Building A More Human Shopping Experience In An Online World
TABLE OF CONTENTS 1. Confidentiality & Disclaimers www.fancy.com 2. Executive Summary 3. Problem 2 4. Solution 5. Why Now? 6. Addressable Market 7. Competitive Landscape 8. How It Works 9. Fancy in the Press 10. Business Model 11. Target Market 12. A Turnaround Worth Making 13. Road to $100M and Profitability 14. Marketing Strategy 15. The Ask 16. Financials 17. Team & Advisors 18. Thank You! Building A More Human Shopping Experience In An Online World
CONFIDENTIALITY & www.fancy.com DISCLAIMERS This document, and the information and ideas it contains, are the sole and exclusive property of Fancy Inc. has been prepared for a limited number of people and is for informational purposes only. This document is strictly confidential and is only being made available to those who agree to keep it confidential. It may not be reproduced or used, in whole or in part, for any other purpose, or made available to anyone who did not receive it directly from Fancy Inc Management team. By reading this document, you agree, and will be deemed to have agreed, to the foregoing terms and conditions. This document has been prepared by Fancy Inc. and is being provided to a limited number of persons for informational purposes only. This document does not constitute or form any offer or invitation to sell or issue, or any solicitation of any offer to purchase, or subscribe for, any investment. While all reasonable care has been taken to ensure that the information contained in this document is accurate in all material respects, no representation or warranty, express or implied, is or will be given as to the accuracy or completeness of the document or the information or opinions contained herein. Furthermore, it is acknowledged that some of the agreements with third parties and partners represented in this document are still pending. Building A More 3 Human Shopping Experience In An Online World
EXECUTIVE SUMMARY Our mission is to combine community, commerce, and curation to create a unique and highly engaging social shopping experience. Strong Traction 1M Mature Assets Poised for Growth www.fancy.com 2M Facebook Likes ● Proprietary marketplace ● Restructuring complete technology ● Attractive unit economics Purchase Transactions 340K ● Innovative influencer model ● Established lifestyle ● Huge data sets to mine 12M Instagram Followers brand ● Attractive CAC/LTV ratio Registered Users 100K ● Fancy.com domain generates significant 500K+ Twitter Followers organic traffic Monthly Active Users ● Highly rated iOS and Android apps (2.7M app 600K installs) Email Subscribers Huge Addressable Market The Ask $2.5M convertible note Cap: $9T1 $12M Discount: 20% global ecommerce market size Building A More Human Shopping Experience 1 Refer to “Addressable Market” page 4 In An Online World
PROBLEM Bricks and mortar retail has been changed www.fancy.com forever, online shopping is stuck in a 1.0 world Web 1.0 shopping platforms like Amazon cater to need-based buying and optimize for efficiency but don’t serve trust-based categories very well Shopping is meant to be “interactive and inspirational” especially for categories in which consumers seek feedback or recommendations Social platforms like Instagram and Pinterest provides a browsing-based feed from friends and influencers but lack a safe, reliable or personalized shopping experience Building A More 5 Human Shopping Experience In An Online World
SOLUTION www.fancy.com A highly-curated, discovery based, social marketplace consisting only of vetted brands. Users come to Fancy to discover, share, and shop women’s and men’s fashion and accessories, skin care, decor and more through engaging videos and aspirational imagery Building A More 6 Human Shopping Experience In An Online World
WHY NOW? www.fancy.com Ecommerce in the US saw an increase of 18% due to COVID19 Building A More 7 while the brick and mortar retail spending dropped 14%.1 Human Shopping Experience More than 76M users in the US will make a purchase via a In An Online World social network at least once in 2020, amounting to 38.4% of US social network users3 As social media's influence continues to increase, US social commerce is projected to reach $84B in 2024, accounting for 7.8% of the US retail ecommerce sales.2 Although social commerce sales are growing the experience has shown to be disjointed and unpredictable, and often untrustworthy (This is important, it allows us to differentiate from Instagram / Facebook / Tik Tok. The reality is that people like social commerce, but the pure-play social platforms do a poor job vetting sellers and providing after purchase support) 1 Emarketer 2 Statista 3 Business Insider
WHY NOW? www.fancy.com Ecommerce in the US saw an increase of 18% due to COVID19 Building A More 8 while the brick and mortar retail spending dropped 14%.1 Human Shopping Experience More than 76M users in the US will make a purchase via a In An Online World social network at least once in 2020, amounting to 38.4% of US social network users3 As social media's influence continues to increase, US social commerce is projected to reach $84B in 2024, accounting for 7.8% of the US retail ecommerce sales.2 Although social commerce sales are growing the experience has shown to be disjointed and unpredictable, and often untrustworthy (This is important, it allows us to differentiate from Instagram / Facebook / Tik Toc. The reality is that people like social commerce, but the pure-play social platforms do a poor job vetting sellers and providing after purchase support) 1 Emarketer 2 Statista 3 Business Insider
ADDRESSABLE T$A9MT1 www.fancy.com MARKET (CAGR=14.7% 1 Grandview Research 2 Emarketer Global ecommerce 3 Statista market size $SA7M10B2 Total US personal fitness industry revenue 2 Social $SOM22B3 commerce market size Building A More 9 in the US Human Shopping Experience In An Online World
COMPETITIVE www.fancy.com LANDSCAPE No other platform offers the combination of content, commerce, and community for buyers and sellers Building A More 10 Human Shopping Experience In An Online World
HOW IT WORKS? INSPIRE SOCIAL COMMERCE DISCOVERY Inspiration & Community Personalized Discovery Recommendations Curation Featured Feed Explore Collections Profile Sharing Recommendations Activity Feed Influencers www.fancy.com ● Curated feed ● Search the entire ● Themed product ● Fancy’d items ● Share items with users ● Curated feed ● Search the entire ● Themed product lists ● New items daily store lists ● User created lists ● Share stores ● New items daily store ● Discover something ● Physical goods ● Followed stores ● P2P Messaging ● Physical goods ● Download apps ● Shop by category ● Discover ● Followed people ● Social networks ● Downloadable apps ● Shop by category Fresh collections ● Item videos ● Shop by merchant something ● Saved articles ● Share via SMS ● Item videos ● Shop by merchant weekly ● Share discoveries ● Trending items ● Add your own items ● Share via email ● Share discoveries ● Trending items ● Affiliate tracking and ● Featured ● Fresh collections ● Build wish List ● Rich links, with image ● Featured collections payouts weekly ● Become a micro ● Editors’ picks collections ● Editors’ picks influencer Building A More 11 Human Shopping Experience In An Online World
FANCY IN THE PRESS www.fancy.com Turning impulse shopping into an art Building A More Human Shopping Experience Melding social networking and the style maven’s obsession with all things beautiful In An Online World 12 Eyed by Kanye West and Apple, Fancy is working on the future of shopping
BUSINESS MODEL Fancy generates income from transactions conducted on the platform and paid advertising through media solutions Consumers Sellers www.fancy.com ● Access to a highly curated 40% Take Rate with no owned inventory and ● No cost multi-channel collection of lifestyle products negative working capital distribution ● Social-driven discovery ● Profitable brand exposure and ● Exposure to brands not broad distribution to active and affluent userbase already saturated on other platforms ● Strong brand adjacencies ● Engaging user experience with ● Influencer awareness high-quality lifestyle imagery 13
TARGET MARKET Gender Geography Other Middle Age East Europe www.fancy.com Female Male USA Income Channels Web Average Mobile income Building A More 14 Human Shopping Experience In An Online World
A TURNAROUND WORTH Cut monthly burn by 65% www.fancy.com MAKING Systemized key functions and Since its founding in 2010, Fancy raised $109m that implemented strict financial controls was invested in technology development and customer acquisition. In Sept 2018, amid an Divested offline business and insolvency situation, Raptor Capital lead a re-established digitally native restructuring. In Apr. 2019, the BOD terminated the core strategy Founders and retained new executive management. Improved GM% on transactions New leadership has taken assertive steps in turning by 294% around the company including drastic cost cutting, divesting unprofitable business lines, streamlining Recruited and hired key functional the strategy and focusing on profitability. leaders across Finance, Marketing, Product, Digital Merchandising and Partner Development Building A More 15 Human Shopping Experience In An Online World
ROAD TO $100M AND PROFITABILITY The turnaround is near complete and $100M the company is poised for growth and reaching cash flow breakeven. Building A More Human Shopping Experience Net New Growth www.fancy.com In An Online World Execute on multi-pronged marketing strategy to drive profitable growth Margin Expansion Increase take-rate of each transaction Conversions Lifetime Value Optimize conversions of Expand variety of traffic products, improve personalization and drive up AOV 16
MARKETING STRATEGY SOCIAL INFLUENCERS DIGITAL TRADITIONAL CHANNELS www.fancy.com ● Drive website traffic through influencers Online Loyalty Program content and engagement ● Enhance presence on Facebook, Instagram, ● Launch a loyalty program for ● Actively recruit new influencers that speak Pinterest, and TikTok frequent shoppers to the target market ● Continue to manage the above presence Merchant Collaboration ● Continue to offer incentives to influencers and post frequent blogs/articles/videos and share a percentage of the received promoting the platform ● Partner with strategic merchants to sales promote their product and boost sales ● Create engaging video content in ● Enhance the brand ambassador program collaboration with merchants and Reactivation influencers @zendaya @TPAIN @jbsmoove ● Launch new programs geared towards 3.5M 278K 790.8K Paid Search & SEO our 12M strong user base Followers Followers Followers @EdwardNorton ● Identify highest converting “keywords” @drake @SteveAoki 2.3M that users are searching for on Google 989.2K 1.4M Followers Followers Followers @gabunion ● Engage in daily paid search such as @cottencandykate @DavidBlaine 736K Google Adwords, display advertising 2M 44.4K Followers activities, and retargeting Followers Followers @jackdorsey 183K ● Optimize website for SEO with proper @kevinjonas @ciara Followers “keyword density” to increase organic 97.8k 2.4M Google ranking Followers Followers Building A More 17 Human Shopping Experience In An Online World
THE ASK Capital Raised $2.5M in convertible note (12M cap, 20% discount, 6% coupon) Investor www.fancy.com Our lead investor Sweetwater Capital Partners has committed to match the first $1.0M of capital on a 1:1 basis Stu Sternberg Other Notable Investors Jim Pallotta Will Smith Tampa Bay Devil Rays Raptor Celebrity Francois Henri-Pinault Kering Building A More 18 Human Shopping Experience In An Online World
FINANCIALS Average Order Customer Acq. www.fancy.com Value Cost (CAC) Bottom up approach to improve conversions, margins, and AOV. $110.41 $35.02 Lifetime CAC/ Value LTV $364.10 10.3x Building A More 19 Human Shopping Experience In An Online World
TEAM & ADVISORS Abbey Schoenberg | Head of Marketing Greg Spillane | CEO Nora Murphy | CFO Maggie Porterfield | Head of Digital Merchandising David Legacki | Head of Product Haisoo Shin | Head of Technology www.fancy.com Board of Directors Name | Title Name | Title Name | Title Name | Title Company Company Company Company Building A More 20 Human Shopping Experience In An Online World
Thank You! For more information, please contact: Greg Spillane EMAIL PHONE www.fancy.com
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