december 10, 2019 blockchain in the luxury, fashion and ... · & colvard, the original and...
TRANSCRIPT
© Copyright 2019 by K&L Gates LLP. All rights reserved.
Margaret Rosenfeld, Judith Rinearson, Richard Resch
Blockchain in the Luxury, Fashion and Fine Wine Industry
Luxury & Fashion Webinar Series – Facing the FutureDecember 10, 2019
TODAY‘S PRESENTERS – A WARM WELCOME
Munich
Richard Resch, Associate
New York & Research Triangle Park Region
Margaret Rosenfeld, Partner
London & New York
Judith Rinearson, Partner
klgates.com 2
GUEST SPEAKERS
klgates.com 3
Oliver Oram, CEO of Chainvine
Suzanne Miglucci, CEO of Charles & Colvard
Paul Hammond, CEO of IG Wines
Picture TBCPicture TBC
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases
– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram(CEO Chainvine)
– Wrap-up: What do you need to know about blockchain?
klgates.com 4
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases
– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram(CEO Chainvine)
– Wrap-up: What do you need to know about blockchain?
klgates.com 5
INTRODUCTION TO THE BLOCKCHAIN TECHNOLOGY
Central Decentral Distributed
klgates.com 6
ADVANTAGES OF THE BLOCKCHAIN TECHNOLOGY IN THE LUXURY AND FASHION INDUSTRY
klgates.com 7
Digital Certificate
Prove Authenticity
Supply Chain
Information
Customer Service Channel
klgates.com 8
Supply Chain Information Prove Authenticity Customer Service Channel
Increasing the Value
Combat Counterfeiting
Security Secondary Market Sales
Storytelling
Anonymous Communication
Worker Welfare
Reduce Paper-Based Documentation
ADVANTAGES OF THE BLOCKCHAIN TECHNOLOGY IN THE LUXURY AND FASHION INDUSTRY
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases
– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram(CEO Chainvine)
– Wrap-up: What do you need to know about blockchain?
klgates.com 9
Interview with
SUZANNE MIGLUCCI, CEO of
klgates.com 10
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to our products, sales, revenues, and earnings are typical of such statements and are made under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations, and contentions and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “continue,” and similar words, although some forward-looking statements are expressed differently.
All forward-looking statements are subject to the risks and uncertainties inherent in predicting the future. You should be aware that although the forward-looking statements included herein represent management’s current judgment and expectations, our actual results may differ materially from those projected, stated, or implied in these forward-looking statements as a result of many factors including, but not limited to, our dependence on increased consumer acceptance, growth of sales of our products, and operational execution of our strategic initiatives; the impact of the execution of our business plans on our liquidity; intense competition in the worldwide jewelry industry; the financial difficulties or insolvency of one or more of our major customers and their willingness and ability to market our products; our ability to fulfill orders on a timely basis; dependence on a limited number of distributor and retail partners in our Traditional segment; general economic and market conditions, including the current economic environment; risks of conducting business in foreign countries; dependence on our exclusive supply agreement with Cree, Inc. for the supply of our silicon carbide crystals for the foreseeable future; inaccuracies in assumptions, estimates and data we use to calculate certain of our key operating metrics; our ability to maintain compliance with The Nasdaq Stock Market’s continued listing requirements; quality control challenges from time to time that can result in lost revenue and harm to our brands and reputation; the potential impact of seasonality on our business; the impact of natural disasters and other events beyond our control on our operations; the pricing of precious metals, which is beyond our control; our current customers’ potential perception of us as a competitor in the finished jewelry business; the impact of significant changes in e-commerce opportunities, technology, or models; the risk of a failure of our information technology infrastructure or a failure to protect confidential information against security breaches; our ability to protect our intellectual property; the potential adverse impact of negative or inaccurate information on social media; the failure to evaluate, implement, and integrate strategic opportunities; possible adverse effects of governmental regulation and oversight; and the impact of anti-takeover provisions included in our charter documents, in addition to the other risks and uncertainties described in our filings with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2019 and subsequent reports filed with the SEC. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur except as required by the federal securities laws, and you are urged to review and consider disclosures that we make in the reports that we file with the SEC that discuss other factors relevant to our business.
klgates.com 11
SUZANNE MIGLUCCI
– President and CEO, Charles & Colvard, the original and leading worldwide source of moissanite gemstones and jewelry
– Prior CMO of ChannelAdvisor, a leading provider of e-commerce software-as-a-service solutions for brands and retailers
– Executive positions at SAP, SciQuest, MicroMass Communications, and Arsenal Digital Solutions
klgates.com 12
– Women in Retail Leadership Circle’s 2019 List of Top Women in Retail
– Member of U.S. National Retail Federation’s Digital Council
CHARLES & COLVARD’S INNOVATIVE TECHNOLOGY
klgates.com 13
– As an e-commerce driven business, Charles & Colvard brings revolutionary gemstones and jewelry to market through the use of innovative technology and direct-to-consumer engagement.
– Charles & Colvard is the original pioneer of lab-created moissanite, a rare gemstone formed from silicon carbide.
STATEMENTS OF SOME ANNOUNCED BLOCKCHAIN PROJECTS IN FASHION AND LUXURY BRAND INDUSTRY
klgates.com 14
“Seeking Funding.”
A FASHION & LUXURY BRAND’S CEO EMAIL IN-BOX RIGHT NOW
klgates.com 15
SIX OF THE BIGGEST TECH TRENDS RESHAPING THE
LUXURY FASHION INDUSTRY TODAY.
FIVE TECHNOLOGIES TRANSFORMING
FASHION IN 2020!
Your Innovation Crystal Ball – Where
to invest your Fashion Tech Dollars
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram
(CEO Chainvine)– Wrap-up: What do you need to know about blockchain?
klgates.com 16
BLOCKCHAIN USE CASES – WHERE DOES IT FIT?
Three Major Disruptive Technologies Impacting All Industries --including production, distribution and retail sales ‒ Big Data – Including Internet of Things (IoT) The Global Stream a Data is now a Tsunami The use of Big Data will impact every industry
‒ Artificial Intelligence (AI) Harnessing the Big Data Tsunami requires AI The use of AI will also impact every industry
‒ Blockchain/Distributed Ledger Technology (DLT) Sharing, authenticating and securing the Big Data Tsunami is a key use of the
Blockchain The use of Blockchain will also impact every industry
klgates.com 17
Successful Use Cases involve - -‒ Removing intermediaries ‒ Working with Digital Assets OR Data ‒ Processes with Data that can and should be stored as a permanent
record (as opposed to data that needs regular changing/updating)‒ Transactions that involve contractual relationships or value exchange‒ Transactions that involve multiple parties who don’t all trust each other
One Highly Successful Use Case - - Supply Chain Management
klgates.com 18
FACTORS FOR SUCCESSFUL BLOCKCHAIN USE CASES
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases
– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram (CEO Chainvine)
– Wrap-up: What do you need to know about blockchain?
klgates.com 19
Interview with
PAUL HAMMOND, CEO of IG WINES
&
OLIVER ORAM, CEO of CHAINVINE
klgates.com 20
klgates.com 21
IG Wines is a fine wine merchant and investment advisory companythat provides wine investors and collectors with complete confidencein their fine wine transactions and portfolio management decisions.Specialising in the finest wines that constitute the backbone ofinvestment, collecting and drinking, with a focus on Bordeaux,Burgundy, Italy and other leading areas from the rest of the world.
− The excellent access to the finest wines coupled with unmatched customer service has enabled IG Wines to develop a global client base of over 3,500
− Formed in 2011, IG Wines has enjoyed exceptional growth, moving from a two person start-up to a fifteen people workforce in eight years
− This global outreach has been strengthened further by the acquisition of the New York based wine merchant Mission Fine Wines, now IG Mission Fine Wines
− IG Wines has achieved sales in excess of £10,000,000 in Q1-Q3 of 2019− IG Wines frequently holds wine tastings and events across the UK and Europe, working with
the finest wine producers in the world to bring exceptional experiences to their clients
− IG Wines are now looking to capitalise on their momentum and open an Asian office. This will enable the company to yield further growth, capitalising on the new demand found there
IGWINES
klgates.com 22
FIRST END-TO-END TRACEABILITY PLATFORM FOR THE WINE INDUSTRY
klgates.com 23
EASY-TO-ROLL OUT SOLUTION
CONTENT
– Kick-off: What is blockchain and its advantages– Interview with Suzanne Miglucci (CEO Charles & Colvard)– Blockchain use cases
– Interview with Paul Hammond (CEO IG Wines) & Oliver Oram (CEO Chainvine)
– Wrap-up: What do you need to know about blockchain?
klgates.com 24
Find Out First - - Cryptocurrencies/Tokens? OR Other Blockchain Use Cases?– If Cryptocurrencies/Tokens – ASK
Does your client want to buy and/or sell cryptocurrencies or maintain cryptocurrency wallets? Issue its own token? Or accept cryptocurrencies?
There’s lots of global regulations in this area
– If Other DLT Use Cases – ASK Underlying technology - - Where are they acquiring the technology? Has the
contract been prepared and negotiated? Have they considered the handling of IP rights arising from the new technology? Who will own the rights?
The product or service itself - - What is the product/service and how does it work, who holds the value, and what regulations will apply? Just because it uses DLT does not mean existing laws won’t apply.
Is the Use Case a good “fit” for DLT? Not all use cases have been successful
Hire Outside Counsel Who Understand Both the Laws AND the Technology! klgates.com 25
PRACTICAL ADVICE FOR LAWYERS WITH CLIENTS WHO WANT TO TALK ABOUT “BLOCKCHAIN”
Q&Aklgates.com 26
PLEASE DO NOT HESITATE TO BE IN TOUCH!
Margaret RosenfeldNew York & RTPT +1 (919) 931 [email protected]
Judith RinearsonLondon T +44 (0) 20 7360 821 New YorkT +1 (212) [email protected]
Richard ReschMunichT +49 (89) 321215 [email protected]
klgates.com 27