The document discusses the evolution of fashion retail and new technologies. It describes how retail, manufacturing, shopping experiences, personalization, and made-to-measure processes have changed from the past to the present. Specifically, it notes that luxury brands have begun adopting technologies like social media. Manufacturing now uses new technologies and limited edition collections. Shopping experiences are extended both online and offline. Personalization caters to individualism. Made-to-measure now allows online measurements and specifications. The future envisions fully customized clothing made through 3D scanning and printing based on an individual's measurements and preferences.

1. THE EVOLUTION OF
FASHION RETAIL
Andrey Golub
andrey@else-corp.it
Founder & CEO @ELSE Corp
a Virtual Retail company

2. © 2017
ELSE Corp
S.r.l.
2
Hype Cycle for Retail Technologies, 2017
Data: Gartner, Inc. 2017
This Hype Cycle contains technologies that should
be considered by CIOs of large multichannel
retailers, operating in any segment and geography,
especially when prioritizing technology
investments to support digital business
transformation.

3. © 2017
ELSE Corp
S.r.l.
3
Fashion and the Fourth Industrial Revolution

4. © 2017
ELSE Corp
S.r.l.
4
A Tailor of the Latest Fashion

5. © 2017
ELSE Corp
S.r.l.
5
The Ready to Wear System… which is BROKEN

6. © 2017
ELSE Corp
S.r.l.
6
GENERAL SCENARIO-
THE MARKET

7. © 2017
ELSE Corp
S.r.l.
7
Retail is Changing
RETAIL
Luxury brands preferred to steer away from
technology, fearing it synonymous with mass
media, and therefore mass-market
communication and perception.
Luxury brands are acknowledging the role that
social media and advanced, sensory-led
technologies play in consumers’ everyday lives,
and adapting them to their own purposes with a
smart, upscale twist.
PAST PRESENT

8. © 2017
ELSE Corp
S.r.l.
8
Manufacturing is Changing
MANUFACTU
RING
PAST PRESENT
Brands were sticking to traditional ways of
manufacturing, based on old technologies and
seasonal collections.
Brands are applying new technologies into a
traditional scheme, trying to insert Limited
Edition Collections.

9. © 2017
ELSE Corp
S.r.l.
9
The Shopping Experience is Changing
SHOPPING
EXPERIENC
E
PAST PRESENT
Customers were able to experience shopping in
a physical store, and they could only buy
existing products from the stock.
The shopping experience is extended in both,
off-line and on-line channels. Brands recognize
the importance of using digital technology in-
store to make the shopping experience more
appealing.

10. © 2017
ELSE Corp
S.r.l.
10
The Personalization Experience is Changing
PERSONALIS
ATION
EXPERIENCE
PAST PRESENT
Personalisation was largely the preserve of
luxury brands, involving monogram products or
observing an item being finished in-store.
Brands cater to consumers’ growing desire for
individualism and personal creative expression
with customization zones and participatory
concepts.

11. © 2017
ELSE Corp
S.r.l.
11
MTM is Changing
MTM
PAST PRESENT
The customer’s measurements are taken by a
tailor, then a pattern is selected and altered to
match the customer’s measures.
The customer’s measurements are taken by a
MTM retailer (on-line or physically), then a
pattern is altered to match customer’s
measures and style specs.

12. © 2017
ELSE Corp
S.r.l.
12
Patent by Amazon
The Patent by Amazon
for On Demand
Manufacturing

13. © 2017
ELSE Corp
S.r.l.
13
Made to Measure in 5 to 50 Years
“For the next 5 years, I do not see many things happening. In 30/50 years you will be measured by a body scanner, the measurements will be sent to a production facility
completely run by computers, the suit will be assembled without any human touch and then it will be sent back for trial. The client will try it on and the suit will be loosen or
tighten where the client feels it. The suit will be made using nanotechnology that when connected with the client brain will alter itself without any human intervention.
Probably the person that will assist you in store will be just a facilitator totally unaware of fashion trends because, for them, you will look at styles and ideas just from famous
bloggers on the social media platforms.”
Giovanni Luigi Bordone - SCABAL Brand Ambassador
E.L.S.E. is working to reach this scenario many years
before this prediction:

14. © 2017
ELSE Corp
S.r.l.
14
Virtual Couture Fashion- Virtual Bespoke

15. © 2017
ELSE Corp
S.r.l.
15
GENERAL SCENARIO-
THE CUSTOMER

16. © 2017
ELSE Corp
S.r.l.
16
New Luxury Consumer
The new definition
of luxury doesn’t
eliminate class
and style, but
does require
absolute
uniqueness &
deeper
experiences

17. © 2017
ELSE Corp
S.r.l.
17
Trends: Millennials
45% spend more
money on
personalization
(Forrester, 2015)
25% are willing to
pay a premium
price (+20%)
(Deloitte, 2015)
45% are comfortable
waiting longer to get
a personalized
product
(Deloitte, 2015)
216% more
likely to be influenced
by in - store deeper
experiences (Honigman,
2015)

18. © 2017
ELSE Corp
S.r.l.
18
What do They Want?
Tailored
Products &
Services
TAILORING
Deeper
Experiences
TECHNOLOGY
Products
Delivered on the
Right Time
SPEED

19. © 2017
ELSE Corp
S.r.l.
19
DIRECT TO CONSUMER

20. © 2017
ELSE Corp
S.r.l.
20
“Virtual Retail” Scenario
Management at 100%
Virtual Retail in the Cloud
ON -DEMAND / SMART
MANUFACTURING
PRODUCT DESIGN
ANALYTICS
INDUSTRIAL MADE
TO MEASURE
SMART SUPPLY
CHAIN
3D PRINTING AT
THE ENTERPRISE
Consumers Manufacturers
PRODUCT CONFIGURATOR
VIRTUAL SHOPPING
3D BODY SCANNING
PERSONALISED CLOTHES
STYLE ANALYTICS
New
Distribution
Model
Integrable
to Any
DistributionDesignerBrand
Agile
Manufacturing
Sales Channel Store
3D Service
Providers
V.I.P. e-commerce
platform
Virtual Retail

21. © 2017
ELSE Corp
S.r.l.
21
Customization & Personalization

22. © 2017
ELSE Corp
S.r.l.
22
Known 3D Configurators for Web

23. © 2017
ELSE Corp
S.r.l.
23
AN OPPORTUNITY FOR A NEW RETAIL MODEL

24. © 2017
ELSE Corp
S.r.l.
24
The E.L.S.E. (Exclusive Luxury Shopping Experience) Concept
INDUSTRIAL “MADE TO ORDER” MADE
SIMPLE

25. © 2017
ELSE Corp
S.r.l.
25
Virtual Collections, 3D Fashion, Product Personalization, Made to Measure
Each Virtual Capsule collection is comprised of a selection of items that follow the theme or
mood of the collection. Each product within the v.c.c. is made up of elements, and each
element has it’s own set of possible configurations.

26. © 2017
ELSE Corp
S.r.l.
26
Product Customization & On-Demand Manufacturing
Partial Change
Extra
Decor
Basic
Base Model

27. Measures & Information of 3D Avatar
Model: #98457
Customer: A. G.
Size: 38 Regular
Adjust: Points X, Y, T, Z for MTM
© 2017
ELSE Corp
S.r.l.
27
Virtual Retail Service Delivery Model
for initial
manufacturing
%
MTM & Customisation
1
3
€ 5
2
4
6for tailored
manufacturing
%
Initial Payment
Virtual Fitting & Cross Sale Virtual Tailoring & Manufacturing
Final Payment Product Finalisation

28. © 2017
ELSE Corp
S.r.l.
28
Non - Retail Spaces, the Future of VR Commerce

29. 1
3
2
© 2017
ELSE Corp
S.r.l.
29
Direct 3D Sales to Consumer: The Contest
• CRM Cloud Database
• Qualified scanned body
measurements w/3D Scanners
• MTO/ MTM Manufacturers -
Factories/ Products (Brands and
“No Brands”)
• MTM Club initiative
Direct Sales for
MySize & MyStyle
Products

30. © 2017
ELSE Corp
S.r.l.
30
ELSE CORP
A VIRTUAL RETAIL COMPANY

31. stands for Exclusive Luxury Shopping Experience
© 2017
ELSE Corp
S.r.l.
31
A Cloud SaaS Platform for Mass Customization and Cloud Manufacturing
(Industrial Made to Order)
A B2B Platform & Service Provider
www.else-corp.com

32. Web & App 3D Configurator VR 3D Configurator
AR 3D Configurator HoloLens 3D Configurator
© 2017
ELSE Corp
S.r.l.
32
Front-End for Mass Customization, powered by E.L.S.E.

33. © 2017
ELSE Corp
S.r.l.
33
VRxVR: API Platform for 3-rd party projects
VR 3D Shopping & Product Configurator MR / HoloLens 3D Product Configurator
HoloLens x Virtual Wardrobe
Virtual Runway
Virtual Models Transported into a Virtual
Environment
Interactive Catalogue & Holo-Shopping

34. 3D CAD Personalisation in the
Retail Space
Mass Customisation
From 3D CAD to On Demand
Manufacturing of mass
customised products through
virtual product personalisation
in a retail space - virtual or
physical
On-Demand
Manufacturing
© 2017
ELSE Corp
S.r.l.
34
Start to End Solution for Virtual Retail

35. © 2017
ELSE Corp
S.r.l.
35
A Working Model for Footwear - Launch in Q3 2017

36. © 2017
ELSE Corp
S.r.l.
36
Virtual Retail Corner: Footwear Boutiques & Department Stores
Physical point of sale where the end user
can tangibly experience the brand’s
configuration process
The ideal In-store Virtual Retail Corner
of a brand comprises of five core
elements - essential to the deployment of
the E.L.S.E. Virtual Retail platform &
experience in a physical retail space.
SALES ASSISTANT TABLET APP
PHYSICAL SAMPLES
VIRTUAL 3D PRODUCT
CONFIGURATOR
VIRTUAL STYLE CATALOGUE
3D FOOT SCANNER HARDWARE
& RELATED APP

37. © 2017
ELSE Corp
S.r.l.
37
3D Virtual Boutique- else.shoes

38. © 2017
ELSE Corp
S.r.l.
38
Trial Clients up to date

39. © 2017
ELSE Corp
S.r.l.
39
Apparel is Coming Next

40. © 2017
ELSE Corp
S.r.l.
40
Virtual Retail: VALIDATED
Strategic Partners In the Media Participations
20162017
•Micam February 2016
•Netcomm E-Commerce Award
•Technology Hub 2016
•SMAU Berlin 2016
•Micam September 2016
•Wired Next Fest Florence
•Explore Talks
•Futura City
•SMAU Milano
•Decoded Fashion
•Codemotion
•Micam February 2017
•SIMAC 2017
•Microsoft Forum
•Smart Retail Now
•FED: Forum della Economia Digitale
•APLF: Leather & Materials
•Blend4Web Conference
•Netcomm Forum 2017
•Convention4.0 by VAR Group
•Russian Small & Medium-Sized
Enterprises Forum 2017
•Visionary Forum 2017

41. © 2017
ELSE Corp
S.r.l.
41
THE FUTURE…
OF THE FUTURE

42. © 2017
ELSE Corp
S.r.l.
42
Customization & Personalization in the DTC
Algorithm Driven Design
Computational Design
Data Couture
Brands
3D Printed Fashion
AR, VR & MR

43. © 2017
ELSE Corp
S.r.l.
43
Next in Fashion & Design: Future Virtual CX

44. © 2017
ELSE Corp
S.r.l.
44
ELSE Corp, Phase 2

45. © 2017
ELSE Corp
S.r.l.
45
The Future of Fashion - #RTFS
DESIGN
CUSTOMIZATION
INDIVIDUAL
SIZE
PREDICTIVE
ANALYTICS
OPEN
PLATFORM
AR, VR & MR
ENVIRONMENTS
SMART SUPPLY
CHAIN INDIVIDUAL STYLESUSTAINABLE
The Real Time Fashion System
(RTFS) is a vision for a new
product design process for
companies and independent
designers, that leads to the
accurate prediction of individual
needs & product demand while
positively impacting the fashion
industry, socially &
environmentally, on a global scale.
Real-Time
Direct to
Consumer
Supply Chain
Transparency
Artificial
Intelligence
3D CAD

46. © 2017
ELSE Corp
S.r.l.
46
ELSE.ai - Our Next Challenge is Artificial Intelligence
In May 2017 ELSE Corp advanced to
the next stage in The IBM Watson AI
XPRIZE.
The IBM Watson AI XPRIZE is a $5
million competition, challenging teams
globally to develop and demonstrate
how humans can collaborate with
powerful AI technologies to tackle the
world’s grand challenges.
Team ELSE.ai
Phase 1

47. © 2017
ELSE Corp
S.r.l.
47
Can the AI be our Next Fashion Designer?

48. THANK YOU
Andrey Golub
andrey@else-corp.it
Founder & CEO ELSE Corp

49. Disclaimer
Brands’ logos inserted in this presentation belong to their respective owners and ELSE Corp Srl does not
claim rights over them.
Data and information provided in this presentation belong to public sources of digital access. ELSE Corp
Srl has no responsibility for the accuracy of these sources.
The pictures that are on this document are copyrighted to their personal owners. The credit is to the owner
and in no way we are claiming the right to these photos.
The pictures are taken from URL’s on the web and believed to be public.

50. © 2017
ELSE Corp
S.r.l.
50
OTHER USEFUL SLIDES

51. Data: CIO Agenda: A Retail Perspective, 2017
© 2017
ELSE Corp
S.r.l.
51
The Challenge of Retailers in the Digital Business Environment
PROVIDE
CUSTOMER -
CENTERED
PRODUCTS,
SERVICES &
PROCESSES
of retailers are harvesting results from
digital efforts.2%
have yet to start designing their digital
future17%

52. © 2017
ELSE Corp
S.r.l.
52
Mass - Customized Retail & Manufacturing
Touch & Feel Experience
Physical Actual
Bio Parameters
Exclusive
Luxury
Shopping
Experience
SaaS Cloud Platform

53. © 2017
ELSE Corp
S.r.l.
53
A Virtual Retail Corner
Physical point of sale where the end user can
tangibly experience the brand’s configuration
process
Virtual Brand Corner with Physical Touch

54. ELSE is an infrastructure for Virtual Retail services (own and 3-rd parties),
and a way to build custom Virtual Shopping applications
Integration with e-commerce
merchants websites.
Integration into
e-commerce technology
Integration into e-commerce
service provider’s platforms.
V - CRM
DAM
3D Services Real Time
Recommendations
© 2017
ELSE Corp
S.r.l.
54
E - Commerce Integration

55. © 2017
ELSE Corp
S.r.l.
55
TsUM Voronezh Opening 2017