PHOTOX

PHOTOX fills a gap in the market by offering human-powered on-demand photo editing via mobile device. The current photo-editing solutions in the consumer market are Photoshop software, which is costly and time-consuming to learn, and automated apps that use algorithms to process images. PHOTOX offers significant quality enhancement as compared with algorithms, and flexibility, low-cost, and speed as compared with outsourcing to a graphic designer or purchasing and learning Photoshop. PHOTOX ... was founded when CEO Louisa Imperiale experienced first-hand the need for professional photo editing. The first photo taken of her with her newborn daughter was marred by her very noticeable bra strap. No other photo editing solution could remove the offending bra strap since it required a trained graphic designer, and she saw a market opportunity. PHOTOX allows users to upload a photo from their mobile camera roll, select from a menu of 32 photo-editing services options (e.g., teeth whitening, wrinkle reduction, skinny arms, full-body weight loss, etc.), at which point a professional graphic designer performs those modifications on the image and the customer receives it back via the app in as little as 15 minutes. The app itself is free and the services provided are a la carte, priced anywhere from 99 cents to $9 per service. The iOS app uses iTunes Connect as its payment system, thereby dramtically reducing the barriers to entry for a new user. The value proposition is the ability to quickly, conveniently and inexpensively receive professional quality photo enhancements. PHOTOX management believes that in being first-to-market with a professional on-demand photo-editing solution, it will be able to stay ahead of the competition in understanding key information about who users are, and when, where, and why they’re using the service. PHOTOX leverages that data into a significant marketing advantage. PHOTOX’s special know-how comes with the deep experience of its management team, specifically in online marketing and digital advertising. PHOTOX has two tangible IP assests which may be patentable and/or could be leveraged into future lines of businesses: 1) the OMS platform can be used to faciliate any on-demand service; its cloud-based storage and functionality work particularly well for outsourcing professional services. 2) the iOS (and soon-to-launch Android) app offer a custom solution for fulfilling made-to-order digital goods using Apple’s (and soon, Google’s) rigid technical specifications to faciliate custom orders and fulfillment. The company believes the market size for its initial service is $250M in the US and the same or larger in China, Japan, India, and Saudi Arabia to name a few of their more popular global markets. PHOTOX’s primary initial target segment is women in their 30s and 40s. Management believes there is potential in marketing to women ages 50-69, the demographic that is most rapidly growing, as baby boomers adopt social media and begin sharing photos. PHOTOX’s go-to-market strategy hinges on deep knowledge of how to advertise on Facebook. Management understand how to advertise, collect and analyze so-called micro-targeted data which is critical to its understanding its customers and associated unit economics. Word of mouth is key (following the viral marketing model of SPANX undergarments) and PHOTOX is using a 3-pronged approach to encourage that: guerilla social media, traditional PR and press, and Facebook. Management has reduced the cost of new user acquistion to $1.45 (industry standard is $3-4) and, based on 9 weeks of data, believes LTV to be $2.96. PHOTOX plans to develop an API for use with potential channel partners in the future, and will expand its marketing strategy to leverage those channel partners.More