Startup interview: Cosmo Kramer, Founder and CEO, Bitreel
RTIH: Tell us about Bitreel
CK: Bitreel helps retailers take their in-store experience online. Our virtual showrooms and 3D renderings enable shoppers to digitally overlay products into their own homes. The result is higher conversion rates, higher average order values, and lower returns.
RTIH: What was the inspiration behind setting the company up?
CK: We started Bitreel because we realised the recent developments in augmented and virtual reality can provide shoppers with a better representation of products.
Customers are ordering the same product in multiple colours and sizes, keeping the ones that fit, and returning the rest. This is an inefficient model for both shoppers and retailers. Our solution enables customers to buy the items that fit instead of ordering multiple items they will send back.
RTIH: What has been the industry reaction thus far?
CK: Our clients are ecstatic to provide their customers with immersive experiences. The pandemic has accelerated the demand for online services and many retailers are realising the benefit in replacing their physical experience digitally.
RTIH: What has been your biggest challenge/setback?
CK: Covid-19 has delayed implementation with clients, but we are managing to work with clients safely.
“Our clients are ecstatic to provide their customers with immersive experiences. The pandemic has accelerated the demand for online services and many retailers are realising the benefit in replacing their physical experience digitally”
RTIH: What are the biggest challenges facing the omnichannel retail sector right now?
CK: Returns. Even before the pandemic, retailers were killing their profit margins with returns up to 40% of online purchases. According to Gartner, less than half of returned items can be resold for their full price. Retailers are losing 10% of sales. At this rate, the number of returns could surpass one trillion a year.
RTIH: What's the best question about your company or the market asked of you recently by a.) an investor and b.) a customer?
Investor: How will Covid-19 impact adoption of augmented reality?
Our answer: Covid-19 will accelerate augmented and virtual reality as brands look to replace the physical experience digitally. Older consumers have been learning to shop online because they have no other option and younger consumers are increasingly relying on digital solutions. This is why large retailers around the world have recently launched augmented and virtual reality experiences.
Customer: What metrics in my business will augmented reality impact?
Our answer: Augmented reality increases purchases and average order values because customers spend more time observing and contextualising products. At the same time, returns decrease because customers are confident with the product at checkout.
RTIH: What can we expect to see from Bitreel over the next 12 months?
CK: We plan to build out more immersive capabilities so our products can get even closer to a true in-store experience. We also look forward to working with a select group of retailers in the furniture and home decor spaces to create unique and differentiating experiences for their online shoppers.
