INVESTOR RELATIONS inspired by reality
Company Confiden,al
LOFT NEDSENSE inspired by reality Ø WHAT IS LOFT? Watch this video to see what LOFT is
Ø MARKET TRENDS Research tells us we are on to something
Ø LOFT SOLUTIONS What LOFT offers Ø CUSTOMER SUCCESS Clients and LOFT users experience benefits
Ø BUSINESS MODELS LOFT evolu@on and business models
3D VISUALIZATION WILL TRANSFORM THE CONSUMER EXPERIENCE IN INTERIORS AND BEYOND
h/p://www.youtube.com/watch?v=yUv_ceBQSfc
3D SHOPPING EXPERIENCE OVER ALL CHANNELS WILL BECOME THE NORM thought leaders endorse the LOFT vision Niraj Shah, CEO Wayfair : “One of the biggest complaints with online [shopping] is how do you get a real feel for it? …How is it going to look in my home? That’s the ul@mate ques@on you’re trying to answer. If you can actually see the sofa set in your living room and decide, that’s preRy much your perfect experience.”
Joseph Pine, MarkeCng Specialist and Author of ‘The Experience Economy’ and ‘Infinite PossibiliCes’: “The world is shiBing to an experience economy. ... LOFT is a wonderful design technology that allows you to imagine how your home could be like. The plaGorm is just a perfect way of helping companies and consumers to envision virtually what they want and make that real physically by really buying these products and redoing their homes.
THE INDUSTRY IS GROWING AND ONLINE SALES ARE ACCELERATING
Ø The indoor furniture industry is increasing its share of the overall economy; 8,2% growth versus 2,1% growth of GDP Ø Over last 5 years, number of online furniture retailers has increased at average annual rate of 3% to 1,278 businesses. Ø However, the number of tradi9onal brick-‐and-‐mortar furniture stores has decreased at an average annual rate of 0.1% over the last 5 years (IBISWorld) Ø General e-‐Commerce growth because of rising prevalence of broadband connecCons and other high-‐speed internet services (increase at annualized rate of 17,5% in last 5 years). Ø According to ComScore 70% of internet users make online purchases and will con9nue to grow. eMarketer esCmates that by 2015, the number of consumers shopping online or researching products online will surpass 200 million in the US.
TARGET MARKET VERTICALS (USA) growth is in Online & Mobile channels
Research source: eIntent April 20, 2013
3D visualization technology will transform markets
MAJOR US FURNITURE BRANDS & RETAILERS FACE THE FOLLOWING CHALLENGES Brick & Mortar
Showrooming:
73%
of consumers parCcipate in “showrooming” browsing at least once in-‐store and then buying online
Omni Channel:
70% Online pure play
of retailers lack mulC-‐channel integraCon from a system and process standpoint
Webrooming:
88%
said they parCcipated in “webrooming” browsing first on the internet then buying in-‐store.
Research source IBIS, Aberdeen research benchmarks
HOWEVER, SHOWROOMING AND WEBROOMING CAN BE BENEFICIAL FOR BOTH CHANNELS If consumer stays within the brand Very important Some importance
Value of processes to your company’s Omni Channel Strategy
Lihle to no importance 84%
Consistent Experience over all channels Inventory visibility over all channel Fulfillment Customer Order visibility over all channels Digital MarkeCng (e-‐commerce, mobile, social Pricing strategies Loyalty management Store operaCons Customer segmentaCon Demand ForecasCng Procurement / Assortment Customer Call Centre TradiConal AdverCsing Omni-‐channel 2013: The Long Road to AdopCons, RSR
16% 16% 4%
80% 75%
19% 5%
73%
21% 6% 36% ,
64% 53%
43%
4%
52%
41% 47%
7% 3%
50% 46%
44%
10%
44%
49%
7%
55%
42% 33% 13%
48% 54%
3% 19% 33%
IDENTICAL- AND SEAMLESS CUSTOMER EXPERIENCE OVER ALL CHANNELS LOFT value proposition for furniture retailers and -manufactures
LOFT PROVIDES BENEFITS THROUGHOUT VALUE CHAIN
Branding
Sourcing
Sales
•
•
Increase brand • equity through providing excellent customer experience across Omni sales channels • Curate the best fit based on captured data •
Create content without building it first; build scenes with 3D modeled merchandize OpCmize for popular, repeat sales merchandize enable personalized landing page based on social profile and previous navigaCon history
• • •
•
•
• Opportunity to get qualified leads Enable higher conversion rate Recognize incremental product sales Shorten sales cycle • through improved personalized visualizaCon Increase in store • customer service interacCon
Reten9on Opportunity to learn a great deal about customer profile, income, gender, life stage, desires, budget; every click is measured Opportunity to offer targeted offerings, promoCons and loyalty programs It’s fun to play with LOFT!
… LOFT customers anecdotes … Ø “LOFT increased in-‐store average order value by 300%” Ø “LOFT lowered return ra=os by some 25%” Ø “LOFT lowered showrooming aBri=on by 40%”
LOFT DRIVES PURCHASE DECISIONS IN-STORE AND ONLINE by rendering products in real-time in real homes
Benefits for the Customers Ø A personalized customer experience • Plan and be inspired Ø An omni-‐channel experience • Online – In-‐Store – Mobile, connect with your virtual showroom Ø Share their scenes • Rooms can be shared on social networks & with your showroom/customer service Ø Buy their scenes • Confidence their choices “will work” & look good in their home
THE ULTIMATE CUSTOMER EXPERIENCE ENGINE unique selling points LOFT versus alternative solutions Ø Real 3D ü Experience the room in real 3D ü Your products shown in 3D Ø Photo realisCc ü Based on photograph of the room ü No architect skills needed Ø Best quality 3D rendering ü Feel the product ü Zoom in to experience it Ø Ease of use ü Only a few clicks to make room 3D ü Anyone can play with the room Ø FuncConaliCes ü Cleaning the room ü Changing floor / walls ü AnC collision
LOFT HAS AN UNIQUE PROPOSITION FOR EACH SEGMENT
§ § § § § §
LOFT LICENSE
LOFT4Brands
LOFT Real Estate
for Big Kahuna’s
for Mid-‐ and Small Brands
for Real Estate & Retailers
White label Web integraCon iPad app Fully customizable eCommerce Omni channel
§ § § § §
Shared and hosted Full design features New sales channel Traffic generator Affiliate model
§ § § § §
Connect with customers Right Cme, right place Unique collaboraCon Retail and Real Estate License and affiliate
LOFT HAS SECURED DEALS WITH MARKET LEADERS IN KEY SEGMENTS GLOBALLY Solid and growing customer base Key Segments Branded Retailer Multi Brand Retailer Furniture/textile Flooring manufacturer Furniture / Textile manufacturer LOFT4Brands LOFT Real Estate
USA
EMEA
EXTRAORDINARY BENEFITS FOR EXISTING CUSTOMERS Quotes from existing customer base
John Seebeck: vp e-‐commerce at Crate&Barrel “LOFT allowed us to turn a customers house into a home by personalizing the shopping experience. Both in store and at the customers’ home.”
Andrea Rubelli: CEO of Rubelli Donghia “We need technology like LOFT to connect to our younger designers. We need to provide them with the tools to make their beau@ful designs with our products ”
Natasha Gallardo: NaConal MarkeCng Manager Carpet Court “Our customers need a certain level of comfort before making a big purchase like flooring. With LOFT our sales team is able to beRer help our customers make the decision”
300%
increase in average order size
increase in customer satisfaction
decrease in sales cycle duration
ALL BUSINESS MODELS BUILD ON LOFT CORE SYSTEM, EACH WITH ITS OWN REVENUE DRIVERS Scale of revenue opportunity
LOFT LICENSE
LOFT4Brands
LOFT Real Estate
for Big Kahuna’s
for Mid-‐ and Small Brands
for Real Estate & Retailers
Revenue drivers: § LOFT Licenses § LOFT 3D models § Services / customizaCons
Revenue drivers: § Volume § Monthly subscripCon § LOFT 3D models
Revenue drivers: § Yearly subscripCon Real estate company § Affiliate program Retailers § Revenue share § Price per Lead
§ LOFT 3D models
LOFT LICENSE COMES EITHER GENERIC OR AS SOFTWARE DEVELOPMENT KIT, ON WEB AND/OR MOBILE the world through the eyes of the customer
LOFT Web -‐ Browser independent & no plug-‐in required -‐ Fast loading -‐ IIS or Cloud deployment opCons
fully synced LOFT Mobile -‐ NaCve iOS app -‐ Content synced with LOFT@Web account -‐ Content Delivery Network
COMPETITIVE LISTPRICES LOFT WEB AND LOFT MOBILE One time project costs contains license, project and content, Maintenance and additional content are recurring.
License for LOFT Web or LOFT Mobile Poten,al 3D Models License fee per solu,on*
1 – 50 €70,000
51 – 100 €90,000
101 -‐ 500 €110,000
501 – 1,000 €130,000
1,001-‐ 3,000 € 150,000
101 – 500 €145 €33
501 – 1,000 €140 €30
1,000 – 3,000 €135 €27
> 3,000 € 130 €25
* Plus a yearly 20% of the license fee for maintenance and support
Content
1 – 100 €150 €35
Price per 3D model Material (full repeat texture)
Project implementa9on Bespoke work (per day) Skinning, branding and implementa,on
Price €1,000 €15,000
Remarks Number of days depends on workshop For basic implementa,on
… average payback is 3-6 months … (customer stats - 2013)
LOFT 4BRANDS IS A SHARED AND HOSTED PLATFORM OFFERING FULL LOFT FUNTIONALITY Hosted by NedSense, LOFT4Brands offers a plug and play 3D solution Ø
Ø Ø Ø
Shared Platorm • MulCple brands in one hosted platorm • OpCmal customer experience • AddiConal sales channel Hosted by LOFT • No technical hassle with regards to hosCng • Cloud based soluCon with best service LOFT Core 3D Engine • Take advantage of latest LOFT technology Customers • Quodes • Bert Plantagie • Verano • Marc Janssen ICE • Canova Milano • Pode by Leolux • Thonet • BluDot
LOFT4Brands REMOVES THE INVESTMENT THRESHOLD One time costs limited to content development, other costs in monthly subscription
Subscrip9on package
3D Models Membership price per month
Starter* 1 -‐ 10 €250
Basic 11 -‐ 20 €400
Medium 21 – 50 €700
Premium 51 -‐ 150 €1,000
Ul9mate 151 -‐ 250 € 1,500
51 – 100 €140 €30
101 – 200 €135 €27
201 – 300 € 130 €25
* Maximum period 6 months
Content
Price per 3D model Material (full repeat texture)
Report package
Informa,on on a monthly base
Price per month**
1 – 10 €150 €35
11 – 50 €145 €33
Basic Number of unique visitors Viewed 3D models Viewed materials Viewed scenes € 30
Premium (includes Basic) Last viewed products In combina,on with which other brands € 50
LOFT FOR REAL ESTATE real estate ‘personalization’ and ‘home shoppers’ experience
“Wouldn’t it be great to experience my new home and visualize redecora@on op@ons before I decide ? And wouldn’t it be fantas@c for the realtor of this kiosk, to really personalize his advice based on the specific situa@on of his client? And wouldn’t it be awesome for interior brands if they can promote their products when their customers are considering a new house, and display the items in their new home?” Pieter Aarts and Jan-‐Hein Pullens -‐ LOFT NedSense
LOFT FOR REAL ESTATE real estate as powerful sales channel for interior retailers and manufacturers
1.
2. 3.
When are people most likely going to purchase furniture items ? Upgrading Homes: When families get larger 4. Kids: A growing family requires more space and it’s Cme to move into something bigger, a bigger home may require more OR different furniture pieces to go with it 5. Moving: Moving to a new state to start a new life or just moving across the hall may require a new hamper or perhaps a new sofa 6. Marriage: Two incomes, new home. New adventure in life starts with furnishing and nurturing a home – literally and figuraCvely
research performed by Deal Décor
and the right type of furniture to accommodate a fast-‐growing army of babies College: Time to move out of mommy’s nest and into a dorm room requiring some inexpensive, but cool furniture pieces Promo9on: A promoCon at work or good year at your small business might meaning upgrading that 32 inch tv into that 60” wall mount that you’ve been dreaming about
LOFT Real Estate gives prominence to interior brands at the very right moment when people shop for a new home
LOFT FOR REAL ESTATE real estate as powerful sales channel for interior retailers and manufacturers ü 90% of home buyers / renters also search online; ü New home buyers / renters place emphases on virtual tours and home experience tools; ü Home buyers / renters are more likely to bring their online research offline by walking through or driving by a home they viewed online ü Zillow movers were 63% more likely to make ANY home improvement purchases ü Redfin, Realtor.com, Zillow and Trulia ahract 61 million of the 67 million visitors to real estate websites each month in the U.S., according to ComScore (SCOR). They also generate hundreds of millions in revenue and have helped turn buying a house into entertainment.
Study Na,onal Associa,on of Realtors and Google, report highlights www.zillow.com
LOFT REAL ESTATE SOLUTION Provide photos
LOFT technology running on realtor’s website
Content: -‐ 3D rooms and apartments -‐ 3D product catalogues
Real Estate companies
LOFT converts photos into 3D rooms
LOFT services & technology Products are modeled in 3D
StaCsCcs
LOFT Central Database
COM MISS IO
$$$$
Re-‐direct to retailer’s webshop
N FE E
Retailers & Manufacturers Provide photos of products
On-‐line shoppers purchase products
Retailer’s webshop
REVENUE CONVERSION Content: -‐ 3D rooms and apartments -‐ 3D product catalogues
Provide photos
$
LOFT technology running on realtor’s website
Real Estate companies
$ $ LOFT converts photos into 3D rooms
$
Products are modeled in 3D
LOFT Central Database
LOFT services & technology
$
$
$
StaCsCcs
COM MISS IO
$
$$$$
Re-‐direct to retailers webshop
N FE E
$
Retailers & Manufacturers Provide photos of products
On-‐line shoppers purchase products
Retailer’s webshop
LOFT FOR REAL ESTATE CLEARLY A SCALABLE BUSINESS MODEL One time costs limited to content development retailers, recurring subscription fee Real Estate company and agreed Affiliate pricing with Retailers
Real Estate Company subscrip9on
3D Models Membership price per year
Basic < 1000 €100,000
Premium > 1000 €200,000
Retailers & Manufacturers Affiliate pricing Price per Click (PPC) Revenue share
Content Price per 3D model Material (full repeat texture)
Report package Informa,on on a monthly base
Price per month**
€0,03 -‐ €0,12 4% -‐ 12 % 1 – 10 €150 €35
11 – 50 €145 €33
Basic Number of unique visitors Viewed 3D models Viewed materials Viewed scenes € 3000
51 – 100 €140 €30
101 – 200 €135 €27
201 – 300 € 130 €25
Premium (includes Basic) Last viewed products In combina,on with which other brands € 5000
ECOSYSTEM Real Estate websites Zillow
Real Estate development firms
Real Estate Investment Trust Redfin
Residen/al
RE/MAX Century 21 Keller Williams Realty Coldwell Banker ERA Real Estate Sotheby’s int Realt
Realtor.com
Trulia
Retailers & Manufacturers
Commercial
CBRE Jones Lang LaSalle Colliers Cushman&W Newmark Grubb KF Cassidy Turley
LOFT REAL ESTATE - LAUNCH Real Estate Investment Trust
launching customer: Equity Residential ü ü
ü ü ü
Leading US real residence rental company, based in Chicago Equity ResidenCal owns or has investments in more than 400 properCes across the US (New York City, Boston, Washington DC, Seahle, San Francisco and Los Angeles,) 600.000 unique monthly visitors www.equityapartments.com Pilot project will start with selected Apartments in LA and will expand in the 6 months pilot. LOFT Real estate soluCon will be launched by Equity ResidenCal on their website and in their Kiosk.
Content providers:
Pilot launch: December 2013
ü ü ü
Retailers & Manufacturers
Crate & Barrel Havertys BluDot