Future Plans
CSI intends to develop the Point 'n Click Shopping Center concept to its fullest potential. In addition to the PCSC and PCB, this plan has also detailed the Retailer's Point 'n Click Desktop (RPCD). Initially, the RPCD will be leased to customers who are tenants in the company's PCBs. In the future, CSI envisions marketing the RPCD as a stand alone system that will enable any retailer to become a video retailer. The implementation of this logical business extension (installing RPCDs for direct to consumer retail sales) is predicated on the successful installation of additional interactive video conference outlets located in homes, offices, or future virtual landlord's kiosks. The company also believes that a market currently exists for the RPCD in a dedicated multi-store retailing environment.
CSI has had interest from large multi-store retailers in the development of an in-store Expert Information Provider network. The concept behind this service is to provide customers with a high level of service/information while they are shopping. The current problem is that in order for a multi-store retailer to provide knowledgeable "expert" sales staff in each department at each location, the retailer must incur all of the associated costs with maintaining an enormous staff. The benefit of maintaining an information videoconference kiosk in each location is that customers can access an "expert" at any time they wish while shopping. The retailer has provided what customers are looking for: high customer service and information. The retailer can centralize its "expert" staff in one location and deliver services to all of its retail outlets. The efficiency of a video telemarketing center will greatly reduce the necessary personnel while still delivering exemplary service and thus save the retailer significantly on the associated cost of the previously excess personnel.
The RPCD will be necessary for retailers considering the option of developing an in-store information network. CSI will market the RPCD separately as a turnkey service to multi-store retailers who have decided to pursue this effective service alternative. CSI's existing use of the RPCS in conjunction with its PCB tenants makes the "In-Store Information Provider" market a viable business to pursue in the near future.
The future applications of videoconference technology are too numerous to mention here. It has been estimated that the videoconference industry will grow from its current $ 1 billion to over $7 billion by 1998. CSI's unique approach to the use of videoconference technology in a direct business-to-consumer application is thus far unprecedented in the industry. CSI intends to vigorously pursue those applications of the technology that logically lend themselves to a direct consumer contact as opposed to a strictly business-to-business use. The benefits to retailers of this technology (lower "real estate" costs, improved sales staff efficiency, and lower inventory carrying costs) will also entice other multi-location service providers. For example, a large hotel chain could employ this concept (centralized expert staff) in a Virtual Concierge, thereby reducing the costs associated with maintaining a staff at each location.
In an effort to realize its potential, CSI will first focus on the Point 'n Click Booth and the Retailer's Point 'n Click Desktop. Subsequent to developing this market place into an economically profitable business unit, CSI will devote excess capital to R&D projects designed to enhance the PCB and RPCD and explore the products necessary to exploit additional subsequent markets for this technology. In an effort to supplement its internally generated cash flow, CSI intends to seek additional capital for growth via an initial public offering of the company's common stock within the next 5 years.
