The “Commerce Graph” is a new framework we have developed to think about the future of physical exchange. The model offers an alternative to the dominant narrative about the commerce landscape that frames digital networks as an adversary of physical exchange — a force that will inevitably drive us to buy and sell nearly everything virtually.
HomeRoots Pitch Deck | Investor Insights | April 2024
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
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.
6. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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First, three assumptions about the future
8. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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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
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E-CommerceThe Internet will not replace
the physical world.Three.
12. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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In the commerce graph, there are two axes:
decisioning and fulfillment.
13. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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These axes are weighted by
“in-person” and “remote” activities.
15. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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An interaction with a product/service
provider in the real world
An interaction with a product/service
provider which is not physically present.
21. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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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
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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
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But sellers have
lagged demand.
The bulk of digital
innovation has
remained in the
remote — or e—
commerce quadrant.
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25. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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$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
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Over the next decade, the
companies driving value
creation will bring together
remote and in-person
commerce.
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Decide In-person, Fulfill Remotely
28. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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A portion of that market will be owned by the
existing players.
36. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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E-CommerceHowever, new (and existing) firms will grow
by solving problems within each
“omnichanel” quadrant.
37. @ 2014 Hyperlocal Industries LLC.#commercegraph@stevenhjacobs
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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
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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
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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
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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
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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
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The future of commerce lies at the intersection
of digital and physical marketplaces.