FormaLogix Vfit 08


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Virtual Shoe Fitting

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FormaLogix Vfit 08

  1. 1. Increase sales Reduce poor fit returns Provide a personal experience The most powerful customer personalization tool for the footwear retailer
  2. 2. Online Shoe Retailers <ul><li>In-Step With Consumer Demand </li></ul><ul><ul><li>Virtually all big name retailers now offer online shopping for shoes </li></ul></ul><ul><li>U.S. online footwear sales are estimated to grow to $5.5 Billion by 2010* </li></ul><ul><ul><li>The sports and comfort footwear categories are the two highest percent drivers of online sales </li></ul></ul><ul><ul><li>* Wall Street Journal, 11/05 </li></ul></ul>
  3. 3. <ul><li>Out-Of-Step With Operational Efficiency </li></ul><ul><ul><li>Product Return average 20 or 25% on the Web* </li></ul></ul><ul><ul><li>Based on 2010 estimates online footwear retailers will be faced with a $1.3 Billion product return problem </li></ul></ul><ul><ul><li>$406 Million in additional shipping and restocking expense </li></ul></ul><ul><ul><ul><li>(typical $25 lost expense per pair returned) </li></ul></ul></ul><ul><ul><li>* Analyst Richard Jaffe at Stifel Nicolaus, 6/2006 </li></ul></ul>Online Shoe Retailers
  4. 4. <ul><li>V fit is the Next Step: </li></ul><ul><ul><li>Vfit is a shoe fitting system that allows online shoe buyers to compare an exact image of their foot to the inside image of a shoe’s dimensions to correctly determine the proper size and fit. </li></ul></ul>Selling More Shoes Online
  5. 5. Women's Feet Are All Shaped Different Roberta Sandi Kari Nancy Sally Frances
  6. 6. Scan Results 66% of Female Scans are “C” width or Greater
  7. 7. Men’s Feet Are All Shaped Different Dan Rob James Andrew Eric Tom
  8. 8. Scan Results 37% of Male Scans are “B” width or Narrower
  9. 9. all these sizes fit… So What Size am I? 12 ½ D 10 ½ 11 ½ C 10 ½ 10 45 12 D 11 12 B 13 No surprise that 25% of online shoes are returned!! Andrew
  10. 10. The Fluoroscope ~ 1920 - 1957 <ul><li>The device reached its peak of popularity in the early 1950s, with some 10,000 in use in shoe stores in the United States. </li></ul>
  11. 11. The Brannock ~ 1927 - Today <ul><li>The Brannock foot-measuring device is in most retail footwear stores. </li></ul>
  12. 12. U.S. Online Shoe Retailers <ul><li>In-Step With Consumer Demand </li></ul><ul><ul><li>All big name retailers now offer shoes online </li></ul></ul><ul><ul><li>2003 Web Shoe Sales = $563 Million </li></ul></ul><ul><ul><li>2006 Web Shoe Sales = $2.9 Billion (512% Increase) </li></ul></ul><ul><ul><li>#1 online retailer – has 7.5 million unique customers & 2008 sales are expected to exceed $1 Billion </li></ul></ul><ul><li>U.S. online footwear sales are estimated to grow to $5.5 Billion by 2010* </li></ul><ul><ul><li>* Nielsen/NetRatings reports </li></ul></ul>
  13. 13. <ul><li>Two people who have the same foot size, but fit different shoes. </li></ul><ul><li>Both people’s feet Bannock a size 9 ½ (263.4mm ~ 267.6mm). </li></ul><ul><li>“ A” feet fit into a size 10 New Balance </li></ul><ul><li>“ B” feet fit into a size 9 ½ New Balance </li></ul>Why VFit vs. Look-up Size Table
  14. 14. How It Works – Data Capture + @ E-mail & Name = ID# Consumer provides name, gender & email address Home Computer Consumer is sent email inviting them to access the digital image of their feet online and ‘try and buy” Kiosk & Scanner Internet enabled Vfit kiosk is placed in retail store. Interactive kiosk screen delivers information about the service and process Database Information is sent to Vfit database (and Retailer’s CRM system) 3 second Foot Scan Kiosk scans consumer’s feet & creates digital image
  15. 15. Database Administration <ul><li>Database administrative tools with automated updates and access to over 1000 brands, 140,000+ styles and over 1.5 million sizes </li></ul>
  16. 16. Personalized Data Suzie shopped for 79 minutes She tried on 34 pairs of shoes and finally bought... Data indicates Suzi’s interest & sizes!
  17. 17. Beta Test <ul><li>Program Description </li></ul><ul><ul><li>Self Service Kiosks placed in Open Areas </li></ul></ul><ul><ul><ul><li>4 Shopping Malls (5 months) * </li></ul></ul></ul><ul><ul><ul><li>5 Health Clubs (7 months) * </li></ul></ul></ul><ul><ul><ul><ul><li>* 99.5% uptime over 12 months </li></ul></ul></ul></ul><ul><ul><li>Created an online beta retail shoe site </li></ul></ul><ul><ul><ul><li>Product feeds from,, </li></ul></ul></ul>
  18. 18. <ul><ul><li>12,358 consumers saved foot scans with emails </li></ul></ul><ul><ul><li>5,472 unique ID look-ups on (41%) </li></ul></ul><ul><ul><li>4,610 unique Vfit’s performed </li></ul></ul><ul><ul><li>237 online shoe purchases </li></ul></ul><ul><ul><ul><li>4.33% of unique look-ups (Scan Ratio : Sale = 52:1) </li></ul></ul></ul><ul><ul><ul><li>5.1% of Vfit's (Online Fit Ratio : Sale = 20:1) </li></ul></ul></ul><ul><ul><li>47 repeat purchases </li></ul></ul><ul><ul><li>3 pairs returned (1.27% return rate!) </li></ul></ul>Open Area Kiosk Results
  19. 19. The Vfit Advantage <ul><li>Decrease in shoe returns = Operational savings (95% of consumers surveyed said it would help them find better fitting shoes)* </li></ul><ul><li>Increase in shoe sales = Revenue gains </li></ul><ul><li>Customer Satisfaction = Brand Loyalty (97% of shoe buyers surveyed said they would recommend Vfit sites to their friends and family)* </li></ul><ul><li>Innovative and differentiating = brand building </li></ul><ul><ul><li>*220 Consumers surveyed </li></ul></ul>
  20. 20. Vfit Kiosk – Retailer ROI Model Retailer Lease ROI 4 th Month
  21. 21. Web-Based Remote Monitoring <ul><li>Kiosks perform nightly updates to secure network servers, reporting usage, updating product offerings and flagging any technical concerns </li></ul>
  22. 22. Gen 3 Kiosk Base
  23. 23. Gen 3 Kiosk Base
  24. 24. <ul><li>10 Micron B/W digital imagers </li></ul><ul><li>FX2 USB control boards </li></ul><ul><li>Elo 19” capacitive touch screen </li></ul><ul><li>IBM PC P4-3.2GHz 40+Gb 800MgHz FSB </li></ul><ul><li>Windows XP Professional OS </li></ul><ul><li>Cold cathode tube lighting </li></ul><ul><li>Elk 800 Audio Amp </li></ul><ul><li>Aluminum bend & fold frame and upright </li></ul><ul><li>RIM molded plastic base covers </li></ul><ul><li>“ Zero” moving parts for sustainability </li></ul>VFit Kiosk
  25. 25. VFit Kiosks
  26. 26. Customer’s Believe in Vfit
  27. 27. “ Big Picture” Opportunity <ul><li>Assuming 3,000 kiosks deployed over 60 months (50/mo) </li></ul>* Using industry accepted internet conversion rate of 3% based on a 16% average open rate Period Email Scans Collected Online Shoes Sold Year 1 2.8 Million 260,000 Year 2 11.1 Million 1.60 Million Year 3 24.5 Million 4.17 Million Year 4 43.4 Million 8.01 Million Year 5 67.4 Million 13.0 Million
  28. 28. 949-273-1853 Do you have your VFit ? - the “breakout” technology that will fundamentally change the way people buy shoes in stores and on the Internet.