Location Is (Still) Everything: How the Real and Virtual Worlds Collide

David R Bell (www.davidrbell.com)

NASSCOM Feb 13 2015

18,000orders per day

1.2m sq ft

$545mAmazon acquisition

Warby Parker

1,000,000 No. 1$100m+

http://www.cbsnews.com/videos/warby-parker-tops-fast-company-

magazines-annual-list-of-most-innovative-companies-in-the-world/

Metaphor and Framework

M AB =DAB

1+PBPA

https://www.jet.com/#/

Aggregate Space-Time Sales Pattern

(Shaded areas: Zip codes and at least

1 customer within the cumulative time

period)

6 months

18 months

30 months

42 months

Disaggregate Space-Time Sales Pattern

(Shaded areas: Zip codes and at least 1

customer within the cumulative time

period)

Philadelphia

New York

Month 1

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 2

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 3

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 4

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 5

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 6

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 6

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Philadelphia

New York

Month 45

San Francisco

Los Angeles

Las Vegas

Phoenix

SaltLakeCity

Adjacency

Warby Parker

Channel 1: Online

Channel 1: Online

Channel 2: SamplingSHOWROOMS

Channel 2: Sampling

Channel 3: Showroom

Home Try-On

Traditional Online Showroom

Impact of Showrooms on Sales

Home Try-On Sales

5%Web Sales

3.5%Total Sales

8.8%

Impact of Showrooms onOperational Efficiency

Web Returns

1.2%Home

Try-On Repeat

1.5%Home Try-On Orders

7.8%

Topography

Source: Euromonitor, Morgan Stanley Research; excludes travel

0%

2%

4%

6%

8%

10%

12%

10%

8%

6%

1%

USUK China India

Implications for India

Implications for India

Information

Drives Choice

Online needs

Offline

Some products now

best fulfilled online

Mobile changes

the game

Five “Game-Changers’ of Mobile

THANK YOU

ISOLATION CASE STUDY

OFFLINE OPTIONS = ONLINE NEED

SIX PRINCIPLES OF GRAVITY

G EOGRAPHY— Real world options shape

virtual world behavior.

R ESISTANCE— Frictions frustrate — identify

and eliminate.

A DJACENCY—Seed local demand and let

proximity power it.

V ICINITY—Form communities around preferences.

SIX PRINCIPLES OF GRAVITY

I SOLATION— Identify and invest in the isolated.

Y OU

T OPOGRAPHY— Use each world— real and

virtual—to enhance what you do in the other.

SIX PRINCIPLES OF GRAVITY