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1
March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Deborah Weinswig Managing Director,
Fung Global Retail & Technology
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
Shoptalk 2017 Day 1 Takeaways: Startup Pitch
OnSunday,FungGlobalRetail&TechnologyManagingDirector,DeborahWeinswig,emceedShoptalk’sstartuppitchcompetitiontokickoffthisyear’sevent.
Thecompetitionfeatured15innovativeearly-stagecompanies,whichsheclassifiedintooneoffourcategoriesrepresentinganareaoffocusamongretailersastheyadapttotherealitiesofdigitalcommerceandchangingconsumerpreferences.
Thosecategoriesincluded:executingretailasaplatform,makinguseofconnectedtechnology,engaginginexperientialretailandprovidingproductcuration.
Weinswigconcludedthepitchcompetitionwithapresentationonthecurrentstateoftheretailenvironment,emphasizingtheunfolding“retailrevolution,”whichisreshapingtheindustryglobally.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
OnSunday,DeborahWeinswigemcee’dastartuppitchcompetitiontokickoffShoptalk’s2ndannualconference.Describedbyitsorganizersas“thenext-generationcommerceevent,”Shoptalkexpectsmorethan5,000attendeesatthisyear’sLasVegasevent.Fromnewtechnologiesandbusinessmodelstochangesinconsumerpreferencesandexpectations,attendeesareexploringdisruptionintheretailindustry,particularlyhowconsumersdiscover,shopandbuy.
Source:FungGlobalRetail&Technology
15InnovativeCompanies,3DistinguishedJudges,2CashPrizesForthesecondyearinarow,FungGlobalRetail&Technology’sManagingDirector,DeborahWeinswig,emceedastartuppitchcompetitionatwhich15innovativeearly-stagecompaniesvyingfortwocashprizesof$25,000hadtopitchbeforeapanelofthreedistinguishedjudges:
• SanjitDang,InvestmentDirectoratIntelCapital,drivesinvestmentsine-commerce,virtualandaugmentedreality,machinelearningandartificialintelligence.
• J.SkylerFernandes,InvestorandFounderatOneMatchVentures,isfocusedoninvestinginthefutureinnovationofretailandcommerce.
• PatriciaNakache,GeneralPartneratTrinityVentures,concentratesonfundingonlineconsumerandbusinessservices,andisparticularlyinterestedinmobile,machinelearningandcrowd-sourcingofInternetservices.
SanjitDang J.SkylerFernandes PatriciaNakache DeborahWeinswig
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Weinswigclassifiedeachcompanyunderoneoffourcategoriesrepresentinganareaoffocusamongretailersastheyadapttotherealitiesofdigitalcommerceandchangingcustomerpreferences:executingretailasaplatform,makinguseofconnectedtechnology,engaginginexperientialretailandprovidingproductcuration.
The15companiesthatparticipatedwere:AdeptMind,Busker,Commerce.AI,DropSpot,Everywear,Feed.fm,Fract,Hanger,Myagi,Obsess,QueueHop,Returnly,ShopperKit,TigerTradeandZiel.Eachcompanyfitsintoatleastoneofthefourareasofopportunityforretailersoutlinedabove.
Source:FungGlobalRetail&Technology
Two$25,000prizeswereawarded,onebasedonvotesfromthejudgesandtheotheronaudiencevotesregisteredviatheShoptalkapp.Eachstartupwasassessedontheretailchallengeithopedtosolve,thefeasibilityofitsbusinessmodel,itsscalabilityandthepresenter’sconfidence.
AndtheWinnersWere?Judge’sprize:Returnly,aB2Bfintechplatformthatstreamlinesthereturnsexperiencebyofferingshoppersinstantreturns,wasselectedbythejudges.
Audienceprize:Myagi,amobile-andweb-basedtrainingplatformthatconnectsretailersandbrandswiththeirsalesassociates,waschosenbytheaudience.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Below,weincludepicturesofthetheShoptalk2017StartupPitchwinnersandkeyeventparticipants.SonalGandhi,VPofContentStrategyforShoptalkandinstrumentalinthestartupselectionprocess,alongwithJonathanWeiner,Co-FounderofShoptalk,joinedthewinnersonstagetopresenttheprizes.
Source:FungGlobalRetail&TechnologyFromLefttoRight:SonalGhandi,EduardoVilar(Founder,Returnly),JonathanWeiner,J.SkylerFernandes,DeborahWeinswig,SanjitDang,PatriciaNakache
Source:FungGlobalRetail&TechnologyFromLefttoRight:SonalGhandi,SimonTurner(Co-Founder,Myagi),JonathanWeiner,J.SkylerFernandes,DeborahWeinswig,SanjitDang,PatriciaNakache
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
StartupProfilesBelow,webrieflyintroducethetwowinnersandtheother13competitors.Toreadmoreaboutthecompanies,pleaseseeourShoptalk2017WorkbookStartupPitchSeriesreport.
CompanyName DescriptionAdeptMind Acompanythatimprovesthesearchandcustomerservice
Q&Aexperienceusingdeepactivelearning.
Busker Alivestreamplatformthatallowsanyonetoshowcaseatalentorshareaproducttheylove.
Commerce.AI AnAI-poweredsystemthatsees,readsandlistenstotheworld’sproductinformationwithdeepproduct-learningtechnology.
DropSpot Amobileappthatturnsneighborhoodstoresintopackagepickuplocations.Customersreceivepackagesthroughanetworkofneighborhoodmerchantsthatdrivestraffictothestores.
Everywear Asoftwaresolutionforretailers’andbrands’e-commercewebsitesthatpersonalizestheuser’sbrowsingandpurchasingexperience.
Feed.fm A“music-as-a-service”platformthatallowscompaniestointegratemusicintotheirwebsitesandmobileapps.
Fract AnAIplatformthathelpsretailersoptimizestorelocationsandmapterritoriesandtradeareas,usinggeospatialintelligence.
Hanger Aplatformfortrackingandsharingclothingandstyleinspirationswithintheuser’spersonalnetworkoffriendsandfamily.
Myagi Amobile-andweb-basedtrainingplatformthatconnectsretailersandbrandswiththeirsalesassociates.
Obsess AVRshoppingplatformforfashionbrandsandretailers.
QueueHop Aplatformthatgivescustomerstheoptiontocheckoutontheirphones,andavoidthehassleofwaitinginline,usingQRcodescanningandRFID-poweredsecuritytagsonitems.
Returnly AB2Bfintechplatformthatoffersbrandsastreamlinedreturnsexperience.
ShopperKit Asoftwareplatformthatenablesexistingbrick-and-mortarstorestoreceive,prioritizeandprocessonlinegroceryorders.
TigerTrade AnonlineB2Bwholesalemarketplaceforbuyingandsellingexcessinventory.
Ziel Ane-commerceplatformthatenablesanylifestylecompanytoexpandthereachofitsbrandsintoactivewear.
Judge’sprize
Audienceprize
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
AdeptMindInc.
ArtificialIntelligence(AI)hasexperiencedaperiodofrapiddevelopmentoverthepastdecade.AIisanareaofcomputersciencethathasexistedlongbeforetheinventionofpersonalcomputersandcellphones.MachinelearninganditssubcategorydeeplearninghaveacceleratedthecommercialapplicationsofAI.
Therapiddevelopmentisdrivenbythreefactors:theavailabilityofbigdatatotrainAIsystems,accelerationofcomputingpowerandheavyinvestmentsinthisarea.RetailersandbrandshaveexperimentedwithAI-basedtechnologiessuchasautomatedcustomerservicebots,socialmediaanalysisandrecommendationoptimization.
CompanyDescriptionAdeptMindInc.isacompanythatimprovesthesearchandcustomerserviceQ&Aexperienceusingdeepactivelearning.Thecompanyaimstoprovidee-commercesmall-tomedium-sizeenterprises(SME)withaturnkeysolutiontoimprovethesearchandproductinquiryexperience.TheAdeptMind-poweredsystemallowscustomerstoinputtheirrequirementdetailsintoasearchbarandthesystemcanreturnwithaccuratesearchresults.AdeptMindestimatesthereareatleast100,000e-commerceSMEsthatareinneedofthisservice.
WhatProblemisAdeptMindSolving?AI-basedsoftwareimprovesproductsearchaccuracyandbroadensthescopeofthewordsbeingsearchedbycustomers.Italsoprovidesinstantanswersaboutproductsandshoppingdetailssuchasshippingcostsandinstallationservicesusingdeepactive-learningtechnology.
RevenueModelandCompetitiveLandscapeRevenuemodel:AdeptMindchargesacommissionfeeonimprovedsalesplusamonthlysubscriptionfee.
Competitivelandscape:AdeptMindcompeteswithnaturallanguagesearchstartupslikeZettata,TwiggleandAddStructure.
ManagementTeamGWu,CEOofAdeptMind,wasaco-founderofMaluuba,whereheoversawengineering,andproductandbusinessdevelopmentforvoiceassistants.Today,hehasshiftedhisfocustodeeplearningapplicationstobolstere-commercerevenuegeneration.
IndustryandCompanyOutlookWeexpecttoseeanaccelerationofAI-poweredsystemsadoptionbyretailersandbrands.Theshiftfromatext-basedinterfacetoavoice-basedonepresentschallengestoretailersintheircurrentoperationsoftheirdigitalshoppingchannel.AdeptMindhelpstoimprovethesearch-basede-commerceexperience.ThereisincreasingcompetitioninAI-basedsolutionprovidersforretail.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Busker
Overthepasttwoyears,livestreamcontenthasincreasinglyoccupiedalargershareofviewingtime.MainstreamsocialmediaplatformssuchasTwitterandFacebookalsointroducedtheirversionsofthelivestreamingfunction.Chinaisattheforefrontoflivestreamingdevelopment.LivestreamingistheprimarychannelthroughwhichinternetinfluencersinteractwithfollowersinChina.However,thereisstillnodominantlivestreamplatformintheUS.AfterinitialdevelopmentsbyPeriscopeandMeerkat,technologycompaniessawbothpotentialandchallengesincreatinglivestreamplatforms.
Source:busker.co
CompanyDescriptionBuskerfallsundertheexperientialretailcategory.Itisalivestreamplatformthatallowsanyonetoshowcaseatalentorshareaproducttheylove.Viewerscanpostcommentsandquestionstointeractwiththehostsreal-time.Buskersupportspaymentswithinthelivestreamvideossoviewerscanenjoyasee-now-buy-nowshoppingexperience.Ithasbuiltacommunityof2,000dailyactiveusers.Thecompanyaspirestobecomeashoppablelivevideoplatformthatpairsbrandswithinfluencers.
WhatProblemisBuskerSolving?Thereissignificantwhitespaceforshoppablelivestreamingplatformsthatallowretailersandbrandstointeractwiththeircustomersvialivecontentcreatedbyinfluencers.Retailersandbrandshaverealizedthepotentialofinfluencermarketingandthepowerofvideos.However,combininglivestreamingandshoppingisstillanascentideaintheUS.Therehasnotbeenago-toplatformforbrandstointeractwiththeircustomersvialivevideos.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
RevenueModelandCompetitiveLandscapeRevenuemodel:BuskertakesacommissionontransactionsthatoccurduringBusker-hostedlivestreamingsessions,whileviewersparticipateforfree.
Competitivelandscape:CompetitorsincludePeriscopeandMeerkat.
ManagementTeamCo-FounderandCEO,LippeOosterhof,hasastrongtrackrecordinmedia.Hehasledsalesandbusinessdevelopmentinthreeonlinevideoandpublishingstartups.OosterhofisalsocurrentlyCEOofLivestation,whichisthelargestonlineaggregatoroflinearnewsTVchannelswithover5millionmonthlyvisitors.
Source:busker.co
IndustryandCompanyOutlookWeexpectretailersandbrandstolookforwaystoworkwithtechnologycompaniestocreatelivestreamcontent.Buskeriswellpositionedtodevelopnicheshoppingusecasesforlivestream,whichisanuntappedmarketingareaforbrandsandretailerstoreachtargeteddemographics.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Commerce.AI
AnotherAIstartupinthepitchcompetitionisCommerce.AI.
CompanyDescriptionCommerce.AIisanAI-poweredsystemthatsees,readsandlistenstotheworld’sproductinformationwithdeepproduct-learningtechnology.Thistechnologyhelpsretailersandbrandstounderstandwhatcustomersaretalkingaboutattheproductlevelandtobuildpowerfule-commercecatalogues.Someusershaveexperienceda25%increaseinsalesafterimplementingthetechnology.Thecurrentsystemhasprocessed10millionproductsworldwide.
Commerce.AIhasworkedwithWalmartandthreeothermajorretailbrandsontheirmerchandisingoptimization.
WhatProblemisCommerce.AISolving?AI-trainedsystemscouldusepredictiveanalyticstooptimizeonlinemerchandizing.Traditionally,productcataloguesareselectedmanuallybymerchandiserswithlimitedinformation.
RevenueModelandCompetitiveLandscapeRevenuemodel:Commerce.AIprovidesanAI-basedsoftwareasaserviceforretailersinexchangeforamonthlycharge.
Competitivelandscape:WhiletherearefewAIcompaniesspecializinginonlinemerchandising,Commerce.AIcompeteswithotheromnichannelpredictivemerchandisingstartupssuchasCelectandBlueYonder.
ManagementTeamAndyPandharikar,theCEOandCo-FounderofCommerce.AI,isaserialentrepreneurandangelinvestor.Heco-foundedFitiquettein2010,whichwasacquiredbyMyntrawherehetookonthepositionofChiefInnovationOfficer.MyntrawaslateracquiredbyFlipkart.In2015,PandharikarfoundedTallIdeaLabs,anincubatorthatincubatesnewideasrelatedtomachinelearning,NLP(naturallanguageprocessing),linguisticalgorithms,narrowAIanddeeplearning.HeisanangelinvestoratSFAngelsGroup.
IndustryandCompanyOutlookAI-powereddataanalyticssolutionsarejustbeginningtoentertheretailspacewhenitcomestooptimizingthemerchandisingprocessandimprovingproductassortmentsonlineandoffline.Inthefuture,weseeAIbringinglocalizedproductofferingsinthephysicalspaceandpersonalizede-commerceexperiencestoafargreaterdegreethatwhatweseetoday.Commerce.AIiswellpositionedtoplayinthisspace.Thecompanycanhelpretailerstooptimizetheirproductdisplaysinordertoimproveconversion.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DropSpotAstheshoppingjourneyforcustomersbecomesmorecomplexandmoreexpensiveforretailers,wecontinuetoseemorecreativewaysfore-commercefulfilment.Anincreasingshareofpurchasesisbeingfulfilledthroughclick-and-collectandfromthird-partycollectionpointssuchaslockers.Over$100millionofmerchandisewasdeliveredviasame-dayfulfilmentin20citiesintheUSin2016.
Amongrecentlast-mileinnovationsareexperimentsbylargeretailerssuchasAmazonandWalmarttoredesigntheirstorestobuildincollectionservices.Amazonissettoopenthreedrive-throughgrocerycollectionstores.
CompanyDescriptionDropSpotisamobileappthatturnsneighborhoodstoresintopackagepickuplocations.Customersreceivepackagesthroughanetworkofneighborhoodmerchants,drivingtraffictothestores.DropSpotsolvestheproblemofhome-packagedeliverybylettingconsumersreceivetheirpackagesatpickuplocationsclosetotheirhomeorwork.Thecompanyhasenlistedover1,000merchantsacrossthecountrytobecome“dropspots”forpackages,andthenumberisexpectedtodoublebytheendof2018.
WhatProblemisDropSpotSolving?Ase-commercegainsmoreshare,retailersneedtobecomemorecreativeintacklingthechallengesoflast-milefulfillment.Last-mileisoftenacostlypartoffulfillmentandisimportantinbuildinggoodcustomerrelations.Turningneighborhoodstoresintopackagepickuplocationsprovidesconveniencetothecustomers,whiledrivingtraffictotheretailstores.
RevenueModelandCompetitiveLandscapeRevenuemodel:ThecompanychargesretailersasmallfeeforeachpackagedeliveredthroughaneighborhoodstoreinDropSpot’snetwork.DropSpotchargescustomersareturnservicefeeforthosewhosendpackagesback.Thecompanyalsoofferspremiumconciergeandvacationstorageandinsurancefeesforcustomerswhowouldliketohaveamorepersonalizedservice.
Competitivelandscape:DropSpotcompeteswithotherthird-partylast-miledeliverycompaniessuchasPostmatesandDeliv.
ManagementTeamCo-founderandChairmanofDropSpot,RichardWarynisaseasonedentrepreneurandprivate-equityprofessionalwithexperiencebuying,growingandexitingfromawidevarietyofearly-tomid-stagegrowthcompanies.SincemovingtoColoradoin2010,Warynhasfocusedoninvestinghisownportfolioinavarietyofprivately-heldcompanies.
IndustryandCompanyOutlookWeexpectretailerstocontinuetousetechnologiestofulfillordersinatimelyandcost-efficientmanner.Therewillbemorecollaborationbetweenretailersandthird-partydeliverycompaniestomeetthegrowingdemandforpackagedelivery.Morecapital-lightandflexibledeliveryservicescompaniessuchasDropSpotwillhavetheopportunitytotakemarketshareinthisspace.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Everywear
Astraditionalretailersstruggletooptimizee-commerce,newspecialtyretailersarelaunchingwithconsiderabletraction.RetailerssuchasEverlane,Bonobos,WarbyParkerandBirchboxaremeetingthedemandforconvenienceandpersonalization.Customers,particularlymillennials,areoftenlessattractedtomass-marketedproducts.Nicheproducts,experiencesandserviceuniquelysuitedtoindividualtastes,interestsandaspirationshavebecomethenewconsumerinterest.Consumersincreasinglywantproductsthataredirectedtowardsthemonapersonallevel.
Source:everywear.com
CompanyDescriptionEverywearfallsintotheproductcurationcategoryofretailinnovation.Itisasoftwaresolutionforretailersandbrands’e-commercewebsitesthatpersonalizestheuser’sbrowsingandpurchasingexperience.Newusersareaskedtogothroughaseriesofquestionssuchaswhatlookswouldyouliketoseemost,whatagegroupdoyoufallintoandwhat’sinyourcloset.Everywearthenmakesoutfitandproductrecommendationsbasedontheshopper’sclosetandtheshopper’stastes.
Inessence,thecompanyprovidespersonalizedproductrecommendationsforthecustomer.Throughtheapp’smessagingsystem,Everywearalsoconnectsuserswithstyliststohelpthemshopbasedontheirclosetandpersonaltaste.
WhatProblemisEverywearSolving?AccordingtotheshoppingcommerceplatformShopVisible,presentconversionratesinfashionandbeautye-commerceare5x–7xlowerthanin-storerates.Existinge-commerceplatforms,suchasRadial,Demandware,BigCommerceandMagento,capitalizeontheneedforsearch,butoftenlackafront-endintelligencelayerthatpromotescross-merchandisinganddiscovery.Everywearislookingtofillthatgap.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
RevenueModelandCompetitiveLandscapeRevenuemodel:Thecompanyhastwomodels:1)forlargedepartmentstores―itchargesanupfrontset-upfee,monthlylicensingfeeandamonthlymaintenancefee;and2)forlarge-andmedium-sizedbrands―thecompanychargestheaforementioneditemsandreceivesanincrementalrevenueshare.
Competitivelandscape:Competitorsinclude:1)B2CpersonalizedstylingcompaniessuchasStitchFix,TrunkClubandPSDept;and2)B2BcompaniesthatoptimizeconsumerdataforconversionsuchasTrueFit,ShopifyandNersuite.
ManagementTeamEverywearwasfoundedbyCEOBrandonHolleyin2015.Holleyistheformereditor-in-chiefforLucky,theaward-winningshoppingandstylingmagazine.ShebeganhermagazinecareerasawriterforPaper,whicheventuallyledtoleadershiprolesatTimeOutNewYork,GQ,ELLEgirlandYahoo!Shine.
Source:everywear.com
IndustryandCompanyOutlookEveryweariscurrentlyfocusedonapipelineoflargefashionandbeautyoperations,butanticipatesexpansionintothehomespaceandsmallerretailvenues.AccordingtoHolley,asthecompanyenhancesitstechnology,datacaptureandbrandposition,itenvisionsadditionalcapabilitiesasadiverseconsumermarketingdeliverysolutionservingarangeofretailsegments.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Feed.FM
Retailersandbrandsareactivelytryingtobuildaudience,engagementandretentiontotheirmobileappsande-commerceplatforms.TheUSretailindustryspentandestimated$15.09billionononlineandmobilemediaadvertisingin2016,up14.9%from2015,accordingtoeMarketer.Withshoppingincreasinglytakingplaceondigitalplatforms,andconsumersshoppingmoreontheirmobiledevices,brandsaretryingtocreatedeepercustomerengagementthroughmobileplatforms.Usingmusictoimprovethecustomerexperiencehasbeendonefordecades,butusingmusiconlinetobuildengagementandretentionisrelativelynew.Musiccanbeapowerfulmarketingplatformtoincreasecustomerengagementandloyalty.
CompanyDescriptionFeed.fmfallsundertheexperientialretailcategory.Itisa“music-as-a-service”platformthatallowscompaniestointegratemusicintotheirwebsitesandmobileapps,aswellasprovidestatisticstothebrandonhowpeopleareengaging.Whencustomersvisitthebrand’smobileapporwebsite,theyreceiveanopt-inoption,sotheycandecidewhetherornottoplaythemusic.
Theeditorialteam,ormusicexperts,workswiththebrandstocreatecustomtracklistsbasedontheiraudienceandpreferences.Feed.fmhandlesthenegotiationsandlicensingwiththeartiststomakesuretheyareproperlycompensatedandtherearenocopyrightissues.Ina60-daytrialperiodwithAmericanEagle,Feed.fmreporteda200%increaseinsessiontimeswhencustomersengagedwiththeradio,a100%increaseinretentionanda200%increaseintheuniquevisitortoorderconversionrate.
WhatProblemisFeed.fmSolving?Traditionalretailersaretryingtokeeppacewithe-commerce,particularlyAmazon,soofferinguniquebrandedcontenttoengageusersisveryimportant.Withtheriseofsocialcommerce,retailersalsofacetheriskoflosingbusinesstosocialcommerceplatformssuchasFacebook,InstagramandPinterest.Inaddition,integratingdigitalmusicintoretailplatformsiscomplex,largelybecauseofthehighcostsassociatedwithlicensingsongsandcopyrightissues.
RevenueModelandCompetitiveLandscapeRevenuemodel:Feed.fmisasubscriptionservicethatchargesamonthlyfeeof$5,000.Clientssignannualcontracts. Competitivelandscape:Otheronlineplatforms/managementsystemsfordigitalmusicintegrationincludeMuzak,whichdesigns,deliversandinstallscustommusicandvoicemessaging,formultipleindustriesincludingretail,hospitalityandrestaurants.ManagementTeamJeffYasuda,FounderandCEO,hasextensiveexperienceinsoftwareandhardwaretechnologycompanies.In2008hefoundedBlip.fm,avideostreamingandmusicdiscoveryplatform.PriortoBlip.fm,heworkedwithnumeroustechnologycompaniesinsoftware,hardware,andcomputerservicesandtelecommunications.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
IndustryandCompanyOutlookAsconsumersincreasinglyshopondigitalplatforms,andsocialplatformsgainpopularity,brandswillhavetoprovideauniqueandcustomizedofferingtoenhancetheuserexperience.In2016eMarketerpredictedthatmobileretailrevenueintheUSreached$96.2billion,up28%from2015.Weexpectthisnumbertocontinuetoincrease.Thecompanycanhelpretailersoptimizetheirdigitalplatformsinordertoimprovetheengagementandbrandexperience.
Fract
Whenitcomestoretailers,onlineandoffline,choosingtheoptimalbusinesslocationisextremelyimportant.GeospatialAIcompaniesareincreasinglyworkingwithretailerstoidentifysuitablelocationsbasedoncharacteristicssuchaspopulation,race,medianhousehold,income,ageandemploymentstatus.Thesecharacteristicscanhelpcompaniesensurebusinessestheoptimallocation.AccordingtoSAP,80%ofalldatahasalocation/geographicelementtoit,whichmakeslocationanalyticsandintelligenceoneoftheessentialaspectsofbusinessanalytics.
CompanyDescriptionFractisanAIplatformthathelpsretailersoptimizestorelocationsandmapterritoriesandtradeareas,usinggeospatialintelligence.Fractcollectsgeographicdataandprovidesactionableinsightstoitscustomers.
Geospatialanalyticsenablesbusinessestonotonlytakeintoaccountdemographicandpsychographicdata,butalsolookatcustomermovement.Thecompanyprovidesanswerstoquestionssuchas,howeasyisittogettoyourstore?Arethereanynaturalobstaclesthatcustomersneedtoovercome?Arethereanycompetingbusinessessituatedonthesameroutethatmostcustomerstaketogettoyou?
WhatProblemisFractSolving?Ifyourbusinessreliesonfoottraffic,locationisastrategicnecessity.Traditionally,businessownersspendcountlesshoursstudyingtheoptimallocationfortheirbusinesswithlimitedgeospatialresources.Inaddition,aspurchasescontinuetoshiftonline,storeandwarehouselocationrelevanttoitscustomersisvitalinreducingshippingtimesandcosts.
RevenueModelandCompetitiveLandscapeRevenuemodel:ASaaSsubscriptionmodelbasedonfeatures,suchasnumberofusers,sizeofbusinessandusage.
Competitivelandscape:OthergeospatialAIsolutionssuchasAmigoCloud,whichisageospatialplatformthathelpsbusinessescollect,manage,analyze,visualizeandchooseasitelocation.
ManagementTeamMikeMack,Co-FounderandCEO,hasover20yearsofretailandbusinesslocationanalyticsexperience.PriortoFract,MikefoundedDatMap,ageo-spatialsoftwarecompanyforbig-boxretailersforsiteselection.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
IndustryandCompanyOutlookAccordingtoarecentstudybyGartner,by2020,everycompanythathopestoachievesuccesswillneedtotakeintoaccount“where”theoptimallocationforbusinessis.Thisspatialinformation,pairedupwithdemographic,psychographicandsalesdata,canopenupcountlesspossibilitiesforbusinessestotargetcustomersonawider,deeperandmorepersonalizedlevelthaneverbefore.
Hanger
Personalizationinfashionisadifferentiatingfactorforretailersandbrands.About45%ofonlineshoppersaremorelikelytoshoponasitethatofferspersonalizedrecommendations,accordingtoInvesp.Meanwhile,socialshoppingplatformsareplayingamoreimportantroleinmakingmorepersonalrecommendationstocustomers.In2015,over5%ofallretailspendingcamefromsocialnetworkreferrals,accordingtoe-commerceshippingcompanyReadyShipper.
CompanyDescriptionHangerisaplatformfortrackingandsharingclothingandstyleinspirationswithintheuser’spersonalnetworkoffriendsandfamily.TheHangerappconnectsuserswiththeirfriends’closetsandhelpsthemdiscoverthevaluethat’salreadyhangingintheirownwardrobe.Hangermakesusersexpertsintheirpersonalstyleandinspiresconfidenceinwhattheywear.Theapphas2,600activeusersandover10,000downloads.Thecompanyiscurrentlyintalkswithmajordepartmentstoresandfashionbrands.
WhatProblemisHangerSolving?Brandandretailershavestruggledtopersonalizestyleandproductrecommendationsbasedonwhatisalreadyintheircustomers’wardrobes.Consumerswouldlikepersonalizedstylingadvicefromtheirpeersandfrombrands.Hanger’ssocialshoppingplatformprovidesconsumerswithtoolstomanagetheirpersonalstylewhiledevelopingrelationshipswithbrands.
RevenueModelandCompetitiveLandscapeRevenuemodel:Hangertakes7%–22%ofeachtransactionthattakeplacethroughHanger’srecommendation.
Competitivelandscape:Hangercompeteswithothersocialshoppingapps.SavelGoisonesuchappthatoffersusertheopportunitytohaveconversationswithotherconsumerswhoareshoppingforsimilaritemsworldwideandgetreal-timefeedback.StuffNStyleisapersonalstylingappthatcollectspicturesofcustomers’closetsandhelpsthemfindfeedbackinputtingoutfitstogetherfromothers.
ManagementTeamDanielEvansistheCEOandCo-FounderofHanger,amulti-sidedmarketplacethatprovidesconsumerswithtoolsandanalyticstomanageandsharetheirpersonalstylewhilefacilitatingauthenticrelationshipswiththebrandstheylove.PriortofoundingHanger,EvansheldavarietyofrolesacrosstwodecadesinthetechnologyfieldincludingUX/UIdesigner,developer,productownerandexecutive.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
IndustryandCompanyOutlookWeexpecttoseesomelevelofconvergenceofsocialmediaandshoppingplatformsinthefuture.Therewillbeincreasingdemandforconsumerstointeractwithbrandsandretailersinasocialenvironmentanddrivesalesthroughtrustedrecommendationsbyinfluencersorpeers.Hangeriswellpositionedtobenefitfromthissocialshoppingtrend.
Myagi
Theinternetandmobiletechnologyhaschangedthewayconsumersinteractwithbrands.Moreretailersaremovinginthedirectionofempoweringtheirstoreassociateswithtoolstoimprovetheirperformance,andthistrendisexpectedtopickupin2017.
Source:myagi.com
CompanyDescriptionMyagifallsundertheretailasaplatformcategory.Itisamobile-andweb-basedtrainingplatformthatconnectsretailersandbrandswiththeirsalesassociates.Throughitsplatform,retailersandbrandscreate,manage,deliverandmeasurecustomerservice,productandsalestrainingatthestorelevel.Theplatformallowsbrandstodelivermessagesdirectlytothepocketsofitssalesassociatesinordertoinfluencecustomerconversationsatscaleinanengagingandgamifiedapplication.
Myagigivesitscustomersfeedbacktopinpointwherebesttofocustocontinuallyimprovetheperformanceoftheirstoreassociates.Myagi’sanalyticssuitehelpsidentifythecontent,peopleandmanagementpracticesthatareoptimalinliftingitscustomers’salesandserviceperformance.Thecompanyclaimsearlycasestudieshaveshowna44%increaseinsalesandareductioninemployeeturnoverofasmuchas30%.MyagicurrentlyworkswithleadingglobalbrandsandretailersworldwidesuchasAdidas,ASICSandToys“R”Us.
Audienceprize
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
WhatProblemisMyagiSolving?Itisachallengefortraditionalbrick-and-mortarretailerstodeliveragreatexperience.Customerserviceisoneaspectofthat.Oneareathathaslaggedbehindthedigitaltransformationisthemanagementandtrainingofstoreassociates,who,inmanycases,arestillusingoldsystemsandmanytimesdonotreceivemuchtrainingatall.
Customersareenteringthestore―afterinteractingthroughdifferentdigitaltouchpoints―armedwithinformationonproductandpricing.Often,customersknowmoreabouttheproductsandservicesofthebrandthanthestoreassociatesdo.Theuseofenablingtechnologiescanimprovetheknowledgedeficiencygapforbrick-and-mortarretailers’storeassociates.AccordingtoRetailNext,thethreekeyelementstohelpmaximizethein-storeexperienceandclosetheknowledgegapare:proximitymarketing,interactionsanalysisandmobiledeviceusage.
RevenueModelandCompetitiveLandscapeRevenuemodel:Myagichargesitscustomersbythenumberoflocationsandbythelevelofservicerequested. Competitivelandscape:Otheronlineplatforms/managementsystemsforemployeetrainingthatoffersimilarservicesinclude:
• Mindflash―Providesawebplatformforcompaniestoeasilyshareknowledgeandtrainemployees.
• Docebo―Isalearningmanagementsystem(LMS)toorganize,trackanddistributeonlinecoursestoemployees.
• Experticity―Itsonlinetrainingplatform(3point5.com)bringstogetherbrands,retailersandexpertstotrainsalesassociatesontheirproducts,howtheyworkandwhatmakeseachoneunique.
ManagementTeamSimonTurner,Co-FounderandHeadofBusinessDevelopment,hasextensiveexperienceintheretailindustry.HefoundedFivespot,aleadingwholesalerandmanufacturerofhigh-qualityoutdoorproductsforthesportingindustryinAustralia,in2005.
IndustryandCompanyOutlookStoreassociatesareakeytouchpointwithcustomersinphysicalretail,andtechnologiesthatenablestafftoprovidebetterservicemoreefficientlywilllikelybecomethefocalpointofomnichannelstrategiesgoingforward.Myagilookswellpositionedtomeettheneedsofretailerslookingtooptimize,digitizeandoptimizetheirstoresalesassociates.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ObsessVR
In2016,virtualreality(VR)applicationsgeneratedsignificanthypeacrossindustriesfromgaming,toentertainment,toretail.AnumberofVRdevicesweredevelopedlastyear,includingHTC’sVive,Samsung’sGearVRandFacebook’sOculusRift.VRshoppingblendstheonlineandin-storeshoppingexperiencebyallowingshopperstobeimmersedinastore-likeenvironmentwithoutphysicallytravelingtothestore.VRshoppingalsoallowsretailerstoshowcasetheirflagshipstorestoanexpandedglobalaudience. ResearchfirmIDCestimatedthatVRhardwareshipmentswouldreach9.6millionunitsin2016,and64.8millionunitsin2020,orafive-yearCAGRof184%.
Source:obsessvr.com
CompanyDescriptionObsessVRfallsintotheexperientialretailcategory.ItisaVRshoppingplatformforfashion.Thiswhite-labeledVRsoftwareenablesfashionbrandsandretailerstosetuptheirownvirtualstorefrontswithoutsignificanttechnologyinvestments.ThecompanyaimstobecometheShopifyofVRshopping,andtoreplacetoday’se-commerceexperiencewithanimmersiveandinteractiveone.WeseesignificantopportunitiesforcompanieslikeObsessVRtoprovideaone-stopsolutiontoretailersthatareinterestedincreatingaVRexperiencefortheircustomers. ObsessVRhaspartneredwithSamsungandNewYorkFashionweektocreateVRfashionshows.InadditiontotheVRexperience,Obsessalsoprovidesviewer’stractiondatatothedesignersintheback-end.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
WhatProblemisObsessVRSolving?Themajorityofretailerswithlimitedtechinvestmentsarestillinneedofaone-stopsolutioninordertocreateVRshoppingexperiences.TheVRexperiencealsoneedstointegratepaymentfunctionsandretailers’existinge-commerceoperations.
RevenueModelandCompetitiveLandscapeRevenuemodel:Thecompanychargesafeeonsalesandaflatfeeforhostingthestore.
Competitivelandscape:CompetitorsincludeInContextSolutionsandNimbleVR.
ManagementTeamObsessVRwasfoundedbyateamofengineerswithsignificantexperienceinretailtechnology.FounderandCEONehaSinghspentfiveyearsatGoogleasasoftwareengineerbeforejoiningluxurye-commercestartupAHAlife,wheresheledtheproductandtechteam.ShewasmostrecentlytheheadofproductatVogue.HerCo-FounderDanielChangspent12yearsasasoftwareengineeratMicrosoftand,mostrecently,hewastheDirectorofEngineeringatGQ.
Source:obsessvr.com
IndustryandCompanyOutlookWhileVRshoppingwillstilllikelyremain“icingonthecake”forcustomers,weexpecttoseemoreexperimentswithretailersinVRapplication,inanattempttocreatemoreexperiencesfortheircustomers.Weseeastrongdemandforthird-partyVRsoftwareproviderstohelpstreamlinethedevelopmentprocessforbudget-constrainedretailers.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
QueueHopThecustomercheckoutexperienceiskeytocustomerretentionforstore-basedretailers.AsurveybyeMarketerrevealsthatatleast30%ofcustomerswouldgobacktobrick-and-mortarstoresifsmoothandquickself-checkoutoptionsexisted.About33%ofcustomersleavethestorewithoutbuyingifthecheckoutlineislongerthansevenminutes.Theretailself-checkoutexperiencehasevolvedfromtheself-checkoutkiosksinthe2000stoRFID-basedscannerscurrentlyinuse.
CompanyDescriptionQueueHopgivescustomerstheoptiontocheckoutontheirphones,withoutthehassleofhavingtowaitinline,usingQRcode-scanningandRFID-poweredsecuritytagsonitems.QueueHopmakesRadio-FrequencyIdentification(RFID)anti-theftapparelsecuritytagsthatautomaticallyunlockafterapaymentismade.QueueHophasworkedwithRebeccaMinkofftoreimagineitsin-storecheckoutexperience.
WhatProblemisQueueHopSolving?Thein-storeexperiencehasbecomeincreasinglyimportantasretailersstruggletodrivetrafficandsalestostores.Providingaspeedyandconvenientcheckoutexperiencecontinuestobeachallengeforstore-basedretailers.Technologycompanieshavedevelopedvariousmobile-basedsolutionstosolvethisproblem.
RevenueModelandCompetitiveLandscapeRevenuemodel:QueueHopchargesretailersanimplementationfeeforaddingRFIDsecuritytagstotheirproducts.Feesarenotdisclosed.
Competitivelandscape:QueueHopcompeteswithothermobile-basedself-checkoutsolutionproviderssuchasSelfcartandShopic.
ManagementTeamCo-FounderandCEOLindonGaostartedhiscareerininvestmentbankingasananalystatGoldmanSachsandJPMorgan.HestartedQueueHopin2015,acompanythatissettodisrupttheuser-initiatedpaymentlandscapewithintheretailindustry.HealsoownsajewelrymanufacturingcompanyfordesignersandwholesalerscalledLPGCrafts.
IndustryandCompanyOutlookWeexpecttoseemoreinnovationinself-checkoutexperiences,especiallywithinthefashion,groceryanddrugstorespace.AsthepriceofRFIDtagsdecreases,weexpecttoseemoreretailersinvestinRFID-basedsolutions.QueueHopiswellpositionedtoreimaginetheself-checkoutexperienceatfashionretailstores.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Returnly
Theaveragereturnsratehasincreasedfrom9%in2013,to30%,accordingtotheNationalRetailFederation(NRF).Freeshippingforreturnsisincreasinglyanexpectationofconsumers.Thereturntimetoreceivearefund,onaverage,is21days.Slowreturnsprocessesoftenreduceconsumers’tendencytopurchaseandcanaffectbrandloyaltyandthecustomerexperience.Amazonisknownforitsfastreturnspolicy,averaging1.3daystoreturncashtocustomers,whilemostonlinestoreswillonlyrefundshoppersoncethereturnsparcelisintransitorhasbeeninspected.
Source:returnly.com
CompanyDescriptionReturnlyfallsundertheconnectedtechnologycategory.ItisaB2Bfintechplatformthatoffersbrandsastreamlinedreturnsexperience.WithReturnly,shoppersgetInstantRefunds™asstorecredittobuyagainevenbeforereturningtheitems.Returnlytakestheroleofthemiddleman―helpingconsumersavoidtheholdoverperiodbetweenthetimethegoodsarereturnedandthetimearefundisreceived.Returnlyfrontsthecustomers’theirmoneyintheformofanonlinewalletthatcanbeusedforrepurchasesonlyatthesamebrand.Oncetheretailerreceivestheoriginalgoods,themoneyistakenoutofthecustomer’swallet(ifithasnotyetbeenspent)andputbackintothecustomer’saccount.Returnlytakes100%ofthereturnsandconsumerrisksothemerchantisneverataloss.
AccordingtoReturnly,becauseoftheinstantrefund,shoppersare3xmorelikelytopurchasefromthesamebrand,whichincreasesshopperloyaltyandthelikelihoodtheshopperwillbuymoreexpensiveitems.Thecompanyiscurrentlyworkingwithover400brandsandretailers,includingShopify,KITH,GoopandRussellAthletic.
Judge’sprize
22
March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
WhatProblemisReturnlySolving?Mostonlineproductreturnsresultinlostsalesfortheretailerandorbrandandfrustratedshoppers.Ittakesbrands21days,onaverage,toprocessarefund.Theshopperstartsthereturnprocess,thecarrierdeliversthegoodstoawarehouse,thewarehouseinspectsthereturnedgoods,thebrandissuesanorderrefundandfinallythemoneyisreturnedtotheshopper.Retailersoftencannottakeontheproductreturnsrisktoshortenrefundtimestotheircustomers.
RevenueModelandCompetitiveLandscapeRevenuemodel:Returnlychargesaninitialsetupfeeafteranonlineretailerfirstadoptstheservice.Thecompanycollectsnearlyallofitsrevenuefromcommissionsonpost-returnsales(undisclosed).
Competitivelandscape:Returnlyisuniquelypositionedandcurrently,therearenoothercompaniesofferingasimilarservice.
ManagementTeamFounderandCEOEduardoVilarestablishedReturnlyin2014.HepreviouslyfoundedIntegralcom,asoftwarecompanythatbuiltcustome-commercestorefrontsandcontentmanagementsystems.Theteamhasastrongbackgroundinfintechande-commerceengineering.
Source:returnly.com
IndustryandCompanyOutlookTohelpalleviatetherisingcostsofreturns,retailersareincreasinglyworkingwiththird-partylogisticsfirmstospeeduptheprocess.Returnlyoffersanicheservicethatisrisk-freeforbrands.Asonlineshoppingcontinuestoincrease,withmorebrandsofferingfreereturnstostaycompetitive,weexpectmorebrandstolookforwaystoworkwithtechnologycompanies,likeReturnly,tostreamlinethereturnsprocess.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ShopperKit
Althoughonlinegrocerysalesrepresentaverysmallportionoftheoverallgroceryretailmarket,thesegmentisamongstthefastest-growinginthecategory.Onlinesalestopped$48billionworldwidein2016,up15%duringthepastyearandaccountingfor1.4%ofthetotalgrocerymarket,accordingtoKantarWorldpanelandourestimates.Weexpectthepaceofgrowthingrocerye-commercetoaccelerate,andfortheonlinechanneltocapture2%oftotalgrocerysalesintheUSbytheendof2017.
Source:shopperkit.com
CompanyDescriptionShopperKitfallsintotheconnectedtechnologycategoryofretailinnovation.Itisasoftwareplatformthatenablesexistingbrick-and-mortarstorestoreceive,prioritizeandprocessonlinegroceryorders.ShopperKitdesignsstoreplanogramsandproductzoneswithinthestoretocreatepickingpathsforstoreassociates.Asaresult,merchandiseispickedfasterandallowsformultipleorderstobeshoppedatthesametime,whichreducesthelaborcostsofonlinefulfillmentandfasterpickuptimes.
ShopperKit’sAPIintegrateswithanyonlinestorefrontorhostsystem,sothereisnoneedfornightlydatatransfersintoaseparatedatabase.Thiseliminatescomplexdatalogsofstoreinventoryforretailers,fasterstoreintegrationtimesandlowerstartupcosts.Thesoftwarealsoprovideswaystocommunicatedirectlywithstoreassociatesforreal-timecustomercommunication.Grocerswhocommunicatereal-timewiththeircustomersthroughShopperKithaveshownanoverallincreaseinbasketsizefortheseorders.
WhatProblemisShopperKitSolving?Withthegrowthoffoodretailexpectedtoremainlowoverthenextfewyears,andtheincreaseingrocerye-commercepenetration,retailersmustconsiderthepotentialthatdigitalizationofferstoengagewithcustomersandopennewrevenuestreams.However,digitalizationpresentsnewchallengesforretailers,asthelogisticalcostsofe-commercethreatentoerodeprofitmargins.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
E-commercewillbecomeevenmoreimportantforstore-basedretailers,furtheringtheneedtoimplementonlinefulfillmentcapabilities.Partneringwithdigitalgrocery-orderanddeliverystartupsofferscost-effectivesolutionstoreducefulfillmentcostsandcompetemoreaggressively.
Source:shopperkit.com
RevenueModelandCompetitiveLandscapeRevenuemodel:Thecompanychargesaone-timefeeforPOSintegration.Beyondthat,ShopperKitlicensesitstechnologyonasubscriptionbasis.
Competitivelandscape:Competinge-commerceplatformsthathavesomeleveloffulfilmentincludeMyWebGrocer,Buy4NowandFreshhop.
ManagementTeamShopperKitwasfoundedanddevelopedbyateamofexpertswithdeeponlinegroceryfulfillmentanddomainexperience.JackRecord,CEOofShopperKit,wasoneofthefirstemployeesatVersionOne,anAtlantatechnologystartupfocusedonagile/leanproductsandservices.
IndustryandCompanyOutlookFor2017,weexpecte-commercetobecomeevenmoreimportantforstore-basedretailersintheUSastheyfacestrongercompetition.Asmoreshoppersarebecomingcomfortablewithpurchasinggroceryitemsonline,brick-and-mortarretailershavethepotentialtoattractmoreshoppersthroughonlineorderinganddeliveryservices.
Sincelaunchingin2016,Shopperkithasbeenworkingwithfourmajorretailers,andexpectstobeinover200storesinthenext12months.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
TigerTrade
Theoff-pricesectorinvaluetermsrepresents$90billioninappareland$280billionacrossallcategories.Themarketsharefortheoff-pricesectorisexpectedtogrowto10%ofoverallapparelsalesby2018.
Source:tigertrade.com
CompanyDescriptionTigerTradefallsundertheretailasaplatformcategory.ItisanonlineB2Bwholesalemarketplaceforbuyingandsellingexcessinventory.TigerTrade’splatformisdisruptingahighlyinefficientmarketbyautomatingtradingandenablingreal-timebidding,vendorverificationandend-to-endfulfillmentusingitsproprietarytechnology.Sellerscanquicklyselltheiroverstockmerchandisetotrustedbuyersontheplatform.Thecompanycurrentlyworkswithleadingglobalbrandsinapparel,footwearandfashionaccessories.Theplatformhasover1,200registeredbuyersfromover100countries.
WhatProblemisTigerTradeSolving?Thebuyingmarketfortheoff-pricemarketisextremelyinefficientduetothelackofdigitalmarketplacestomatchtheopportunisticexcessinventorysupplieswithsuitablebuyersglobally.Therearemanychallengesintermsofinternationaltraderegulationswhenitcomestomovinginventoryacrossbordersintimeforsale.
RevenueModelandCompetitiveLandscapeRevenuemodel:TigerTradeprovidestheend-to-endserviceinexchangeforapercentageoftransactionstakingplaceontheplatform. Competitivelandscape:CompetitorsincludeInturn.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Source:tigertrade.com
ManagementTeamTanjilaIslam,CEOandFounderofTigerTrade,isaninternationaltradeexpertandeconomicdevelopmentspecialist.Shehasdesignedlarge-scaletradepromotionprogramsfortheWorldBankandUSAIDthroughoutSouthandSoutheastAsia.Islam’sadventureinglobaltradeinspiredhertocreateTigerTradeinordertobringinternationaltradeonline.
IndustryandCompanyOutlookTheoff-pricesectorisexpectedtooutpacetheoverallretailindustrygrowth.Weexpectsignificantdemandfromoff-pricebuyersforexcessinventoryglobally.Ontheotherhand,thecurrentbuyingmodel,withprimarilyrelationship-basedinquiriesandfewdigitaltoolstoenablethetransactions,isexpectedtotransformintoamoretransparentandefficientone.TigerTrade’splatformispoisedtoattractmoresellersandbuyersintheoff-pricesector.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ZielConsumers―particularlymillennials,whichnowrepresentthelargestdemographicintheUS―areoftenattractedtonicheproducts,experiencesandservicesuniquelysuitedtoindividualtastes,interestsandaspirations.Theyoungergenerationofshoppersvaluetransparencyandsustainability.Asaresult,manyapparelbrandsareturningtoon-demandmanufacturingtofosterasenseofcommunityandpersonalizationamongstshoppers.
Source:zielwear.com
CompanyDescriptionZielisane-commerceplatformthatenablesanylifestylecompanytoexpandthereachofitsbrandsintoactivewear.Thecompanycreateson-demand,customperformance-wearapparelforitstargetcustomers,whichincludelifestylebrands,celebritiesandinfluencers.CustomerssignupandZielhandlesdesign,production,inventorymanagement,onlineandofflinesalesandcustomerpaymentsonitsretailplatform.Zielalsoofferse-commerceintegration,sobrandscanofferZiel’sproductsontheirwebsites.
Inaddition,everypieceofapparelismadetoorder,thuslimitingtheenvironmentalimpactofunwantedgarments,andenergyandresourcesusedtomakeanddistributetheapparel.Bybuildinganon-demandapparelsupplychainanduniquedesigntechnology,Zielcanofferitsclientsaplatformtorapidlyselllimitedcollections,whichcancreateanurgetobuywiththeircustomers.
WhatProblemisZielSolving?Customerswanttoextendtheirbrandtonewproductstogeneratenewrevenuestreams,andraiseawarenesstotheircommunitythattheyaresociallyresponsible.Thehighcostandhighriskoftheextensivedevelopmentandinventoryrequiredbytraditionalmanufacturersisachallengetodevelopingabrandedapparelline.Zielenablesitscustomerstoselltoandengagedirectlywiththeconsumerwithouthavingtodealwithlargeapparelmanufacturersandnationwideretailers.
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March20,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
RevenueModelandCompetitiveLandscapeRevenuemodel:Zielrequiresaone-timesecuritydepositagainsttheftandlossforanyinventory.Zielsetsabasecostpriceforeachitemandtheclientsdefinestheirmarkup,orclientsearnmarginorcommissiononsalesonaweeklybasis. Competitivelandscape:ThecompetitionincludesArtfulGentleman,acustomclothingshop,andotherbrandedactivewear.
ManagementTeamFounderandCEOMarleenVogelaarhasanextensivebackgroundincustomapparelmanufacturing.PriortoZiel,sheco-foundedShapeways,whichalsoofferscustomproductsthroughdigitalmanufacturing.DanielIfcher,HeadofBusinessDevelopment,wasformallyExecutiveVP/DivisionHeadatGlobalBrandsGroup.
Source:zielwear.com
IndustryandCompanyOutlookOn-demandmanufacturingenablesretailerstoconnectwiththeirconsumersfromsourcingtothefinishedproduct.Webelievethatlocalsourcingandenvironmentally-friendlymanufacturingwillcontinuetogainstrengthamongstconsumers.Ziel’splatformispoisedtoattractmorecustomers,aslocalproductionandeco-friendlyattitudesincreaseamongconsumers.
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comStevenWinnickResearchAssociate
HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com