Fitting Reality is developing a cloud-based virtual fitting room that allows online shoppers to "try on" clothing digitally. Their solution uploads a customer's photo and uses their height to generate a 3D model for viewing different outfits. This improves the online shopping experience by helping customers determine proper fit and style before purchasing. Fitting Reality aims to partner with small and medium online retailers initially before expanding to larger brands. They are seeking $2 million in funding to support growth and reach profitability by 2015.

1. 1
CLOUD-BASED
AUGMENTED REALITY
VIRTUAL FITTING ROOM
FOR APPAREL BRANDS AND RETAILERS
www. fittingreality.com

2. September 13 2
Contents
1. Executive summary
2. The opportunity
3. Fitting Reality’s Solution
4. Strategy and competition
5. Where we are and where we are going
6. Team

3. EXECUTIVE SUMMARY

4. September 13 4
Fitting Reality is a cloud-based virtual fitting room that offers its customers a unique
interactive shopping experience solving their FIT/SUIT dilemma. Fitting Reality addresses
the very basics of retail industry through creating new standards of tomorrow’s fashion
retail.
Executive summary
US market of apparel &
accessories reached $400bn in
2012 . Only about 10% of sales
were made online.
70% of shoppers would not buy online since they can’t try
on clothes before buying. 80% won’t purchase online a
second time because of poor shopping experience.
Apparel & accessories is the 2nd
largest online commerce category
with expected growth of 17% in
the next 3 years.
Fitting Reality introduces a unique
virtual fitting room that gives online
shoppers a seamless experience
similar to an offline store.
With complex mathematics and
physics at the core of its technology
Fitting Reality offers online retailers
and brands a scalable, easy to
implement and cost effective
platform that improves their
customers’ experience.
Fitting Reality is on track to
become the industry standard for
virtual fitting due to its scalability
and multi-platform.
We seek $2
mln to reach
break-even
in 2015

5. The opportunity

6. September 13 6
Apparel & accessories is one of the fastest growing online
markets in the US
• Apparel & accessories is the second largest category of goods sold online after computers & electronics
(with 20% of total e-commerce market)
• Still, only 10% of clothing is bought online and it is the fastest growing e-commerce category with expected
CARG of c. 18% in 2013-2016 (vs. forecasted offline apparel CAGR of c.2%)
2010 2013* 2016*
28 54.2 87.8
* Figures for 2013 and 2016 are projections. Source: eMarketer, Apr 2013
US apparel and accessories retail e-commerce revenue from 2010 to 2016
(in billion U.S. dollars)

7. September 13 7
Brands and retailers are boosting their spending on technology and
digital marketing to compete in a dynamically changing
environment
• According to a recent research by Forrester, 56% of
e-businesses are planning to increase their spending
on commerce-related technology in the next year.
• Brick and mortar retailers are also ramping up their
efforts as their online sales are surpassing offline and
becoming their main business drivers.
…Online vs. offline GROWTH
…M-commerce
Nordstrom is planning to spend on
technology $375 mln or 15% of their
capital budget till 2016 as well as
investing in on-line retail start-ups
Online sales increased 21% year over year
in the second quarter of 2013 for
Abercrombie & Fitch Co. while total group
sales declined.
…AUGMENTED REALITY
…customization
…social shopping

8. September 13 8
However, most people still prefer to buy offline –
online retailers cannot give a matching experience
c. 90% prefer to
shop offline to use the
fitting room
14% of on-line purchasers
are not satisfied
c. 21% purchasers
return clothes bought
on-line
… because 1. People cannot see, touch and feel the product.
2. People have problems choosing the right size/fit due to lack of uniformity
in apparel sizing even within one manufacturer
3. Shoppers are seeking for the personal impact and inspiration from the
creation personal looks and, they want to mix and match items on
themselves.
Many people are
still unhappy
buying online…

9. September 13 9
As a result, online retailers are loosing money and
customers..
• Uncertainty if it “suits”
and “fits”
• Poor fit / wrong size /
“unpleasant” fabric
• 70% of shoppers are searching online
but don’t purchase, since they can’t try
on clothes before buying
• Return rate for online retailers vary at
25-40% of revenue
• Ordering multiple sizes – higher
working capital cost
• Unhappy customers – decrease of
loyalty, lower repeat orders, lower
conversions
All the above leads to higher costs and
lower margins for online retailers

10. September 13 10
Many are working on this challenge
Aim to:
•Improve returns
•Increase conversion
•Make customer happier
– increase repeat
purchases
3D-avatar fitting -
Size advisor
Zugara
Styko
Metail
Style guide –
Magic
Mirror
Augmented Reality fitting
H&M, Showrooms.ru
DRESSFORMER

11. September 13 11
But the problem still remains
… all existing solutions are far from offline experience:
requires to print out a measuring kit and measure oneself
only 2% of items are modeled, the remaining are shown
based on similarity
Too complicated and/or
time consuming
Not easily accessible,
especially via mobile
Too expensive for
small/medium e-
retailers
can’t be used on mobile/tablet due to using MS Kinect
technology
cost/accuracy of modeling are prohibitive for most
retailers/brands – especially in mass market or in fast fashion
specific requirements for measuring (standing in certain
background, exactly 4 meters away from a laptop)
requires physically going to a shopping mall to make a body
scan

12. SOLUTION

13. September 13 13
Our solution – customers can “try on” clothes on-line!

14. September 13 14
How does it work for the customer?
1. Upload a photo (existing or new)
2. Enter your height (just once)
3. Register via Facebook and save your ShapeID
4. Start “trying on” clothes in every on-line shop which works with Fitting
Reality using your ShapeID
http://youtu.be/HS6uXTVX2DQ

15. September 13 15
It is quick and hassle-free –
just see your photos in new
garments
Makes shopping online more confident: helps
solve the “DOES IT SUIT ME” problem – not
only size fitting
It is VISUAL – gives freedom
to experiment, mix and
match, search for your own
style and share with others
Makes online
shopping really
personalized
Can be used
everywhere, on
any device – web,
mobile.. and
SmartTV
Fitting Reality makes the online fitting a seamless
experience: try on clothes like in a real store

16. September 13 16
Cost effective solution: low implementation cost, low support cost,
lower returns by customers
Scalable: can be used by online retailers of all sizes
Quick to set up: for small retailers the platform can be implemented
even in 1 day
Data reach: collect and use data insights about your customers based
on individual ShapeID information and history of purchases
For e-retailers and brands – Fitting Reality is the first
platform able to provide a scalable and accessible
solution for mass market, ready to become an industry
standard
Advantages
for retailers
Advantages
for brands
Higher Brand Loyalty
Better consumer insights – know what your customers want/who your
customers are
Every $1 spent on Fitting Reality virtual fitting room will bring
you additional sales of $20-$55 depending on the store size

17. September 13 17
How does it work for online stores
Web-interface to upload
photos of clothes and
receive code of “Try on”
button
Easy to set up the “Try on”
button of the web-page of
a product
Technical support and
quick integration of a
solution (starting from
1 day)
Possibility to further
decrease costs by creating
the 3D models in-house

18. Strategy and competition

19. September 13 19
Market segmentation and focus
Large online retailers
& brands (c. 1000 stores)
Small online retailers
& brands (c. 150,000 stores)
High street Mass market

20. September 13 20
Our strategic focus is to start working
with small and medium online retailers
and brands, since there is no
competition in this segment for the
moment.
When we accumulate critical amount
of ShapeIDs, we’ll target “big fish” to
become an industry standard.
Strategic focus
Large online retailers
& brands (c. 1000)
Small online retailers
& brands (c. 150,000)
High street Mass market

21. September 13 21
Opportunities to capture beyond core value proposition
For online retailers:
ShapeID database - customers’ database, sales analytics and insights,
retargeting based on the customers’ personal preferences
For customers:
Digital IP cameras (Smart TV, Kinect, etc.) - video and real-time fitting in-
house using digital IP cameras technologies
Personalized stylists’ advise based on ShapeID, blogs, social networks, mobile
apps, etc.
For developers / agencies:
Development of mobile applications (fashion, games, socializing)
Google glasses implementation
For offline stores:
Offline virtual fitting rooms in bricks-and-mortar stores

22. September 13 22
Fitting Reality positioning against competitors
Mass market/
fast fashion
Developers
Scalable
Easy to use and integrate for
online retailers; simple and
cheap process of creating 3D
models of clothes
Can be used on all
platforms (web,
smart phone,
tablet, Smart TV) to
shop at home, in
the office, in the
airport, etc.
Data centric approach
allows to create truly
personalized experiencesOpen platform for
developers to build their
own applications
FR offers an affordable
solution for all kinds of
brands and retailers - a
technology that can be
easily spread due to low
cost of implementation
and further support
FR focuses on mass
market: fast fashion
brands, small and
medium sized online
shops, blogs etc.
Accessible

23. September 13 23
Exact size match User-aided no yes yes
Virtual “try on” option yes ”place against” no no
Mix & match yes yes no no
Video in progress no no no
Ability to use on mobile/tablet yes yes no no
Analytical reports availability yes yes yes no data
Cost for on-line retailers low low high not appl.
Implementation time from 1 day from 1 day 40-50 days not appl.
Ease of use Upload 1 photo Special requirements
for background and
distance
Print out a
measuring kit and
measure oneself
3D body scan
using special
equipment in
shopping mall
Fitting Reality: key differentiators from competitors
Capital raised to date $1,8 mln - $ 9,8mln $ 30mln
FunctionalityTime&
cost
Ease
Zugara is our closest analogue, but their service requires specific equipment and a
camera position - thus is more prohibitive for end users.

24. September 13 24
How we monetize
* Targets for the end of FY’15
**Cost savings would be gained going forward due to:
1) optimisation of software;
2) economy on scale;
3) outsourcing ShapeID creation to be done by customers themselves.
Online Stores*:
Small (≈30K unique
users; 30K of revenue)
Medium (≈200K
unique users; $216K of
revenue)
Large (≈2500K unique
users; $3000K of
revenue)
% of store revenue 5% 3% 2%
Monthly revenue per store ($) 315 1 134 8 400
Costs per store** ($) 129 429 1 696
Profit per store ($) 186 705 6 704
Addressable market for FY’14-15
(stores)
2 500 100 10
Target market for FY’14-15 (stores) ≈150 000 ≈50 000 ≈1 000

25. September 13 25
Go-to-Market Strategy
Low customer acquisition cost – no
need for large direct sales force,
main focus on seamless of self-
service through website
Focus on mass market
(small e-retailers and
brands) to build market
share and ShapeID
base, gather customer
analytics
Use website as main channel to
work with clients – 24/7 sales
approach: customers can
subscribe and start using FR via
website in just a day
Create the buzz and
spread the word Use of affiliates and
partners in web
commerce solutions
market (e.g. Insales)
Get BIG FISH Accounts
through direct sales
efforts

26. WHERE WE ARE
And where we’re going

27. September 13 27
Where we are
Our key achievements to date include:
Research and development
of the product
Early adaption
projects and first
sales
Marketing
research
Fall 2011 2012 Spring
2013
September
2013
Business
concept
development
and fund
raising
Marketing
research in
the USA and
Europe
Launching a
beta version
of the
product
Opening a sales
office in the USA

28. September 13 28
Where we are going
By the end of 2013 2014
201
5
• $1,8 mln invested into
technology development
• Pilot tests with 12 online
retailers in Russia completed
• 6,000+ ShapeIDs
• $670,000+ revenue
• API open for developers
• 380+ online retailers
worldwide using virtual
fitting room
• 170,000+ ShapeIDs
• Website traffic: 50,000+
unique users per quarter
• $7 mln+ revenue
• 2500 small, 30 medium
and 3 large retailers
using virtual fitting
room
• 2 mln ShapeIDs
• Website traffic:
160,000+ unique users
per quarter
We are looking for $2 mln from an investor with
expertise in building international technology
companies

29. OUR TEAM

30. September 13 30
Experienced Technology and General Management Executive with
substantial entrepreneurial experience
Startup Access, MIT Enterprise Forum of Russia, Abrys Consulting /
AB Systems
Minerva Capital Partners, Webiki.ru, Sloan School of Management
Massachusetts Institute of Technology
President, Co-Founder of one of the biggest system integrators in the Russian North-
West. RAMAX International employs over 200 qualified professionals in its three offices
in St. Petersburg and Moscow. Annual Turnover (2012) - $65 mln
Founder of Integro Technologies Ltd. (www.integrotechnologies.ru), software
development, deployment and post-sale support for logistics, aviation, transportation.
Total revenue (2012) – $18 mln
Co-founder and investor - POCHTOMAT (www.logibox.ru), an integrated network of
automated post-offices.
Lev Razumovskiy
Investor
Sergey Gribov
Advisor
Our team
Alexey Streltsov
Technical Director
7 years in software development. Alexey’s
skills and expertise: C++, C#, Objective-C
programming, Java, Server Architecture,
Algorithms, Math, Software development,
MySQL, Agile, Distributed Systems
Emin Aliev
Business Development, USA ,
Lumata (ex-Buongiorno), State
University of Management
(Moscow, Russia), GUU
Mindshare Interaction, New Age
Training NYU
Inga Nakhmanson
Co-founder and CEO
Inga founded the first augmented
reality developer company in Russia in
2009 - AR Door. The company has
successfully implemented more than 40
projects for big brands both in Russia
and abroad

31. Inga Nakhmanson, CEO
+7 916 332 65 03
inga.nakhmanson@fittingreality.com
Join us in building the online shopping
experience of tomorrow!
try@fittingreality.com www.fittingreality.com