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Business Plan Overview
April 7, 2012
Proposal Document
2
CONFIDENTIAL
Executive Summary
• Our Technology:
• Our innovative computer vision technology allows consumers to take accurate full body measurement using a smartphone
• Our proprietary “personalized recommendation engine” allows precise matching between consumer preferences and garments
• Our Business Model:
• We provide the technology to online retailers and brands, to help them increase online sales, enhance consumers’ online shopping experience and reduce return rates
• Our Vision:
• With real personalization, online apparel shopping will be made as final as other categories (such as books)
• Our Mission:
• IvyPromise will help establish industry standard in 1)collecting human body information; 2) accessing human body information; 3) communicating garment information
3
CONFIDENTIAL
Challenges within the online apparel business
$50
$100
$150
$200
Key Challenges
• Fast growing (~20%
yoy)
• Consumers: a lot of
uncertainty and lack
of confidence
• Retailers: Cost
savings on building
and employees but
waste on returns
Apparel Industry Revenues
Sizes: Lack of standardized size across
manufacturers and “vanity sizing”
Costs: Custom apparel is cost prohibitive
due to labor involved
Returns: 40% online sales ends up
returned, largely due to size/fit problems
Conversion: Low (~10%) conversion rate
relative to other categories (e.g. books)
Online Shopping
2010 US Data (in Billions)
Info: Retailers lack consumers’ body info
to make effective recommendations
Online
Offline
4
CONFIDENTIAL
We can solve the problem with a technology driven solution..
• Save time on fitting
• Make purchasing more
effective by going to the
recommended sections in
stores and malls
• Reduce return rates and
cart abandonment rates
• Provide true
personalization to
improve online shopping
conversion rate
• Drive increased consumer
confidence
• Allow store to have more
data to understand
customer needs and track
usage
• Enable stores to plan
inventory with more
confidence
Enhance Offline
Experience
Improve Online
Ecommerce
Supply Chain
Efficiency
Our Solutions:
5
CONFIDENTIAL
Our core technology offering
Download the app
and take a video
Measurements
Calculated
3D Avatar Constructed;
create a profile
User provides personal info, preferences and goals
1
2
3 -Personalized
Precision Matching:
Size, Style, Goals
-Cross Selling
Gather Body
Measurement
Gather
Personal Info
Match Garment
to Body and
Personal Info
Patent pending technology
1. Patent Details available on request
6
CONFIDENTIAL
Application of our core technology in many ways
Virtual Fitting Room
Location based recommendation
Fit Test Finder
Core Technology
Video Analytics
Measure & Match
1
2
3
45
Online trial and fitting
room based on exact
fit technology
Scan and test if the product
is worth trying on before
going to changing room
Find best fit products within
a store based on your size/
fit and style requirements
Measuring feet data for
customized shoes
recommendations
Analyze store traffic to better
predict gender, style, size and
color of clothes helping plan and
manage inventory
Illustrative
8
CONFIDENTIAL
Business Model
Powered
by Ivy
Brands
Retailers
Consumers
• Consumers can shop
with ease across
brands / retailers
• Helps consumer
discover other brands
• Shop with ease across
different segments
Ivy technology integrated as part of
channel partners sales channel
(Brands and Retailers)
An amazon.com style open platform, where any brand can
plug in and benefit from the customer body database we
have. Consumers also will benefit from a broader collection
Short-Term: Licensing Model
Long-Term: Open Platform
9
CONFIDENTIAL
Go-to Market
Measure Me Best FitPersonal
Stylist
Custom Tailors
Brand / Retailer
Like
1 2 3
Evolution of Offerings
Targ
et
Mark
et
Seg
men
ts
Provide accurate measurements based
on technology
Match the best fit item based on body and garment
measurements
Based on user preferences and styling recommend items that
best suit requirements
Embed IvyPromiseon their portals and
stores to improve conversion Leverage scale to create a
unified platform that helps guide users
10
CONFIDENTIAL
Roadmap & Resources Required
$50000
$200000
$0
$50000
$100000
$150000
$200000
Upfront Investment Stylist based Solution Total Dev. Cost
$100000
Productization
$50000
• Prototype development - Complete
• iPhone/iPadapp to reach the consumer
• Extend the size/fit offering to incorporate stylist solution
Total Cost ($)
Bonobos.com and Macy’s.com willing to license the product
Active conversations with Trunk club.com, Fits.me Levi’s and Land’s end
Accomplishments
Actively raise funds through angel investors and VC labs to drive the product further
Pilot integration with few retail/brand and drive the solution further
6 months 3-4 months 6 months
11
CONFIDENTIAL
Summary
• Evolving Landscape
– Online apparel industry is set to change in the near term future
– Very few solutions exist today which apply “science” to the “art” of measurement and shopping
• IvyPromise.com Offering
– Our technology delivers easy and accurate body measurement
– Helps retailer achieve next level of proficiency in online sales
- Higher conversion rate
- Personalized recommendation
- Reduced return rates
• What’s next
– Complete productization for smartphone distribution
– Provide personal stylist at no cost
12
CONFIDENTIAL
Founding Team
Jenny Maher
• Veteran entrepreneur founding and raising
funds for 3 startups
• 5 years as General manager at Citi, Inc.
with experience in
M&A, operations, risks, sales and
marketing; 2 years of apparel
manufacturing outsourcing experience
• MBA from Stanford University
Li Li
• 8 years in Microsoft with 7 promotions and 2
gold stars
• Expertise in statistics and machine learning
• Main inventor on several US and
international patents
• Co-founded Touch TV Networks
• MS from East Carolina University
Victor Boskovitz, PhD
• More than 15 years as computer vision
researcher and system builder
• Expertise in robust image segmentation, 3D
modeling, and robotic vision. DARPA Urban
Grand Challenge in 2007
• Ph.D. from University at Ben Gurion Ba-
Negev of Israel & Member of IEEE
Mithun Sheth
• 8+ years of management consulting
experience (A. T. Kearney) mainly in CPG /
Retail and analytics; Extensive experience
building and commercializing innovative
solutions for category merchandising,
complexity mgmt etc.
• MS Syracuse University
13
CONFIDENTIAL
Appendix
14
CONFIDENTIAL
Competitive Landscape: The Body Scanning Methods
Ease of Use
Measurement
Accuracy
Unique
(TSA)TC2
Xbox
Kinect-
Based
Ivy
Promise
Upcload
Green: require one
camera (monocular
camera)
Blue: require 2~16 camerasRed: High
frequency radio
wave
Acceptable
accuracy for
apparel sizing
Big Machine / Booth,
setup required
Household item, Easy or no
Installation required
15
CONFIDENTIAL
Risk Factors
Consumers Reluctant to Shoot a Video of Themselves
• Make the “trade” worthwhile for consumers (e.g., incentives)
• Let customers provide “my favorite” garment information to be used as a proxy for the measurements (e.g.: “my favorite pants are Levi’s 520 33x34)
Retailers Slow to Adopt the Technology
• Offer free trial periods
• Provides consumer coupon support
• Offer free campaigns for retailers on IvyPromise platform and social media