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Zappos : the future of Retail is
Digital…and we haven’t seen
anything yet!
25 septembre 2013

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DOMINIQUE PIOTET
Digital strategy and innovation for large organizations
EUROPE CONSEIL
Manager of e-business team
L’ATELIER BNP
President and CEO
REBELLION LAB
Founder and Chief Rebel
ZEN FACTORY
Founder
LA POSTE
“35 hours” manager
Head of Internet strategy
BNP PARIBAS
Director of Internet and
Intranet strategy
PARIS

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Introduction: Web vs. Store?
1 – Zappos
2 – Zappos’ efforts in Las Vegas
3 – Future of retail…is digital
3.1 – Concepts and trends
3.2 – The store of the present
3.3 – The store of the future
3.4 – The four big challenges of the store of the future
Keynote Conclusion
AGENDA

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INTRODUCTION: WEB VS. STORE?
In 2012 :
Online
commerce
+ 19 %
In-store
commerce
- 2 %
Reasons why
consumers prefer
online commerce :
1 – Price
2 – Gain of time
3 – Avoid moving
4 – Good deals
5 – Shop whenever and
wherever wanted
Reasons why
consumers prefer
instore commerce :
1 – See the product
2 – Get it right away
3 – Touch and feel the
product
4 – Avoid delivery fees
5 – Try the product
BVA-Mappy, 2013

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INTRODUCTION: WEB VS. STORE?
Four new consumer behaviors:
FULL STORE SHOWROOMER ROPO
(Research Online,
Purchase Offline)
FULL DIGITAL
88 %78 %41 %63 %
BVA-Mappy, 2013

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INTRODUCTION: WEB VS. STORE?
BEFORE
WEB VS. STORE
NOW
WEB-TO-STORE
! Consumer are not exclusive to a single profile.
! There is a necessity to make the bridge
between in-store commerce and methods of
online commerce.
! With the need of enhanced consumer
experience, Web and Store cannot stay
competitors…they must become
complementary.
à
BVA-Mappy, 2013

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1 – BUSINESS CASE: ZAPPOS

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KEY FIGURES
! Founded in 1999 in San Francisco with the
vision of becoming the online shoe store with
the best selection and the best service.
! Moved the headquarters to Las Vegas in 2004.
! Turned profitable for the first time in 2007:
topped $100 million in monthly merchandise
sales in December, ending the year with
revenue of $840 million.
! Bought by Amazon in 2009 for $1.2 billion.
! US Leader for Shoes Online.
! 1,300 employees.
! Revenue of $2.2 billion in 2011, 20% average
Growth y/y.

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STRATEGY
! “We are a Service Company that happen to sell
clothes”.
! The 3C:
– Clothing
– Customer Service
– Culture
! Almost No Marketing Expenses:
– Customer Service is The New Marketing: free
shipping and free return, 365-day return policy, 24/7
call center + Upgrades & Surprises
– Word of Mouth
– Loyalty
! Focus only on the United States
! No Outsourcing for Logistics & Customer Service

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CULTURE IS EVERYTHING
– Deliver WOW Through Service
– Embrace and Drive Change
– Create Fun and A Little Weirdness
– Be Adventurous, Creative, and Open-Minded
– Pursue Growth and Learning
– Build Open and Honest Relationships With
Communication
– Build a Positive Team and Family Spirit
– Do More With Less
– Be Passionate and Determined
– Be Humble
! The company lives by 10 core values from which are developed the culture,
the brand and the business strategies.

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CULTURE IS EVERYTHING
– In 2005, Zappos came up with the idea of
the “Culture Book”.
– Collage of submissions from employees
sharing what the Zappos culture means to
them.
– Submissions are unedited.
– New book each year.
! “How can we sustain this culture? How can we remember it while
simultaneously inspiring ourselves for the next year?”

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AND ZAPPOS CREATED…ZAPPOS COUTURE
! In 2004, Couture was created as the line for high-end shoes and clothes.
! Value proposition : accessing the latest and greatest items from the best
international fashion houses online…while enjoying the same best-of-class
customer service experienced with Zappos.com.
! 10% of Zappos revenues are now made by Zappos Couture.

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2 – ZAPPOS’ EFFORTS IN LAS VEGAS

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MOVE OF THE HEADQUARTERS…
NEW HQ
DOWNTOWN LAS VEGAS
• Former City Hall Building
• Opened on September
9th 2013
• $60 million invested in
renovation and
transformation
FORMER HQ
HENDERSON

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…AS THE FIRST STEP OF THE
! THE BET: transform Downtown Las Vegas into the most community-focused
large city in the world.
ARTS, MUSIC, CULTURE
COMMUNITY AND COWORKING
EDUCATION
ENTREPRENEURSHIP
TECHNOLOGY
URBAN DEVELOPMENT
THE PILLARS OF THE PROJECT ROI
Return On Investment
Maximizing short-term
ROC
Return On Community
Maximizing long-term

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: HOW?
$200 million in residential
and real estate
+ $50 million in small
businesses
+ $50 million in education
+ $50 million in tech startups
= $350 million investment
for the revitalization of
Downtown Las Vegas…
…invested by Zappos CEO Tony
Hsieh who has initiated the
project and leads it.

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: SITE EXAMPLE
Container Park is
set to be the new
heart of Downtown
Las Vegas with a
mix of cafes,
boutiques, bars,
galleries,
community space,
an outdoor theater,
children’s play area,
and Catalyst Dome.

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STORE