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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Notes from May’s Breakfast with the Disruptors, Featuring Fashion Tech Companies

1) OnMay2,FungGlobalRetail&TechnologyhosteditslatestinstallmentintheBreakfastwiththeDisruptorsseries,featuringeightstartupsinthefashiontechsector.Theevent,attendedbymorethan200guests,tookplaceatGlobalBrandsGroup’simpressivenewInnovationLabintheEmpireStateBuildinginNewYorkCity.

2) Thebreakfastwassponsoredbyproduct-labelsolutionscompanyAveryDennisonandcharityDignityUWear,whichprovidesclothingtopeopleinneed.TheeventincludedastartuppitchcompetitionjudgedbyexecutivesfromAveryDennison,GraceBeautyCapitalandGlobalBrandsGroup.

3) StartupsAirTailor,AwearSolutions,Everywear,Furnishr,MirrorThatLook,NineteenthAmendment,SmartzerandZielshowcasedavarietyofinnovativetech-poweredsolutionsforretail.

4) Whilethejudgesdeliberated,FungGlobalRetail&TechnologyManagingDirectorDeborahWeinswiggaveapresentationontheretailrevolutionthatisunderwayintheUSandthetopeightglobalretailtrendsthatarecurrentlyimpactingtheindustry.

5) Inasurpriseoutcome,twoofthepresentingstartups—EverywearandFurnishr—tiedforthewinningspot,andbothwillreceiveacashprizeprovidedbyAveryDennisonandGlobalBrandsGroup.

OnMay2,FungGlobalRetail&TechnologyhosteditslatestinstallmentintheBreakfastwiththeDisruptorsseries,featuringeightpromisingstartupsinthefashiontechsector.TheeventwasheldatGlobalBrandsGroup’snewInnovationLabintheEmpireStateBuilding,andmorethan200attendeespackedtheroom.

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Followingopeningremarks,DeborahWeinswig,ManagingDirectorofFungGlobalRetail&Technology,introducedtheevent’ssponsorsandthejudgesforthepitchcompetition.Then,leadersoftheeightstartupseachgaveafour-minutepitchpresentation,followedbyatwo-minuteQ&Asession.Whilethejudgesdeliberatedoverwhichstartupwouldbeawardeda$2,500cashprizefromsponsorAveryDennison,WeinswiggaveabriefpresentationontheretailrevolutioncurrentlyunderwayintheUSandthetopeightglobalretailtrendsthatareimpactingtheindustry.Thepitchcompetitionendedwithasurprise,withtwostartups—EverywearandFurnishr—tyingforthewinningspot(asecondprizewascontributedbyGlobalBrandsGroup).

Source:FungGlobalRetail&Technology

TheSponsorsTheeventwassponsoredbyAveryDennisonandDignityUWear.

AveryDennisonisaglobalsupplierofpressure-sensitivelabelandfunctionalmaterialsandlabelingsolutionsforapparel.Thecompany’sapplicationsandtechnologiesareanintegralpartofproductsusedineverymajorindustry.Withoperationsinmorethan50countriesandmorethan25,000employeesworldwide,AveryDennisonservescustomersintheconsumerpackaging,graphicaldisplay,logistics,apparel,industrialandhealthcareindustries.HeadquarteredinGlendale,California,thecompanyreportedsalesof$6.1billionin2016.

DignityUWearhelpspeopleinneedbyprovidingnew,size-specificclothingtopartnernonprofitsocialserviceagenciesandschooldistricts,withafocusonchildren,familiesincrisis,thehomelessandveterans.Theorganizationalsoaimstohelpcreatecommunitieswhereallpeopleareabletolivewithdignityintimesofadversity,andtotouchtheheartsofthoseinneedtocreateabridgethatwilltakeindividualsfromalifeofdespairtobecomingaproductivememberofsociety.

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Source:FungGlobalRetail&Technology

TheJudgesKathrynCavanaugh,Partner,GraceBeautyCapital,aprivatefamilyofficethatinvestsinemergingdigitalbrandsandconsumerandretailtechnologycompanies

JasonRabin,President,NorthAmerica&ChiefMerchandisingOfficer,GlobalBrandsGroup,aleadingglobalbrandedfashionaccessories,footwearandapparelcompany

JulieVargas,Director,ProductManagement,DigitalSolutions,AveryDennison

SummaryofDeborahWeinswig’sPresentation:TheUSRetailRevolutionandTopEightGlobalRetailTrendsWhilethejudgesdeliberatedoverwhichstartupwouldwinthepitchcompetition,WeinswiggaveapresentationontherevolutionthatisunderwayintheUSretailenvironmentandthetopeightglobalretailtrends.Highlightsincluded:

Source:FungGlobalRetail&Technology

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

USRetailRevolution1. ARetailRevolutionIsHappening:StoreOpeningsandClosures• Storeclosurescontinuetoexceedstoreopenings

• USmajorstoreopeningsfavordollarstoresandoff-priceretailers

2. All-ChannelUniverseWillRequireAdaptation• Retailersshouldviewtheshoppingexperienceastheircustomersdo,asoneall-

encompassingexperience,notassomethingthatoccursviaseparatechannelsanddevices

TopEightGlobalRetailTrends1. CorporateInnovationIstheNewR&D• Retailersandbrandsareshowinggrowinginterestininvestinginformalinnovation

teamsordedicatedinnovationcenters

• TheIsraeltechstartupsceneisboomingandAsiaisemergingasatopinnovationhub

2. TheStoreasaPlatform• Retailersserveasapotentialhubforcustomerstoone-stopshopforproductsand

services

• Retailersandbrandscanleverageonlineandin-storeservicestodrivetraffictostores

3. WellnessastheNewLuxury• Consumersareplacingmorevalueonhealthandwellnessthanon“things”

• Globalretailersarelaunchingdedicatedathleisureandwellnessspaces

4. ConsumersWanttobePartofaCommunity• Consumerswanttobeconnectedtootherswithwhomtheyhavesomethingin

common

• Retailersareaimingtocreatestoreswithabiggerpurpose

• Festivalsareawayforbrandstoconnectwithconsumersandbuildacommunityoffollowers

5. PersonalizationandCustomization• Theglobalpersonalizedgiftmarketisforecasttogrowata9%-plusCAGRbetween

2016and2021,accordingtoTechnavio• Brandsreachhighlevelsofengagementwhenconsumersareabletocreateone-

of-a-kindpiecesthatshowcasetheircreativity

6. ResaleIsThrivingWhileRetailIsStruggling• USapparelresale(onlineandoffline)isan$18billionindustry,andThredUP

estimatesitwillreach$33billionby2021

• Consumersarechoosingaccessoverownership

7. DemographicsSuggestanOpportunityinPlus-SizeApparel• Theplus-sizeapparelmarketisunderserved

• AccordingtoTheNPDGroup,approximately65%ofwomenintheUSwearasize14orhigher

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

8. SilverEconomy:TheAgingPopulationWillImpactRetail• Theseniorpopulationisgrowingacrosstheglobe

• Inretail,silvers’needsanddesiresdifferfromthoseofothergenerations;inJapan,retailersareaccommodatingsilversbymakingshoppingmoreconvenientandappealing

ThePresentingFashionTechStartupsAirTailorisanon-demandclothingalterationandrepairservicethatprovidesconsumerswithanaffordableandconvenienttailoringexperience.Throughanextensivenetworkoftailors,AirTailorpartnerswithretailerstoprovideflexibleandscalablealterationservices.

Source:FungGlobalRetail&Technology

AwearSolutionscreatedamobileappthathelpsfashioncompaniesunderstandproductusagepost-purchaseandengagewithconsumersinrealtime.Thesolutionreliesonadigitalchipembeddedingarments.TheAwearmobileappallowsconsumerstoberewardedforwearingtheirpurchasedapparelandtoreceivetargetedpromotions.

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Source:FungGlobalRetail&Technology

EverywearisaB2Bsoftwareplatformthatpartnerswithbrandsandretailerstoofferpersonalizedstylingservices.Everywear’sbackendplugsintoretailers’databases,collectinguserpreferencesandpurchasedatathatisusedtooffercustomizedoutfitsandproductrecommendations.

Furnishrisaninteriordesignandhome-furnishingplatformthatmakesfurnishingspacesconvenientandaffordable.Itswebsiteprovideseverythingfrominteriordesigntodeliveryandassemblyservices.Onceacustomerpurchasesaroomdesign,allfurnitureanddécoritemswillbedeliveredandassembled.

MirrorThatLookusesartificialintelligence-poweredvisualsearchtechnologyforfashiongoodsthatenablesconsumerstogetreal-time,shop-the-lookresultsandcomparepricesacrossbrandsandretailers.Thetechnologydetectsallofthestyleelementsofanoutfitinaphotoorvideoandshowstheusermatchingproductsfrombrandsandretailers.

Source:FungGlobalRetail&Technology

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

NineteenthAmendmentisanon-demandmarketplaceandproductiontoolforbrandsanddesignersthatallowsthemtopre-selldesigns,testdesigns,gathershopperfeedbackandworkwithateamofsmall-batchmanufacturerstoproducepieces.

SmartzerisaB2Binteractivevideoplatformdesignedtomakevideothatisclickable,shoppableandinteractivefromlookbooks,catwalksandotherfashioncontent.Userscansimplyclickortouchitemstheyseeonthescreentorevealmoreinformationaboutproductsandaddthemtoashoppingwishlist.

Source:FungGlobalRetail&Technology

Zielisane-commerceplatformthatcreateson-demand,private-labelactivewearforlifestylebrands.Brandssignup,andZielhandlesdesign,production,inventorymanagement,onlineandofflinesales,andcustomerpayments.

Source:FungGlobalRetail&Technology

TheFungGlobalRetail&TechnologyteamlooksforwardtohostingmoreBreakfastwiththeDisruptorseventsinthenearfuture.

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May4,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS: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.comJohnHarmon,CFASeniorAnalyst

HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

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