Hi there, 

 

It’s been an exciting first full year since our introduction as a public company. As communicated earlier as well as in the Memorandum (summer 2017) some of the areas that we would pursue with greater force was retail, leveraging the new DeepFrame technology, a new content development platform as well as new business models that form an alternative to the pure purchase of hardware. 

In this newsletter, we announce another major step forward - Let me be specific: We are now launching our “Magic-as-a-Service” offering, which is our new and one-of-a-kind subscription service for mixed reality solutions. It will enable us to reach a much wider client-base than ever before and eliminate some of the biggest challenges for mass-adoption of mixed reality in retail locations including shopping centers and airports. 
We think this has the potential to play a big role in supporting our continued growth in the coming quarters and years.
It is also exciting to see the diversity in the roundup of some of our latest end-users, including global retail companies such as Mondelez, one of the world's largest accounting and consulting companies, and an as-of-yet unnamed experience center in the Czech Republic. 

We look forward to continuing our journey with a more elegant and attractive MR offering than ever before.

 

Clas Dyrholm
CEO, Realfiction Holding AB (publ)

PRESENTING “MAGIC-AS-A-SERVICE”, AN INNOVATIVE SERVICE FOR THE RETAIL INDUSTRY AND BRAND OWNERS WITH A FIXED MONTHLY FEE

 


Realfiction's CEO Clas Dyrholm explains that the company now has eliminated most of the obstacles involved in using mixed reality at retail locations or public venues such as airports.

Realfiction has developed a complete subscription service that include usage of the company’s MR displays and scheduled content updates. The company is in negotiations with end-clients in the retail sector and expect to present the first agreements in Q3 2018.

The innovative subscription service enables shopping centers, retail chains and brand owners to easily adapt Realfiction’s mixed reality solutions to increase sales, create awareness and add members to loyalty programs.

“With the retail sector focusing more and more on creating inspiring experiences in-store, in order to offer a much-needed differentiation to E-commerce, we feel the interest from the market growing fast. That's why we are now making it possible for companies in the retail sector to use our spectacular mixed reality solutions just as easily as old-fashioned LCD screens. Linked to their existing campaign calendar, retail chains and brand owners can present new products and offers, show different functions or additional equipment and ask us to produce interactive services that appeal to attractive target groups,” says Realfiction’s CEO Clas Dyrholm. 

End-clients in the retail sector, both in the Nordic region and globally, have already shown a strong interest in Realfiction’s new subscription service. The company’s goal is to build stable and recurring cashflows that can be used for further development and expansion on the fast-growing market for mixed reality solutions.

“Many end-clients see the potential immediately when they get in front of a Dreamoc or DeepFrame display, but earlier they had some major hoops to jump through when trying to implement the technology. They had to invest in hardware, find someone to develop costly 3D content, and then they often got stuck with that first implementation because the cost and time to develop content updates became a second barrier,” Clas Dyrholm explains.

With the new subscription model, things change radically.

“With "Magic-as-a-Service" you can now tell us where and how many displays and what type you need, what kind of content you want and how often it is to be updated. We present a fixed monthly fee and take care of everything together with our partners. No upfront costs, no hardware sales, no extra costs for content updates and maintenance. Basically, no hassles but all of the mixed reality wow-factor at a very affordable price point.”

The model opens up for a whole new subset of potential mixed reality use cases.

“This business model makes mixed reality solutions a lot more accessible. Apart from running their own content, clients can also rent out the space to brand owners. This is a great way to create a new revenue stream for shopping centers, department stores or airports,” Clas Dyrholm explains.

In the heart of this new service sits the company’s recently developed content creation platform, that is used as a valuable tool for inhouse content creation and updates.

“We were initially planning to distribute the platform to our less content-driven partners, but the strategy we have chosen now is much more effective. We can focus on developing MR communications that are effective and always up to date, and the product can be sold by all of our partners, regardless of content creation capabilities. One example of this is BrandFactory, that we are currently partnering with to create shop-in-shop solutions for brands that want to stand out from the crowd.”

Initially, Realfiction is focusing on companies and brands in the retail sector in the Nordic countries. Several potential end-clients are already showing a strong interest in the new subscription service.

“We are in discussions with a number of end-clients, as well as relevant partners with selling and execution power within retail. We focus in the Nordic region first, where this will be our primary tool for driving mass adoption of mixed reality solutions,” Clas Dyrholm concludes.

REALFICTION RECEIVES ORDER FOR 49 DREAMOC HD3 DISPLAYS TO GLOBAL SNACK COMPANY MONDELEZ


Mondelez, one of the world's largest snack companies, has decided to move forward with a large evaluation of a mixed reality retail concept with 49 Dreamoc HD3 displays in South Africa and other markets. This accentuates that we see the market for unit sales as a continued opportunity in combination with the new subscription model, ref. above. 

The displays will be sold to Realfiction’s partner Animmersion, who will provide them to Mondelez together with assistance during the creation of 3D content and on-site implementation. Of the 49 displays, 30 will be set up in retail locations in South Africa. The remaining units will be used for testing and evaluation of the concept in Brazil, Argentina, Germany, Greece, Mexico and further not yet disclosed countries.

The order follows the completion of a first round of evaluations where 28 Dreamoc HD3 units bought by Animmersion in 2017 were used in Australia, Brazil and Spain.

“This order and its strong long-term potential is a clear sign that market-leading, global retail brand owners show great interest in Realfiction’s mixed reality solutions,” says Realfiction’s CEO Clas Dyrholm.

A similar retail concept evaluation with Realfiction’s mixed reality solutions is currently being conducted by Pfizer, a major global pharmaceutical company. 

“The beauty of working with global brand owners is that they have the power to scale up marketing and sales strategies that prove to be successful to a number of different regions and brands all over the world. It might take a little longer, but over time I am very confident that we will gain substantial traction now that we also have a more streamlined subscription model in place.”

STRONG INTEREST IN USING 3D AND MIXED REALITY TO TRANSFORM THE AUTOMOTIVE SECTOR


With its updated subscription-based offering as a valuable tool, Realfiction is aiming at the digital core of the automotive industry: companies that deliver solutions for car configurators used when buying cars online.


Even though Realfiction expect its first subscription agreements to come from the retail sector, the automotive industry is still an important focus for the company going forward. This is logical as Realfiction is far from alone in believing that 3D content is key when the car industry is transforming itself from a rigid manufacturer/dealership structure to providers of transportation services and car subscriptions.

One of the largest 3D engine providers in the world, Unity Technologies, has created an automotive division and hosted an AutoTech Summit in Berlin in June. Realfiction attended this event and received a lot of positive input.

“At the Unity event we met up with several companies working on car configuration solutions for some of the largest brands in the car industry. They expressed strong interest in our mixed reality displays that can bring their creations to life in venues such as airports, shopping centers, small showrooms or flagship stores and more,” says Realfiction’s CEO Clas Dyrholm.

At the same time, Realfiction is in continued talks with some of the most prestigious car brands in the world.

 “These are big companies, so working from several angles to find the right concept is vital here. And with our new subscription service, combined with easier access to their 3D models through software partners, we might just have come up with the perfect strategy to address the obvious need in this enormous market. We have exciting times ahead of us,” says Clas Dyrholm.

UPDATE ON ADDITIONAL SELECTED ORDERS 


One of the world's largest accounting and consulting companies among new end-clients of Realfiction’s DeepFrame and Dreamoc Diamond solutions.


In June, a DeepFrame system was sold to the New York branch of one of the world's largest accounting and consulting companies, to be used at several upcoming corporate events. The deal was made through Realfiction-partner Screenrental, that also developed a custom housing to completely integrate the display into the client's  event setup and brand design.

The company's long-term Canadian partner Basha Media has purchased a Dreamoc Diamond for using it as a centerpiece in their Toronto showroom. This partner was previously credited with a best-in-class showroom award among all of Realfiction’s partners.

Another order worth mentioning is the Oak Ridge National Laboratory (ORNL) who rented a Dreamoc Diamond back in April to be used at their fair at the Boston Convention and Exhibition Center. The client rented the display through Ohio-based partner Eventworks 4D, who utilized Realfiction’s rental program to access the display as it was currently not a part of their assortment. After having tried out the display via renting, the client has now recently come back to complete a purchase of a Dreamoc Diamond through Eventworks 4D.

Finally, we also wish to highlight an order for a DeepFrame system sold to a new partner in the Czech Republic for an experience center being built in Prague. There are very few details available on this projects as of yet, so we are excited to see how the installation will be used when the exhibition opens.

Realfiction’s general policy is to present orders worth over 1 MSEK, and those that are of specific interest due to other factors, in press releases. Additional orders worth mentioning, but not deemed to be insider information, will be published in newsletter articles and other media channels.