Reasons to invest in the project:
• Addressing a $642B problem in e-commerce returns
• Scalable technology with proven market demand
• Strong recurring revenue model
• Significant market opportunity with clear path to growth
• Experienced team with relevant industry expertise
• Multiple potential exit strategies
Project Description:
Virtual Try-On is poised to transform the online fashion retail landscape by introducing an innovative virtual fitting room solution that addresses one of e-commerce's most persistent challenges: the inability to try on clothing before purchase. Our technology combines advanced 3D modeling with user-uploaded photos to create a seamless, realistic virtual try-on experience that benefits both retailers and consumers. It allows wardrobe management, mix and match suggestions and personailsed styling!
The Opportunity
The global e-commerce fashion industry faces a significant challenge with return rates averaging 30-40%, primarily due to fit issues. This results in approximately $642 billion in returns annually, creating substantial operational costs for retailers and frustration for consumers. Virtual Try-On's solution directly addresses this pain point while enhancing the online shopping experience. The Platform also has automated tools streamline order processing, inventory tracking, and customer communications, enhancing operational efficiency and allowing vendors to focus on growth!
The platform’s ultimate goal is to offer customers a seamless and enjoyable shopping journey. With features like saved virtual wardrobes, geolocation-based recommendations, personalized product suggestions, and social sharing options, customers have all the tools they need to confidently explore, try, and purchase items in a fun and engaging way
Our Solution
Virtual Try-On offers a sophisticated virtual fitting room technology that:
• Enables customers to upload photos and see how clothing will look on their actual body
• Provides accurate 3D visualisation of garments, including fabric draping and fit
• Integrates seamlessly with existing e-commerce platforms like Shopify
• Reduces return rates and increases purchase confidence
• Creates an engaging, interactive shopping experience
Business Model
Our revenue model is based on recurring subscription fees from two primary sources:
1. Retailers: $90 monthly subscription for the virtual try-on plugin
2. Consumers: $20 access fee to use the virtual fitting room features
Based on conservative projections with 1 million users and 5,000 retailers in year one:
• Annual Revenue from Users: $20,000,000
• Annual Revenue from Retailers: $5,400,000
• Total First Year Revenue: $25,400,000
Market Opportunity
The global e-commerce fashion market is projected to reach $1.0 trillion by 2025, with retailers actively seeking solutions to reduce returns and enhance customer experience. Our addressable market includes:
• Over 500,000 fashion retailers globally
• 2.14 billion digital shoppers worldwide
• Growing demand for interactive shopping experiences
Competitive Advantage
Virtual Try-On distinguishes itself through:
• Advanced 3D modelling technology providing superior accuracy
• Seamless integration with existing e-commerce platforms
• User-friendly interface requiring minimal technical expertise
• Comprehensive analytics for retailers
• Multi-device compatibility
Investment Opportunity
We are seeking $500,000 in initial investment to:
• Complete technology development and testing ($200,000)
• Launch marketing initiatives ($150,000)
• Support operational costs ($100,000)
• Maintain working capital ($50,000)
Use of Funds
Investment capital will be allocated to:
• Technology Development (40%): Completing and refining the virtual try-on technology
• Marketing (30%): Building brand awareness and acquiring initial customers
• Operations (20%): Supporting team expansion and infrastructure
• Working Capital (10%): Ensuring adequate liquidity for growth
Exit Strategy
Multiple exit opportunities exist through:
• Acquisition by major e-commerce platforms or fashion retailers
• Strategic merger with complementary technology companies
Team
Our experienced leadership team combines expertise in:
E-commerce technology development
• Fashion retail operations
• Machine learning and AI
• Digital marketing and customer acquisition
Virtual Try-On represents a unique opportunity to invest in a solution that addresses a critical pain point in the e-commerce fashion industry while delivering substantial returns through a scalable, subscription-based model. With our innovative technology and clear path to market, we are well-positioned to capture a significant share of the growing e-commerce fashion market.
