CloudTag Inc (LON:CTAG) Chief Executive Officer Amit Ben-Haim caught up with DirectorsTalk to discuss their US deal with CITIES
Q1: Can you tell us about the news this morning regarding the US deal with CITIES?
A1: Yes, I think this was very much clear from my half year forecast statement which I put out at the end of March this year. US is the largest single market for the wearables and as an entry for ourselves I think the most important point was to have a party like CITIES who can give us, under one umbrella, an entry which is a very focussed one namely dealing with the four largest retailers in the US in the consumer group and like that we would be able to reach more than 70% of the US potential customers.
Q2: So what is CloudTag’s commercial strategy for the US launch with CITIES?
A2: The thing first of all is we’re creating a new category within the wearables with the weight loss and we are the first in this category as a device space, we are offering the retailers a new space so we’re kind of aligned with current sales, that’s a very important point. As I mentioned the focus is not only on reaching the 70% of the potential consumers but we’re dealing only with four major players, Best Buy, Target, Amazon and Walmart and then again within this group target audiences of 72% female base, again very close to the affinity we have with our product. So I think from that point of view it’s a very focussed, very well defined relationship with a very clear trajectory.
Q3: What impact do you think the US will have for CloudTag?
A3: First of all the revenue, that’s the most important thing for us as we join the largest single market, the projected sales that we have seen from CITIES, from this year to January 2019, are far larger than our own current estimates and they are obviously eclipsing what Fitbit has done in the market from when they started, from 2011 to 2014, we are over £100 million in revenue projection, this is a projection done by CITIES. The second thing is obviously creating the brand recognition which will lead us opening the doors for the B2B market prospects so we think that holds the most fundamental importance that I can see.
