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March17,2017
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
[email protected]
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
AtShoptalkthisyear,FungGlobalRetail&TechnologyManagingDirector,DeborahWeinswig,willemceeastartuppitchcompetitionwith15innovativeearly-stagecompanies.Inthefirstofatrilogyofrepots,weprofilefiveofthesestartups.
1) ShopperKitisasoftwareplatformthatenablesexistingbrick-and-mortarstorestoreceive,prioritizeandprocessonlinegroceryorders.Sincelaunchingin2016,Shopperkithasbeenworkingwithfourmajorretailers,andexpectstobeinover200storesinthenext12months.
2) Everywearisasoftwaresolutionforretailers’andbrands’e-commercewebsitesthatpersonalizestheuser’sbrowsingandpurchasingexperience.Todate,thecompanyhassignedcontractswithBloomingdale’sandCoty,andisindiscussionswithanumberofotherlargeindustryplayers.
3) ObsessVRisavirtualrealityshoppingplatformforfashionbrandsandretailers.ThecompanypartneredwithSamsungandNewYorkFashionweektocreateVRfashionshows.
4) Buskerisalivestreamplatformthatallowsanyonetoshowcaseatalentorshareaproducttheylove.Viewerscanpostcommentsandquestionstointeractwiththehostsinreal-time.
5) TigerTradeisanonlineB2Bwholesalemarketplaceforbuyingandsellingexcessinventory.Thecompanycurrentlyworkswithleadingglobalbrandsinapparel,footwearandfashionaccessories.
Countdown to Shoptalk 2017
Startup Pitch Series #1:
Navigating the Retail
Revolution
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March17,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Forthesecondyearinarow,FungGlobalRetail&TechnologyispartneringwithShoptalk.Thisyear,FungGlobalRetail&TechnologyManagingDirector,DeborahWeinswig,willemceeastartuppitchcompetitionwith15innovativeearly-stagecompanies.Eachcompanywillpresenttheirbusinessestoapanelofdistinguishedjudgesfromtheinvestmentcommunitytoviefortwo$25,000prizes.Onewinnerwillbeselectedbythepanelofjudgesandtheotherthroughaudiencevoting.
Shoptalkhascarefullycuratedthelistofparticipantstoincludebusinesseswithsolutionstosomeofthemostpressingchallengesfacingretailerstoday.Aswediscussinour2017TrendsReport,theretailindustryisundergoingaretailrevolution,andthecompaniesthatsurvivewilldoso,onlyiftheyembracethenewwaveofretailopportunities:executingretailasaplatform,makinguseofconnectivetechnology,engaginginexperientialretailandprovidingproductcuration.Inresponsetothesetrendsandstrategicopportunities,retailersinallchannelsarechangingtoaccommodateshoppers’shiftingpreferences.Inthisreport,welookatfivecompanies―ShopperKit,Everywear,Obsess,BuskerandTigerTrade―thatfitintoatleastoneofthefourareasofopportunityforretailersoutlinedabove.
Source:shoptalk.com
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March17,2017
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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March17,2017
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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March17,2017
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.Todate,thecompanyhassignedcontractswithBloomingdale’sandCoty,andisindiscussionswithanumberofotherlargeindustryplayerssuchasNeimanMarcus,KateSpade,MichaelKorsandmore.
WhatProblemisEverywearSolving?AccordingtotheshoppingcommerceplatformShopVisible,presentconversionratesinfashionandbeautye-commerceare5x–7xlowerthanin-storerates.Existinge-commerceplatforms,suchasRadial,Demandware,BigCommerceandMagento,capitalizeontheneedforsearch,butoftenlackafront-endintelligencelayerthatpromotescross-merchandisinganddiscovery.Everywearislookingtofillthatgap.
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March17,2017
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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March17,2017
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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March17,2017
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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March17,2017
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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March17,2017
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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March17,2017
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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March17,2017
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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March17,2017
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
JingWangResearchAssociate
HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com
