Mjedi Mobile Social Commerce

2550 3rd Avenue Suite 610Seattle, WA 98121Mjedi.com

Mjedi.com

Chander ChawlaFounder and Chief Servant

Chander.chawla@mjedi.com+1-425-443-6626

Awarded $25K from CTIA as a Top Innovative Mobile Startup

Mjedi Founder has Strong Innovation Adoption Background

• 12 years in Wireless Industry • BSEE + MBA • Highlights

– Grew T-Mobile WiFi business 4000% – Managed a $600M P&L to add $150M in EBITDA– Accelerated the Adoption of 3G in the US

• Blog: cdoq.blogspot.com • Lecture at MIT on Adoption of Innovations: http://cdoq.

blogspot.com/2009/03/next-billion-netwok.html

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Who?

Retail is Living in the Past

• If You Spend Half Hour in a Store and Walk Out without a Purchase, the Retailer has No Clue What You Did In the Store

• Retailers Are Trying to Figure Out How to Use Social Media and Mobility

• Fashion Retail Has Inventory Problem • Customers Have No “Pull” In Retail

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What?

Mjedi Enables Customers to Capture Items they like, in Real-Time

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•UPC (Universal Product Code) is the number below the barcode which is a unique identifier for the product•A woman, Tina, goes shopping and likes a product. She types the product UPC as an SMS/text message and sends it to Mjedi

•The product will show up on Tina’s Facebook Status update with pictures and details provided by the retailer (including Retailer ’s brand)•Tina’s friends can comment on the product and provide feedback

What?

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Mjedi Encourages Repeated Store Visits and Purchases

•When the dress goes on SALE, Mjedi will send and an SMS to Tina suggesting her to go to the store •Tina may go to the store, buy the dress and may send more text messages about the items she likes at the store •Alternatively, if the dress is nearly Sold Out, Mjedi will alert Tina that she should hurry to the store or risk missing out on the item

What?

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Mjedi Enables Sharing and Mobile Notification

• Customers Capture Interest at the Retail Store to Share with Friends

• Mobile Notification from Retailers to get Customers back in the Store

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•Product Picture & Details shows up as Facebook Status Update •Friends can “Like” and Comment

•Change in the Product Price•Change in the Product Inventory •Personalized Offers

What?

Retailers Will Get Real-Time Shopper Feedback

•Retailers Learn about Popularity and Pricing of Products Immediately •Retailers Reduce Inventory Management costs •Retailers Increase Brand Exposure 150x•Retailers Reduce Marketing costs •Mjedi enables Retailers to Increase Brand Loyalty with better Customer Engagement with “pull” Marketing i.e. give customers what they want•Retailers would be able to develop personalized offers for Customers

Retailer Benefits:•Increased Revenue •Decreased Costs •Loyal Customers

Mjedi

Why?

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Mjedi Created a Mobile Social Commerce Platform

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•Tina goes to Facebook and sees all the items (with all details including pictures) she has texted about. All of Tina’s friends would be able to see Tina’s and each other’s products and subscribe to Mjedi service •Friends can click and drag items to their lists from each other •Friends would be able to comment on items on each other’s list creating user-generated product reviews (like on amazon.com)

+ +

Mobile Social Commerce

Interconnectedness

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Mjedi is SMS-based and is focused on Physical Retail

• SMS covers 100% of phones and Smartphones apps cover only 15%

• Application Development has been focused on Smartphones

• 1 Trillion Text Messages sent in the US in 2008

• Businesses still trying to figure out how to use twitter/Facebook

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Why Now?

• 88% of $229B in Apparel Sales is Spent in Physical Retail (Offline)

• There is No Feedback loop in Offline Retail i.e. Retailers don’t know why someone left the store without a Purchase

• Most Retail Innovation has been focused Online

Proprietary and ConfidentialSee last slide for data sources

12%

88%

15%

85%

Offline Sales

Online Sales

Feature Phones

SmartPhones

Mjedi is Leveraging Changing Consumer Behavior

• 66% of the teenagers use text messaging (sms) to a friend while shopping

• Online/mail-order Apparel retailers see return rates of 50-60% where as physical store sales see return rates of 5%

• Email is being Replaced by Social Networking and Texting

• 100% of 117 women interviewed loved the idea• Informal Retailer Feedback is mixed • Retail Sales Representatives Love the Idea • Mjedi will not affect the behavior of the sub-segment

which does not buy products on SALE

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What else?

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Mjedi is Engaged in a Field Trial

• Mjedi Service has two Pending Patents • Mjedi Service is Live and Working • High Interest from Customers on the Service • To Schedule a demo, please contact Chander Chawla

at 425-443-6626

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Mjedi Evolution

• Multiple Entry Methods• Smartphone Apps including Barcode Reader • Enable “Put on Hold” Service when customer

gets a message re SALE • Reverse Offer i.e. “Buy Now” • Monetization based on Location

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Mjedi will Collaborate with Retailers on the Business Model

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How?

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A or B or C Or Hybrid

• A: Pay per Sale – Retailers would ONLY

Pay commission for item sales enabled by Mjedi

• B: Pay per Feedback– Retailers would Pay per

SMS sent by Customers– “Frequent Flyer” plan

• C: Licensing – Retailers would pay a

Monthly Fee for Mjedi Services

Sources for Data

• Harvard case study "Zara: IT for Fashion“• Harvard case study "Retail Shopping in 2007“• Harvard case study "Gap Inc." • Harvard case study "Retail Shopping in 2007: The

Net versus the Mall“• Harvard case study "Facebook“• CTIA.org • NRF.com • Interviews and Surveys conducted by Chander

Chawla

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