Breakfast with the Disruptors - Supply Chain Startup Pitches

1. 1#TheDisruptors
DEBORAH WEINSWIG
MANAGING DIRECTOR
FUNG GLOBAL RETAIL & TECHNOLOGY
November 29, 2016

2. 2#TheDisruptors
Tami Fersko
Group President, Private Label
LF Americas (a division of Li & Fung)
Edward Hertzman
Founder
Sourcing Journal
Echo Hindle-Yang
Founder and CEO
MSQ Ventures
THE JUDGES

3. 3#TheDisruptors
ABOUT THE STARTUP PITCH COMPETITION
Each company will have
4 minutes to present, followed by a
2 minutes Q&A session.
The startup with the best pitch
will receive $25,000 worth of fee-
based services from MSQ Ventures.

4. 4#TheDisruptors
JUDGING CRITERIA
(1 = NO, 5 = YES)
Does it address a
big problem or area
of opportunity?
(1 = NO, 5 = YES)
Feasibility of the
business model
(1 = low chance of success,
5 = high chance of success)
Ability to scale
across multiple
categories or
segments
(1 = limited ability,
5 = high ability)
Would you invest?
Confidence in the
founder/team
to execute
(1 = NO, 5 = YES)
(1= limited confidence,
5 = high confidence)

5. 5#TheDisruptors
DEBORAH WEINSWIG
MANAGING DIRECTOR
FUNG GLOBAL RETAIL & TECHNOLOGY
November 29, 2016

6. 6#TheDisruptors
Management Comments on Black Friday
Earlier Thanksgiving hours paid off. Reported strong traffic at its flagship location in
Herald Square, New York City with over 16,000 people waiting outside.
The company said the appliance category was strong and it has had a good start with
record mobile traffic and sales, and no website interruptions.
Kohl’s set record for online sales on Thanksgiving. The retailer made many Black Friday deals
available online before the store opened.
Walmart kicked off its Cyber Monday deals at 12:01am EST on Friday for the
first time ever, as it aims to grab customers ahead of its competitors.
Amazon was aggressive on apparel. The ecommerce company offered 20%–30% off
select apparel, jewelry and watches.

7. 7#TheDisruptors
Black Friday Recap: Strong BF Weekend Bodes Well for Holiday
Source: Adobe, Atlas
1. Black Friday Positive for Holiday. Big-box retailers and
department stores saw more in-store traffic than
specialty, off-price and dollar stores. Mid-tier and
value-focused department stores were the busiest.
2. Online Sales Post Record High. Black Friday online
sales were $3.34 billion vs estimated $3.05, according
to Adobe.
3. Mobile Sales At An All-time High. Black Friday was
the first day in retail history to drive $1.2 billion in
mobile sales(+33% YoY).
4. In-store Traffic Declined. Store traffic declined by 1%
on Thanksgiving and Black Friday( ShopperTrak).
5. Average Spend Declined Due to Heavier
Promotions.The NRF estimated $289.19 spend per
shopper during Thanksgiving weekend, down from
$299.60 in 2015, down 3.5%.

8. 8#TheDisruptors
1. Cyber Monday Starts Early for Walmart
Walmart kicked off its Cyber Monday deals at 12:01am EST on Friday for the first time ever, as it aimed to grab customers ahead of its
competitors. Walmart nearly tripled its online assortment to more than 23 million products compared to 8 million last year.
2. Retailers Repeat Same Deals as Last Year
Several retailers, including Walmart, Best Buy and Target, repeated Black Friday deals from last year.
3. Tech Influence Felt Across Categories
Tech items were popular even at stores that typically do not have a broad electronics offering, specifically, tech watches at department
stores by Apple and Michael Kors. Several retailers featured virtual-reality (VR) headsets as doorbusters.
4. Amazon was Aggressive on Apparel
The ecommerce company offered 20%–30% off select apparel, jewelry and watches.
5. Many Promotions Identical In-Stores and Online
Many retailers offered the same promotions online as they did in-store, specifically J. Crew, Urban Outfitters and Express.
Black Friday Key Takeaways

9. 9#TheDisruptors
Black Friday Store Tour Takeaways
Source: Fung Global Retail & Technology
Target Offered Aggressive Promotions to Compete with
Amazon
JC Penney’s Deals Seemed to be Less Appealing to
Customers
Source: Fung Global Retail & Technology
No Sell-Through of Doorbuster Items at Kohl’s
Source: Fung Global Retail & Technology

10. 10#TheDisruptors
Black Friday Store Tour Takeaways
Source: Fung Global Retail & Technology
VR Headsets Were a Popular Doorbuster
Source: Fung Global Retail & Technology
The Women’s Shoe Department Were Most Crowded at
Saks Fifth Ave.
Source: Fung Global Retail & Technology
Boots and Booties Were the Busiest Areas of the Store

11. 11#TheDisruptors
Black Friday Store Tour Takeaways
Source: Fung Global Retail & Technology
Black Friday Deals Ran the Whole Weekend at H&M
Source: Fung Global Retail & Technology
No Deals but Strong Traffic at Lululemon
Source: Fung Global Retail & Technology
Few Frantic Black Friday Shoppers at Zara

12. 12#TheDisruptors
JUDGING CRITERIA
(1 = NO, 5 = YES)
Does it address a
big problem or area
of opportunity?
(1 = NO, 5 = YES)
Feasibility of the
business model
(1 = low chance of success,
5 = high chance of success)
Ability to scale
across multiple
categories or
segments
(1 = limited ability,
5 = high ability)
Would you invest?
Confidence in the
founder/team
to execute
(1 = NO, 5 = YES)
(1= limited confidence,
5 = high confidence)

13. 13#TheDisruptors
PARTICIPATING STARTUPS

14. 14#TheDisruptors
BlueCart’s mobile-based system reduces
restaurant wholesale ordering time by
half. It is the first platform for both
restaurants and vendors.
Restaurant users reduce their
returned orders by 82% and
reduce food waste by 50%, on
average.
BlueCart’s system eliminates the
repetitive, late-night phone calls and
blurry v in the supply-ordering
process.
BlueCart is an order management platform for restaurants that streamlines the
supply-ordering process.

15. 15#TheDisruptors
CoLoadX is a digital B2B marketplace for ocean freight procurement.
It helps logistics-services buyers save
up to 25% on ocean freight costs, and
reduces the lead time needed to find
ocean freight services.
It helps non-vessel operating common
carriers (NVOCCs) reach more
potential clients.
Real-time communication
capabilities on its platform result in
accurate pricing and maximum
operating efficiency for both sides.

16. 16#TheDisruptors
Inspectorio guides inspectors
through the quality-inspection
and compliance-verification
processes via its mobile app.
Defects in supply chains are
identified in real time and shared
with retailers and brands.
Inspectorio uses machine
learning and predictive
analytics to predict product
defect patterns.
Inspectorio offers quality inspections for textiles and other consumer goods in
Asia and South America.

17. 17#TheDisruptors
Loomia is a smart fabric company that develops products that make it easier
to manufacture smart soft goods.
Loomia makes fabrics into
circuit boards using
proprietary conductive ink.
Its smart conductive materials
maintain the softness and
stretch of regular fabrics.
These fabrics can be used for
apparel, furniture, industrial
wear and wristbands.

18. 18#TheDisruptors
Radius8 offers online broadcasting that facilitates communication between
local stores and customers.
It enables stores to engage
customers where they are.
It lets shoppers see inventory
at the local-store level.
The company has successfully
launched a partnership with Guess.

19. 19#TheDisruptors
Supply.AI helps omni-channel retailers predict and prevent returns using consumer and
supply chain behavior data.
The solution draws customer
behavior data around how
customers actually shop.
It applies machine learning to
predict when a customer is likely
to return their products, and
alerts retailers.
It recommends actions for
retailers in real time in order
to prevent returns.

20. 20#TheDisruptors
TigerTrade is a international wholesale marketplace for buying and selling excess inventory.
Buyers bid on quality excess
merchandise, while TigerTrade
arranges payment and shipping.
Sellers offload large excess
inventory and reach out to
new buyers via TigerTrade.
TigerTrade has a global sourcing
network that ranges from the US
to Europe to Southeast Asia to
South America.