Amazon Aims to Be the Next Big Fashion Brand with Body Labs Acquisition

This month, not long after acquiring Whole Foods, Amazon quietly bolted on Body Labs, a New York artificial intelligence startup that creates 3D models of real people from photos, with better than 2-centimeter accuracy. Natasha Lomos and Jordan Crook, writing for TechCrunch which broke the acquisition story, commented, “Amazon has been ramping up its own fashion business in recent years, expanding and growing its private label fashion brands.”

So what are three possible outcomes from another Amazon acquisition, this one AI? Let’s take them one by one.

1. Amazon uses social selling to sell more clothes, sportswear, shoes and jewelry

Amazon has already invested a lot into its product recommendation engine. If you’re like me, you scan Amazon’s “Recommended for you” a lot–it’s good. Body Labs should jump that forward in product categories like clothing, jewelry, and sportswear.

Flo McDavid, director of business development at Body Labs, put it this way just before the acquisition,  “While there are tons and tons of Google images of very diverse people, it’s hard to find someone who’s like you. At Body Labs we’ve developed artificially intelligence software that understands human body shape from everyday photos.  . . . No body scanners, no changing clothes or anything like that–just a  simple photo. So we thought, what if we could connect people with similar body shapes so they could be inspired by people like them?”

The Body Labs demo shows people using a selfie to connect them to “shape doppelgangers” on Instagram in clothes that look good. Hear Flo talk more about it in the video below:

2. Amazon Fashion rolls out the red carpet for customers.

Amazon currently has a product–Echo Look–that takes real-time images of customers. It is marketed as a “Hands-Free Camera and Style Assistant with Alexa–includes Style Check to get a second opinion on your outfit.” It is not a tough guess that Amazon’s second opinion is you can buy three or four more things–just ask Alexa. But seriously, by bolting on Body Labs engine in the background, Amazon could power recommendations around fashion and accessories that work in the real world.

Body Labs VP of Developer Relations Ali Javid said recently in a company YouTube video, “Imagine if an apparel brand or retailer knew the shape of every single one of their customers—imagine how the shopping experience could change. Imagine how the supply chain would be innovated upon. This is possible today with BodyLabs human-aware AI.”

3.    Amazon grows profitable game developer infrastructure.

In July, Amazon reported just over 4 billion in income from its Amazon Web Services division. Amazon runs its own games studios, distributes Lumberyard, and has GameLift and GameSparks back-end services for multi-player games. Body Labs would be a natural extension for gamers to have to develop photo-realistic, moving body avatars. Adding on this kind of service would continue to expand their digital revenue, so it makes sense, although the company has not commented on this direction.

So, what’s next for Amazon?

Integrating Body Labs into the launch of Amazon Prime Wardrobe, a try-before-you-buy clothing discount service now in beta, is an obvious next step–whether or not that integration is obvious to the customer. Echo Look integration also looks to be a no-brainer. Peering a bit further down the line, with big technology companies hungry to acquire production and distribution, it wouldn’t be surprising to have Amazon acquire fashion production as well as fashion brand assets in the near future to round out its in-house fashion lines Lark + Ro, Franklin & Freeman, Pinzon, Scout + Ro, and more.

Tech

FanDuel announces acquisition of leading esports platform AlphaDraft

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PRESS RELEASE:

Strategic alliance marks FanDuel’s entry into the rapidly growing fantasy eSports market

NEW YORK–(BUSINESS WIRE)–September 24, 2015–

FanDuel Inc. (www.fanduel.com), the largest one-day fantasy sports operator, today announced it has acquired leading fantasy eSports platform, AlphaDraft. Marking its entry into the fantasy eSports market, FanDuel will leverage the partnership to enhance and expand core product offerings in order to further reach new sports fans while maximizing engagement.

With the best talent in the sports tech industry, FanDuel’s acquisition of AlphaDraft, the premier daily fantasy sports platform that seamlessly blends eSports, live streaming and fantasy sports contests, will bring the company’s employee base in-house to help create a one of its kind daily fantasy product specifically for eSports. This partnership marks the first time FanDuel will have a product for the eSports community.

From VentureBeat

Location, location, location — Not using geolocation to reach your mobile customers? Your competitors are. Find out what you’re missing.

“With over 200 million people globally watching eSports, AlphaDraft gives those fans a way to engage with this burgeoning entertainment product that creates an enormous opportunity for us,” said Nigel Eccles, CEO and Co-founder, FanDuel. “This is sports for a new demographic, with very little crossover with what are considered traditional sports fans, and this acquisition gives us the ability to leverage the expertise of AlphaDraft’s team, while helping their efforts in customer acquisition and building awareness of this new industry. It’s a win-win.”

The acquisition of AlphaDraft continues FanDuel’s long-term strategy of acquiring top talent around the fantasy sports industry as it builds one of the finest fantasy products for players – all designed to enhance the sports experience. This comes on the heels of the acquisition of numberFire, the premier next generation sports analytics platform, and Kotikan, a leading mobile app developer.

“It is clear that FanDuel is committed to the fan community,” said Todd Peterson, CEO of AlphaDraft. “This pairing creates an incredible opportunity to drive the fantasy industry forward and create compelling products that will enhance all fan engagement.”

Investors in AlphaDraft to date include former NBA Commissioner David Stern, Melo7 Tech Partners, Metamorphic Ventures, WME, Upfront Ventures, IDG Ventures, Greycroft Partners, Freestyle Capital, KEC, Amplify.LA and others. eSports generated $ 612m in revenue last year and 13% of all live stream viewers are watching eSports. By 2017, the number of eSports fans is projected to come close to that of American football.

About FanDuel

FanDuel is the leading daily fantasy sports provider with the sole mission of making sports more exciting. Founded in 2009, FanDuel has redefined fantasy sports; offering a multitude of one-day game options for NFL, NBA, MLB, NHL, and college football and basketball, with new public and private leagues forming daily, ranging in size from two to thousands of players. FanDuel is the Official Partner of the NBA and has multiple deals with NFL and NBA teams, driving fan engagement, hosting numerous live events and creating once-in-a-lifetime experiences for sports fans throughout the year. Based in New York City with offices in Los Angeles, Orlando, Edinburgh and Glasgow, FanDuel has raised $ 363 million in funding from investors including KKR, Google Capital, Time Warner/Turner Sports, Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Pentech Ventures, Piton Capital and Bullpen Capital.

About AlphaDraft

Founded in 2014, AlphaDraft is the premier online platform that seamlessly blends the highly popular worlds of eSports, live streaming and fantasy sports, with daily and weekly contests for cash and other real-world prizes. Members draft a new team every day without season-long commitments, and play against friends and other fans without having to create their own fantasy leagues. There is no purchase necessary to register, and AlphaDraft offers both free and paid contests. For more information, please visit www.AlphaDraft.com or follow us on Twitter at @AlphaDraft.

 

 

View source version on businesswire.com: http://www.businesswire.com/news/home/20150924006288/en/

FanDuel
Emily Bass, 646-930-0231
[email protected]
or
AlphaDraft
Mario Kroll, 919-414-2038
[email protected]



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