My Size, Inc. (MYSZ): 5 FORCES Analysis [Nov-2025 Updated]

You're looking at My Size, Inc. right now, trying to figure out if this AI-sizing play, which also runs the Orgad e-commerce segment, is a hidden gem or a tough slog. Honestly, mapping out their competitive landscape using Porter's Five Forces reveals a battlefield: suppliers of scarce AI talent and data hold real sway, while big retail customers can really push on pricing. Given the company's small-cap status-just a $5 million market cap-and that reported $3.0 million operating loss in Q3 2025, the rivalry in this fragmented fashion-tech space is defintely intense. Below, we break down exactly where the pressure is coming from-from free substitutes to high entry barriers-so you can see the clear risks and the few real moats My Size, Inc. has built.

My Size, Inc. (MYSZ) - Porter's Five Forces: Bargaining power of suppliers

You're running a tech-heavy business like My Size, Inc. (MYSZ), where your core value-AI-driven sizing-is built on external foundations. That means the suppliers for those foundations have leverage over you, plain and simple.

The power from cloud infrastructure providers is definitely high because your AI/SaaS platforms, like Naiz Fit, demand serious compute. Naiz Fit is showing momentum, with over 25% year-to-date SaaS revenue growth as of Q3 2025, meaning your consumption of these external cloud resources is scaling up right alongside your revenue, which hit $2.6 million in Q3 2025. You need that infrastructure to run those algorithms, so you don't have much wiggle room on pricing or service terms from the hyperscalers.

For the Orgad e-commerce segment, reliance on Fulfillment by Amazon (FBA) logistics is a major factor. While the FBA model contributed to improved logistics and margin performance for Orgad, you are still tethered to Amazon's operational structure and fee schedule. To give you some perspective on the scale of that supplier, Amazon's Online Stores segment alone generated $57.4 billion in revenues in the first quarter of 2025. That's a massive supplier you are depending on for fulfillment efficiency.

Next up is the scarcity of specialized AI/ML talent. Developing and maintaining proprietary algorithms, especially with the move toward an LLM-powered assistant, requires specific expertise. You need to keep your cash position strong-which stood at $4.5 million as of September 30, 2025-to compete for this talent, but the market rate for that expertise dictates the price. You are competing for a limited pool of people who can advance the core technology that underpins your value proposition.

Finally, suppliers of high-quality, proprietary body or garment data can command high prices. Your recent acquisition of ShoeSize.Me illustrates this dependency perfectly. That technology has analyzed more than 92 million consumer shopping experiences, 23 million shoe sizes across 19 international scales, and 1.2 million shoe models. These massive, unique datasets are the lifeblood of accurate sizing, and the original owners or aggregators of that data hold significant pricing power over My Size, Inc. (MYSZ).

Here's a quick look at the key dependencies you face:

• Cloud providers power AI/SaaS growth (25% YTD SaaS revenue growth).
• Amazon FBA dictates Orgad logistics efficiency.
• Specialized AI talent is needed for proprietary algorithms.
• Data aggregators control access to rich measurement sets.

We can map out the critical supplier relationships and the associated metrics that define their power:

The data volume controlled by potential data suppliers is staggering. For instance, the ShoeSize.Me technology, now integrated, processes data points that are themselves a measure of supplier leverage:

• Total consumer shopping experiences analyzed: Over 92 million.
• Total shoe sizes processed: 23 million.
• Number of international scales used: 19.
• Number of shoe models analyzed: More than 1.2 million.

Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - Porter's Five Forces: Bargaining power of customers

You're looking at My Size, Inc. (MYSZ) through the lens of customer power, and honestly, the dynamics suggest a constant need to prove value. Retailers, especially the big ones, hold significant sway because the friction to try a different sizing technology isn't as high as you might think. It's a competitive space, and My Size, Inc. (MYSZ) has to keep delivering tangible, measurable wins to keep those contracts signed and renewed.

For B2B retail customers, the threat of switching to a competitor's fit-tech solution is real. While My Size, Inc. (MYSZ) has integrated platforms like Naiz Fit, ShoeSize.Me, and MySizeID, the underlying technology is still subject to comparison. The company's strategy of acquiring ShoeSize.Me in September 2025 to create a unified platform serving apparel and footwear clients worldwide shows they understand the need for a comprehensive offering to lock in customers, but it also suggests a defensive move against fragmentation or competitive offerings. The fact that ShoeSize.Me is on track to surpass €0.5 million in SaaS revenues in 2025 shows there is a viable market for alternatives, even in specialized areas like footwear sizing.

The power of the B2C end-user is simpler but just as important. If the digital sizing experience is clunky or inaccurate, they have zero cost to switch back to manual sizing methods or simply abandon the purchase on that retailer's platform. This forces My Size, Inc. (MYSZ)'s retail clients to demand perfection, which trickles down to pressure on My Size, Inc. (MYSZ) for flawless execution.

Retailers are definitely using hard numbers to negotiate. They aren't renewing based on promises; they want to see the impact on their bottom line. The benchmark for success that retailers often demand before renewal is a quantifiable result, such as a 14% reduction in return rates. This specific metric, which the Naiz Fit technology has previously demonstrated, becomes the price of entry for continued partnership. My Size, Inc. (MYSZ)'s Q3 2025 results show the technology platforms are growing, with Naiz Fit reporting over 25% year-to-date SaaS revenue growth, but this growth must continue to justify the perceived low switching cost for the customer.

When you deal with large fashion brands and major e-commerce platforms, volume talks. These anchor clients definitely have the leverage to negotiate lower Software as a Service (SaaS) fees. While I don't have the exact negotiated discount percentages for late 2025, the dynamic is clear: larger contracts mean better pricing power. The company's Q3 2025 revenue was $2.6 million, with a gross profit of $1.0 million. For these large customers, the total contract value is substantial, giving them leverage to push on the per-use or subscription cost, which directly impacts My Size, Inc. (MYSZ)'s margin realization.

Here's a quick look at the performance metrics that directly feed into these customer negotiations:

The pressure from customers is also reflected in the overall financial context. My Size, Inc. (MYSZ) reported an operating loss of $3.0 million in Q3 2025. This means that while the company is focused on scaling, as evidenced by the 26% sequential revenue increase from Q2 2025 to Q3 2025, any concession on SaaS fees to a large customer directly widens that loss, making customer retention a delicate balancing act between securing volume and maintaining unit economics. The company's cash position of $4.5 million as of September 30, 2025, also means they cannot afford prolonged contract disputes with major clients.

The customer bargaining power is further evidenced by the strategic moves My Size, Inc. (MYSZ) is making to consolidate the market. The acquisition of ShoeSize.Me was structured primarily as a share deal, with only a $150,000 cash payment. This move to build a unified platform suggests that offering a broader, more integrated solution-covering both apparel and footwear-is a necessary action to increase the perceived switching cost for their B2B clients. You need to see the integration of ShoeSize.Me with Naiz Fit and MySizeID as a direct countermeasure to customer leverage.

• B2B customers evaluate solutions based on hard ROI, like the 14% return reduction target.
• Large clients negotiate pricing based on their scale, impacting the $1.0 million gross profit base.
• The B2C user base dictates the quality bar for all deployed solutions.
• The company's roll-up strategy aims to increase stickiness across its 20+ ShoeSize.Me retailers and the 100+ brands using Naiz Fit in 2024.

Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - Porter's Five Forces: Competitive rivalry

You're looking at a market where the noise level is deafening, and My Size, Inc. (MYSZ) is fighting for airtime. Competitive rivalry in the fashion-tech space, particularly around sizing and circularity, is intense. This environment necessitates MYSZ's stated roll-up Mergers and Acquisitions (M&A) strategy to consolidate market share and technology, which is evident in recent deals like the acquisition of key assets of Percentil in May 2025, expanding operations across Spain, Italy, Germany, and France. This is not a quiet industry; it's a land grab.

Direct competition comes from specialized players and larger software entities. While MYSZ acquired the AI sizing firm Naiz Fit back in October 2022 to bolster its European presence, the competitive set includes general software companies like Smith Micro Software (SMSI), which is listed as a main competitor. To be fair, SMSI, a small-cap peer, reported 2024 revenue of $18.36 million compared to MYSZ's $8.26 million in 2024, showing the funding disparity MYSZ faces against larger rivals.

The financial reality underscores the pressure. As of September 30, 2025, My Size, Inc. reported an operating loss of $3.0 million for the third quarter. This loss, despite a 9% year-over-year improvement in the operating loss figure, suggests intense price competition or significant reinvestment costs necessary to maintain a competitive edge against better-capitalized players. The company's market capitalization as of November 25, 2025, stood at $3.165 million, confirming its small-cap status while it attempts to execute a global expansion.

Competition is definitely global, which adds complexity. My Size, Inc. is actively expanding its European footprint through its acquired assets. The Percentil secondhand marketplace operates across four key European markets: Spain, Italy, Germany, and France. Furthermore, the September 2025 acquisition of ShoeSize.Me, which operates under the Naiz Fit umbrella, strengthens the unified sizing intelligence engine for apparel and footwear clients worldwide.

Here's a quick look at the recent financial context that frames this rivalry:

The need to generate recurring, high-margin revenue is paramount given the operating burn. The momentum in the SaaS segment is a key counter-force to the rivalry:

• Naiz Fit reported over 25% year-to-date SaaS revenue growth.
• The ShoeSize.Me acquisition is expected to unlock revenue synergies in Europe and the Middle East.
• Percentil is scaling across Spain, Italy, Germany, and France.
• The roll-up strategy aims to create a unified sizing platform across apparel and footwear.

Finance: draft 13-week cash view by Friday.

My Size, Inc. (MYSZ) - Porter's Five Forces: Threat of substitutes

You're assessing the competitive landscape for My Size, Inc. (MYSZ) as of late 2025, and the threat from substitutes is significant because the baseline cost for avoiding your solution is often zero. Traditional, non-digital substitutes like standard size charts and simple tape measure methods are, quite simply, free to use. This zero marginal cost creates a very low barrier for customers to default to established, albeit inaccurate, methods when a digital sizing solution is not readily available or mandated by the retailer.

Retailers' robust, free returns and exchange policies act as a powerful financial buffer, substituting the need for your precise sizing technology. The average e-commerce return rate for 2025 is cited at 24.5% by CapitalOne Shopping, while other industry benchmarks place the overall rate at 16.9%. To put that volume in perspective, e-commerce returns in the U.S. totaled nearly $890 billion in 2024, which was 17% of total retail sales. For categories like Women's Fashion, that rate hits 27.8%, and for Shoes, it is 31.4%. Furthermore, 79% of consumers consider free return shipping non-negotiable, and 92% of customers say they are more likely to purchase from retailers with easy return processes. This willingness to absorb the cost of returns means the perceived risk of an incorrect size purchase is heavily mitigated by the retailer's policy, not by the customer using a sizing tool.

General-purpose smartphone camera apps or AR/VR try-on features from competitors present an evolving technological substitute. The Virtual Try-Ons & AR Shopping Market size was estimated at USD 4.18 billion in 2024 and expected to reach USD 4.61 billion in 2025. Augmented Reality (AR) is the leading technology, holding a 63.4% share in the Virtual Try-On Platform Market in 2025. It's defintely a crowded space, with research suggesting 80% of retail brands will use AR for customer engagement by 2025. While My Size, Inc.'s Naiz Fit technology has shown a 14% reduction in return rates in its deployments, competitors' general AR tools still offer a visual substitute that can boost confidence, with 98% of those who tried AR finding it helpful in purchase decisions.

In-store solutions like the FirstLook Smart Mirror are substitutable by competitor smart mirrors and other in-store visualization tech. While specific market share data for individual smart mirror hardware is less public, the broader trend shows significant investment in immersive tech. The Global Virtual Try-Ons Market is projected to grow at a Compound Annual Growth Rate (CAGR) of 25.8% from 2025-2034. This indicates that physical retail spaces are also adopting visual sizing aids, which directly compete with the need for a remote, digital-first solution like My Size, Inc.'s core offering.

Here's a quick look at how the performance of My Size, Inc. (MYSZ) stacks up against the context of these substitutes, based on their latest reported figures:

The consumer's path to purchase is increasingly influenced by these alternatives, which are often free or backed by retailer logistics budgets. The pressure on My Size, Inc. (MYSZ) is to demonstrate a quantifiable return on investment that significantly outperforms the cost absorbed by free returns or the visual appeal of a competitor's AR feature. For instance, the company's Q3 2025 net loss was $2.8 million, compared to $3.4 million in the prior year, showing progress, but the competitive substitution threat remains high.

The key substitute drivers are:

• Standard sizing methods: Cost is $0.
• Free returns/exchanges: 92% of customers prefer this ease.
• AR/VR try-on market size: Projected at USD 4.61 billion in 2025.
• Competitor AR conversion lift: Up to 94% higher conversion rates reported.

My Size, Inc. (MYSZ) - Porter's Five Forces: Threat of new entrants

You're looking at the barriers to entry in the specialized AI sizing space, and honestly, the numbers suggest My Size, Inc. (MYSZ) has built some significant walls. For a new player to even attempt to compete on the same scale, the capital outlay for proprietary AI model development and acquiring comparable big data sets is steep. Consider My Size, Inc.'s own financial footing as of late 2025: the company reported Cash and equivalents of $4.5 million as of September 30, 2025. That's the capital base they are working with; a new entrant needs to match or exceed that just to start building, let alone scale.

The data asset My Size, Inc. has amassed is a prime example of a data moat that takes years and significant spend to replicate. This isn't just a few thousand customer inputs; this is deep, validated retail intelligence. The integration of ShoeSize.Me, for instance, added to an already substantial asset base.

Here are the concrete figures that define this data advantage:

This depth of analysis, which feeds the AI, is not easily duplicated. For example, the ShoeSize.Me component alone is projected to surpass €0.5 million in SaaS revenues in 2025 through its ShoeAI solution. That's recurring revenue built on that data moat.

Still, not every threat is existential. The barrier to entry for basic, non-AI-driven sizing calculator apps is definitely low. Anyone with basic coding skills can spin up a simple app, but those solutions won't deliver the same conversion uplift or return reduction metrics that My Size, Inc.'s advanced platforms offer. The real hurdle is the technology gap.

Also, establishing the necessary B2B relationships and achieving deep integration with major e-commerce platforms presents a high hurdle for newcomers. My Size, Inc. has successfully integrated its platforms, evidenced by the acquisition of ShoeSize.Me structured as a share deal plus a cash payment of an aggregate of $150,000, showing the cost of acquiring established integration points. Furthermore, the company's platform, Orgad, has secured certification as a supplier for a major European retailer, opening up significant market access.

Finally, regulatory compliance in new markets creates another layer of entry friction. My Size, Inc. is actively positioning its Percentil platform as a leader in Europe's circular fashion economy, with operations across Spain, Italy, Germany, and France. Navigating the specific compliance requirements, like those surrounding the EU's circular fashion economy mandates, requires dedicated legal and operational resources that a startup might lack initially. The Naiz Fit SaaS platform itself showed over 25% year-to-date SaaS revenue growth as of Q3 2025, indicating momentum in these complex, regulated markets.

• High upfront investment for comparable AI/data infrastructure.
• Established relationships with major retailers are critical for scale.
• Regulatory navigation adds time and cost to market entry.
• My Size, Inc. has $4.5 million in cash as of September 30, 2025, for R&D and M&A.
• Acquisition of ShoeSize.Me cost $150,000 cash plus stock.

Finance: draft 13-week cash view by Friday.