|Description||image recognition technology|
â€œPhoto recognition company for mobile shopping industryâ€
iTraff Technology is a market leader in mobile shopping solutions in Poland. The company was founded at the end of 2010 in Poland as a mobile application development company focused on photo recognition technology with the purpose to provide mobile shopping solutions. Our leading application - SAVE UP helps to convert any customer contact with a product or its printed ads into a revenue potential. The company cooperates with the biggest retailers and advertising companies in Poland.
In spite of the company’s short history we were already granted several awards including:
the â€žBest Commercial Potential Awardâ€ at the European contest Hack4Europe organized by Digital Agenda Assembly in Brussels;
the award from Polish Ministry for the Economy for the best mobile commercial application;
we were also chosen by Global Startup Challenge jury as one of the best promising start-up in Poland;
we were elected by the leading Polish newspaper - Gazeta Wyborcza as the best Polish application with regard to the highest potential to expand globally. (More information: www. itraff.pl/english)
What is SaveUp
Save Up is a mobile shopping application that aims to convert any smartphone into a sales channel. It focuses on Books, Music, Movies, and Video Games.
By taking a picture of a chosen item customer can: immediately buy a product straight from the smartphone; find out if a product has a digital substitute (for example: books - e-books, audiobooks; CD - downloadable MP3s) and be able to download it immediately.
Our goal is to help people to use a fast and convenient mobile shopping solution to make a purchase immediately (based on impulse purchase, call to action). Our mobile shopping solution benefits both individual customers and businesses.
Individual customers benefit from the possibility of making an immediate purchase of a product seen on any printed ads (poster, magazine, newspaper, billboard, etc.), catalogs, shop windows, libraries. Our own photo recognition technology allows a customer to take a picture of the product placed on any of the above media without the necessity of looking for a bar code. Our technology and close cooperation with many local retailers allow to make the process of a purchase very easy and fast. Its simplicity limits the barriers to adoption and has a potential to make it equally popular among teens as it has among pensioners.
Except from creating a new sales channel, our technology benefits businesses in a way that it converts their offline advertising into a real point of sale and increases the revenue potential. Our so far experience shows that our technology can benefit not only retailers, but also producers or service companies. It allows to increase sales, maximize the profits from any printed ads, or build a society around the product or company.
What we did so far (from November 2010) We developed extremely fast recognition technology which we fully owned. Our photo recognition engine is able to recognize an object and give results in 4 seconds. We lunched Save Up application both on iOS and Android. We gained 2000 users so far although we didn’t conduct any marketing campaigns and we fully focused on technology building. We signed contracts with over 50 Polish leading retailers to offer their products in SaveUp. Currently our database encompasses of 4 mln products and we were able to develop extremely fast database and import mechanism for fast mobile data processing. Presently our product database encompasses books, audiobooks, e-books, CDs, MP3s, video games, DVDs.
Business model and competitors SaveUp business model is freemium (examples: Shaazam, FlightTracker, AngryBirds, EA Games). It works by offering SaveUp free of charge while charging over certain amount of usage per month. Cooperation with online stores is next source of revenue which is based on CPA and CPC model. SaveUp offers products in accordance with contracts signed with a specific store. Each contract specifies CPC and CPA ratio.
Our competitors offer mostly price comparisons based on barcode scanning (Nokaut.pl; allegro.pl; ceneo.pl; scandit.com; shopsavvy.mobi), which doesnâ€™t allow to buy a product seen on printed ads (poster, in the magazine, newspaper, etc.) and additionally requires to transfer client to each storeâ€™s website to complete the purchase (Snaptell.com; Nokaut.pl; allegro.pl; ceneo.pl; iscandit.com; shopsavvy.mob; google mobile shopper). Our competitive advantage lies in photo recognition technology which allows to take a picture of a product advertised anywhere and to buy it immediately (or its digital downloadable substitute) straight from our mobile application. Such approach requires to sign a contract with each individual store which is an important entry barrier.
Our competitive advantage lies in the synergy of three elements:
Photo recognition (enables to buy everywhere) Freedom to choose among many shops Ability to make an immediate purchase
The European mobile applications market stood at $1.2 billion in 2009, but is expected to become the largest market by 2015, at $8.4 billion and growing at a CAGR of 33.6 percent during 2010 â€“ 2015 (according to World Mobile Applications Market).
Poland: Polish mobile market is growing steadily, according to UKE Ericsson Poland, Poland had 1,1 mln mobile internet users in 2008 and is going to have 3,7 mln mobile internet users at the end of 2011. At the same time number of smartphones increased from 1 mln in 2007 up to 6 mln in 2011 (according to Orange Enterprise) and is constantly growing. The level of overall online sales in Poland is â‚¬3.4 billion and is considered to be one of the lowest in EU. Even so, its eCommerce market is recognized to be the fastest growing in EU: in 2010 it has grown 36% when compared to 2009 (source: Kelkoo). Both data presented above stands for Poland as the market with the highest growth potential in Europe.
Germany and UK: UK (Â£38 billion) and Germany (Â£29.7 billion) account for 53% of total online sales in Europe. (Source: Kelkoo.co.uk). Different reports show increasing popularity of shopping and browsing products on mobile devices. According to eDigitalResearch and IMRG more than a third of UK consumers will transfer their shopping to their smartphones at the end of this year. Over 60% will browse more frequently via their phone over the next 12 months, with almost half of these making a purchase from their smartphone as well. Comparing Smartphone Installed Base (Source: comScore) and Online Sales by Country (Source: Kelkoo) we assume that the two biggest and most valuable markets in Europe are: UK and Germany. Specific information is presented at the graphs below: