Our client, TOLI, a visionary technology company, embarked on a mission to transform the fashion e-commerce industry. They recognized a substantial opportunity within the industry, as the ongoing problem of standardized clothing sizes and high return rates persisted. In fact, it's estimated that 30-40% of all clothes purchased were being returned, predominantly due to sizing issues. This not only resulted in lost sales but also contributed to environmental waste and logistical pollution, as these returns had to be processed and shipped. The potential economic and environmental impacts of this challenge were profound, making it an area ripe for innovation.
TOLI's vision was to develop a cutting-edge solution to address this issue and reshape the fashion e-commerce landscape. They aimed to create smart mirrors with artificial intelligence (AI) capabilities that could provide users with a remarkably accurate representation of how clothing would fit, virtually eliminating sizing-related returns and the associated challenges. Their system also introduced the concept of at-home virtual shopping malls where consumers could try on clothing from various retailers without leaving their homes.
The challenges faced by TOLI were significant:
Lack of Standardized Clothing Sizes: Inconsistent sizing across brands resulted in significant returns. Consumers often faced uncertainty when ordering online, leading to purchase hesitation and revenue loss for retailers.
High Returns and Environmental Impact: High return rates not only decreased retailers' profits due to lost sales but also contributed to environmental waste and logistical inefficiencies, including extra labor and shipping.
TOLI took a multifaceted approach to tackle these challenges and achieve its vision:
Virtual Try-Ons and Eliminating Returns: TOLI developed a smart mirror with AI capabilities that was 95% more accurate in measuring users than the human eye. This technology allowed consumers to virtually try on clothing before making an online purchase. The system could store complete catalogues of partner retailers on its cloud storage, creating a virtual 'at-home shopping mall.'
Understanding User Dimensions: TOLI's AI/ML models meticulously measured 218 points on a user's body, storing these measurements securely in the cloud.
Partnering with Retailers: TOLI aimed to form partnerships with retailers, incorporating its technology into their stores. This strategy not only helped to raise consumer awareness but also increased the number of users on TOLI's platform.
Developing a Compelling Investment Opportunity
TOLI's pitch focused on the problem-solving aspect of its technology. It showcased the substantial impact that addressing sizing issues and returns could have on the fashion e-commerce industry. By providing a highly accurate, user-friendly, and visually appealing solution, TOLI's investment opportunity became compelling.
Developing an Execution Strategy
To ensure the success of their venture, TOLI interviewed high-ranking employees at the company and sought the insights of strategic partners. This comprehensive understanding of the business operations was essential in creating an execution plan. TOLI's plan demonstrated how they would effectively address multiple sub-industries by leveraging the expertise of their strategic partners.
The combination of technological innovation, a solid execution strategy, and an appealing investment opportunity was key to TOLI's success.
TOLI's smart mirrors have revolutionized fashion e-commerce by reducing sizing-related returns, increasing user confidence, and enhancing the overall shopping experience. They have not only added value to retailers but have also contributed to a more sustainable and efficient e-commerce ecosystem.
TOLI is now well on its way to becoming the world's largest virtual shopping mall, helping consumers make better purchasing decisions and enhancing the profitability of the fashion e-commerce industry.
TOLI's smart mirror technology has the potential to reshape the fashion e-commerce landscape and make a significant impact on the environment. As a pioneer in this field, TOLI continues to refine and expand its offerings, empowering users and retailers alike.