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@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Commerce Graph:
Charting a future for physical exchange
Steven Jacobs, Deputy Editor at Street Fight
1910 2014
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
“Retail guys are going to go out of business and
ecommerce will become the place everyone buys.
You are not going to have a choice.”
- Marc Andreessen
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Consumers should have a choice.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-CommerceCOMMERCE
GRAPH
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
Commerce Graph is a new way to think
about the way we buy goods and
services bringing together
remote and in-person commerce !
into one cohesive system.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
First, three assumptions about the future
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
The growth in connected
devices will make the
distinction between
“online” and “offline”
behavior less distinct.
This will force “e-
commerce” and “local
commerce” companies into
each other’s markets.
One.
50#billion#connected#devices#
2020
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
The process of “buying” will
become invisible.
!
The moment we decide to make
a purchase, the transaction will
go through.
Two.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-CommerceThe Internet will not replace
the physical world.Three.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely, Fulfill In-person
Decide In-person, Fulfill In-person
Decide Remotely, Fulfill Remotely
Decide In-person, Fulfill Remotely
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
In the commerce graph, there are two axes:
decisioning and fulfillment.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
The process of making a
decision to buy a product.
The process of bringing the
product/service to a customer
after point-of-purchase.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
These axes are weighted by
“in-person” and “remote” activities.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
An interaction with a product/service
provider in the real world
An interaction with a product/service
provider which is not physically present.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Decide Remotely
Decide In-person, Fulfill In-person
Decide Remotely
Decide In-person
‘Brick-and-mortar’
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Decide Remotely
Decide In-person
Decide Remotely, Fulfill Remotely
Decide In-person
(Brick-and-mortar retail)
Ecommerce
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Decide Remotely, Fulfill In-person
Decide In-person
Decide Remotely
Decide In-person, Fulfill Remotely
(Brick-and-mortar retail)
‘Omnichannel’
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
Consumers already shop across the
commerce graph.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-person
Decisioning
Fulfillment
Local Commerce
E-Commerce
Nearly everyone buys
goods or services
offline.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-person
Decisioning
Fulfillment
Local Commerce
E-Commerce
Nearly everyone buys
goods or services
offline.
196.6 million
Americans shopped
online last year.
That’s 90% of all
Internet users
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-person
Decisioning
Fulfillment
Local Commerce
E-Commerce
Nearly everyone buys
goods or services
offline.
196.6 million
Americans shopped
online last year.
That’s 90% of all
Internet users
78% of consumers
said they bought in-
store after browsing
digitally.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-person
Decisioning
Fulfillment
Local Commerce
E-Commerce
Nearly everyone buys
goods or services
offline.
196.6 million
Americans shopped
online last year.
That’s 90% of all
Internet users
78% of consumers
said they bought in-
store after browsing
digitally.
72% of consumers
said they bought
online after browsing in
store.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
c
Decisioning
Fulfillment
But sellers have
lagged demand.
The bulk of digital
innovation has
remained in the
remote — or e—
commerce quadrant.
Decide Remotely, Fulfill Remotely
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Ecommerce sales are
projected to hit $491.5
billion by 2018.
$125.00
$250.00
$375.00
$500.00
2012 2013 2014 2015 2016 2017 2018
(billions)
!25
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
$10 trillion
!
The biggest opportunity
today is in where
remote and in-person
commerce intersect.
But that’s still only 9%
of the $10 trillion
consumers spent on
retail goods last year.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Over the next decade, the
companies driving value
creation will bring together
remote and in-person
commerce.
Decide Remotely, Fulfill In-person
Decide In-person, Fulfill Remotely
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs


Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
A portion of that market will be owned by the
existing players.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-CommerceHowever, new (and existing) firms will grow
by solving problems within each
“omnichanel” quadrant.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
We’ve already seen
explosive growth in the
decide online, buy in-
person quadrant.
!
These companies are
often labeled as “local
commerce” firms
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Yelp has nearly
doubled unique
visitors since 2009.
!
Today, the reviews
company draws 128
million UVs every
month.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
In 2013, the company
announced Yelp
Platform, a new
initiative to close the
gap between
discovery and
transaction.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
The decide in-person,
fulfill remotely quadrant
has seen less innovation.
!
But there’s a big
opportunity for new
brands to flourish.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
This is the Tesla
showroom in LA.
(There’s no lot.)
Customers can test drive and
buy a car, but its delivered
weeks later.
!
A “showroom” model allows
Tesla to sell its product in
malls and other high-traffic
areas.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
The future of commerce lies at the intersection
of digital and physical marketplaces.
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person
@ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
Remote
Remote
In-person
In-personDecisioning
Fulfillment
Local Commerce
E-Commerce
STEVEN JACOBS
DEPUTY EDITOR, STREET FIGHT
Decide Remotely
Decide In-person
Decide Remotely
Decide In-person

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The Commerce Graph

  • 1. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Commerce Graph: Charting a future for physical exchange Steven Jacobs, Deputy Editor at Street Fight
  • 2. 1910 2014 @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
  • 3. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs “Retail guys are going to go out of business and ecommerce will become the place everyone buys. You are not going to have a choice.” - Marc Andreessen
  • 4. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Consumers should have a choice.
  • 5. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-CommerceCOMMERCE GRAPH
  • 6. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce Commerce Graph is a new way to think about the way we buy goods and services bringing together remote and in-person commerce ! into one cohesive system.
  • 7. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce First, three assumptions about the future
  • 8. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce The growth in connected devices will make the distinction between “online” and “offline” behavior less distinct. This will force “e- commerce” and “local commerce” companies into each other’s markets. One. 50#billion#connected#devices# 2020
  • 9. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce The process of “buying” will become invisible. ! The moment we decide to make a purchase, the transaction will go through. Two.
  • 10. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-CommerceThe Internet will not replace the physical world.Three.
  • 11. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely, Fulfill In-person Decide In-person, Fulfill In-person Decide Remotely, Fulfill Remotely Decide In-person, Fulfill Remotely Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce
  • 12. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce In the commerce graph, there are two axes: decisioning and fulfillment.
  • 13. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce The process of making a decision to buy a product. The process of bringing the product/service to a customer after point-of-purchase.
  • 14. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce These axes are weighted by “in-person” and “remote” activities.
  • 15. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce An interaction with a product/service provider in the real world An interaction with a product/service provider which is not physically present.
  • 16. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Decide Remotely Decide In-person, Fulfill In-person Decide Remotely Decide In-person ‘Brick-and-mortar’
  • 17. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Decide Remotely Decide In-person Decide Remotely, Fulfill Remotely Decide In-person (Brick-and-mortar retail) Ecommerce
  • 18. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Decide Remotely, Fulfill In-person Decide In-person Decide Remotely Decide In-person, Fulfill Remotely (Brick-and-mortar retail) ‘Omnichannel’
  • 19. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce Consumers already shop across the commerce graph.
  • 20. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-person Decisioning Fulfillment Local Commerce E-Commerce Nearly everyone buys goods or services offline.
  • 21. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-person Decisioning Fulfillment Local Commerce E-Commerce Nearly everyone buys goods or services offline. 196.6 million Americans shopped online last year. That’s 90% of all Internet users
  • 22. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-person Decisioning Fulfillment Local Commerce E-Commerce Nearly everyone buys goods or services offline. 196.6 million Americans shopped online last year. That’s 90% of all Internet users 78% of consumers said they bought in- store after browsing digitally.
  • 23. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-person Decisioning Fulfillment Local Commerce E-Commerce Nearly everyone buys goods or services offline. 196.6 million Americans shopped online last year. That’s 90% of all Internet users 78% of consumers said they bought in- store after browsing digitally. 72% of consumers said they bought online after browsing in store.
  • 24. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person c Decisioning Fulfillment But sellers have lagged demand. The bulk of digital innovation has remained in the remote — or e— commerce quadrant. Decide Remotely, Fulfill Remotely
  • 25. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Ecommerce sales are projected to hit $491.5 billion by 2018. $125.00 $250.00 $375.00 $500.00 2012 2013 2014 2015 2016 2017 2018 (billions) !25
  • 26. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment $10 trillion ! The biggest opportunity today is in where remote and in-person commerce intersect. But that’s still only 9% of the $10 trillion consumers spent on retail goods last year.
  • 27. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Over the next decade, the companies driving value creation will bring together remote and in-person commerce. Decide Remotely, Fulfill In-person Decide In-person, Fulfill Remotely
  • 28. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce A portion of that market will be owned by the existing players.
  • 29. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 30. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 31. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 32. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 33. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 34. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 35. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment
  • 36. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Decide Remotely Decide In-person Decide Remotely Decide In-person Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-CommerceHowever, new (and existing) firms will grow by solving problems within each “omnichanel” quadrant.
  • 37. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment We’ve already seen explosive growth in the decide online, buy in- person quadrant. ! These companies are often labeled as “local commerce” firms
  • 38. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Yelp has nearly doubled unique visitors since 2009. ! Today, the reviews company draws 128 million UVs every month.
  • 39. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment In 2013, the company announced Yelp Platform, a new initiative to close the gap between discovery and transaction.
  • 40. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment The decide in-person, fulfill remotely quadrant has seen less innovation. ! But there’s a big opportunity for new brands to flourish.
  • 41. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment This is the Tesla showroom in LA. (There’s no lot.) Customers can test drive and buy a car, but its delivered weeks later. ! A “showroom” model allows Tesla to sell its product in malls and other high-traffic areas.
  • 42. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Decide Remotely Decide In-person Decide Remotely Decide In-person The future of commerce lies at the intersection of digital and physical marketplaces.
  • 43. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Decide Remotely Decide In-person Decide Remotely Decide In-person
  • 44. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs Remote Remote In-person In-personDecisioning Fulfillment Local Commerce E-Commerce STEVEN JACOBS DEPUTY EDITOR, STREET FIGHT Decide Remotely Decide In-person Decide Remotely Decide In-person