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Mjedi.com

             Awarded $25K from CTIA as a Top
                Innovative Mobile Startup
                        Mjedi
                Mobile Social Commerce
2550 3rd Avenue
                                               Chander Chawla
Suite 610
                                      Founder and Chief Servant
Seattle, WA 98121
                                    Chander.chawla@mjedi.com
Mjedi.com
                                              +1-425-443-6626
Who?
    Mjedi Founder has Strong
 Innovation Adoption Background
• 12 years in Wireless Industry
• BSEE + MBA
• Highlights
   – Grew T-Mobile WiFi business 4000%
   – Managed a $600M P&L to add $150M in EBITDA
   – Accelerated the Adoption of 3G in the US
• Blog: cdoq.blogspot.com
• Lecture at MIT on Adoption of Innovations: http://cdoq.
  blogspot.com/2009/03/next-billion-netwok.html



                             Proprietary and Confidential   2
What?


      Retail is Living in the Past
• If You Spend Half Hour in a Store and Walk
  Out without a Purchase, the Retailer has No
  Clue What You Did In the Store
• Retailers Are Trying to Figure Out How to Use
  Social Media and Mobility
• Fashion Retail Has Inventory Problem
• Customers Have No “Pull” In Retail


                  Proprietary and Confidential    3
What?

 Mjedi Enables Customers to Capture
    Items they like, in Real-Time
                                                            12500274135
                                                                 0




•UPC (Universal Product Code) is the number below the barcode which is a
unique identifier for the product
•A woman, Tina, goes shopping and likes a product. She types the product
UPC as an SMS/text message and sends it to Mjedi
    •The product will show up on Tina’s Facebook Status update with pictures
    and details provided by the retailer (including Retailer’s brand)
    •Tina’s friends can comment on the product and provide feedback
                                                                           4
                             Proprietary and Confidential
What?

    Mjedi Encourages Repeated Store
          Visits and Purchases




•When the dress goes on SALE, Mjedi will send and an SMS to Tina suggesting
her to go to the store
•Tina may go to the store, buy the dress and may send more text messages
about the items she likes at the store
•Alternatively, if the dress is nearly Sold Out, Mjedi will alert Tina that she
should hurry to the store or risk missing out on the item

                                                                              5
                              Proprietary and Confidential
What?
   Mjedi Enables Sharing and Mobile
             Notification
• Customers Capture Interest at                   • Mobile Notification from
  the Retail Store to Share with                    Retailers to get Customers
  Friends                                           back in the Store



     •Product Picture & Details                             •Change in the Product
     shows up as Facebook                                   Price
     Status Update                                          •Change in the Product
     •Friends can “Like” and                                Inventory
     Comment                                                •Personalized Offers




                                  Proprietary and Confidential                       6
Why?

 Retailers Will Get Real-Time Shopper
                Feedback
                                                             Retailer Benefits:
                                                             •Increased Revenue
                                    Mjedi                    •Decreased Costs
                                                             •Loyal Customers




•Retailers Learn about Popularity and Pricing of Products Immediately
•Retailers Reduce Inventory Management costs
•Retailers Increase Brand Exposure 150x
•Retailers Reduce Marketing costs
•Mjedi enables Retailers to Increase Brand Loyalty with better Customer
Engagement with “pull” Marketing i.e. give customers what they want
•Retailers would be able to develop personalized offers for Customers
                              Proprietary and Confidential                   7
Interconnectedness

        Mjedi Created a Mobile Social
            Commerce Platform

                  +                                           +
Mobile                            Social                          Commerce
•Tina goes to Facebook and sees all the items (with all details including
pictures) she has texted about. All of Tina’s friends would be able to see Tina’
s and each other’s products and subscribe to Mjedi service
•Friends can click and drag items to their lists from each other
•Friends would be able to comment on items on each other’s list creating
user-generated product reviews (like on amazon.com)

                               Proprietary and Confidential                     8
Why Now?

    Mjedi is SMS-based and is focused on
               Physical Retail
•     88% of $229B in Apparel Sales is                     •     SMS covers 100% of phones and
      Spent in Physical Retail (Offline)                         Smartphones apps cover only 15%
•     There is No Feedback loop in                         •     Application Development has
      Offline Retail i.e. Retailers don’t                        been focused on Smartphones
      know why someone left the store                      •     1 Trillion Text Messages sent in
      without a Purchase                                         the US in 2008
•     Most Retail Innovation has been                      •     Businesses still trying to figure out
      focused Online                                             how to use twitter/Facebook
                            12%                                                     15%


                          88%                                                   85%


           Offline                Online                                  Feature          Smart
           Sales                  Sales    Proprietary and Confidential   Phones           Phones   9
See last slide for data sources
What else?

                Mjedi is Leveraging Changing
                    Consumer Behavior
• 66% of the teenagers use text messaging (sms) to a
  friend while shopping
• Online/mail-order Apparel retailers see return rates
  of 50-60% where as physical store sales see return
  rates of 5%
• Email is being Replaced by Social Networking and
  Texting
• 100% of 117 women interviewed loved the idea
• Informal Retailer Feedback is mixed
• Retail Sales Representatives Love the Idea
• Mjedi will not affect the behavior of the sub-segment
  which does not buy products on SALE
                                  Proprietary and Confidential       10
See last slide for data sources
Mjedi is Engaged in a Field Trial
•   Mjedi Service has two Pending Patents
•   Mjedi Service is Live and Working
•   High Interest from Customers on the Service
•   To Schedule a demo, please contact Chander Chawla
    at 425-443-6626




                      Proprietary and Confidential   11
Mjedi Evolution
• Multiple Entry Methods
• Smartphone Apps including Barcode Reader
• Enable “Put on Hold” Service when customer
  gets a message re SALE
• Reverse Offer i.e. “Buy Now”
• Monetization based on Location



                 Proprietary and Confidential   12
How?

Mjedi will Collaborate with Retailers
      on the Business Model
• A: Pay per Sale                        • B: Pay per Feedback
   – Retailers would ONLY                       – Retailers would Pay per
     Pay commission for item                      SMS sent by Customers
     sales enabled by Mjedi                     – “Frequent Flyer” plan


• C: Licensing
   – Retailers would pay a                           A or B or C
     Monthly Fee for Mjedi
     Services
                                                     Or Hybrid


                      Proprietary and Confidential                     13
Sources for Data
•   Harvard case study "Zara: IT for Fashion“
•   Harvard case study "Retail Shopping in 2007“
•   Harvard case study "Gap Inc."
•   Harvard case study "Retail Shopping in 2007: The
    Net versus the Mall“
•   Harvard case study "Facebook“
•   CTIA.org
•   NRF.com
•   Interviews and Surveys conducted by Chander
    Chawla
                     Proprietary and Confidential   14

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Mjedi101109

  • 1. Mjedi.com Awarded $25K from CTIA as a Top Innovative Mobile Startup Mjedi Mobile Social Commerce 2550 3rd Avenue Chander Chawla Suite 610 Founder and Chief Servant Seattle, WA 98121 Chander.chawla@mjedi.com Mjedi.com +1-425-443-6626
  • 2. Who? Mjedi Founder has Strong Innovation Adoption Background • 12 years in Wireless Industry • BSEE + MBA • Highlights – Grew T-Mobile WiFi business 4000% – Managed a $600M P&L to add $150M in EBITDA – Accelerated the Adoption of 3G in the US • Blog: cdoq.blogspot.com • Lecture at MIT on Adoption of Innovations: http://cdoq. blogspot.com/2009/03/next-billion-netwok.html Proprietary and Confidential 2
  • 3. What? Retail is Living in the Past • If You Spend Half Hour in a Store and Walk Out without a Purchase, the Retailer has No Clue What You Did In the Store • Retailers Are Trying to Figure Out How to Use Social Media and Mobility • Fashion Retail Has Inventory Problem • Customers Have No “Pull” In Retail Proprietary and Confidential 3
  • 4. What? Mjedi Enables Customers to Capture Items they like, in Real-Time 12500274135 0 •UPC (Universal Product Code) is the number below the barcode which is a unique identifier for the product •A woman, Tina, goes shopping and likes a product. She types the product UPC as an SMS/text message and sends it to Mjedi •The product will show up on Tina’s Facebook Status update with pictures and details provided by the retailer (including Retailer’s brand) •Tina’s friends can comment on the product and provide feedback 4 Proprietary and Confidential
  • 5. What? Mjedi Encourages Repeated Store Visits and Purchases •When the dress goes on SALE, Mjedi will send and an SMS to Tina suggesting her to go to the store •Tina may go to the store, buy the dress and may send more text messages about the items she likes at the store •Alternatively, if the dress is nearly Sold Out, Mjedi will alert Tina that she should hurry to the store or risk missing out on the item 5 Proprietary and Confidential
  • 6. What? Mjedi Enables Sharing and Mobile Notification • Customers Capture Interest at • Mobile Notification from the Retail Store to Share with Retailers to get Customers Friends back in the Store •Product Picture & Details •Change in the Product shows up as Facebook Price Status Update •Change in the Product •Friends can “Like” and Inventory Comment •Personalized Offers Proprietary and Confidential 6
  • 7. Why? Retailers Will Get Real-Time Shopper Feedback Retailer Benefits: •Increased Revenue Mjedi •Decreased Costs •Loyal Customers •Retailers Learn about Popularity and Pricing of Products Immediately •Retailers Reduce Inventory Management costs •Retailers Increase Brand Exposure 150x •Retailers Reduce Marketing costs •Mjedi enables Retailers to Increase Brand Loyalty with better Customer Engagement with “pull” Marketing i.e. give customers what they want •Retailers would be able to develop personalized offers for Customers Proprietary and Confidential 7
  • 8. Interconnectedness Mjedi Created a Mobile Social Commerce Platform + + Mobile Social Commerce •Tina goes to Facebook and sees all the items (with all details including pictures) she has texted about. All of Tina’s friends would be able to see Tina’ s and each other’s products and subscribe to Mjedi service •Friends can click and drag items to their lists from each other •Friends would be able to comment on items on each other’s list creating user-generated product reviews (like on amazon.com) Proprietary and Confidential 8
  • 9. Why Now? Mjedi is SMS-based and is focused on Physical Retail • 88% of $229B in Apparel Sales is • SMS covers 100% of phones and Spent in Physical Retail (Offline) Smartphones apps cover only 15% • There is No Feedback loop in • Application Development has Offline Retail i.e. Retailers don’t been focused on Smartphones know why someone left the store • 1 Trillion Text Messages sent in without a Purchase the US in 2008 • Most Retail Innovation has been • Businesses still trying to figure out focused Online how to use twitter/Facebook 12% 15% 88% 85% Offline Online Feature Smart Sales Sales Proprietary and Confidential Phones Phones 9 See last slide for data sources
  • 10. What else? Mjedi is Leveraging Changing Consumer Behavior • 66% of the teenagers use text messaging (sms) to a friend while shopping • Online/mail-order Apparel retailers see return rates of 50-60% where as physical store sales see return rates of 5% • Email is being Replaced by Social Networking and Texting • 100% of 117 women interviewed loved the idea • Informal Retailer Feedback is mixed • Retail Sales Representatives Love the Idea • Mjedi will not affect the behavior of the sub-segment which does not buy products on SALE Proprietary and Confidential 10 See last slide for data sources
  • 11. Mjedi is Engaged in a Field Trial • Mjedi Service has two Pending Patents • Mjedi Service is Live and Working • High Interest from Customers on the Service • To Schedule a demo, please contact Chander Chawla at 425-443-6626 Proprietary and Confidential 11
  • 12. Mjedi Evolution • Multiple Entry Methods • Smartphone Apps including Barcode Reader • Enable “Put on Hold” Service when customer gets a message re SALE • Reverse Offer i.e. “Buy Now” • Monetization based on Location Proprietary and Confidential 12
  • 13. How? Mjedi will Collaborate with Retailers on the Business Model • A: Pay per Sale • B: Pay per Feedback – Retailers would ONLY – Retailers would Pay per Pay commission for item SMS sent by Customers sales enabled by Mjedi – “Frequent Flyer” plan • C: Licensing – Retailers would pay a A or B or C Monthly Fee for Mjedi Services Or Hybrid Proprietary and Confidential 13
  • 14. Sources for Data • Harvard case study "Zara: IT for Fashion“ • Harvard case study "Retail Shopping in 2007“ • Harvard case study "Gap Inc." • Harvard case study "Retail Shopping in 2007: The Net versus the Mall“ • Harvard case study "Facebook“ • CTIA.org • NRF.com • Interviews and Surveys conducted by Chander Chawla Proprietary and Confidential 14