vFit Oct 2014

The Future of

FitThe “Breakthrough” App that fundamentally changes the way people buy shoes online

Andrew HanscomFounder & CEO

The vFit AppSmartphone App accurately matches your own feet to a shoe database allowing customers and their family to “visually fit” the proper size shoe before they buy online.

A proven kiosk/scanner solution NOW updated into an easy to use and globally accessible free iPhone App

Increase sales conversions

Reduced poor fit returns

The vFit

AppiPhone App that is first of it’s kind

for shoe sizing

3 PUBLISHED U.S. Patents

covering system & method

Proven and tested with Footlocker,

Zappos & shoes.com

80+ footwear retailers signed

on to pay commissions

A technology that will disrupt current sizing

method

$15.00 Average Revenue Per User / Per Use

(RPU/PU)

3 years exit plan to major online marketplace

3 year cumulative ROI 515% of Investment

Market Size in Online

Footwear

2013 Online footwear sales in U.S. was over $8 Billion

• Zappos (Amazon) = 12.5% market share > $1 Billion

• Annual growth rate exceeding $1.2 Billion per year

• 43% of online sales traffic is generated from smartphones

Global online shoe sales is one of the fastest growing internet business segments

By 2016 over 1 Billion people worldwide will have a smartphone * (all these people buy shoes)

The Problem

Online footwear product returns average 25% (1 out of 4 pairs)

$300 Million operational cost at Amazon / Zappos• Zappos pays UPS shipping costs both ways if returned plus restocking costs and

will ship replacement size for free too

70% of U.S. customer base refuse to buy shoes online due to “size and fit confusion”

Current online shoe buyers are inconvenienced when they must take the time to return shoes that don’t fit

10 ½

6 ½ A

11 ½ B

6 ½

4511 1312 ½ D

7 ½ B 87C 8 ½ A

Size Confusion for Men & Women

All these shoe sizes fit the same two people…

So how do we know which Size is the right fit?

No surprise that 25% of online shoes bought are returned

Andrew’s closet

Sandi’s closet

• US Patent No. 6,741,728 – Issued May 25, 2004 - Footwear Sizing Database Method

• US Patent No. 6,546,356 – Issued April 8, 2003 - Body Part Imaging Method

• US Patent No. 6,549,639 – Issued April 15, 2003 - Body Part Imaging System

Our Patented Technology

Barrier of entry is difficult for other competitors before 2020

Scanning method and system are broadly covered in 3 patents

Database method patent ensures only vFit can match feet to shoes using a comparative database

Internationally filed provisional patent under both U.S. Law and the

Patent Cooperation Treaty ("PCT").

CLICK ON PATENT # TO VIEW DETAILS

https://www.google.com/patents/US6741728?dq=andrew+hanscom&hl=en&sa=X&ei=DRq8U4znG6rtigLE-YDwAg&ved=0CDoQ6AEwBA

https://www.google.com/patents/US6546356?dq=6,546,356&hl=en&sa=X&ei=5xq8U86vNorNiwLh3oG4Dw&ved=0CB4Q6AEwAA

https://www.google.com/patents/US6549639?dq=6,549,639&hl=en&sa=X&ei=Nxu8U8D4IKKDiwKyqIDgBQ&ved=0CB4Q6AEwAA

iPhone App Experience

Landing Screen


Login


Scan or Shop Screen


Before Scan Options

Placing foot on known sized object 8 ½”X11” or A4 copy paper

Smartphone patented scanning approach

Fixed Size Object rests flat on hard floor (8.5” X 11” or A4 sheet of Copy Paper)

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-1 degrees vertical0 degrees horizontal

Integrated with iPhone’s internal gyroscope, images will have known camera angles


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Scan Profile


Other Scans / Different types of

socks / Other Family members

iPhone Shopping Experience

Search


Search Results


“View my Fit” option


Personalized fit result


Retailers with shoe size available in

inventory and price comparison


Retailers with shoe size available in

inventory and price comparison

When customer chooses retailer to fulfill the sale vFit receives on average 15% commission from

that affiliated partner site

Revenue Stream from 80+ online partners

Green circles reflect the commission % received from each retailer

18%

7%

12%

8.5%

11%

7%

11%

25%

20%

11%

7%

13%

17%

20%

20%

Stage 1

approach

vFit Comparative Experience

Scanned customer can search shoes online also

@ vfitshop.com

Customer finds a shoe they want to purchase

on vfitshop.com

Stage 1

approach


A Lightbox window

will allow customer

to determine best size

12

Nike Free 5.0+

Stage 1

approach


Nike Free 5.0+

11 ½ Customer can change size

up clicking on – or +

Stage 1

approach


Nike Free 5.0+

13

Stage 1

approach


Customer can change size

up clicking on – or +

Nike Free 5.0+

When proper fit isdetermined it can be bought from selected retailer or saved to their Personal “vFit Closet”

12

Stage 1

approach


Shoe & size links directly to partner retailers

shopping cart to process order

Zappos pays vFit 18% or $15.00

commission on this sale Stage 1

approach


Social Media Customer Acquisition

Advertise to 90 – 100 million active users

who shop for shoes online and have iPhones in

the 4 key markets

How vFit Makes Revenue

vFit smartphone app is free to all consumers via

When consumer uses vFit to try on a shoe and confirm fit a cookieis embedded in the URL telling retailer the lead came from vFit.

Proven online revenue approach used by

Average vFit conversion revenue per sale = $15.00

Yr. 1 = 100,000 vFit conversions = $ 1,335,000 revenue

Yr. 2 = 1,135,000 vFit conversions = $14,190,000 revenue

Yr. 3 = 3,516,000 vFit conversions = $36,920,000 revenue

Exit Strategy

$300 Million Acquisition Goal from a

strategic online leader

vFit 36 Month Goal:• Exceed $39 Million annual

revenue

• Reach 10 Million unique users

SummaryHeadquartered in Southern California

Large market opportunity with sufficient untapped potential

Scalable global business with opportunity for rapid growth

Compelling and defendable market differentiation

Proven product proof-of-concept

Well defined sales & marketing strategy with a strong understanding of the market and customer need

Compelling business model and financial plan that leads to profitability and positive cash flow

Intellectual Property - proprietary and defendable (patented) processes and method

Exit strategy that provides a good ROI for investors

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The “Breakthrough”

App that fundamentally changes the way people buy shoes online

vFitShoes.com

vFitShop.com Contact:Andrew HanscomFounder & CEO(949) [email protected]

vFit Oct 2014

Internet

Transcript of vFit Oct 2014