We are experiencing a growing "clicks to bricks" phenomenon, where pure e-commerce leaders are opening physical stores in an attempt to get closer to their customers and foster loyalty. During this webinar, Elena Martínez, Retail Specialist at Openbravo, will explore this concept and the challenges faced while highlighting the benefits of this strategy that is being followed by leading online retailers. What Will You Learn? - The motivations of pure online retailers to invest in physical stores. - Technologies that offer the highest impact on physical stores. - The main challenges faced in the attempt to bridge the offline with the online.

1. Click here to go to the recorded webinar in Brighttalk
From Clicks to Bricks and why Physical Stores
Matter More than Ever
August 6, 2015

2. Today’s presentation is available to download on
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3. Elena Martinez
Retail Specialist
Elena-Martinez
More than 10 years experience in IT sector
M.Sc. Telecommunication Engineering, M.Sc.
Master in Information, Communication and
Audiovisual Media Technolgies
International Project Manager, Researcher
In Openbravo since 2008
International Project Manager
Retail Specialist
Today’s Presenter

4.  Introduction
 Why pure online retailers are going
physical
 Physical stores matter today more than
ever
 Key Takeaways
 Q&A
Agenda and Goals

5. Trusted Vendor
5
 World leader in the Professional
Open Source Enterprise Software
Space
 Focused on helping midsize to large
organizations to achieve superior
competitiveness
 Present on all continents
 Pure channel organization with a
distribution network of authorized
Openbravo Partners
 Offices in India, Mexico, France and
Spain

6. Online-Only Retailers Going Physical

7. Founded in 2010, Warby Parker started as pure online retailer.
They opened their first store in 2013.
"As awesome as the
internet is,
somebody can
experience a brand
in a physical setting
in a way that no
digital experience
can replicate."
"In five years when
people use the term
"retail,' it'll mean both
physical and e-
commerce. The
phrase ‘e-
commerce’ won't
even be used any
more.”
Source: Warby Parker
His mid-term vision…Blumenthal’s words (WP founder):
Vision and Strategy

8. Which are the reasons for these pure online retailers to
opening brick-and-mortar stores:
• Improve customer
experience, where digital
can’t reach
• Reinforce the communi-
cation message & connect
with the customer
• Offers gravitas to the brand
and more exposure
• Pop-up stores & show-
rooming phenomenon
• Increase customer loyalty
and sales
Source: Warby Parker
Which are the drivers?

9. Birchbox is another pure play gone
“destination”. Destination brand was
originally pioneered by Genius Bar of
Apple
Source: Apple
Source: Birchbox
The challenge here is to transform
the physical store as a place to feel,
touch, listen and BUY and create
seamless brand experiences
Challenge: Create Destination Brands

10. Focus on delivering multichannel retail experience and
seamless shopping experience will be key for success:
• Ability for customers to pick up and return online orders in store
• Offer consistent pricing and promotional offers across channels
• Ability to synchronize the data from online and offline stores
• Flexibility options in the delivery
• Customers need to feel that
they are valued and
remembered, regardless of
which channel
• Customer service “ninjas” who
will respond to online inquiries
via chat, email or phone
Source: Bonobos
Keys for Success

11. Retail IT landscape is constantly evolving and customers are
increasingly demanding experimental experiences. Some of
the benefits of having physical stores and related to the
concept of providing a seamless cross-channel shopping are:
Create a more emotional connection by appealing to the five
human senses, and that’s possible with face-to-face service
• Physical stores act as distributed
fulfillment centers,
 serve online orders from stores
 So retailers are embracing ship-from-
store more than ever before
 service same day delivery at low cost
• Offer click-and-collect
• Increase up-selling opportunities
Benefits of Physical Stores

12. © 2015 Openbravo Inc. All Rights Reserved

13. Speed
© 2015 Openbravo Inc. All Rights Reserved

14. Speed
Convenience
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15. Speed
Convenience
Personalization
© 2015 Openbravo Inc. All Rights Reserved

16. The real challenge
becomes to do
more and faster
© 2015 Openbravo Inc. All Rights Reserved

17. Omnichannel
is becoming a
more difficult goal
© 2015 Openbravo Inc. All Rights Reserved

18.  Despite of the exponential
growth expected in e-
commerce and m-
commerce, physical stores will
remain driving sales in the
coming years (>95% of total
sales)
 The role of the brick and
mortar store is evolving from
being a destination of
commerce to being a hub of
omnichannel customer
engagement
Openbravo Infography, 2014
Physical Stores Matter More than Ever

19. In this transformation
Mobile is becoming
the real driving force
© 2015 Openbravo Inc. All Rights Reserved

20. POS have Transitioned from a Store Machine…

21. Customers and
Employees
Engagement
Business Agility
Store Operational
Excellence
Visibility and Insight
That helps providing the promise of a truly seamless shopping experience
… into a Complex Store Brain

22. Customers and
Employees
Engagement
Business Agility
Store Operational
Excellence
Visibility and Insight
Customers and Employees Engagement

23. Data from Answers™ Experience Index (AXI): 2014 U.S. Retail Edition and The Answers™ American Employee Study.
Image taken from Eric Feinberg post, Jan 20, 2015
Customers and Employees Engagement

24. Nearly 300% more retailers plan to deploy
mobile POS in the next two years
Approximately 200%more retailers plan to use
geolocation within three years
350% more retailers plan to support NFC
payments by October 2015
Source: 2015 POS/CUSTOMER
ENGAGEMENT BENCHMARKING SURVEY
Top Technologies Providing Maximum Impact in the
Stores

25. Mobile POS

26. Named or anonymous
transactions.
Customers creation
and management at
the POS.
Customer Management
26
Back

27. Assisted Sale
27
Information to
associates about
applicable
discounts and
promotions.
Search by product
characteristics.
Information about
complementary
products and best
sellers.Back

28. Loyalty & Gift Cards

29. Customers and
Employees
Engagement
Business Agility
Store Operational
Excellence
Visibility and Insight
Stores Operational Excellence

30. Inventory Visibility

31. Pick-Up & Delivery Flexibility

32. Security and Fraud Control
32
Improve operational and fraud control
with manager’s approvals.
Complete support to opening and closing
store and terminals including control of
cash differences.Back

33. Customers and
Employees
Engagement
Business Agility
Store Operational
Excellence
Visibility and Insight
Visibility & Insight

34. Embedded Retail Analytics
34
Out-of-the-box pre-
defined analytical
reports.
Capacity to create
new cubes and
dashboards.
Embedded query
widgets in your
workspace.
Back

35. Customers and
Employees
Engagement
Business Agility
Store Operational
Excellence
Visibility and Insight
Business Agility

36. Failure to anticipate and respond to changing consumer preferences in a
timely manner could result in a decline in our sales.
Source: BEST BUY FISCAL YEAR END FEB-1 2014, FORM 10-K (Factor Risks section)
We may not be successful in expanding our business, opening new retail
stores or extending our existing store leases.
Source: URBAN OUTFITTERS FISCAL YEAR END JAN-21 2014 FORM 10-K (Factor Risks section)
If we cannot successfully implement our retail store expansion strategy, our
growth and profitability would be adversely impacted.
Source: CABELA’S FISCAL YEAR END DEC-28 2013 FORM 10-K (Factor Risks section)
Business Agility

37. “A legacy system is any system that is not
sufficiently flexible to meet changing
business needs“
Business Agility

38. Easy to Deploy
© 2015 Openbravo Inc. All Rights Reserved

39. Easy to Maintain and Adapt
39
Search for new modules in the
central repository or your file
system and check the installation
history.
Install, uninstall and disable modules, scan
for updates and check module information.
Back

40. Easy to Learn and Use
40
Back

41. The Future

42. Next steps
Single Commerce Platform

43. More Speed
More Convenience
More Personalization
© 2015 Openbravo Inc. All Rights Reserved
Closing the Loop

44. Web: www.openbravo.com/contact
Email: info@openbravo.com
Spain Office: +34 932 725 947
France Office: +33 (0)1 70 08 73 62
India Office: +91 33 4004 7358
Mexico Office: +52 559171 1841
Thank you very much
for your attention
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