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The Evolution Of Shopping



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Startups are Changing the Way We Shop.  Mobile, On-Line and In-Store Shopping are Quickly Converging According to New Research from Architect Partners.

PALO ALTO,  December 1, 2011 –  The way we shop is rapidly being influenced by scores of innovative young companies who are helping retailers, brands and consumers fundamentally reshape how goods and services are bought and sold.  Architect Partners LLC, the M&amp;A advisory firm exclusively focused on Internet, mobile and digital media clients, today published “<a href=”http://architectpartners.com/the-evolution-of-shopping/”>The Evolution of Shopping</a>”.

“Shopping is at the early stages of profound change”, according to Eric Risley, Managing Partner of Architect Partners.  “Our newest report, The Evolution of Shopping, highlights why this evolution is happening, offers a framework to help understand who fits where in a very complicated ecosystem and features some of the most innovative companies making things happen.” “Retailers and brands are leveraging these changes to devise and implement strategies that are more consumer-centric.  An entire infrastructure is emerging to support their efforts,” according to Dr. Phil Hendrix, Director of IMMR, a research consultancy and contributor to The Evolution of Shopping.

“We, like many, are constantly deluged with the latest headlines from information sources like The Wall Street Journal, TechCrunch, Bloomberg and GigaOM.  What we’ve attempted to do with The Evolution of Shopping is provide some context to the headlines,” said Risley.

“We stepped back to the fundamentals to help us understand the innovation we’re seeing” explained Steve Payne, Partner with Architect Partners.  “We mapped how products are bought and sold as a seven step process.  From a retailer’s perspective these are 1) attract customers, 2) help them learn, 3) convert them to purchasers, 4) suggest additional purchases, 5) help them pay, 6) encourage and manage social signals and finally 7) encourage repeat purchases.  We then mapped over 300 companies against this framework.”

According to the U.S. Census Bureau, annual U.S. retail sales exceed $4 trillion.  Over time, much of this spending, not to mention global retail spending, is likely to be influenced by this evolution.  Incumbent suppliers to retailers and brands such as SAP, Oracle, IBM, Microsoft, NCR, Epicor, Visa, Mastercard, American Express and many others have major stakes in the outcome and are beginning to see emerging competition from a new set of competitors such as eBay, Amazon, Salesforce.com, Google and Apple.  Scores of young emerging companies are also likely to be important disrupters.

“Marquee M&amp;A transactions have already occurred within this area, according to Tom Brehme, Principal with Architect Partners.  “I’d highlight eBay’s M&amp;A appetite which has included the acquisitions of Hunch, Zong, Magento, WHERE and GSI Commerce for a total of over $3 billion just in the past 12 months.  Also, the purchase of radian6 by Salesforce.com is another transaction with very interesting ramifications” Brehme adds.  “We’re aware of over 75 significant M&amp;A transactions which we’d place under the theme, evolution of shopping, which have occurred since the beginning of 2010.”

As we enter the holiday shopping season we see continued tangible signs of this evolution.  According to IBM’s Cyber Monday Report 2011, on-line shopping continues to show strong growth, up 33% from 2010.  Also, mobile device-initiated purchases are beginning to become meaningful, representing 6.6% of Cyber Monday 2011 sales.

Access to The Evolution of Shopping presentation is available on Architect Partners’ website at <a href=”http://new.architectpartners.com/ecosystem_thoughts/the-hyperlocal-ma-report-for-2012-street-fight-summit-west/”>here.</a>

<strong>About Architect Partners LLC</strong> – insight-based M&amp;A advisory

Architect Partners is a new breed of investment banking boutique focused exclusively on M&amp;A advisory within the rapidly converging Internet, mobile and digital media sectors.  Complementing Architect Partners’ advisory efforts, AP frequently publishes strategy, sector and M&amp;A research.  Architect Partners’ <a href=”http://www.new.architectpartners/ap-insight/ma-alert”>M&amp;A Alert</a> has assessed over 150 specific strategic M&amp;A transactions and our <a href=”http://www.new.architectpartners.com/ap-insight/ma-snapshot”>M&amp;A Snapshot</a> provides a big picture view of current M&amp;A activity within our sector.  Please visit <a href=”http://www.architectpartners.com/”>www.architectpartners.com</a> to sign up to receive our research.

<strong>Contact for further information:</strong>

Eric F. Risley

650.430.6446

apnews@architectpartners.com


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