Chatbot is a shopping assistant for customers in offline stores. When in the store it suggests outfits with the product range in the store, collects customer's purchases and later sends push-notifications with recommendations of outfits with previous purchases and new collection of the brand.
By current moment we've finished 3 pilots with international fashion brands, the 4th is in process, released beta version of the product and ready to go on the market with one of the partners.
Our customers: international apparel retail chains, worldwide. Our users: men and women of 16-45; active users of smartphones and other gadgets with the Internet connection. We plan to spread our product in Russian (Volume - $US 36,68 bn), Europe ( Volume - $US 435 bn) and USA (Volume - $US 334 bn). CAGR of our market is 7,8%.
Problem or Opportunity
Problems that we help retailers to solve:
- lower sales in brick-and-mortar stores;
- decrease of customers’ traffic;
- obsolescence of brand’s audience;
- need for enriching customer experience;
- poorly developed omni-channel.
There is a dramatic decrease of customers' traffic in break-and-mortar stores. According to PwC report in 2017, 58% asked retailers said that there is a real threat of shutting down of their stores. During 2017 2000 stores in the USA were shut down.
According to vc.ru, 50% of russian fashion retailers have a goal to activate omni-channel and to enrich customer experience in their stores by the end of 2019.
Solution (product or service)
Our solution is AI-powered chatbot Amby designed for apparel retailers and their customers.
Amby gives an opportunity for fashion retailers to:
Boost sales in offline;
Attract younger generation to the stores with free innovative customers service;
Activate sleeping clients;
Support brand image as innovative, digitalized company with high standards of customer care;
Merge online and offline channels - activate omni-channel;
Enrich customer experience;
Hyper-personolize marketing communications with clients suggesting shopping recommendations based on their preferences;
Alternatives that people use now: - Offline stylists (shopping with stylist, audit of wardrobe) - Online stylist apps (online consultations with stylists, selected looks are delivered by mail): GetOutfit, StitchFix B2B: - e-com solution: Wide-eyes, UpMeStyle - in-store solution: Mercaux B2C: - Mob apps to operate wardrobes (Cladwell, Finary) - AI services that recommend outfits you may like (Inspora chatbot)
Advantages or differentiators
As a B2B solution: - our service does not require extra equipment or extra work for the store stuff - activate omni-channel.
As a B2C solution: - our chatbot saves customer's purchases and creates his/her virtual wardrobe; - suggested outfits include the clothes that customer bought before and a new collection of the brand
Current burn rate is 2000 USD per month. Monthly fee for each store - US$120-200 (depends on the particular store) + 8-15% CPA (commission of m-commerce).
Business model with offline retailers: Subscription per month per store. Fixed fee + set up fee. And commission on m-commerce.