Context

E-shopping and a live product experience were until recently incompatible with physical goods – particularly for apparels. Now innovative tools are allowing customers to “try on” apparels with their own 3D avatar and to benefit from customized advice (or even fitting).Companies such as I-Fashion are enhancing the shopping experience both in the digital world and in the physical world.

Innovative business model (example of I-Fashion)

Business opportunities

• Online apparel stores can enhance cross-selling with customized suggestions that complete the purchasing basket, convince new e-shoppers who were still reluctant to shop for apparel remotely, and dramatically reduce returns due to bad fit

• Brick & mortar retailers offer a highly differentiated customer experience withenhanced counseling

• Retailers / fashion houses gain the ability to target, market, and influence consumers on new/niche product ideas, based on detailed user data they can nowgather

Key Highlights

• Product comparison and trial are among the most importanttouch-points for the customer shopping experience

• The apparel industry’s adoptionof digital tools is opening the way to new business models, i.e. mass customization, andenhancing the online customer experience

• Companies such as�I-Fashion are providing fashion houses and apparel retailers with such technologies and are alsoenabling them to learn more about consumer preferences in real-time

• These technologies take the user shopping experience tothe next level

Next generation customer experience & fitting through personal 3D avatar- Newsletter #11, 2010 -

3D avatar concept for apparel fitting

3D Avatar Creation Clothing Selection Virtual Fitting

Virtual fitting based on client 3D avatar. Potential advice for a better coordi-

nation of apparels

3 different ways to enhance customer experience andsatisfaction through 3D avatar

Selection of a series of clothes to try

Creation of the customer’s personal 3D avatar through a

physical 3D scanner (measurements are digitalized & stored on a mobile device)

Onlineshopping experience

IMAGINE THE FUTURELeveraging innovative business models

1 2 3

Mass customizationBrick & Mortar shopping experience

A.T. Kearney makes no warranties as regards the accuracy or completeness of this publication. It is under no duty to update or change this publication, to reflect any change whatsoever, including in the economic environment. All logos and corporate names referenced, constitute the intellectual property of their respective right holders and may not be reproduced without their prior express authorization. The company referred to in this publication is an illustration of the topic discussed. At the point of publication, A.T. Kearney has no direct or indirect equity stake in the firms cited here.

I-Fashion Technology Center

• Established in June 2006

• Employees: 40 research engineers and industry veterans (from6 universities and 16 companies)

• Founders: Prof. Park, Chang Kyu (Konkuk University)�(funded byKorean Government and Seoul MetroCity)

• Source of revenue: Customers who pay to try virtual wearingservices from I-Fashion

About A.T. KearneyA.T. Kearney is a global strategic management consulting firm known for helping clients gain leading results through a unique combination of strategic insight and collaborative working style. We serve the largest global clients in all major industries from our offices located in 35 countries. We have developed a leading Communications and Media practice with more than 600 dedicated professionals worldwide, focusing on addressing strategic and operational issues of the Telecom, Media and High Technology industryFor further information about the A.T. Kearney CHT practice please visit: www.atkearney.com

Website

Examples of alternative offers

• A similar solution that licenseswebsite widgets for a virtualdressing room viewer and“mix-n-match”

• Also, allows creation of new 3D garments in less than 2 minutes byconsumers

A.T. Kearney interview with I-Fashion director – Professor Chang Kyu Park

• What problem does I-Fashion solve?

“Realization of the visual / numerical data of the emotional experience of trying before buying clothes through virtual reality stores.”

• What is I-Fashion’s value proposition?

“Our team has created a new service in the apparel market. It allows consumers to experience productsmatched on an avatar of their measurements and service providers to understand details of the consumerexperience that has never been achieved before.”

• What is new / unique?

“I-Fashion is a new trend and new value creation from the convergence of IT and apparel industry.”

• How large is the business behind it ?

“Anyone and everyone who is interested in the fashion industry or buys apparel !”

• A U.S.-based website with a visionof creating a 1:1 online shoppingexperience

• Consumers save their profilesonline and are given customizedadvice on new fashion tips fortheir profile /

• A European company with avirtual fitting room for internetclothing retailers based on robots

Fits.meMy virtual model Tobi