Download - Countdown to Shoptalk 2017 - Deborah Weinswig...2017/03/01 · Shoptalk has carefully curated the list of participants to include businesses with solutions to some of the most pressing

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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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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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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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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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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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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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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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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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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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RevenueModelandCompetitiveLandscapeRevenuemodel:BuskertakesacommissionontransactionsthatoccurduringBusker-hostedlivestreamingsessions,whileviewersparticipateforfree.

Competitivelandscape:CompetitorsincludePeriscopeandMeerkat.

ManagementTeamCo-FounderandCEO,LippeOosterhof,hasastrongtrackrecordinmedia.Hehasledsalesandbusinessdevelopmentinthreeonlinevideoandpublishingstartups.OosterhofisalsocurrentlyCEOofLivestation,whichisthelargestonlineaggregatoroflinearnewsTVchannelswithover5millionmonthlyvisitors.

Source:busker.co

IndustryandCompanyOutlookWeexpectretailersandbrandstolookforwaystoworkwithtechnologycompaniestocreatelivestreamcontent.Buskeriswellpositionedtodevelopnicheshoppingusecasesforlivestream,whichisanuntappedmarketingareaforbrandsandretailerstoreachtargeteddemographics.

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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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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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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

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