The On-Demand Economy and the Local Retailer (The Running Event 12/1/15)

The On-Demand Economyand the [local retailer/brand]

Mark Strella

Agenda

• Intros • Defining the On-Demand Economy • The On-Demand Economy in Action • Drivers of the On-Demand Economy • Retailers • Brands • Industry

(introductions)

Locally

We power the online discovery of nearby, in-stock products.

Locally

97% 93%

A comprehensive platform to help online shoppers complete their purchase in a nearby store.

The Locally Ecosystem

Locally.com

Brand Sites

Retailer Sites

Tools for Brands Product Finder

Tools for Brands Product Finder

Tools for Brands Product Finder

Tools for Brands Dealer Locator

Tools for Brands Dealer Locator

Tools for Brands OpenStorefront

Tools for Brands Local Marketplace

Tools for Retailers Online Inventory Broadcast

Tools for Retailers Locally Pages

Tools for Retailers Conversion Tools

Tools for Retailers Analytics

Tools for Shoppers Product Finder

• Find what they’re looking for in stock, near them.

• Can complete their purchase at their convenience.

• Unified experience across brands and local retailers.

The On-Demand Economy

The On-Demand Economy is the economic activity created by

technology companies that fulfill consumer demand via the immediate

provisioning of goods and services

Examples of On-Demand

Economy Companies

Two Main Methods of ODE service Product Finder

• Buy Online, Pick Up In Store • Local Delivery

Buy Online, Pick Up In Store “BOPUS”

Buy Online, Pick Up In Store Home Depot

Buy Online, Pick Up In Store Home Depot

Buy Online, Pick Up In Store Curbside

Buy Online, Pick Up In Store Walmart

Local Delivery

The Uber-ization of the last mile.

Local DeliveryJet.com

Local DeliveryGoogle Express

Local DeliveryTarget

Local DeliveryDepartment & Big Box Stores

"The consumer's expectation is clearly shifting increasingly to the ‘I want it

now’ model, and stores that are able to oblige will see significant increases in

sales"

Local DeliveryEtsy ASAP

Local DeliveryShopify/BigCommerce + Uber

Local DeliveryAmazon

Local DeliveryAmazon

Local DeliveryAmazon

Local DeliveryAmazon

Local DeliveryAmazon

Local DeliveryWal-Mart

Local DeliveryWal-Mart

So, what is driving the On-Demand Economy?

1. A dramatic increase in the number of smartphone connected consumers

2. Simple and secure purchase flows

3. Location-based services

4. Acclimation

4. Acclimation

4. Acclimation

4. Acclimation

4. Acclimation

5. Feedback Loops

Consumer Behavior In General

Insights from Google

• Since 2011, mobile searches with the term “near me” have increased 34x

• As of this fall, more shopping-related searches took place on mobile than desktop

• Google Shopping now prioritizing local inventory on mobile

Deloitte: 2015 Holiday Survey

Deloitte: 2015 Holiday Survey

Deloitte: 2015 Holiday Survey

Deloitte: 2015 Holiday Survey

To Recap..

Convergence of two major trends… • On-Demand Economy heating up • Increased focus on local

Not If, But When.

So What is a [Retailer/Brand] to do?

This is something to be embraced.

Would You

Air Condition

your Movie

Theater?

Tremendous

opportunity

for growth.

Is it possible for a consumer

in your community to access

your inventory at any time of

day, from any device?

If I see what I want, is there a

way for me to complete my

purchase?

Is it feasible to offer local

delivery to nearby shoppers?

Deloitte: 2015 Holiday Survey

Are the On-Demand type

services that you offer widely

known in your community?

Brands

How do you plan on offering

service to customers in an on-

demand economy?

How does your strategy

incorporate your dealers?

How is the industry

supporting this level of

service?

Wednesday:4:30-6:00 IRRA Booth # ____

mark.strella@locally.com

Retailers.locally.comBrands.locally.com

locally.com/blog