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
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)
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
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%
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
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