel introduces a unique set of geopolitical risks, even as the country's tech sector shows remarkable resilience. In 2025, the Israeli tech sector saw exit values surpass $70 billion, a record year, which suggests a strong, mature ecosystem. Still, the political instability and regional tensions are real operational concerns.

We saw that 24% of firms in the Israeli tech sector relocated some operations to mitigate security risks in 2025, and the tech workforce shrank by 1.2% in 2024, the first decline in over a decade. What this estimate hides is the strain on talent retention and the need for robust business continuity planning. You must be prepared for potential operational disruptions, even with the sector's overall financial strength.

My Size, Inc. (MYSZ) - PESTLE Analysis: Economic factors

Inflationary pressures and rising interest rates have tightened consumer spending, making e-commerce conversion and return-reduction technology like MySizeID more critical for retailers to maintain margins. Honestly, when every dollar counts for the shopper, reducing the cost of a return-which is pure margin erosion-becomes a non-negotiable investment for brands.

The macroeconomic environment in 2025 is a tug-of-war. We see stabilizing inflation but elevated rates compared to the last decade, which forces consumers to be selective. For My Size, Inc. (MYSZ), this means retailers are looking for proven ways to cut operational waste, not just shiny new features.

• Global economic slowdown limits retailer technology budgets.
• High inflation increases logistics costs, making return-reduction essential.
• E-commerce growth is projected at 7.8% in 2025, driving demand for optimization tools.
• US dollar strength affects international revenue translation.

Inflation and Consumer Value Prioritization

You are definitely seeing the pinch from sticky inflation. While the U.S. economy is projected to grow at a moderate 2.0% in 2025, inflation is anticipated to stabilize around 2.5%, still above the Federal Reserve's target. This environment keeps consumers cautious. In fact, 74% of consumers are still trading down or actively seeking lower-cost alternatives for everyday purchases.

This is where your value proposition shines. If a retailer can cut returns, they effectively lower the final price they need to charge or keep more margin without raising prices. The Federal Reserve is expected to ease monetary policy, with the federal funds rate potentially dropping to between 3.75% and 4% by year-end, which should offer some relief, but the immediate pressure remains.

Logistics Costs: The Margin Squeeze

The cost to move goods is a massive headwind for e-commerce right now. U.S. logistics costs have ballooned to nearly $2.6 trillion, representing about 8.7% to 8.8% of GDP, a structurally higher level than pre-COVID. Transportation remains the biggest driver, accounting for 58% of total logistics spending.

To make matters worse, inventory carrying costs jumped 13.2% year-over-year, reflecting higher interest rates and warehousing expenses. This cost structure makes the expense of processing a return-including shipping, inspection, and restocking-a top-three P&L concern for retail executives.

Here's a quick look at the cost pressures impacting retail P&Ls in 2025:

E-commerce Market Dynamics and Currency Headwinds

Despite the economic friction, the shift online continues. Global e-commerce sales are set to hit $6.56 trillion in 2025, representing 20.5% of total retail sales. This growth trajectory means the total addressable market for size-tech solutions is still expanding, even if the rate of growth is slowing slightly.

For My Size, Inc. (MYSZ), which likely has international contracts, the U.S. dollar's movement is key. The dollar experienced a significant reversal, falling 10.7% in the first half of 2025. A weaker dollar means that revenue earned internationally in local currencies translates into more U.S. dollars, which is a tailwind for your reported earnings. Conversely, a strong dollar makes U.S. exports pricier for foreign buyers, hurting international sales volume.

The currency volatility itself adds risk. If the dollar pivots back to strengthening, it could undercut the reported value of your foreign contracts. Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - PESTLE Analysis: Social factors

The consumer push for sustainability and the persistent frustration with sizing inconsistency are MYSZ's core market drivers. People are tired of the 'buy three, keep one' model.

This sentiment is creating a massive operational headache for retailers, which is where your technology steps in. You are solving two of the biggest social pain points in apparel retail right now: waste and fit failure.

• Consumer demand for sustainable shopping is rising sharply; nearly $\text{49\%}$ of Americans bought an eco-friendly product in the last month as of early 2025.
• Apparel e-commerce return rates are estimated near 35% in 2025, though industry benchmarks for the category sit closer to 24.4%.
• Increased body positivity movements require inclusive sizing solutions, even as runway representation lags behind consumer reality.
• Shifting demographics favor mobile-first, easy-to-use shopping tools, which MYSZ's platforms are designed to deliver.

Sociological Market Tension and Opportunity

The social landscape is defined by a clear conflict: consumers want to shop ethically and find items that fit perfectly, but the current retail structure makes both difficult. On the sustainability front, $\text{78\%}$ of consumers feel that sustainability is important, and $\text{58\%}$ are willing to pay more for eco-friendly products. This is a direct tailwind for MYSZ's Percentil platform, which is positioned in Europe's circular fashion economy.

The fit issue is even more acute. While nearly $\text{70\%}$ of American women are now plus-size, only about $\text{18\%}$ of clothing is made for them, creating a huge, underserved market segment that demands better digital sizing tools. This sizing gap is the primary driver behind those high return rates, which cost retailers billions. It's a problem that won't go away on its own. Here's the quick math: if the average online return rate is around $\text{16.9\%}$ to $\text{24.5\%}$ in 2025, and apparel is the highest category, your ability to reduce that friction is a direct profit lever for your clients.

What this estimate hides is the consumer frustration that leads to brand switching. If onboarding takes 14+ days, churn risk rises.

Key Social Metrics Driving Apparel Retail in 2025

To be fair, the industry is slow to change its visual language, even as it adopts the technology. For instance, the Fall/Winter 2025 fashion month showed only $\text{0.3\%}$ of looks worn by plus-size models (US size 14+), despite the massive consumer base needing those sizes. This disconnect between marketing imagery and actual consumer bodies underscores why MYSZ's focus on functional, personalized sizing-like the $\text{25\%}$ year-to-date SaaS revenue growth for Naiz Fit-is the more durable business driver than fleeting social media trends.

The demographic shift is toward digital natives who expect immediate, accurate results. MYSZ's Q3 2025 revenue of $\text{\$2.6}$ million, up $\text{26\%}$ sequentially, shows that retailers are finally investing in the technology that solves these social demands.

Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - PESTLE Analysis: Technological factors

MYSZ's reliance on its patented algorithms for body measurement means it must stay ahead of competitors using AI and computer vision, plus the integration complexity with diverse retailer platforms is a constant hurdle. You are operating in a space where the technology itself is the product, so keeping that edge sharp is non-negotiable. Honestly, looking at your Q3 2025 revenue of $2.6 million, the market is clearly adopting the tech, but the pace of innovation elsewhere means you can't rest on your laurels.

Rapid advancements in AI-driven virtual try-on technology

The broader virtual try-on (VTO) market is exploding, projected to hit $108.5 billion by 2034, growing at a CAGR of 25.8% from 2025. This growth is powered by Augmented Reality (AR) and Artificial Intelligence (AI), making digital try-ons more realistic. For MYSZ, whose Naiz Fit platform is part of this ecosystem, this means consumer expectations for realism are rising fast. The fashion and apparel segment, where your core is, already accounts for an estimated 60% of the VTO market revenue. You need to ensure your proprietary algorithms, especially with the recent launch of NaizGPT, are keeping pace with general AI/CV applications that are showing high concordance with gold standards like DXA (CCC = 0.93-0.96) in body composition assessment.

5G network expansion improves mobile measurement accuracy

The continued rollout of 5G networks is a tailwind for your mobile-first solutions like MySizeID. 5G brings ultra-low latency-under 1 millisecond-and faster speeds, which is critical for real-time, data-heavy processes like body scanning and rendering virtual fits. While a 2019 projection suggested 5G would account for 15% of global mobile connections by 2025, the actual real-world performance improvements in data transfer directly benefit the responsiveness of your measurement apps on consumer devices. Better connectivity means fewer dropped scans and faster data transmission back to your servers, which should, in theory, improve the reliability of your measurement output in varied mobile environments.

Need for seamless integration with major e-commerce platforms (Shopify, Salesforce)

Your ability to scale is tied directly to how easily retailers can plug your sizing intelligence into their existing infrastructure. You've already made strides here, integrating with platforms like Shopify and Salesforce. The market trend shows that seamless integration is paramount for frictionless user experience and maximizing the impact of sizing tools within the buying journey. Given that your Q3 2025 results show Naiz Fit SaaS revenue growth of over 25% year-to-date, this integration strategy is working, but you must maintain compatibility and potentially build deeper native integrations with the top platforms used by your target retailers.

Ongoing patent defense against new sizing competitors is crucial

Your foundational value rests on your intellectual property, specifically the proprietary algorithms behind MySizeID. Back in 2020, you held nine issued/allowed patents and 10 pending applications globally. In a market seeing massive investment, defending this moat is essential to prevent competitors from replicating your core measurement methodology. The complexity of integrating your unified sizing intelligence engine (combining Naiz Fit, ShoeSize.Me, and MySizeID) means that any successful challenge to your IP could disrupt that entire ecosystem. You need to budget defintely for legal defense, especially as the market matures toward that projected $108.5 billion valuation.

Here's a quick look at how MYSZ's tech deployment compares to the market environment as of late 2025:

What this estimate hides is the operational cost of maintaining that patent portfolio against well-funded rivals. You need to ensure your cash position of $4.5 million (as of September 30, 2025) is sufficient to cover both R&D for the next generation of your algorithms and any necessary legal actions.

Finance: draft 13-week cash view by Friday

My Size, Inc. (MYSZ) - PESTLE Analysis: Legal factors

The core of MYSZ's technology involves collecting sensitive body measurement data, so compliance with global privacy laws like GDPR and CCPA is a non-negotiable, high-cost operational factor.

Stricter global data privacy laws (GDPR, CCPA) increase compliance costs.

For a company like MYSZ, which processes personal data to deliver its sizing solutions, the regulatory environment is a major line item. Ignoring GDPR, which applies extraterritorially to any company processing EU residents' data, is not an option, especially as MYSZ expands into Europe. The financial exposure is significant; GDPR fines can reach up to €20 million or 4% of global annual revenue. Given MYSZ's projected $15 million revenue for 2025, the maximum theoretical fine exposure under GDPR is substantial.

The investment required to stay compliant is also high. For mid-sized firms, annual compliance costs can average between $100,000-$350,000. Even for smaller operations, initial GDPR implementation costs can range from $20,500 to $102,500. You need to budget for ongoing operational expenses, not just the initial setup. Here's the quick math on typical annual compliance buckets for a company in your data-intensive sector:

What this estimate hides is the internal resource drain required to manage these systems day-to-day.

E-commerce consumer protection laws on product descriptions and sizing accuracy.

Your core business relies on accurate sizing recommendations, which directly intersects with consumer protection laws enforced by bodies like the Federal Trade Commission (FTC) in the US. The FTC Act strictly prohibits unfair or deceptive advertising practices. If your AI-driven sizing solution consistently leads to returns due to inaccurate fit, it could be argued as a misleading product description, opening the door to regulatory scrutiny or consumer claims.

Furthermore, as an e-commerce platform, MYSZ must adhere to fulfillment rules. The Mail, Internet, or Telephone Order Merchandise Rule mandates that all orders ship within the advertised timeframe, or within 30 days if no time is specified. This means your logistics and inventory management must be tightly coupled with your marketing promises. Also, be aware that new regulations in 2025 are scrutinizing auto-renewals and demanding one-click cancellation for online subscriptions.

Need for clear intellectual property (IP) protection across jurisdictions.

MYSZ's value proposition is built on its proprietary measurement technology driven by sophisticated algorithms. Protecting this core asset is paramount, especially with strategic expansion into Europe. You need clear, defensible intellectual property rights-patents, trade secrets, and trademarks-in every major market you operate in. While I don't see public reports of MYSZ being involved in major IP disputes as of late 2025, the general legal landscape shows that companies are actively litigating and defending their patents across key global jurisdictions like Germany, China, and the UK. A strong, multi-jurisdictional IP strategy is your moat.

Potential for class-action lawsuits related to data security breaches.

Data security is the Achilles heel for any company handling personal data, and MYSZ is no exception. The search results show that over 80% of GDPR fines in 2024 were due to insufficient security measures leading to data leaks. The financial fallout from a breach goes beyond regulatory fines; it includes legal defense costs and potential class-action exposure. Companies facing regulatory noncompliance costs saw an average of $5.05 million in 2024, significantly higher than the general cost of a data breach. If a breach occurs, the reputational damage can cause a loss of up to 9% of your customer base. You must have a robust, tested incident response workflow ready to go. Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - PESTLE Analysis: Environmental factors

The environmental cost of apparel returns-shipping, packaging, and landfill waste-is a major focus for retailers, and MYSZ's value proposition directly addresses this by reducing the volume of shipped goods.

Honestly, the pressure on retailers to clean up their act is immense, and it's only getting tighter in 2025. You see, Scope 3 emissions-the indirect ones from the value chain-make up about $\mathbf{95\%}$ of a typical apparel retailer's footprint. That's where My Size, Inc. (MYSZ) comes in; their core tech is a direct countermeasure to the waste generated by wrong sizes.

• Retailer pressure to meet Scope 3 emission reduction targets.
• Focus on sustainable packaging reduces return-related waste.
• Increased public scrutiny on the carbon footprint of returns logistics.
• MYSZ's technology helps reduce the estimated 15 million metric tons of CO2 from US returns annually.

The industry's environmental toll is staggering. The sector hit $\mathbf{944}$ million tonnes of emissions in 2023, which is nearly $\mathbf{2\%}$ of global emissions, and it's still growing. This means that every solution that cuts down on shipping and waste-like MYSZ's sizing tools-is suddenly mission-critical, not just a nice-to-have. It's about compliance and survival now.

The regulatory environment is catching up, especially in Europe, which is a key market for MYSZ's Percentil platform. New EU legislation is mandating durability, repairability, and traceability in apparel, making circularity a requirement, not an option. This structural shift means MYSZ's focus on resale infrastructure is perfectly timed to help brands navigate these new rules while optimizing logistics. If onboarding takes 14+ days, churn risk rises, but MYSZ is building the intelligence layer to avoid that friction.

Here's a quick look at how the macro environmental landscape compares to what MYSZ is delivering, based on 2025 context. We are seeing a clear divergence between the industry's rising emissions and MYSZ's strategic pivot toward circularity.

To be fair, MYSZ's direct impact on global CO2 is still small compared to the whole industry, but their leverage point is high. Their Q3 2025 revenue was $\mathbf{\$2.6}$ million, showing sequential growth, which funds the expansion of these sustainability-focused platforms like Naiz Fit and Percentil. The key takeaway is that MYSZ is selling the intelligence needed to comply with the environmental shifts that are now legally binding for their clients. That's a defintely strong tailwind.

Finance: draft 13-week cash view by Friday.