E-CLOSET.COM

WHAT IS E-CLOSET.COM

• The kiosk is a marketing tool designed to obtain the consumers identity & preferences during their shopping experience.

• The web site is also in place to gather all the same data & also to keep a digital inventory of the members wardrobe.

• The database is our tool to manage all of this information & use it for ecloset.com. This data will appeal to the retailers, designers etc.

WHAT DOES E-CLOSET.COM DO

• E-closet provides seven healthy revenue streams, all based on the state of the art technology in the kiosk and in the web site. From loss prevention & inventory management solutions to a marketing database, one that’s full of all the key necessary data retailers & designers need to facilitate sales across the globe.

HOW DO WE DO THAT• By installing kiosks embedded with exclusive mirror touch-screen

panels placed outside the retailers’ dressing rooms that allow consumers to do the following:

• Take multiple photos of themselves in the clothing items they are considering.

• Use social media to instantly share photos with friends and family across the globe to assist in a buying decision.

• To permit minors to obtain parental approval prior to a credit card purchase.

While at the same time allowing the retailer to:

Obtain information regarding the consumers’ fashion preferences, brand names, price ranges and more.

Offer consumers complimentary clothing items to provide coordinated ensembles.

Offer similar clothing items to ones already chosen as “You might also like…”

Offer accessories based on chosen apparel items at the time of sale or at a later point in time.

Follow up with the customer at a later date to offer discount prices and incentives on items considered but not initially purchased.

WHO IS THE CONSUMER

• Department stores and other retailers as well as fashion designers will be attracted to the demographics of E-closet users and the generated data. The automated post-sale aspects will appeal to all retailers. The end users/members will benefit from free account access.

BENEFITS TO THE CONSUMER• The revolutionary shopping

experience provided by the kiosk will cater specifically to individual tastes and allow the consumer to share the purchasing decisions through use of social networks. With this ability, one can reference buying decisions with their existing wardrobe real-time.

• There are certain advertising benefits associated with this new method as well.

REVENUE STREAMS

•Kiosk Sales and Leases

• Marketing database available to the dept. stores, designers & others

•Effective Loss prevention solutions for the retailer

•Inventory management solutions

•Advertising on E-closet.com as well as on the Kiosks

•Commissions from E-closet.com sales

CAPITAL THAT IS NEEDED

AND WHAT IS IT BEING USED FOR?

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201420152016

Financial Overview

2014 2015 2016 2017 2018

Revenues 880,500 2.3 M 6.5 M 9.4 M 13.2 M

Expenses 80,000 100,000 100,000 100,000 100,000

Profit 54,450 1 M 3.9 M 6.7 M 10.2 M

Investment 500,000

Total Kiosk Projects 25 100 450 1000 1500

Customers 15,000 100,000 250,000 1,000,000 5,000,000

FUNDING REQUIREMENTS

• Immediate $500,000

• Use of funds: o $60,000 to purchase 27

kiosks from the manufacturer. o $80,000 to finish the programming of

e-closet.com proprietary softwareo Payroll with 3 executives & implement

staff at $260,000 per yearo Expenses for office etc at $100,000

INCOME STATEMENT

2014 2015 2016 2017 2018Assumpt

ions:

Number of Kiosks in Service 100 300 900 1500 2200 5 Kiosks per location/client

1 20 60 180 300 440 Sales: 75% of total kiosksRental: 25% of total kiosks

REVENUESSales Price: $5,500 per kiosk

A. Sales of Kiosks

$ 412,500

$ 825,000

$ 2,475,000

$ 2,475,000

$ 2,887,500

Rental Price: $212 per month

B. Rental of Kiosks

$ 63,600

$ 190,800

$ 572,400

$ 954,000

$ 1,399,200

c. Fees Advertising: 50% of clients utilizing

C.1 Loss Prevention $ 60,000

$ 180,000

$ 540,000

$ 900,000

$ 1,320,000

Mktg Database: 50% of clients utiling

C.2 Inventory Management

$ 60,000

$ 180,000

$ 540,000

$ 900,000

$ 1,320,000

D. AdvertisingLou Ross 96,000

D.1 Direct Product Placement on Kiosk

$ 180,000

$ 540,000

$ 1,620,000

$ 2,700,000

$ 3,960,000 Emily Elliot 60,000

D.2 Direct Placement on Website $ 25,000

$ 75,000

$ 150,000

$ 300,000

$ 500,000 Jeff Wilson 96,000

E. Marketing Database Access

$ 59,400

$ 178,200

$ 534,600

$ 891,000

$ 1,306,800 Shannon Young 60,000

F. Commissions $ 20,000

$ 60,000

$ 120,000

$ 300,000

$ 500,000

Installers 2013 (2) by 2014 (4) 100,000

TOTAL REVENUE $ 880,500

$ 2,229,000

$ 6,552,000

$ 9,420,000

$ 13,193,500

COST OF GOODSA. Kiosks

$ 220,000

$ 360,000

$ 900,000

$ 840,000

$ 910,000

B. Materials and Supplies $ 75,000

$ 150,000

$ 450,000

$ 450,000

$ 525,000

c. Shipping $ 10,000

$ 20,000

$ 60,000

$ 60,000

$ 70,000

c. Other

$ 10,000

$ 20,000

$ 25,000

$ 30,000

$ 30,000

COGS $ 315,000

$ 550,000

$ 1,435,000

$ 1,380,000

$ 1,535,000

Gross Margin $ 565,500

$ 1,679,000

$ 5,117,000

$ 8,040,000

$ 11,658,500

General, Sales & Admin

A. Personnel Salaries & Wages $ 350,000

$ 500,000

$ 1,000,000

$ 1,100,000

$ 1,200,000

B. Office

$ 10,250

$ 20,500

$ 20,500

$ 20,500

$ 22,500

C. Travel & Entertainmnet $ 25,000

$ 30,000

$ 40,000

$ 50,000

$ 50,000

D. Vehicles $ 16,800

$ 25,200

$ 42,000

$ 42,000

$ 42,000

E. Insurance $ 9,000

$ 9,000

$ 9,000

$ 9,000

$ 9,000

F. Legal & Accounting $ 100,000

$ 125,000

$ 150,000

$ 150,000

$ 150,000

TOTAL GS&A $ 511,050

$ 709,700

$ 1,261,500

$ 1,371,500

$ 1,473,500

Net Income $ 54,450

$ 969,300

$ 3,855,500

$ 6,668,500

$ 10,185,000

OTHER FEATURES AVAILABLE TO THE RETAILER

• Inventory management solution

• Loss prevention module

• Advertising opportunities within the kiosks and on the website

Current Status•Business Plan Complete•Software engineers in place•Management Team Assembled & Working/Building relationships with all.•Domain purchased, alternate domains available.•Patents obtained•Agreements being Established with Department stores & Designers •Kiosk design completeHardware Vendors relationship set for mass production. •Bandwidth Management Software Identified•Site Surveys Started for Proposed Projects•Identifying Organization & Back Office Operations

POTENTIAL RETAIL

PROSPECTSHigher End

Macy’s, Prada, Gucci, Lacoste, Saks Fifth Avenue, Armani, DKNY,

etc.

Mass MerchandisersTarget, Wal-Mart, Ross, Marshalls,

etc.

Accessories & Specialty Lens Crafters, Foot Locker, etc.

Individual Experience

Jeff Wilson CEO

& President

Jeff has more than 20 years in information technology development and implementation with emphasis on sales, marketing and strategic planning.

Emily Elliot

V.P., Marketing

Emily has extensive experience in apparel and fashion retail sales. Experienced as a personal fashion consultant to affluent clients, she provides a unique fashion stylist approach to E-closet planning together with critical retail connections.

Lou Ross Consultant

Formerly a senior executive at major corporations, Lou provides financial, budgeting and planning expertise to E-closet.com

Summary

Steve Jobs revolutionized the music Industry without creating one song.E-Closet.com will revolutionize the fashion industry without creating one single shirt.