Shoptalk 2018

Shoptalk is billed as the world’s largest conference devoted to retail and e-commerce innovation. Conference organizers expect more than 7,500 attendees at the event this year, which runs March 18–21 in Las Vegas. Coresight Research is again partnering with Shoptalk to host the conference’s annual startup pitch competition. On March 20, Coresight Research CEO and Founder Deborah Weinswig will also participate in a Shoptalk session entitled “Overview of Retail and Ecommerce Innovation in China.” Zia Daniell Wigder, Chief Global Content Officer of Shoptalk, will interview Weinswig and Hans Tung, Managing Partner of GGV Capital on topics that include technology and business model advancements in areas such as checkout, payments, delivery, logistics, the IoT and robotics.

Startup Competition

On March 18, Weinswig will emcee a startup pitch competition between 15 early-stage companies. Each company will present its business to a panel of judges from the investment community and to the audience. Two winners will be announced, one chosen by the panel of judges and one by audience vote, and each winner will be awarded $25,000. Shoptalk curated the participating startups based on their solutions to some of the most pressing challenges facing retailers today. As we highlight in our 18 Retail Trends for ’18: Preparing for Another Year of Change report, the retail industry continues to undergo transformation, characterized by five key factors that are either driven by or affecting consumers and retailers:

1. Consumers continue to switch from conventional retail formats to new, alternative formats and channels.
2. Shoppers value life-improving services from retailers and technology providers.
3. Brands, retailers and technology firms are offering new types of interactions, rewards and experiences.
4. Industry changes are compelling closer collaboration among retailers, technology giants (including Amazon), logistics technology vendors and social media influencers.
5. Retailers are leveraging technologies as diverse as blockchain and 3D printing to make their supply chains smarter and fitter in an increasingly competitive market.

In response to these trends and opportunities, retailers in all channels are changing to accommodate shoppers’ shifting preferences. Below, we profile PopCom, one of the companies participating in the startup pitch competition at Shoptalk 2018.

PopCom

         

Company Description

PopCom provides automated software platforms for kiosks and vending machines. The company has developed a software solution to make self-service retail smarter through the use of data and analytics. The software-as-a-service(SaaS) platform uses facial recognition, artificial intelligence (AI) and blockchain technology to collect customer data at the point of sale. The solution can be integrated into new vending machines, and existing machines can be retrofitted to enhance their capabilities. The company’s solutions can be combined with point-of-sale data to generate customer demographic information, while also helping vendors monitor inventory, capture sales data, and leverage insights for lead generation and retarget advertising. The company’s target markets include beauty, fast fashion, e-commerce and consumer product brands.

Market Overview

According to Research and Markets,the interactive kiosk market is estimated to grow at a 9.2% CAGR from 2016, to reach $73.4 billion in 2020.

What Problem Is the Company Solving?

Traditional self-service machines (vending machines and kiosks) lack seamless technology and the ability to collect data. According to PopCom, 60% of shoppers say they prefer self-service tools such as digital kiosks, but only 7% of vending machines are “intelligent,” meaning that they can offer Wi-Fi connectivity, accept credit card payments and allow for the remote monitoring of inventory. Moreover, traditional machines often do not monitor machine traffic or conversion rates. PopCom is solving two problems at once: it is further enabling the self-service customer experience and it is enabling retailers to collect data from self-service machines.

Headquarters

Columbus, Ohio

Funding Stage

Seed

Business Model

PopCom provides three models for payment: clients can pay a monthly subscription fee for the SaaS platform, a fee per transaction on the platform or a percentage of all advertising on the platform.

Competitive Landscape

Competitors include companies that provide software solutions for vending machines and kiosks, such as Meridian, which makes Mzero Software. Companies that manufacture and sell smart kiosks are potential customers for PopCom.

Management Team

Dawn Dickson, Founder and CEO, is a serial entrepreneur with experience in the self-service retail and consumer product spaces. Mary McMartin, Chief Strategy Officer, has worked with several startups, including, in the 1990s, AOL, where she managed strategy and growth.

Company Outlook

The company is launching its first machine with PopCom software in May 2018 and it has secured its first major strategic partnership, with kiosk manufacturer Kiosk Information Systems.PopCom’s first customers are consumer retail brands seeking a new direct-to-customer retail strategy through vending. Subsequent target customers are major manufacturers that may integrate PopCom’s software before delivering hardware to their own customers. In 2018, PopCom is adding new features such as facial recognition. The technology will allow customers to create “pay with face” accounts and enable retailers to verify customers’ facial features with government-issued ID in order to facilitate the dispensing of regulated retail products such as alcohol, cannabis and pharmaceuticals.