Zachai যাচাই

Problem

Zachai.xyz working with counterfeit & fake product market in all sector - automobiles,healthcare,baby-food,seeds & fertilizers,electronics,lubricants and services. This billion USD fake market impacts  consumers with continuous ripple damage , as well for brands revenue and image.

Solution Proposed

We built Unique Product Identifier (UPI ) and code-less system with block chain deployment in production & distribution supply chain from distributor to retailer to end consumer supply chain. This is mobile SMS & USSD /web/app accessible. This is feasible for HVC products. In-addition,Zachai developing a Image+AI+AR based verification system which can take a snap & verify against trained AI data-set. Real-time Customer Profiling & AR Experience will ensured .  This development will cover FMCG & HVC products. 

Impact 

Zachai solution impacts for both business &  social good cause and in our rigorous consumer survey we found peoples life,health and quality become most vulnerable from 20-35% counterfeit products and services.

 SCALE

In our brand survey, 20-35% products from Medicine,Health & Beauty care ,Seeds & Fertilizers,Machinery claimed as counterfeited. Seeds & fertilizer industry alone fall in yearly 800 Cr BDT+ fake market. In Y2018 - 2000Cr BDT+  Medline & beauty-care fake products seized, real size will be definitely extreme, assumed average 20% of consumer goods economy.

In Zachai piloting, we got 72% manipulation in reconditioned car, 40%+ grey/faking in a single healthcare product. As well as brand suffers with another kind of warranty faking- ranging from 10-25%.

PEOPLE

82% people confirms they impacted by fake products in different manner,inherently every person somehow impacted.

Almost all brands ( We worked/surveyed/piloted with 11 till now ) suffers either from faking,warranty faking or grey product infiltration,both revenue and image impacted.

Further consequence is extreme in those case, cause damage is not money  – total effort and money ruined in long term, so does sustainability of livelihood. 

FACTORS

- People can't decide with traditional anti-faking measures like packaging, hologram, barcode, etc.

- No track & trace transparent supply chain information in people's hand for decision.

- Less Accessibility to information & less usability of measurement in consumer hand.

SERVING TARGET GROUP ( BRAND & CONSUMER )

During our first piloting , we do rigorous online and onsite survey, UX testing with end consumers as well as leading  consumer goods brands, here is observation & feedback:

- 62% consumers wants a viable and trusted measure to verify products and even ready to pay.  Around 20% in neutral state.

-  Accessibility & Usability is a issue for most of end user, 30% can access through mobile APP, 90%+ can access through mobile SMS & USSD.

- Consumers use verification solution mostly where significant  THREAT or REWARD available. 

For car verification, Zachai charge consumer 1000 BDT yet maximum customer agreed. 

For baby-food verification most parents agreed to pay.  

When 20 BDT reward recharge declared for Lubricant verify - 7350+/12000  responded. Same doesn't will happen for all FMCG.

- Consumers mostly lean to verify HVC ( High Valued Consumer Goods ) rather FMCG.

- Educating Retailer-Distributor is a big challenge to deploy solution, even block-chain based system should deployed later.

- There's a trade-off - App based verification covers 30% consumers but easy to deploy in supply chain , wheres UPI based verification covers almost 100% consumers but significant capex-opex-awareness budget required in brands' supply chain.

Product Stage
1.Proof of Concept Passed, APP, WEB , SMS , USSD , BOT Launched

2.Mobile, IoT & Blockchain platform ready, Basic Analytics and insight engine ready.

>> VISIT: www.zachai.xyz;  CODE: ZRR80-0098040 click-VERIFY
>> DIAL *213*010#
>> SMS  "PBC CAR ZRR80-0098040" 21213 ( *ROBI & AIRTEL )
>> Try Zachai BoT at m.me/zachai.xyz 
>> Try Zachai APP at Play-store : https://play.google.com/store/apps/developer?id=CommEngine

Method Applied:

• Unique Product Identifier ( UPI ) Based verification

• Blockchain Based verification
  

• Codeless Retailer-Consumer pair verification

• IoT Based verification & Track and Trace

• Image AI Based Verification & AR Customer Experiences

UNIQUE PRODUCT CODE BASED ARRANGEMENT

method -

•Unique Product Identifier ( UPI ) deployment required
•Dynamic QR & Scratch UPI required in each packaging.
•Distribution-Retail-Consumer all end verification/registration optional/mandatory based on strategy.

Outcomes- 

Accessible by 100% Customer
•Protect 100% post sales faking
•Ensure Digital Warranty & Customer Profiling
•SMS, USSD, BoT, Web , App all access channel available.
•Loyalty & Reward Management

IMAGE+AI+AR BASED VERIFICATION AND PROFILING

Method -

Zachai  takes a image of product ( human eye  function ) and analyze with data-set with  authenticity measure against predefined AI trained data-set ( brain function). This replicate human eye-brain function to measure authenticity but with a enormous computing power and within millisecond.

Outcomes- 

•Accessible by Smart Phone Customer

•Protect 90+% post sales faking
•Ensure Digital Warranty & Customer Profiling
•Web , App access channel available.
•Customer Geo-Location profiling
•Augmented Reality Advertising.
•Dynamic / Instant Offer to Customer.

CODE LESS RETAILER-CONSUMER PAIR or BLOCK-CHAIN BASED VERIFICATION

Method-

•Retailer-Consumer combined verification Required
•Traditional Batch Code , Product Code will used.
•Distribution-Retail-Consumer all end verification/registration optional/mandatory based on strategy.

Outcomes- 

•Reachable to 90%+ Customer
•Protect 90+% post sales faking
•Ensure Digital Warranty & Customer Profiling.
•SMS, USSD, BoT, Web , App all access channel available.
•Loyalty & Reward Management

Long years - industry tried and spent billions to solve this problem. Whats new we introduced in this era which is technologically via bale and usable ?

- Zachai  takes a image of product ( human eye  function ) and analyze with data-set with  authenticity measure against predefined AI trained data-set ( brain function). This replicate human eye-brain function to measure authenticity but with a enormous computing power and within millisecond. This is completely new paradigm shift   for customer profiling & verification.

- For HVC products Zachai deployed unique identifier or block-chain based authentication through distributor-retailer-consumer pair, ensure transparent supply chain information in all end.  This is platform agnostic design - and highly scale-able.

- Zachai built convenient access channel for all target group ( urban and rural , all consumer ages ) through SMS,USSD,app,web,bot access channel and UX designed in a way that people can adopt easily. Till now our customer interaction experience is positive and recurring. Zachai followed  omni-channel multi-access designed. 

- Behind Zachai verification Engine - high transaction micro service API gateway running which can offer different  TG business feature and we started building Augmented Customer Experience offering during verification. Brand-wise different technology can tailored  with application of simple Mobile Access to block-chain to Image+AI+AR.

Zachai solves a long troubled industry problem which directly effect brand and consumers together powered by   curated handshaking model design and Powered by platform and technology agnostic beck-end. 

In Zachai survey performed in 2017 , 85% consumer claimed they  effected by counterfeit product at least once or repetitively , among them 62% interested  to pay.

Zachai closely work and interviewed 11 brands/company CxO level , almost everyone claimed brands revenue and image impact due to product faking, warranty faking , grey product infiltration in supply chain. 20-35% revenue loss happened due to product faking and some brands suffered from warranty faking , ranging from 10-25% fake claim.

Zachai launched piloting on three product ( reconditioned car, lubricants and diabetic strips ) and consumer  pay good amount for per car verification ( 1000 BDT ). In 72% case we found mismatch with authentic information where consumer impacted. Now monthly Zachai receives 150+ request in this commercial category.

Attached analytics ( image ) generated  completely from Zachai data where Zachai can even facilitate  customer profiling, data driven decision as well as consumer protection.

This piloting data  indicates an unstructured ungoverned market without any viable tool to track, monitor, control and enhance consumer and brand protection.

1. the current number of people you’re serving

- Right now , in pilot project reached 1500 consumers , 28 Car Retailers, 10 Lubricant Retailers and  One pilot zone healthcare retailers, including 03 Brand entity. 

2. the number you’ll be serving in one year

  -  In GROWTH stage in Y1 we plan to launch 06 product verification with brand B2B agreement and  will reach 500K end level consumers. ( detail projection in business case available )

3. the number you’ll be serving in five years

-  In SCALE stage within Y5 we plan to launch Minimum 85  categories product verification with brand B2B agreement and  will reach minimum 8 Mil end level consumers. ( detail projection in business case available )

GROWTH  LEVEL GOAL | 1-2 year

1. Protecting at least half-million end level consumers through verification and registration, create participatory channel with brands and agencies in case consumer impacted.

2. Protecting at least six categories ( priority: baby food , seeds & fertilizers , health care products ) from same or different brand , enriching business  with customer profiling and dynamic AR based customer experience and providing tools for data driven decisions. 

3. Built a Multi-Access verification & profiling engine with  image AI self trained architecture and controlled block-chain for supply chain.

SCALE LEVEL GOAL | 3-5 year

1. Protecting 10M+ or more end consumers from all landscape - urban to rural, any income and gender group. 

2. Establishing Zachai as a strong brand as consumer will check green leaf aligned Zachai logo before purchase product. This logo will become a symbol of protection sheild for them.

3.  Publishing AI Image based algorithm/ Open API  for other countries as  local startup can reuse Zachai build API/Design to launch new service.

4. Approach and launch Zachai for south-east Asia and Africa where counterfeit scope is high due to unstructured and trivial distribution process.

GROWTH  LEVEL BARRIER 

Brand End: As verification and customer protection is a tri-party service , mindset and paradigm change from Brand is one important factor . During our baseline work with 11 Brands , this will become biggest challenge initially. 

- Most brands wants verification  for sales and revenue protection tools.

- Brands hesitant to spend  for enhancement in supply chain, including educating distributor-retailer on those change

- During our baseline work, brands mid  to execution level workforce hesitant to embrace change on supply chain. 

- Need adopted by local manufacturing and distribution Companies to adopt  transparent distributed record, install UPI on product or  change service flow among its whole supply channel ( Company-Distributor-Retailer-Consumer : CDRC) .

Consumer  End: 

- Educating consumer  will be  a challenge , specially rural consumers. Most of the times we found they unaware about protection mechanism and after purchase protection.

- except THREAT and REWARD domain , consumer awareness mindset build will be a challenge.

In true sense , Zachai is  not a tools or solution ; it will be ecosystem with physiological paradigm shift for both brands and consumers.

Technical End:

- Yet Image processing and AI data-set  building is not so matured . Initially we plan to create ad-hoc product wise data-set and train accordingly and need to build self-trained data-set. This architecture building can be a barrier for Go-To-Market.

- Block-chain is transparent but deployment will be not feasible initially cause its need significant  change in supply chain 

GROWTH  LEVEL BARRIER OVERCOME PLAN

Brand End:

-Zachai offers piloting projects to brands without commercial &  deploying basic level verification system ( without UPI or blockchain or Image AI )   which works as proof of concept for brand to embrace change in their supply chain, end result is consumer protection.

- Zachai  offers  piloting with data-driven-decision ( ThirdEye ) impact for a specific zone , which helps brand management to decide better.  

- when 5-10 category will launched , it will create peer pressure for other brands to  embrace consumer protection mechanism.

In addition , regulatory direction can enhance brand-consumer protection mechanism deployment, which is policy level decision.

Consumer  End:

- Educating consumer through campaign , digital , content and onsite. In our piloting project this working .

- THREAT : for some product brand can create obligation to verify by consumer , else warranty or post support will be void .

- REWARD:  for some product brand can  reward  recharge/cash point for  verify by consumer , cause this consumer effort increase brands revenue significantly.

Technical End:

- Initially we plan to create ad-hoc product wise data-set and launch product by product.  This will enhance GTM  time. 

- Before AI/Block-chain based method, Zachai built a simple hash-code/code-less pair verification system for retailer and consumers.

We have a startup CommEngine ( First Bangladeshi SocialCRM ) and during our incubation with sponsor approval we spent 11K USD for Zachai Piloting.

CommEngine has a 12 people team  with 48 years of  cumulative lead level experience. 10% of CommEngine effort we spend for Zachai piloting.

Two full time CxO position

Business Team : 03 ( Full Time )

DevOps and UX Team : 05 ( Full Time )

Market Analysis, test and BP: 03 ( part time )

Me and my co-founder intrigued by one farmer suicide in Tangail ( A distric in Bangladesh ) back in year 2014 due to  extreme loss from fake tomato seed plantation.

Since then , along with other project we gradually interact with all stakeholders, end consumers, suppliers, distributors,retailers, importers , brands , even with fake product makes. 

We collected thoughts , methods , local market scenario's , challenges and with my 13+ years   large scale telco and digital service building experience in Huawei,Nokia Siemens & Robi Axiata started tailoring Zachai Architecture.

My co-founder with 13+ years experience in building high transaction software systems, CRM & profiling solution, AI & Block-chain solution back our  business architecture with a small but  seasoned DevOps and UX team.

As we partnered with second largest telecom operator Robi Axiata ( my latest employer ) and their enterprise business team, it gives us  easy access to local brands CxO level. In addition , our flagship socialCRM product CommEngine deployed in country's leading brand which gives Zachai team  perfect level of business and technical credibility to  handle their enterprise solution.

Summarizing  all those factors and our effort spent on ideation ,survey and piloting last two years -we're confident Zachai is most technically and business fit to develop and deploy this solution.

Zachai now partnered with Enterprise Business Division of Robi Axiata Limited - this is for B2B brand reaching  & product positioning together.

We have a startup CommEngine ( First Bangladeshi SocialCRM ) and during our incubation with sponsor approval we spent 1Mil BDT for Zachai Piloting. Pre-seed piloting  finance received from Robi Axiata Limited .

Zachai is now in discussion with Consensys regarding support in block-chain application , discussion not yet completed -  co-operation model  will decided.

In addition, we're working with 11  Brands ( local and MNC )  for feasibility analysis and commercial closure. No agreement except NDA made till now. 

General Consumer Goods

• We designed our solution for SaaS B2B unit price based model, brands will charged  for each verification ,not consumer.
• As some brands & MNC have not direct SaaS unit based procurement policy, Zachai may offered as capex+AMC based pricing model.
• Consumer may rewarded for verification , cause  with consumer protection this participatory model protects brand's revenue and create data driven decision tool for brands.

High Value Consumer Goods

• During our piloting, Zachai charge 12USD/Unit for car verification as no specific brands presents here and Japanese authority charge Zachai for API.
• On-demand unit pricing can be offered for some other HVC products.

• Zachai piloting completed with pre-seed money received from our existing socialism product sponsor.

• raising seed money for next 2 years ( Maximum target 250K USD ) and launching 6-20 category product verification in local market to reach near to break even is next 2 years plan

• EBITDA projected positive in  Y2 and break-even ( unless market expansion/technology change ) projected in Y3 considering 85 category launch, minimum 8mil end user , with 20% WACC , 3% perpetuity.

• Zachai continuing market & financial modeling for further revenue channel, financial projection and market scenario. 

1. Tiger IT Foundation can help  Zachai with policy level reach and regulatory direction, for brand and consumer protection

2. Footprint in B2B Brand agreement for adopting new paradigm shift in supply chain.

3. Positioning Zachai in frontier and target market as south east asia and Africa as per planned in road map.

4.  Reusing/Enhancing Zachai Image AI & Block-chain architecture in some other TigerIT project, which brings proper monetization and additional financial channel for Zachai.

Now we Expect to partnered with:

1. UKAID/SWISSKONTACT -  running long tailed project for farmers and agriculture, helps us to reach relevant brands . 

2. Ministry of Industry - for policy level direction and alignment.

3. Consensys or similar organization - who can help in initial product positioning and accelerated GTM with  block-chain & Image AI.