DEcentralized Fashion Club White paper 1 1. 4 Significant problems that online shops face: clothes fitting, frauds and scams, authentication of brand clothes, matching the outfit, presence of all brands 1.1. Clothes fitting problem when online shopping 7 1.2. Frauds and scams 9 1.3. Matching the outfit 10 1.4. Presence of all brands in one online shop 10 2. DFC solutions : a decentralized trust and reputation market with AR and VR technologies. 2.1 AR and Lidar technologies are a key to perfect size 11 2.2 Trust and reputation market with reliable sellers eliminates the threat of frauds 12 2.3 Full control over suppliers and transparent supply chain 16 2.4 Camera and mirror solves it with our app 17 2.5 Open market to all sellers regardless of their origins and price segment 18 3. 3. Why market needs DFC ? 3.1 Why do brands and existing shops it? 18 3.2 Why do customer need it ? 19 2 4. TOKENOMICS & Business model 4.1 Tokenomics 21 4.2 Business model 25 5. Marketing 28 6. Roadmap 29 7. Legal 31 General Information Decentralized fashion club - one and only unique Decentralized marketplace that provides merchants and buyers completely new level of the experience. In DFC Marketplace people are buying goods same as in existing marketplaces, but have opportunity to fit them by using Ar/Vr technologies. For first time customers can be sure about the sizes they need when buying online. 3 Executive summary E-commerce has grown at unbelievable rate over last several years In 2021, retail e-commerce made a massive revenue of 4.9 trillion worldwide. Over the next 4 years it is expected to grow by 50%, reaching approximately 7.4 trillions $ by the end of 2025. There are no signs online shopping slowing down anytime soon. 4 0 2000 4000 6000 8000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 But there is no solution that will solve all the problems. Especially in crypto market But why is Crypto a solution and needed in e-commerce? LOW TRANSACTION FEES Blockchain technology has significantly lower costs than electronic commerce services. When considering the fact that large companies such as Amazon take up to 40 percent of the selling price for their services, blockchain technology becomes an even greater value. Because blockchains are decentralized and have no single point of failure, consumers using these technologies can avoid paying for costly financial services. In addition, because blockchain technology requires less intermediaries, it costs merchants less to accept cryptocurrency. When businesses process payments through Stripe or Square, they pay an average of 5% on transactions, compared to processing cryptocurrency transactions which are usually about 1%. If the shop goes with the second option, the profit margin will be raised or the price for the customer would be more affordable. Market expansion 5 The number of people that hold and use cryptocurrencies — often called "coins" — is growing daily. Cryptocurrencies, in comparison to traditional stocks and bonds, often provide much bigger opportunities and that's why people are interested in them. Opening your shop to accept cryptocurrency payments will expand your target audience and increase customer traffic. Early adoption ensures that your business will be at an advantage over competitors, resulting in increased revenue. Security Unlike traditional baking, cryptocurrency is decentralized. This means that there is no central authority from which funds can be withdrawn without the consent of the owner. Taking cryptocurrency payments can help with public perception of your brand. Despite the super high growth of e-commerce and benefits provided by using cryptocurrencies as a payment method there are 4 problems that have to be solved: 1) Clothes fitting 2) Frauds and scams 3) Matching the outfit 4) Presence of all brands in one online market 6 1.1 ClOTHES FITTING Clothes fitting is basically only one reason why people still spend their time going to malls and off-line shops. But is this happening? Although all clothing brands are trying to fit the international size scale, there are differences among brands. For example, German brands tend to make clothes with longer sleeves and Italian brands have a reputation for making tight items. The reason behind these inconsistencies is the local peculiar properties of each country. Although we cannot do anything about this, we can still make sure that our customers feel satisfied with their orders. According to a recent survey, about 50% of online shoppers in the United States return clothes they buy online because of sizing problems. 1.1.2 7 Some online retailers have begun to solve this problem by delivering the same item in different sizes. This solves the problem of customers buying a garment that doesn't fit, but it has drawbacks as well: What should the deliveryman do while customers try on several different sizes? Look at customer ? - people are usually ashamed of getting undressed in front of an unfamiliar person. Stand in living room or hallway ? - usually people do not trust strangers because they are scared of being robbed Ask deliveryman to leave the house/flat? - people are finding it impolite and DFC team fully agrees with them As you can see online shoppers have to compromise. And problems listed above are only ethical problems. Fitting will also take time and therefore decrease the productivity, increase the cost and time of delivery. 1.2 Frauds and Scams You saw deal for t-shirt. You wanted to buy exactly this t- shirt for long period of time but didn’t find it. But you have seen a big discount in an unfamiliar online shop. What does stop you from buying this t-shirt right now ? 8 The threat of being scammed. Reputation and trust are important aspects of each online marketplace. Building a reputation takes time, effort, and money. Reputation cannot be transferred from one site to another; furthermore, a merchant's history is not recorded, making it difficult for buyers to avoid irresponsible sellers. However, there are many websites that pose as legitimate businesses but are, in fact, fraudulent. Such sites often use slightly different domain names and may steal credit card information from customers who do not closely scrutinise the site or the business practices of the site. Fraudulent sites can employ many ways to profit from stolen credit card information. We can support our opinion with statistics: Card fraud reached 21.84 BILLION in 2015, that’s horrible number. 92% of merchants say fraud still is still major concern for online payments and lastly large e-commerce and m-commerce merchants are losing up to 2% of their revenue due to frauds. We know for sure that millions of buyers and merchants need universal marketplace for clothes and accessories. That will be trusted by everyone. 1.2.2 Authentication problem 9 The counterfeit market is a huge one, with brands losing an estimated $30.3 billion annually due to online counterfeiting. The global e-commerce market is currently without a solution for establishing the origins of items available online. There is no way to establish the authenticity of a handbag or hoodie in the same way as there is for a wristwatch. 1.3 Matching the outfit Selecting an outfit that matches is difficult for everyone. The difficulty lies in considering the whole outfit and most importantly, the way it looks on you. Clothes will never look good if you do not consider the color and material that will flatter your body type, as well as whether you should buy baggy or slim clothing. Our team believes that if customers could see a picture of themselves wearing the garment before they purchased it, they would be able to enjoy the shopping experience much more. 1.4 Presence of all brands in one online shop 10 The presence of all brands in one online shop is a significant problem for many retailers. Online retailers typically want to offer a wide range of choice, but sometimes must choose between having many brands or offering competitive prices for those brands. People might have faced the lack of one special brand they need to complete their outfit, so they have to purchase the item from a different marketplace and pay extra delivery costs. DFC SOLUTIONS AS FOLLOWS 2.1 AR and Lidar technologies are key to the perfect size The use of augmented reality (AR) and lidar technologies easily overcomes this problem. All customers would be able to use one of the most advanced technologies in the world completly for free. First and foremost, the 3D Market would create an advantage over all other marketplaces. The public is interested in anything new and useful for their daily lives; 11 the 3D Market would allow customers to create their models for free with exact size specifications. The buying process will be made to look like a game. You will be the main character, and items purchased through the game will be delivered to you within a couple of days. Instead of making people think about sizing in different countries and different units, we are making computers calculate the exact 3D model to ensure a perfect fit. The interactive 3D model shows customers how the garment will fit on them, and gives them an idea of sleeve length etc. Our customers will enjoy a unique and interesting shopping experience. They will be able to shop without leaving their homes and will therefore not have to carry loads of bags. But they will benefit from the same aspects of off-line shopping. Our customers can see how their clothes look in a variety of lighting and from different angles. 2.2 Trust and reputation market with reliable sellers 12 DFC is going to control all sellers activity. The process of purchasing will be different from other marketplaces. First step Customer are depositing money in their DFC account Second step Customer choose the item and decides to pay for it At this time DFC freezes the money in his account Third step Seller ships the goods to the customer’s address Fourth step Customer is getting the item and either is delighted with it Or sends is back Fifth step If customer was happy with quality and state of the item DFC sends money to sellers If not DFC starts investigation process and asks both the customer and the seller about their deal 13 As a result of this scheme, there is no risk for both buyers and sellers. Customers are guaranteed fair trade because DFC is the controlling force behind all activities within the marketplace. The warranties of DFC being honest and happy are 1. We are pioneers in our industry and we strive to maintain our reputation as a top-quality company. Our goal is to have minimal negative reviews or even no negative reviews at all. 2. We are not just another marketplace. We are presenting the whole cryptocurrency community by offering a place where users can buy and sell goods and services without the fear of being scammed. Unfortunately, people tend to associate cryptocurrencies with illegal activities, but we want to show that this is not true. 3. Finally, we believe that everything is interconnected in this world. And even our smallest actions can have a great effect on others. 14 Building trust is a complicated and difficult process, as there is no transparent or consistent rating system that will give information to both the buyer and seller. Quick list of problems faced today: ๏ In order for merchants to gain customer trust, they must put time, money, and effort into building a solid reputation. ๏ There is no visible historical information available to customers. ๏ Reviews cannot be verified. In the last studies customers believed reviews 12 times more than information written by sellers. However, even reviews do not guarantee anything now. DFC will harness blockchain technology to provide a reliable trust and reputation system. The system is transparent and decentralized, so that it cannot be controlled by any single entity. Each client and buyer will have their profile in DFC network that could be seen, unless customers would choose to hide their profile. 1.2.1 In order to eliminate the lack of proofs, all deals in our marketplace will have NFT check. 15 The main advantages of using NFT check are: ๏ Customer can proof the authentication of their item ๏ This type of check can not be falsified ๏ Check will always be available because It is stored in blockchain 2.3 Camera and mirror and our app solve it Our app will use the most advanced technologies to allow users to put their phone’s camera on mirror and take photos how they would look in different clothes. Many people have played the popular game Grand Theft Auto and gone shopping at the virtual stores. We think they should have found it interesting and unusual compared to existing shopping websites. Before you pay, you can see the final result of your character. It gives you the opportunity to make cool and unusual combinations of colours, materials, and types of clothing. 16 We hope this feature will increase the sales of brands presented in our marketplace as people who use it will be able to better understand if a piece of clothing is the right size for them. 2.4 Open market to all sellers Unlike other online markets, we do not sell any products. We also support fair competition among the sellers by providing them with a unique venue. Our metaverse will be open to everyone. Small brands that operate by students will have the same opportunities as large corporations. We are currently working on a process that will support them. Our metaverse will eliminate the threat of monopoly by allowing anyone to sell anything they wish, as long as it's authentic and unique. This openness will eliminate monopolies and make the pricing as affordable as possible. In addition, we will not give any store the exclusive right to sell special brand. We want all retailers in our industry to 17 have a fair chance at competing for customers by offering equal access to products and. Why MARKET NEEDS DFC 3.1 Why do brands and existing shops need it ? As previously mentioned, the market is huge and thus should be filled with offers, but the act of being first to accept cryptocurrency as a payment method provides huge advantages over competitors. We will not repeat ourselves by listing all the benefits of our service, such as low commission rates, market expansion, security and others. We would just like to tell you that we are convinced that good customer service can make a difference in today's competitive environment. 18 Even if one company were to use our technologies and services, it would lead to an unstoppable chain of making online companies using our platform. We provide existing and future businesses with tomorrow’s technologies for yesterday’s price. Businesses will choose us because we are the only platform that can provide them with this type of service. Our marketplace is designed to make the sign-up process as simple as possible. This will help keep our market competitive and open to new brands and designers. We are not robbing the merchants. Existing tariffs are hurting merchants. Just look at the table 19 Price for using Promotion to increase sales AR technologies Guarantees Acceptance of crypto Shopify or other online shop solutions 20£-260£ NO NO NO NO Marketplaces Up to 30% of revenue YES NO YES NO DFC Look at our business model YES YES YES YES 3.2 Why do customers need it ? Our first goal is to provide a new type of service, which we call "Advance & Innovative". It is a shopping experience that looks more like a game than a proper shopping. Many people enjoy shopping, whether they do it in a physical store or online. However, both forms of shopping have some disadvantages and advantages. Our club customers reduce their risk of credit card fraud by eliminating the need to input their credit card information as it is in usual online shops 20 Need to curry bags Need to drive Perfect sizing Authentic item Presence of all brands Online shopping No No Not necessary Not necessary No Offline shopping Yes Yes Yes Not necessary No Decentralized Fashion Club No No Yes Yes Yes