Blockchain Economic Forum Presentation by Eran Eyal, CEO and Founder of Shopin

I want to invite to the stage Eran Eyal Eran is a very interesting person

Actually, Eran is a serial entrepreneur He launched and successfully exited three businesses already And now Eran is developing a new one, which is called Shopin, which is actually the future of Amazon, the Amazon on blockchain that is decentralized to Amazon But to that, Eran will tell, himself, about the project Thank you

Is there a clicker? Yes, sure Great Thank you very much Thanks for joining us today I know it's been a long day

And I hope what I have to sell you is going to excite you because, earlier on today, we talked about applications that make a big difference for users, not crypto people but the average user By the way, I'm really proud to announce that we were actually, just last week, the winners of Coin Agenda Global We're building a decentralized Amazon on the blockchain Well, here's the interesting thing So we all know that– One second, I think this thing is skipping slides

OK, so we all know that e-commerce is a massive opportunity But here's the rub– only 7% of retailers can actually identify their users across different channels and different devices Doesn't that sound ludicrous to you? If you don't know who your customer is, how can you possibly sell to him or her? So there are massive inefficiencies And it's time for the retailers to wake up because this man over here is coming to eat their lunch I'm not an Amazon hater

I own Amazon shares I think it's amazing And Amazon consumes 30% of the e-commerce world, but there's 70% that's pushing back What we do at Shopin is that we give retailers the thing that they're looking for– user verified preferences from the user and the full purchase history from all the retailers that that user exists on to drive perfect product recommendations on marketing So how it works– basically, the retailer works with us to advertise Shopin to their own marketplace of users

The user opts in And we take in the inventory, the verified preferences via quick a shopper IQ game And we take in all their previous purchase history from the retailer We then create an enhanced consumer profile I apologize

I don't know why, but there's a whole bunch of slides that are missing here Right, so what we do from that point is– I'm sorry I apologize Is there something wrong with this machine because all my slides are missing My slides are missing

Sorry [INAUDIBLE] Yeah, sorry about that So I'll move on But basically, what we do is that we take in all the purchase history from the retailer We then go into our real time network of all the retailers who joined

And we check to see if your data exists there And all we do we call in the purchase history that exists with all the inventory information, and we give it to you, the user, the perfect person to own it And what happens from this point is that– I really apologize Nothing seems to be working here There's supposed to be a video here

So what we do is basically we then serve a page on the retailers site called the Just For You page, where we take in their inventory and we show you the inventory that matters so all the stuff that is relevant to all your purchase history from across the web And we can do that because you're the owner of the purchase history We have a really interesting team, some of which are clearly missing from these slides So I'm going to– You know what? We don't need these slides So OK, who's our team? Myself, I've had three exits

But the more interesting people inside our team executing on this vision is my CTO and longtime friend He was the first and principal engineer at Priceline who for 14 years engineered Priceline solution, the same solution used today He engineered and architected that Sitting alongside him is Mike Rizzo who was the VP of engineering of Priceline for 15 years, responsible for all consumer-facing technology, as well as Abhishek Yermalla And Abhishek was the VP of engineering at Priceline for 10 years

They've done this before in a massive scale Also, joining us today and sitting right over there is Michael Herman, our CRO He used to be the president of global sales at Elie Tahari as well as SVP at Valentino, DKNY And I spent a long time inside the retail industry So we can go directly to about a list of 55 retailers

And we speak to people at the CMO and CEO level and go directly to the people who matter, who can really make a decision on moving forward We have a very interesting group of advisors as well, including Steve Nerayoff, the architect of Ethereum, Ethereum's ICO Jeff Pulver, invested in over 350 startups All these people help us to make better decisions Now here's the interesting thing, this is a real project

This is not something hypothetical We have almost 3/4 of a million users who joined us in 30 days The interesting thing about these 30 people– about these people is that we saw a 22% increase in transactional lift from the retailers How did it work? Zegna and Bed, Bath, and Beyond sent out their emails to their database A million people from Zegna 4 million people from Bed Bath and Beyond

120,000 people out of the million people of Zegna joined within 30 days They generated $17 million for Zegna, representing a 22% increase and lift in transactional conversion of users purchasing the same product Why? Because they see the products that are relevant to them With Bed, Bath and Beyond, 505,000 people joined within 30 days

And we generated $13 million for them, representing a 22% increase in transactional conversion These are numbers that can save the industry What is also interesting that we saw is that we've got a really cool feature where users can share their shopping profile with friends and family So when it comes time for gifting, I could share my shopping profile with you and I could share my shopping profile with you You can switch on my filter and look at all the different participating retailers on their own websites, by me the things that are perfect for me

My profile becomes enriched And you don't wind up buying me this Was super interesting to us Why? Because when we started looking at return rates at retailers, who here knows what the return rates at Saks Fifth Avenue is every day? Anyone? 10% in the back 10% in the back

20% to the person over there, [INAUDIBLE] 20%, 30%, is it 30%? 45%, very close You know, I'm going to give it to you 40% every day of what goes out of Saks Fifth Avenue comes right back

In season, 65%, 65% return rates Can you understand why this industry is going bankrupt at one retailer a month? You know why? Because people don't know their size of cost brands So they order multiple of the same items Or you wind up getting gifting from other people, who give you the same gift as another person or they give you gifts that don't fit your style and size I know this because the ex-CTO of Saks Fifth Avenue corroborated this

So these are some of the issues that are assailing the industry So we can bring greater efficiencies to the industry as well as higher margins and revenues Why do users love this? Well, first of all, you get an activity feed in your app showing you who's accessing your data And you're in control Secondly, you get Amazon-like benefits on every website that you go to

One click checkout You get one wish list for the entire web Go back to your shopping profile and you can see all your orders from all the different websites And you can control the returns from one place And of course, you've got the really brilliant feature to share your shopping profile with your friends and family

And finally, you get the gifts that you love So as a user, you have an incredible experience And to access the data over time, we're launching a shopping token, which the retailers can pay you for your data to access your data Because we're starting to understand something really special, we're starting to understand what the true lifetime value of a user is based on purchase data across the entire web Do you buy at full price? Do you buy at a lower price? Do you return a lot? How are your margins changing? And we can equate that

And this means that our token is backed by the value of data converted into dollars We've already built our real time ingestion engine It can ingest 25 million SKUs in real time You switch us on, we've ingested 25 million SKUs, broken them down to 25 to 36 key identifiers and made them applicable to your profile immediately What we're doing that's quite interesting to kickstart the market, is we haven't gone to the retailers and said, we want to tokenize your system

We all know that's not going to work What we're doing instead is saying, pay us, $15,000 to $50,000 a month for the product recommendations that you're going to be receiving, and percentage of lift These are basic models that they're very used to Nothing weird and nothing strange But what we're doing is we're taking a large chunk of that money they pay us and we're actually going to be purchasing tokens directly out of the exchange, thereby creating frothiness from the people who matter, the people who are going to create utility

So not just the speculators that are going to drive up the value of our token, it's going to be the actual people who are going to drive utility So we give the retailers the tokens, and then they start to give it to the users in order to generate– to accept adverts, and for loyalty, and referrals, etc I'm not going to go too deeply into this So our initial token offering is going to be in about 28th of February next year However, we are already conducting a very successful private pre-sell that is almost sold out

We are giving a 66% bonus to people who are participating now over half a million dollars, 40% for people below And then when we go into the actual sale itself, we'll be doing a $50 million token sale And the first 10 million, we're going to give a 20% bonus on, the next 10 million, we're going to give a 175% bonus on, and so on So everybody gets a lot of value and there's a lot of distribution

We are already being backed by some incredible people, like Galaxy Investment Partners, NEMA capital We're a venture backed company And we are here to open the doors of shopping to you so that you can shop in all the places that you love without someone controlling the pricing, squeezing the margins, or taking the brand language away from the brands into a new era So please feel free to reach out to me I'm Eran from ShopIn

And thank you for your time today Apologies for the technical difficulties [APPLAUSE] Thank you, Eran Questions? Yes, sorry, are there any questions from the crowd? [INAUDIBLE] My contact information was up You can contact me at Eran, echo, romeo, alpha, November, eran@shopin

com S-H-O-P-I-N com Any questions to Eran? Yes, sir? How you doing I'm actually very excited for this project It definitely feels like something I could use and I would like to use

What I wanted to know is that, are there retailer profiles? Or can I browse SKUs? It just feels like I might want to know what's upcoming or what I've missed Also, are any plans to implement a reward system? Yes, exactly So thank you very much for the kind words and for the question So first of all, dealing with the retailers, any retailer that you've authorized has the ability to tell you that things are there You can also wish list an item

You'll know when the price has changed You will have all these kind of wonderful things but it's decentralized You know, the ShopIn profile is there for you to have control of your data, to have all the efficiencies, to log onto every web site, or every single app We don't sell anything inside ShopIn, because then we'd become another centralized system that disenfranchises the brands So you will be able to get alerts from the people that you authorized

And in your activity feed, you'll be able to change the permissions settings This also, by the way, makes any retailer that joins us instantly GDPR compliant, which is super important to them But we don't go out to sell them something on the sell side of the business We give them something on the buy side of the business We make them something which is amazing

We give them something which is going to make money With regards to the reward systems, that's with the whole point of the ShopIn token Point systems today are broken The points have no value There have to be burnt every single year, generally

100 points at J Crew means nothing in J Crew Canada to J Crew USA They don't mean the same thing You can't transfer points from one person to another They're not backed by anything and you can't use the point systems across brands Oh and by the way, they're like fruit

They go bad Nobody told me about that, which kind of sucks because you use my money and use my time to make more money as a brand So rather what we do is we have a cryptocurrency And the cryptocurrency relates to the value of your data as it's become known over time, translating into converted dollars and cents, and an understanding of the difference between revenue and margin And based on that, this becomes, essentially, a token for you to access the person's data

And that token can be swapped around from person to person You can share it with your friends and family It goes up over time as there's greater market adoption And there's no borders And there's no commissions or middlemen involved

The retailer receives the token They have the option to shapeshift it immediately down to the dollar value on the day against the the purchase price of the item, or to hold onto it as an asset Thank you, Eran Thank you very much for your time today You know where to find Eran


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