The Rise of the Online to Offline Commerce Network.
Looking back at the history of the Internet and successful categories emerging, we have always seen a parallel commoditization of pieces in the ecosystem in each of those emerging categories.
Instant access to information and ubiquitous connectivity has helped to drive innovation on top of new categories like e-commerce, social networking and within these major categories allowed to establishe niche plays.
Early entrants in new categories sometimes fail to recognize the power of a network and hold on for too long on the early mover advantages. Trying to defend the inevitable; the democratization through networks, which leads to the building of a level playing field, where connectivity and access is a utility and innovation utilizing the connectivity and the delivery of problem solving solutions become the value drivers.
Looking at the Online to Offline Commerce Category from the Daily Deal perspective, we currently have a fairly stale model that is driven by two early entrants (Groupon and Livingsocial) and you see hundreds of “me too’s” trying to succeed with a business using the same building blocks as the market leaders, who at the same time defend their position vigorously.
Click to read more...Google Wallet and the coming NFC smartphone war
Google Wallet launched earlier this week, bringing the ability to carry multiple cards on one phone and pay at retailers via Near Field Communication (NFC) technology. The Wallet Product, announced months ago and finally released Monday, allows an application to run on Android phones (one particular phone right now) and act as a proxy for multiple credit cards, loyalty cards (think your Safeway club card) and offers all in one place.
The service only works on the Samsung Nexus S 4G phone on Sprint, but this is the first of many NFC-enabled eWallets that are anticipated. The Isis Network is a collaboration between players including mobile carriers, handset makers and banks to enable NFC-enabled payments. Also, Nokia’s latest batch of phones all have NFC on board.
However, the a huge player is anticipated to be Apple. Many believe it is only a matter of time before Apple’s iPhone will be capable of doing NFC transactions, via a new version of the iconic iPhone which is expected this Fall. You see, NFC hasn’t taken off in the United States, because there are no major players with a widespread initiative to launch and maintain an implementation that consumers attach to.
With the launch of Google Wallet and the other players entering the field, it seems the connected mobile wallet is upon us.
How does this change the landscape? It makes online payments even more accessible via mobile handsets. By utilizing offers and connected payment mechanisms, consumers will have an easy way to find, buy and retrieve deals in a cohesive fashion. We’re at the start of a very interesting time.
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The Decade of Online to Offline Retail Commerce Disruption
The first phase of retail commerce disruption 1995 – 2009
For the last 15 years you can go online and purchase a book. The book is boxed by the online retailer, shipped via UPS to your home and arrives a couple of days later.
Over the last years these models have evolved, offline retailers have joined and today Walmart, Target & other national retailers rather than being squeezed out of the commerce transaction have build multi channel, well integrated commerce funnels to serve the consumer where they are, online or in the store.
These years have been phenomenal and the percent of total retail sales for ecommerce has steadily grown to 5.8% in 2010 according to the US Department of Commerce and according to Forrester will grow further to over 8% by 2014.
Amazon is the leader in Ecommerce with a 36% growth rate in 2010 and is outperforming any traditional retailer.
Events: Join Us At Techcrunch Disrupt SF
This coming week in San Francisco, California; the startup world will gather in an exposition of new ideas, business models and disruptive forces.
This iconic event is actually made up of a bunch of different activities, including a hackathon, startup demo and judging process and overal discussion of new ideas and entrepreneurial ideas.
The first Disrupt was last year in New York and drew over 2,100 attendees. With top-notch speakers and interesting ideas flowing around – this event is not to be missed.
Adility will be a part of Disrupt SF as a member of the Startup Alley with a display and Adility personnel on hand to answer questions and meet press. Be sure to look for Thomas Cornelius, our CEO and the rest of the Adility crew to find out how we’re innovating in the online-to-offline commerce model.
Click to read more...Adility announces partnership with MINDBODY
Today we’re announcing a great new partnership that we’re really excited about. We have teamed up with MINDBODY, a company which is a leading online business management software provider that powers many small and medium sized business in the health, wellness and beauty industry.
What is the new partnership bringing to MINDBODYs customers? Well in short, we’re now making it possible for the 14,000 businesses who use MINDBODY to build and deliver deals on their terms. That is, if a local business sees an opportunity to boost sales by offering a promotion, they can utilize Adility to build an online campaign to construct and deliver a deal to customers.
Unlike other daily deal type offerings, this partnership allows for a campaign that is all merchant-controlled, giving business owners the ability to choose from over 650 online publishers (traditional websites, mobile websites and mobile apps) to offer discount amounts, geographic regions, and define when an where these promotions are displayed.
This offering is unique because business owners are in control of the deal offering at all points with no comprimises. Also, with the integration between MINDBODY and Adility, the discounts are rolled even into the point of sale, making the deal trackable and easily consumable by customers and employees.
Also, the partnership is revolutionary because it allows local business owners to offer a unique way to keep their business operating in a sustainable way. If there’s a gap in appointments or customer engagement, a targeted deal will help bring customers in the door. Then, when the deal has had it’s desired effect, it can be ended or scaled down. Much like an airline can flex it’s pricing depending on how seats are selling, business owners can offer special pricing in a very similar way.
To see the entire press release, click here.
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