FashionTech_SD_Visual Search-Styleintelligence Apr 2016 INFO DOC
1. Styleintelligence
LONDON, SEOUL
IQ
FASHIONTECH: VISUAL SEARCH
1Published by Styleintelligence , London, UK. Contact: haesoon@styleintelligence.com +44 (0)7967 812542
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Image Source: Slyce Inc V 0.42
For the full report (US$499.00) contact:
Thomas Andersson, thomas71@outlook.com, +44 7870 210529
or
Haesoon Jung, haesoon@styleintelligence.com, +44 7967 812542
2. SCOPE AND PURPOSE OF THIS REPORT:
• To introduce the reader to the Fashion Visual Search sector including:
• The main competitors in the sector.
• Explain the five segments and active companies
• Analyse trends in the Fashion and Accessories Visual Search sector
• Quick look at the use of Artificial Intelligence in Fashion ecommerce.
• Measuring the market opportunity in each segment
This report is suitable for:
• Investors and analysts
• Ecommerce companies sourcing visual search/ image search suppliers
• Companies in the sector
Companies profiled in this report:
Asap54, Cortexica, Deepomatic, Fashwell, iLenze, Just Visual, Kuznech, Mad
Street Den, Picalike, Pomika, SamSamia, Sentient Technologies, Shot and Shop,
Skimlinks, Slyce, Smartsy, Snapfashion, Snapshopr, The Hunt, ViSenze,
Wazzatlabs, Wide Eyes, Wishary
Content stats:
• Total no of pages: 64
• Tables: 24
• Companies profiled: 23
Related reports:
• Fashiontech: Ecommerce Subscription Models (FREE)
• Fashiontech: Machine Learning (publ Jul-16, US$499)
Methodology:
Styleintelligence researched and analysed the sector using a variety of sources.
The report includes extracts from in-depth interviews with C-level and top
Management of the companies in the sector.
Styleintelligence:
A specialist fashion & technology research consultancy based in London and Seoul
For more information about this or other reports and or bespoke arrangements
please contact: haesoon@styleintelligence.com / +44 (0)7967 812542.
IQ
2Published by Styleintelligence , London, UK. Contact: haesoon@styleintelligence.com +44 (0)7967 812542
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NOTE: Whilst all professional care and attention has
been taken to ensure that the correct facts are
represented; we cannot warrant that materials are
accurate, complete, reliable, secure, useful, fit for
purpose or timely. Interviews with more than 50% of
industry sector participants has been achieved.
This report and its contents is copyright by
Styleintelligence unless otherwise stated. No distribution
by email or in print is allowed unless express permission
has been granted in writing by Styleintelligence.
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4. TABLE CONTENTS
Table 1 ……………………… Number of Companies in the Visual Search Sector, 2016 [SIQ]
Table 2 ……………………… Percentage of Companies Interviewed by segment (%), 2016 [SIQ]
Table 3 ……………………… Number of Companies by Geographic Location [SIQ]
Table 4 ……………………… Number of Companies Interviewed by Geographic Location [SIQ]
Table 5 ……………………… Funds raised per year, 2012-2015, ($m) [Crunchbase/SIQ Analysis]
Table 6 ……………………… Visual Search Sector Funds Raised per Country, 2012-2015, ($m) [Crunchbase/SIQ Analysis]
Table 7 ……………………… Funds raised by Company, to Mar 2016, ($m) [Crunchbase/SIQ Analysis]
Table 8 ……………………… Funds raised by Segment, to Mar 2016, ($m) [Crunchbase/SIQ Analysis]
Table 9 ……………………… The Global Ecommerce Software Market including Cloud Services, 2013-2019 ($bn) [Gartner]
Table 10 ……………………. Global Fashion Retail Sales ($bn), and % of all sales transacted online 2008-2015 [Euromonitor]
Table 11 ……………………. Ecommerce revenues from mobile devices Q1 2015 and Q4 2015 (% of all revenues) [Criteo]
Table 12 ……………………. % of Population Owning a Smartphone in 2015, (%) [Wikipedia]
Table 13 ……………………. Global ecommerce by type of device, 2015 (%) [Remarkety]
Table 14 ……………………. Global Online Adspend 2013-2016 ($bn) [ZenithOptimedia]
Table 15 ……………………. The Global Image Recognition Market Forecast, 2015 to 2020 ($bn) [MarketsandMarkets]
Table 16 ……………………. Combined [Public] Revenues of All 23 Companies Covered 2012-2014 ($m) [SIQ]
Table 17 ……………………. Budget Sources for Visual Search, 2016 [SIQ]
Table 18 ……………………. Market Potential for The Aggregator Segment [SIQ]
Table 19 ……………………. Market Potential for The Image Monetisation Segment [SIQ]
Table 20 ……………………. Market Potential for The Social Shopping Segment [SIQ]
Table 21 ……………………. Market Potential for The Search Similar Segment [SIQ]
Table 22 ……………………. The Global Search Similar Visual Search Market, 2013e-2019e ($m) [SIQ]
Table 23 ……………………. Slyce and Cortexica’s Clients [Among The Top 50 Global Ecommerce Companies ], 2016 ($bn) [SIQ]
Table 24 ……………………. Market Potential for The Artificial Intelligence Segment [SIQ]
Note Styleintelligence abbreviated as “SIQ”
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5. EXECUTIVE SUMMARY
• The sector originated as a result of the launch of the iPhone with an integrated camera.
• An early use case was to use your phone, take a picture of an item and immediately receive recommendations of similar items
from an online retailer or retailers. Many of the companies that developed algorithms for Mobile Image Recognition were spun
out from Universities teaching advanced data science, computer vision, machine learning, among others.
• Interest in the sector has grown with an increased penetration of smartphones and use of mobile devices to shop online.
• Companies have tended to focus on their domestic market, possibly as an effect of tech people being in charge of marketing & sales,
and have in some cases almost monopolised Visual Search in their markets.
• Client retention across the industry is very high (close to 100%) and have in many cases led to more business once the advantages of
the technology are realised.
• Visual Search technology has developed at a rapid pace over the last few years with Machine Learning, and to some extent Artificial
Intelligence, algorithms the norm for competitors in the B2B sector. Due to the complexity of the systems, the development of new
superior algorithms and systems, depends to some extent on luck and chance-taking by smaller companies and new entrants.
• The sector has suffered from a reactive approach to ecommerce problems. Most companies have started out with a product only to react
to client demands instead.
• There is a demand for the technology among ecommerce companies and a number of leading online retailers have already set up
internal teams to develop Visual Search applications in-house.
• A lack of proactive development of easily explainable products that improve ecommerce for the consumers and drive sales for retailers
has led to increased competition for the limited use cases that are being sold.
• The development of new, realistic and easily implemented use cases remain the single most important issue for growth for the sector.
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6. 5 4 4 7 3
0 5 10 15 20 25
INTERVIEWS
• Styleintelligence conducted 13 in-depth interviews, lasting on average 30 minutes each, accounting for over half of the companies
identified in the FashionTech Visual Search sector.
• No pure-play affiliate companies were interviewed as a part of the survey. We do not think the absence of interviews in this segment
affects the findings of this report.
Source: 1 Styleintelligence Research & Analysis 2016
Affiliate
Image
Monetisation
Social
Shopping
Search
Similar
AI
Number of Companies in
the Visual Search Sector
Percentage of Companies Interviewed by segment (%), 2016
6Published by Styleintelligence , London, UK. Contact: haesoon@styleintelligence.com +44 (0)7967 812542
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Table: 1
Table: 2
0%
50%
50%
71%
100%
Affiliate
Image Monetisation
Social Shopping
Search Similar
AI
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7. INTERVIEWS (cont’d)
• The visual search sector is international with 23 companies located in 10 different countries.
• Interviews have been spread out geographically to get the global view.
Source: 1 Styleintelligence Research & Analysis 2016
7Published by Styleintelligence , London, UK. Contact: haesoon@styleintelligence.com +44 (0)7967 812542
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Number of Companies by Geographic Location Number of Companies Interviewed by Geographic Location
Table: 3 Table: 4
0
1
2
3
4
5
0
1
2
3
4
5
7
8. WIDE EYES TECHNOLOGIES
CEO: Luis Manent
Country: Spain
Launched: 2013
Revenues: n/a
Employees: 12 (2016)
W: www.wide-eyes.it
T: +34 9355 11440
• Focus on the fashion vertical.
• Three main products – “We Vision”, “We
Recommend” and “We Recognise”.
• Targets retailers, advertisers and publishers.
Publishers can index their images and link on to
products.
• Adaptive AI, Machine Learning. Intelligent
adaptive system that creates a look and
matches items.
• Based on big data and AI
• Fashion Visual Search through camera pictures
+ semantic search. Find similar items. Best
clothing matching.
• App: Similify. 664 likes on Facebook (Mar 12,
2016)
• Partners: Logisfashion, Zeil24
• Clients: Large Spanish fashion retailer
(launching later in the year)
• Announced they are looking for €300k in
2016 to fund international expansion
with office in either London or New York.
• In talks with Google Shopping (reported
2015)
• Have a few business angels involved in
the business.
• The company is primarily financed by
the founders/team.
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“We are competing with ViSenze, Cortexica and Slyce. In terms of technology
I think we are ahead of these.”
“My feeling is that mobile is logic. You have all smartphones. All users take 6
pictures per day. I think mobile is massive. At some point it makes sense to
go to mobile. The user experience for mobile users is very important. For
example 40% of Yoox customers are mobile.”
“We have closed our funding rounds. We will be looking for funding. We are
ending all our strategic plans now. We have a very low investment. We do not
have any VC’s, we have some angels. Total investment is perhaps €500k is
part debt funding as well.”
“Our technology is 2-3 steps ahead of our competition. We made a different
approach to the technology. It is definitely a more risky approach for a tech
company. If I was a manager in a large company I would not develop the
technology this way, but as we are a startup we can take the risk. The fact
that we are only in the fashion vertical as well.”
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9. ABOUT US
• FASHION & RETAIL TECHNOLOGY SPECIALISTS
• Consultancy + Fashion, Trend and Retail Specialist in UK, Europe and South Korea
• Periodic Generic Insights (FREE!!)
• Bespoke Reports / UK Style Reports / European Style Reports (fee based $)
• New Brands Discovery Report (free simple reports + fee based $)
• Trend Research (fee based $)
• Market & Company Research, Competitor Profiling, Due Diligence (fee based $)
Ms Haesoon Jung
Director, Consultant, Journalist
Background:
• Design & fashion business
Journalist and EMEA editor for
Fashionbiz, DesignLife and others
in the South Korean market
• Fabrics, footwear and apparel
fashion development industry
experience.
• Networker connecting South
Korean and UK/European
companies.
• Expert in UK and European style
trends
• Undertake in-depth interviews
with pan-European fashion
industry CEO, CFO, and CMO’s.
• Haesoon has deep knowledge of
the UK fashion markets & trends
and have used this knowledge to
create multiple opportunities for
luxury and mid market brands in
South Korea.
Mr Thomas Andersson
Consultant
Background:
• CDD Consultant on 50+ mid-
market deals in the UK and
Europe. Including mapping and
origination work for a top five PE
company.
• Director of £ multi-million
company partnering with Arcadia
Group, Selfridges Retail, New
Look and others.
• Consultant on new brand,
product, and concept launches in
the UK market.
• Thomas has also worked as a
Business Development Manager
in R&D consultancy targeting Blue
Chip companies. Sector exposure
includes industrial, consumer,
pharmaceutical, retail &
wholesale, IT, healthcare, and
manufacturing among others.
IQ
9Published by Styleintelligence , London, UK. Contact: haesoon@styleintelligence.com +44 (0)7967 812542
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