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The Jason & Scot Show - E-Commerce And Retail News

Join hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at Razorfish, and Scot Wingo, Founder & Executive Chairman at Channel Advisor, as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
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Now displaying: September, 2017
Sep 22, 2017

EP101 - Indochino CEO, Drew Green

 

An interview with Drew Green (@Drew_Green), CEO and of Indochino.  Indochino is one of the largest made to measure menswear brands globally with active customers in 50 countries. We spoke with Drew about his previous e-commerce startup Shop.CA as well as Indochino's business model, Amazon strategy, and the future of the indsutry.

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Episode 101 of the Jason & Scot show was recorded on Thursday, September 14th 2017.

http://jasonandscot.com

Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.

New beta feature - Google Automated Transcription of the show:

Transcript

Jason:
[0:25] Welcome to the Jason and Scott show this is episode 101 being recorded on Thursday September 14th 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your Tahoes Scott Wingo.

Scot & Drew:
[0:40] Hey Jason and welcome back Jason Scott show listeners this week's episode we have a really special treat for you,
in a world where everyone's really scrambling to survive against Amazon we wanted to highlight a brand that is really thriving please welcome to the Jason Scott show Drew green CEO of indochino who is joining us live from Vancouver,
thanks guys I appreciate you having have an assignment scratch.

Jason:
[1:09] It's entirely our pleasure let's get the really controversial questions out of the way early did Scott pronounce your name right.

Scot & Drew:
[1:16] Hey daddy daddy didn't say where to me but that's that's okay cuz I don't use the at the end of Green.

Jason:
[1:23] Awesome and you don't want the things we always like to start out with is get an idea of how you.

[1:32] Came to your current role on so before we talk about your control can you tell us a little bit about your background and in what way does the origin story for indochino.

Scot & Drew:
[1:43] Yeah well I don't know what I do both because both her are bit different so you don't myself I've been in you know e-commerce.
Retail for almost 20 years first company we we built up was really the time of time of my life I was told to double click in the late 90s and from there.
I have this amazing journey by double-clicking New York I love being out of retail.
And as you know double quick was was acquired a couple times by private equity in the Google and then went to have the privilege of.
Going to a company by the name of shop.com and helping build that into a top 10 multi-category retail destination in the US and the UK and that eventually became part of.
Market America which I think is that isn't IR 500.
Iri R50 excuse me online Merchant sound of my own company and I really enjoyed that Journey House shop.ca here in Canada.
Multi Merchant market place that has since been Amalgamated with.
Several Brands under an umbrella company called emerge Commerce of which I'm sure.
And you don't back in 2015 it feels like.
Feels like quite a few years ago but but really only a few years ago I really got the opportunity to come into indochino.
And help transform the way men dress and it's been you has been an incredible few years you know the business has tripled in size.

[3:18] Are we done so probably attracted some world-class Partners investors and of course.
You every success starts with a team would God just a fantastic team at the company.
Your top to bottom so it's it's been a great experience indochino was founded in 2007.
So you know we've been around for for just over 10 years.
And have become you know the last few years have become really the market leader globally answer to what does that mean while it means that from a made-to-measure custom apparel standpoint I don't believe there's any other company in the world.
I cells and produces as much as we do and so that's had somewhere very proud of but you know we treat with a lot of care and a lot of humility because you know we want to continue to build the Great business not only for the team here but.
Obviously first shareholders.

Jason:
[4:13] Terrific some before we jump into indochino actually have a shop.ca question.

[4:19] So I use them or I should say you all the time as an example of one of the the first e-commerce sites to turn their entire customer base into affiliates.

[4:33] Am I being truthful there I feel like that.

Scot & Drew:
[4:36] Yeah that sucks yeah that's actually shop.com and and so you know that was post-acquisition that that occurred.
And you know that is the that is sort of the bread-and-butter or models at that market America's built their business on and and you know they felt that that was the best application for.
Shop.com I mean shop.com originated as a Marketplace not unlike.
Amazon Marketplace but it was bifurcated we had both you know card transactions as well as affiliate transaction.
Orly cost as it would be known but yeah Market America turned it into a almost a pure purely and consumer affiliate site after they acquired.

Jason:
[5:19] Don't you very cool and did you have you applied any of the the best practices from that in your current gig do you guys do like customer referrals and all that sort of stuff.

Scot & Drew:
[5:30] Absolutely I mean I think you know that the interesting thing about that is I think it's excessive.
Going to take you out online only but it really any retail business is based on.
Your consumer advocacy or or fandom as we can talk about sometimes it into Chino you're the more that you can have fans of the the product of the brand of the experience.
In particular for us that in the channel the experience.
Yeah really the more the more not only are you going to grow about the more efficiently you're going to grow you know when you have customers that are telling.
Your friends and fam.

[6:07] They had a wonderful experience and the noset friends and family coming and make breakfast it just creates a really efficient gross and so yes certainly I would say that refer-a-friend weather.
Whether through paid or unpaid is probably a second biggest Channel at its cheetah and so certainly we feel like we have a ton of fans.
You're talking about the Brandon and appreciate an experience we deliver,
cool the server folks that may not have had the opportunity to to use the site Maybe,
can I give my dog a quick picture of of indochino you you said kind of measured so does that mean someone comes to me and measure so and I know you guys have it you didn't take so long to hear what that is.

[6:51] Yeah so if you think about you know bespoke or made-to-measure custom apparel.
You know it's an industry that's been around for hundreds and hundreds of years you know man have gone and gotten measured and.
You have been able to to create their own garment what we wanted to do was you know create a platform essentially to allow it to be mass-market to allow anybody to measure themselves.
Girls online only first pick their Fabrics pick their customisations their personalization such as a monogram.
You know I'm on the Garment and and really create a one-of-a-kind garment and so you know we were the first globally to ever sell made-to-measure online.

[7:36] Really proud of that but we realized in 2015 and really what what I've been driving the most.

[7:43] After years is you knows our success is based on an omni-channel experience and really giving customers the choice of.
Did I buy online which I calls or the self-serve mode or getting a full serve experience and whatever that 70 show rooms across North America.

[8:02] Yeah that's a good Segway cuz I kind of mentally put you guys in the bucket with but no bows and Stitch fix and kind of what what Andy done calls digitally native vertical Brands and then just like those guys you guys,
open up the showrooms where they're kind of a smaller Outlet the no kind of a traditional retail experience and kind of different unique buying experience,
so tell us a little bit more I think that's all been in your 10 year or did the company have some started.
Yeah I mean we we we've essentially opened every one of our showrooms or relocated them you know 2015 to 2017.
We really felt like to be.
You know that the Undisputed leader and made to measure but also to compete with ready-to-wear that we needed to provide customers with an omni-channel experience and you know what it's really allowed us to do is to open an app.
You know the made-to-measure experience to customers that just might not be comfortable.
Making their first purchase online as it relates to a you know for the $500 purchase offer a garment and.
Yes really become actually are number one acquisition Channel think about online only business is really scaling that business from a media perspective.
And you know you are a retail environment not only benefits customer but it really benefits are model and creates you don't media efficiency from.

[9:33] I'm back from a girl's perspective you know we'll have averaged just over 50% growth year-over-year lost.
You're so 2015-2017 and we're seeing a declining across for acquisition and cost for crossbow order.
From a media perspective in that you know almost entirely to do with with our our commitment to retail and channel.

[9:57] I'm having not add up to you being a showroom may be described it as it's like I'm imagining 2000 square feet some some examples that kind of thing but then I've seen pictures of Foosball Tables kind of curious where that.
Yeah you know every showroom that we have it as I mentioned we got 70 you going to us were in Boston we got to in New York to in the Philadelphia area.
Now one in Washington one in Chicago San Francisco and Beverly Hills every showrooms a bit.
Different and unique but they all have a very open Design Concepts and they all allow for you no appointment no I won't what we have isn't as appointment base model where the customer would come in.
They would be masked with what we call a style guide for that hour and that's the guy that I said would help them create their at their garment they would walk them through and get the measured.
They would have the customer you to pick out fabric since we got almost 300 fabrics for suits in almost 300 rabbits for shirts.
So they would pick their fabric that they're stitching and pick other customisations and personalization said you know at the end really allows them to.
You know create this one-of-a-kind garment that that nobody's going to be there not going to go to a party or dinner or an event and see somebody wearing the exact same everyone is is entirely unique a customer.

Jason:
[11:26] That's awesome.

[11:29] Question about the sort of omni-channel experience so it makes perfect sense that their children's could be your top acquisition Channel you go in there you you get fitted you get that first suit and have a great experience,
but I'm presuming that now you have their measurements on file and now that that customer has a lot more confidence in your brand,
are you able to turn those kind of full service customers from their first experience into more cell service customers for subsequent orders is that.

Scot & Drew:
[12:00] Yeah that that that's exactly what happened so course you got some customers that just you don't prefer either the retail environment or our showroom environment but.
You know the reason that we're investing in retail in such a big way is that the majority of our retail first customers actually come back on their second third and fourth purchase and buy online and so it Christmas really sort of official relationship with a customer.
We get it right the first time.
Bathroom showroom perspective but because we've gotten it right there the other entirely comfortable coming back and buy it online you know we don't have a subscription model but if you looked at.
Yes they do that the repurchase rate in our business here is almost like we do you know customers are very loyal to the experience very loyal to the brand.
And frankly you know what we found especially these last couple years is you're made to measure and custom apparel is becoming mainstream.
And so you know a young man or or you know someone at that house that experience was made to measure is saying you know what.
I no longer want to buy a suit their shirt and Blazer pair pants off the rock I want to I want to create my own, because it's not easy and it's a crime.

Jason:
[13:12] Cool yeah you know one thing I filled it to ask about is can you talk just a little bit about what the like sort of into end time line is for it for a customer that buys a product like you know.

Scot & Drew:
[13:24] Yeah absolutely so that you know what you're doing if you're doing me buying processor.
You know what we are at from an internal perspective because the conversion final you know it does take some time so it's not a an instantaneous purchase your you're choosing all your selections on the Garmin.
But once you've done that and you know the Garmin essentially arrives and.
Right now under three weeks we've we publish for is the expectation but we've really improved that through your different Partnerships and optimization supply chain.
And so if you think from start to finish your you're basically creating your own garment your own one-of-a-kind garment and receiving it and under in under 3 weeks.

Jason:
[14:10] Wow very cool.

[14:13] In my my senses like sort of old-school made-to-measure garments when you go to a local tailor or certainly like you have some of the the International Suit house is like the.
Like one of the big pain points traditionally with me to order is that there's a super long lead time.

Scot & Drew:
[14:33] Yeah yeah I need a Nazi that you're absolutely right I mean some.
You're on some environments your weight 5 6 7 weeks for your for your garment and we've really.
You got to really compete against made ready-to-wear to really be an alternative to off the rocks.
You know we feel like we've got to get that that turnaround time you don't continue to optimize I continue to approve it and we don't have a timeline for it we don't have.
Your specific launch date but our goal is to get at under a week.
And you know once you get it under a week because think about your own experiences buying a suit even if you buy off the rock you're still going to have to get it alteration so.
You know when we are at under a week in terms of production and and final delivery.
You know we're entirely competitive with ready-to-wear and and just that much more appealing to two all types of consumers.

Jason:
[15:31] Yep that brings up another day question that so.
One of the Banes of the apparel industry in general in e-commerce is the return rate is higher than we'd all like and I am curious if,
the me to order it helps resolve that problem because you've got a chance to meet the customer and you you know that you have less fitment issues or you know.
Part of me feels like even with a bespoke tailor and a made-to-order suit like they're often is more than one round of of adjustments if you will if I'm if I'm saying that right how do you handle that that's what it's about.

Scot & Drew:
[16:08] I mean neither of us are really question cuz if you know what I think back to you know the first time I took a look at this business and and the things that really jumped out to me was the fact that.
You don't return rates were so low you know they were two three sometimes 4% depending on the time of the year and as you guys know and e-commerce in apparel Footwear.
That's that's incredibly low number now we've actually been able to get a returns to well under 1%.
I'd have been there for over a year now and again that's that's an incredible number now we do have.
Alterations by a small percentage of the Guard.
You know sometimes if it's not made to the customer's exact specifications will do it what we call a remake but again that's the the minority of of of the garments that we create.
It's all Rino return rate as one of the most incredible things about this business because if you compare you know two other apparel or paralyze a category.
You're most of the Power Rhonda you know in the twenties or even 30% from a return perspective.

Jason:
[17:19] Yeah I think I think most people would give us some significant body parts in exchange for getting down to a 2 - 4%.

Scot & Drew:
[17:25] Well I absolutely because it because it's the biggest impact online only.
Apparel retailer it's it's it's very difficult and I from a model perspective it's very different.
Difficult run p&l perspective then so you know where we're pretty proud of the fact that you don't return rates are so low.

Jason:
[17:48] And then when I scratch.

[17:51] On on the general business I noticed on the website you also have weddings in your in your taxonomy and we recently had the Zola on the show so we we've done some talking about how lucrative the the overall wedding industry could be what,
how are you guys playing in the wedding space.

Scot & Drew:
[18:11] Yeah me back that really goes to the customers that we serve an alien are number one and for the core demographic would be Millennials 65% of our transactions online.
Or are serving you know that Millennial mail it's a little bit lower and in our showrooms closer to 50%.
But really what we committed to a couple years ago and it's become our fastest-growing demographic is the is the wedding Market.
And so you must send you message foosball tables earlier and call you know one of the things that we've done with each other room is set up a groom's lounge and that's really just serve that market.
And to really become you have a place that that young man or any age men can get can get themselves in there and their groups party you know fitted for their wedding and so I would I would say that wedding is probably our fastest-growing segment.
And certainly something that we're going to continue to focus on,
it wouldn't be a Jason and Scott show if we didn't talk about Amazon a little bit so Jason I do a joint talk or we talk about you know,
the obviously how big amazon is how much they're soaking up the growth out there but one of the big rabbits we give people on protecting yourself is to wrap a service around a product and seems like you guys,
done that dude you have any fear of Amazon doing that or do you feel like this is a quadrant e-commerce are probably not going to get to,
yeah I was watching you can never live live in fear you you got to.

[19:46] You got to continue to innovate and continue to ideate you know whatever business you're running I think.
I just have a tremendous amount of respect for Amazon and and within the apparel categories are obviously very very committed to it and doing some amazing things.
You'll for us one of those things that we really.
You're committed to not just to not this to differentiate ourselves from Amazon but really I would say the entire apparel category is really not.
Not put forth that we're selling a product we've really focused on selling or even just providing an experience and so more and more.
For our customers what we Aspire and what we try to inspire is the fact that we do provide an experience and it's it's a totally different experience than.
You're going into a store going online and buying an item in that instance you really just buying a product right and and for us it's entirely different.
It or whether it's you know the interactions that they have with our saw guys and how what they're trained or the you know the online experience of pretty on Garmin we've really focused on selling an experience versus a product.
Call you guys have obviously caught the eye of you season an environment when it's really hard for me, she kind of companies to get funding I noticed madronas in there that's that's a really kind of real consumer Blue Chip how much,
Capital if you guys raised yeah we're really we're really fortunate to have you no work last set of investors we got.

[21:22] Madrona and Scott Jacobson at Madrona as my partner there.
Yeah I'm deeply involved with the success of the company at Portside equity which was formerly Highland consumer is also very very involved.
And our success and has been you know a big force and driving it we also out of strategic investors so we have no Diane group that's based in in China and one of the largest.
And best suit manufacturers in the world owns a part of the company.
We got a media company here in Canada that that took ownership in the company and will continue it to round out and look for what possible.
And you lots of that say you don't really good position to be in,
the best time to raise money is when you don't need it in my experience,
to quick one so you kind of peaked my curiosity with the millennial kind of,
concentration at any interesting observations as someone that's been in the industry for a while about in your all these kind of it's kind of funny meme that says joke around office money orders are killing this any other but they're they're obviously,
not killing YouTube suits so any observations you can share about what you see in there.

[22:42] Well I think there's a few different things I think number one you know it's a it's a the demographic that really takes a lot of pride in.
And being their own brand and your for us I think that's why we resonates so well with Millennials you know they're able to create.
You know one of a kind in the Chino which in a lot of ways becomes a representation of who they are and and their own brand and so.
You know I think that that we are just the experience the product that we provide really fits into that.
They're also they become and we see it in our.
In our lifetime value studies and repurchase rate studies extremely loyal you know if they if they enjoy something if they like something.
You know they're going to be loyal and they're going to tell their friends and so.
But it is important to get it right I think that's true and in any demographic.

Jason:
[23:43] When it when the things it's interesting to me in the short of a custom product space which I I sort of put you in.

[23:52] You know all customers but in particular Millennials in and Western CSN genze as well like the.

[24:00] There seems to be a strong preference for more individualistic process products and in sort of you know Wes following the pack but.
They also want people to know that it's individualistic so I I'm almost wondering like are you know that I think there's certain features in your product that,
sort of reveal it's a made-to-order product as opposed to it you know looking like a ready-to-wear product like to do you find customers like.
Intentionally select those pictures so that they're sort of broadcasting a little bit that they that they wearing a maid.

Scot & Drew:
[24:34] Yeah I mean that's not what I mean about being able to create their own brand right there not.
You know they're when they're creating an indochino garment they're creating something that's truly one of a kind.
And they're able to you don't put a monogram very very easily you know what that the jockey on the shirt or on other parts of the Garmin.
You know they're able to pick their own lining from dozens of different choices are able to pick a fabric.
And maybe mix. Fabrics you know applecross the suit and so you're really there's dozens of difference.
Customisations in personalizations and if you know you kind of look at all the permutations that could be great just literally tens of millions of different types of suits.
I could be created I think that's really feeling you don't know if you guys remember but I always hated you know in high school going to a party and.
Bought a sweater at you know whatever retailer and then find out that there's three other guys about party with the same sweater or same jacket out of you and so yeah that doesn't happen within the Chino grated your own again one of a kind.

Jason:
[25:44] I totally get your point but I don't think Scott or I got invited to parties in high school very much.

Scot & Drew:
[25:50] I've I've seen Scott of the few parties I don't know then I don't know.

Jason:
[25:55] I am teasing you like to see your urine.
That's one of the Leading Edge category in terms of made-to-order I do do you see that extending two more generally the other consumer products like the fact that that's a continuing Trend or do you think it will stick with you no particular vertical.

Scot & Drew:
[26:14] Are you know what's another great question that I do think that.
A big part of the future retail is going to be more customize and personalize product and the more of that you know retailers or companies or any tractors can get away from.
Commoditized product I think more success than the house and so I really do feel like at the highest level custom but I'll say is custom.
Your product is is is really the future of retail in a lot of different verticals but certainly in a Peril for sure.

Jason:
[26:50] Yep and obviously that's that certainly helps you build a competitive moat.

Scot & Drew:
[26:55] You know what does I mean you'll think about competitive Moses you got to be you know aware of of what you need to do to to protect and grow the business and you know we constantly look for.
What are call additional Motes if you will but you know where we're at work we're humbled by the response that we're getting from consumers right now.
And we're very excited about what you know what the decades ahead are going to bring some.

Jason:
[27:25] Another area is our future looking that I'm always interested in and I talked a lot about fit man we talked about,
in the ready-to-wear space the return rates are huge and typically the number one reason for returns are are fitment issues you obviously saw that for the subset of your customers that go to a show and they think they can get.
Measured by a tailor but to enable more people to be self-service and reach more people I I imagine you're always interested in your how to best get measurements at home I know there's at least one company in the space that tries to use,
the mobile phone camera for fitment and I I think you know I suspect that strongly a gimmick but I do know there's a lot of phones coming out with sort of,
3D scanning capability in that,
you know I've always speculated that potentially is really useful for fitting in are you guys looking at all it does sound kind of Technologies.

Scot & Drew:
[28:20] Yeah we are I mean we're always looking at new ways to create and craft a perfectly fitted garment I think.
You know if it's an extremely complex business right in terms of creating you no one to one product on app for Consumer bases and.
Well those take that Technologies are full and you know seem to be enough to come in and out I I do think the back-end operations of how you create.
You know I shouldn't Wonder one product her customer is is the most important the last thing you want to do.
Is introduced the technology that you're going to end up with you know return rates that are closer to you know traditional apparel on so there's going to be a lot of Technology development around.
You know how you get measurements or how we get measurements but you know how I kind of like what we're doing right now in terms of the technology that we used to.
We got the garments right on a one-to-one basis.

Jason:
[29:21] Gotcha another Trend like in this are the Jason spaces that I've been a little interested in last quarter Adidas did this interesting pilot wear their weaving sweaters.
On demand in a store and then I think it's Ministry of Supply in Boston literally have a.

[29:40] A blaze or weaving machine in the store and I'm going to say Loosely they make a Blazer while you wait I think it's like a three or four hour process.

[29:51] So obviously not not super convenient or scalable right at the moment but like is that a potential.

[29:57] Opportunity for you or competitor for you in the future iqc the technology ever getting good enough that a lot of the stuff gets made in in real time in stores or ship same day to customers are those kinds of things.

Scot & Drew:
[30:09] Yeah I mean I think anything's possible as we you know as we go through the years and decades ahead of deep deep thought of being able to create.
You know garment like we create but do it same day or in the store or have it delivered the same day I mean that's an incredibly.
You know bold dream or delivery but you are hot for my from a super spective I do believe that were one of the fastest in terms of how we produce.
Supply chain all the way through the consumer demand and like I mentioned earlier you no more costly off to my second tweaking. Because once you get it down to under a weeks you've got something very very unique and highly competitive.
You know what is essentially about a 7 billion dollar Market North America on South.
Yeah I've seen I'll call them campaigns or product launches that you mentioned but I think we're a little ways from being able to scale that I'm a space South.

Jason:
[31:12] For sure for sure it does certainly seem like that kind of you know early tip of the spear examples on which are always interesting but probably not economically viable for the last question.
Anything else that has you excited or interesting about the the future of Commerce in general or or your space in particular and India.

[31:31] Trans you are seeing on the horizon.

Scot & Drew:
[31:35] You know what man like I said as a technology e-commerce guy I'm just.
I really really big fan and really interested on how retails of all day you know it's that's what's got me most excited and interested on how.
Online-only Brands transition into either or not the channel environment or how do they leverage retail to drive their business I think there's going to be.
Thriller credible Innovations and developments over the coming years and we hope to be part of that we think we are actually you have big part of it and Four Mile from a later shift perspective in and leaving the weather.

Jason:
[32:15] Terrific I think that's actually going to be a great place to,
to wrap up because it is happen again we've used up all our a lot of time so Drew I really want to thank you for joining us in the sharing the indochino experience with the RR listeners and I'll remind listeners as always,
you're welcome to continue the dialogue on our Facebook page if you like today show we would certainly appreciate a 5-star review on iTunes if you hated today.

Scot & Drew:
[32:44] Absolutely do not review cuz it was probably my fault if you hate it you guys are great I appreciate your time today.
Thanks truly look forward to hearing more about the success of indochino.

Jason:
[32:59] Until next time happy conversing.

 

Sep 17, 2017

EP100 - Get to Know Our Listeners

To celebrate our 100th episode, we decided to put the focus on the most important element, the listeners.  So we invited three of our most active listeners to be on the show.

Radz Mpofu @RadzMpofu

Kevin Harmon @imadness Facebook 

Ted Fifelski  @ted_gives

Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes.

Episode 100 of the Jason & Scot show was recorded on Thursday, September 7th 2017.

http://jasonandscot.com

Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.

 

New beta feature - Google Automated Transcription of the show:

Transcript

Jason: 
[0:25] Welcome to the Jason and Scott show this is episode 100 being recorded on Thursday September 7th 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo.

Scot & Guests: 
[0:40] Hey Jason and welcome back Jason and Scott show listeners Jason how are you doing.

Jason: 
[0:47] I am doing awesome it's super exciting to be at episode 100.

Scot & Guests: 
[0:52] It really isn't before we jump into it too deep I wanted to announce that we will be podcasting again at the shop. Org digital Summit,
this year the Summit is being held in Sunny Los Angeles on September 25th to 27th.
Jason Scott show listeners receive a 10% discount when they register using the code js-10 that's js-10 and we will put a link to the registration in the show notes where you can enter that code,
we hope to see everyone there Jason as we mentioned that we've had a pretty big milestone here with 100 episodes.

Jason: 
[1:31] I know I know I have to be honest when we started this 100 episodes we're not on my radar screen I had to read a podcast primer and it mentioned that like.
If you get past episode 7 you've sort of survived the mortality rate so I think my big goal was,
was 7 and I've since then read that the average podcast on iTunes only ever gets 24 episodes.

Scot & Guests: 
[1:56] Yeah yeah and we officially have more episodes in listeners now just kidding we actually we actually.

Jason: 
[2:01] Yeah that's that's because I have a small family if I had a bigger family we'd have more listeners.

Scot & Guests: 
[2:05] That's actually it's kind of fun to break down some numbers so we started this I don't know about you but I really didn't have any expectations I just thought we would do it for,
the fun aspect of it and looking back it's kind of,
ballon my expectations I would share admittedly low so we've had over 200,000 downloads since we started the show,
the record months had over 18,000 that was over the summer in June cuz we had so much Amazon news going on,
the most popular episode is the June 17th hot take we did which is episode 89 where we talked about the Amazon and Whole Foods acquisition and then as reminder for every one we actually started this whole Adventure on November 13th 2015 with episode 1,
do you have a quiz for you Jason how many how many episodes have we recorded.

Jason: 
[2:57] This will be our 101 including the one I screwed up and we didn't get to publish.

Scot & Guests: 
[3:04] Boomkin answer inside info but yeah 100 episode soon so pretty exciting.

Jason: 
[3:09] I share your Your Enthusiasm seems like we should be doing something special for the hundred show.

Scot & Guests: 
[3:17] Yeah yeah and couple months ago we were pretty good at math so we kind of saw this coming on the calendar and we started thinking about what we should do to celebrate a hundred episodes.

Jason: 
[3:28] Yep and obviously one of the first things that come up is is with many listeners know,
chupitos is constantly hounding us to be on the show and so for while we're thinking hey that's a perfect opportunity to finally Jeff on the show but then you know we thought about it and the reality is this show is for the listeners it's not really about the fancy guest so we turned him down.

Scot & Guests: 
[3:51] Yeah you know we,
Basils cuz of stuff to talk about both at listeners who who would care so what we did is we decided to really kind of turn the microphone around,
so we we went to Twitter and and looked at the social engagement that we get and we really active Community here for the show that we really enjoy and,
what causes a lot of back and forth and it went challenges us and recommends things and ask questions so we we thought what we would do is have a listener appreciation event in celebration of episode 100,
so we somewhat randomly picked three listeners from different geographies all over the world if you will these folks work at all kinds of different size companies and have different kinds of rolls and we invite them tonight to be on the show,
to hear about their e-commerce experience and where they think e-commerce is going and just kind of turn it over to the listeners for,
for a bit and give everyone a little bit of break from hearing from us for the last hundred episodes.

Jason: 
[4:50] Yeah yeah I'm super excited about this idea and you know frankly pleasantly shocked that it when we invited accepted our invitation so Scott who's the first guest.

Scot & Guests: 
[5:02] Well Jason let's kick it off excited to have our first guest here for the listener appreciation show we know him best by his Twitter handle which is RADS radz and that's at radz mpofu on Twitter,
what's up rats not much just wrapping up the day here how about you.
We're super excited we hit 100 episodes Jason didn't think we'd make it past 5 and I had the long money on going the long haul in the sinks the red 100 we're pretty excited.
Yeah I have to say that I would have to agree with you because when I first remember seeing the Jason and Scott Show come out I was just like oh my gosh I have needed this for so long that was like I'm starting my retail career.
Yeah I told you guys 100 I don't know why Jason would say that,
check two boxes for us here for the first time you're you're the first kind of super listener we've had on the show and then also you're the first International correspondent so you're you're not in the United States of America.
Nope I'm in the Toronto or the six as Drake would say okay and is it snowing there.
No not yet but it is raining a lot okay interesting summer where it's just been.
I bet Seattle and BC weather where this raining a lot.

Jason: 
[6:26] And in the long run does that mean it's good or bad for the ice wine this year.

Scot & Guests: 
[6:31] No idea.

Jason: 
[6:34] Those are mine I mainly focus on the food of every venue so for me Toronto is ice wine and poutine even though I know pooting is really Montreal but you can get it in in Toronto.

Scot & Guests: 
[6:47] Yeah that's true but you forgot you got to check out Uncle tetsu's cheesecake as well as smoke smoke signals barbecue those are two really good spots those in the true true true Toronto Staples.

Jason: 
[7:01] Nice I am adding those to the list that the show has already paid off for me.
So Reds you mentioned that you you were start listen to show you were starting a retail career you want to tell us a little bit more about what that was and what you're doing now.

Scot & Guests: 
[7:20] Yeah for sure so even though like rewind a little bit vacuum before that I actually started my.
E-commerce sales career in at a company called Ashley Bridget, so I was there when we were still like in a basement making maybe if you know a few hundred thousand dollars and a scale to over a million so that.
Being part of that company like they double grabbing use like every year since after that but that experience I think really.
Help me get to become a part of tulip which is where I started started my retail.
Retail career that don't know a tulip was founded by the founder of well. CA.
Oh yeah yeah yeah he was involved in doing that as well so yeah I started my career at tulip that was in.
March 2015 and I think a few months after that you guys started the Jason and Scott show and then where is your career taking you now.
So now shifted to a company called pagerduty and a lot of people especially in the it the it and devops were all day they definitely know about picture to be it's almost like a household name.
We were actually mentioned on Silicon Valley recently some I think it was Guilfoyle he told the Nash that he was on pager to the until we got back at the house he was leaving to go somewhere.
But yeah basically Patriot Duty Autumn eats the incident resolution process from end-to-end so a lot of that stuff is being done manually right now so you know I have like an Excel spreadsheet.

[9:01] I'm the psychos down you call somebody on it for there's too many modern tools to.
Really get the key incidents that you need to resolve resolved so page Diddy animates all of that.
Google every e-commerce site wants to be up 24/7 so I think you know you say you're out of the retail business but I think you just kind of dawn to a broader addressable market and I'm sure our vehicle it's probably interesting to your folks.
Oh yeah I know definitely we actually just it's funny that you mention that we just started.
Retail all of my coworkers are all pinion me for people's contacts so yeah definitely I am still very much plugged into the retail game only doing it through all my coworker.
Get in touch with me get in touch with retail Executives Through Me podcast you can recommend they want to learn more.
It's how I've already been said I've been telling them don't worry I would cover.

Jason: 
[9:56] We we have a vested interest in pagerduty tracking the retail Market because you know it's it's going to be sad to go to the industry shows like shop.org and not see you.

Scot & Guests: 
[10:07] Exactly I think you needed to tell our CEO and her had some marketing that Jennifer Tejada if you ever end up listen to this please we should go to shop talk next year.

Jason: 
[10:16] Exactly.

Scot & Guests: 
[10:17] Shop.org.

Jason: 
[10:20] That both good shows both good shows.

Scot & Guests: 
[10:22] Oh yeah both really good shows.

Jason: 
[10:24] The actually have a photo of you and it I think act technically it's from neither I think it was probably from NRF and you you had your then employers Logo shaved into the side of your head.

Scot & Guests: 
[10:36] Oh yeah okay okay I thought you were going to go in a different direction with that there's another photo of someone who's on stage didn't Maeve look like me I don't know maybe but that was.
That was that was in January and I think Dominique actually mentioned that from bonobos on on the previous show I think I got to shut up because of that.
Although we never saw you put Jason and Scott show logo in your in your head.

Jason: 
[11:09] That's going to take a more talented Barber than the to it.

Scot & Guests: 
[11:13] I fixed I was always thinking maybe just a j plus s but I don't do it at all.

Jason: 
[11:21] Yeah I know you need portraits of two portly dudes.

Scot & Guests: 
[11:24] Two rats two quick ones Have you listened to every episode.
I wish I could say that I have but.
The last one that I listen to since I've been ramping up at pagerduty was are the one with the Accel partners and then one that was either just before that or just after that was with.
The CEO of the CEO of Kohl's and ModCloth I remember listening to those when so I think I'm about 20 episodes behind at this point.
Cool you'll have to just drive to Florida and you could pick them all up.
Yeah exactly exactly or I'll do it on my next plane trip to San Francisco.

[12:10] What were what were a couple of your favorite shows so I think my favorite show obviously I can't,
I can't not do it but Danza episode on bonobos that was my favorite one but also the ones with Rob Schmaltz from Talbots as well as Faisal masud,
I'm from Staples,
those were like really those are I think those are probably with my top three favorite ones all the a lot of the retail executive.
Interviews were like I'm on my favorite ones those ones you know I got to learn so much about you know what's going on in retail and all the changes that if you know what happened this year and I'm sure that will continue so I think those are all my favorite ones.

Jason: 
[12:56] Very cool that being said any as one of our super listeners were we're always looking to make the show better anything you feel like we could be doing better or any tips for things we should think about trying.

Scot & Guests: 
[13:10] So I thought about this and.
I think what you guys have done is really cool you know you have the Deep Dives as well as.
The the retail executive interviews so I'd love to see maybe a little bit of a panel you know between and I'll maybe not people that are like opposing and Views but would love to find out.
Maybe get like the behind-the-scenes story from what happened at Sears maybe not like.
Anything like bad that happened but like to know where did. They live like missile I'm so like maybe a previous executive from there and then you know maybe get somebody from.
Walmart or one of the opening or tomorrow off and coming retail brands.
Could have done better or there now fallen by the wayside in the ones that are doing really well and see if they can.
Meet in the middle and what can be done.

[14:13] Where do you where do you see the future of retail and e-commerce.
I think right now it's still very much in a state of upheaval.
Get out like I'm actually keeping tabs of all the retailers that either went belly-up or like we're struggling really.
Really tough out there was like it's the year started off with like BCBG and then the Limited,
then actually remember seeing HMV Yonge and Dundas Square here in Toronto that's kind of like the Union Square Toronto onto the San Francisco people out there so I remember seeing that one shut down as well and then all American Apparel.
I think all of these a lot of these retail Brands I'm hoping it doesn't continue but it looks like it well I think there's still going to be a lot more.
A lot more unfortunate seems like that I put on top of that too kind of.
You know balance that I would say that there might even be more consolidation that's going to happen at a lot of people are saying that it might not happen but from.
What we've seen from Walmart this year with the acquisition of Moosejaw and the novo's band also more recently with some of the shoe retailers I think.
Michael Kors just acquired Jimmy Choo and then on top of that Vince Camuto was acquired by although or vice versa so yeah I think there's definite going to be a lot more retailers that are.
Going under if they don't figure out how to go digital and no kind of modernize their with their in-store experience and then on top of that.

Jason: 
[15:50] That's very cool I don't want to get one question in that we've actually ask every guest but Scott keeps making me edit the answer out so so hopefully for the 100th episode I'll finally get to get it in there.
Would you say that you like Jason a little better than Scott or way better than Scott.

Scot & Guests: 
[16:10] I would say that the two of you I hold you both very near and dear my heart and there's no way I could pick them from the two of you.

Jason: 
[16:17] So you lied you're willing to be honest about everything else and then you I on that one alright.

Scot & Guests: 
[16:22] Good answer he's he's texting me right now saying that I'm his favorite.
You weren't supposed to say that I have a kind of sales question which is you're there in Canada in Toronto and your imagine.
You have territories that are boom across the continent is it hard to be in the sales rep in candidates Ellington us or doesn't feel different at all than if you were in New York or something.
No I don't think it's that big it's that different at all I think it actually might even play to your advantage we're kind of seen as the we had this running joke on my previous company and to love that,
everybody always sauce in the in the states as the friendly Canadians we are always just really do a comedy versus you know kind of like that.
I don't want to generalize but you know the ones that play hard ball in New York or something like that so I definitely plays to word Vantage I would say that it's probably tougher to sell,
in Canada versus outside of Canada Canadians sometimes don't like buying from Canadians I will say that much.

Jason: 
[17:29] Interesting I feel like we do have the perception that that Canadians are super friendly I mean it it's like I'm sorry a sort of a catch phrase for Canadians.

Scot & Guests: 
[17:39] Yeah I know right I actually had was made fun of in an Uber I took Uber pool for one of the first times,
on a recent business trip and the gentleman the back just what he found out that it was from Canada he was just like,
or you going to say I'm sorry a lot and even put on the Canadian accents it's definitely known across America.

Jason: 
[18:03] I totally get it this may offend you but I am frequently mistaken as a Canadian that people feel like I have a Canadian accent.

[18:13] Which I have never lived in Canada but.

Scot & Guests: 
[18:17] Can you say a boat.

Jason: 
[18:18] I definitely can go a boat but that's because you know did a lot of work in Minneapolis which is little known fact but it's actually north of Canada is a lot of Minneapolis.

Scot & Guests: 
[18:28] Yeah yeah I've heard that.

Jason: 
[18:30] Culturally I used to make that joke and then I married a woman from Detroit and I warned that Detroit actually is.

Scot & Guests: 
[18:37] Canada.

Jason: 
[18:39] You you drive south to go to Windsor to drink when you're 18 that's the whole that's all gig when you grow up in Detroit apparently.

Scot & Guests: 
[18:46] Yeah yeah I've heard a lot of people say that and even on the opposite end,
back in I'd say what the seventies and eighties a lot of people would drive down from Toronto and Windsor to the states to go check out Hip Hop shows because there was nothing in Canada.

Jason: 
[19:03] Wow certainly not true anymore Toronto is like that got a lot of great Hip Hop.

Scot & Guests: 
[19:08] Yeah yeah Drake in the weekend and all those guys.

Jason: 
[19:14] Very cool what was red we greatly appreciate your.
Royal falling and the suggestions you sent all along and we look forward to getting you back in the industry and getting you all caught up on the show so thanks very much for being part of the episode 100.

Scot & Guests: 
[19:33] Yeah thanks a lot for having me guys and hopefully I'll sing me up a lot more retail shows I'm going to use this as leverage internally at pagerduty.
Awesome thanks for as we really appreciate it.
Okay Jason are next listener on listener and 100 is Kevin Harmon I've known Kevin 415 of the longest term.
Ebayers I've met I think if we met at one of the early eBay live shows and he has been a huge fan of the show welcome to the show Kevin.
Text Jason how are you guys.

Jason: 
[20:14] We are terrific 100 episode what could be better.

Scot & Guests: 
[20:19] Boom that's right yeah so yeah we really appreciate you taking time out of your busy schedule to join us so I'll let Jason Kick It Off.

Jason: 
[20:29] Yeah so Kevin Scott mention you been a long time eBay so do you want to give us the the background about how you got into the account Biz and what you're doing today.

Scot & Guests: 
[20:40] Sure I've been an e-commerce for a long time I think 2001 is when we started and for about 10 years I stayed in the media side we sold DVDs and CDs and video games and books.
On eBay and Amazon other places did that for a long time and for some weird reason books and CDs and DVDs of again stop selling so well so.
We moved on to another couple things are doing then and then now what we do is I have another company that sells clothing and books now.

Jason: 
[21:16] Very cool and predominately as a Marketplace seller.

Scot & Guests: 
[21:20] Yes 100% so we're sort of you know eBay phds Amazon phds we know a lot about both and we do the best we can.

Jason: 
[21:31] Nice and are you mostly focus on North America so those are the two two big platforms for you.

[21:38] Gotcha and we do often talk about the Walmart marketplace as well if you looked at that at all or.

Scot & Guests: 
[21:46] Yeah we are looking into that Walmart in and Jed as well so we think that that might be a pretty viable saying coming down the road here.
Cool so I know you listen to a lot of episodes you can listen to every episode I listen to.
Show me episodes of the Jason I'm going to call you out on this I think you said that welcome to the Jason's not show about 6 times now.
I didn't even catch that.

Jason: 
[22:24] That's a special service to the fans that I give to that the loyalist.

Scot & Guests: 
[22:28] Yep.

Jason: 
[22:31] That's all I mean to Beyonce it's a it's a Freudian slip my other podcast is called the Jason and snot show.

Scot & Guests: 
[22:38] Oh that's so strange it's for its for ents.

Jason: 
[22:40] Deaf deaf.

Scot & Guests: 
[22:42] What are several times I know it's hard to pick but what are a couple of your favorite shows.
I think my favorite one was the one with Melissa Burdick from the Mars agency just because you know my Amazon experience and that she seemed,
super knowledgeable about Amazon and it was a really good conversation you guys had with her I really enjoyed the the whole thing about you know crap which is hilarious.
It was good crap joke the most I have to have like 6 I can't listen that fast normally get pumped up.
Yes you super knowledgeable.

Jason: 
[23:25] And since we're talking about her I should give her a plug she's actually no longer with the Mars agency Melissa and another of our guests.
Have started their own business which is now called the laying verdict which is of an Amazon consultancy so that's Andrea way right Scott am I remembering correctly.

Scot & Guests: 
[23:47] Yeah I think they should call it like Mel B and Andrea or something help her but I didn't ask me I was debating with Scott.
Just trying to find an end and acronym for a crap for that.
Amazon Canada and I can't for the great ones got didn't like it but I might tell you guys anyway which is it's it's not crap its poop which is probably only offline profit.

Jason: 
[24:13] Okay I'll.

Scot & Guests: 
[24:15] PG-13 know you're gone now.

Jason: 
[24:22] Well you know.
One of the things we're always trying to do is improve the show and so as a one of our best listeners that is heard the majority of our shows any feedback you have anything we should be doing different or the drugs you nuts.

Scot & Guests: 
[24:40] Know the address to the Scott unbridled enthusiasm for Amazon domination.
Minutes I wish I was more Counterpoint to that every once in awhile it's.
It's cool to watch a hurricane make landfall not sure unless you want to people on the land as falling on butt.
I think it'd be great to have like a I don't know what chat room or I'll take take live Twitter questions except her a little more often just just just involve your audience.

Jason: 
[25:13] Yeah I know that's great feedback we definitely are looking for ways it's actually one of the the deficiencies of the podcast format is you know.
We don't have a way for example to email all of our listeners and get questions or those sorts of things do you have to use a parallel to like Facebook or Twitter and you know it.
A very loyal but small subset of our podcast listeners are following us on those other platform so.
Love to find more ways to engage more customers and get more feedback but that is only a great suggestion I do feel the need to slightly defend us though.
Totally hear you on the Amazon world domination and I would love to be the the Counterpoint more loudly.
But I continue to be shocked I work with all these.
Our big Fortune 100 retailers and it's still more often than not that I walk into a retailer that dramatically underestimates Amazon as the competition and so like.
They absolutely have flaws in their absolutely ways to thrive in in the market against them in all those sorts of things but it still turns out that like more of the people in our industry then I would expect.
Underestimate them rather than overestimate them so so you know maybe we err on the side of hitting that a little hard but I,
I often feel like I have to be in evangelist for a half serious at threat they are so much so that one of my biggest clients that they think they have a funny nickname for me they call me Paul Revere.

Scot & Guests: 
[26:48] Know he was right I mean the that is actually very amazing.
When you see me look at what I've done I mean they're an amazing amazing company that has effort on their own set of rules they know that.
I start unique in the world and yeah they're gone disrupt everything sooner or later probably sooner.
That's a good transition you you've been common the marketplace Biz 4.
Pussy 2001 you 15 20 years what are some of the big trends that you've seen in and where do you where do you think the marketplace part of the world goes.
I think the marketplace continues but it seems to me like it's a lot easier to start a business than it used to be for sure you know 15 years ago when we started that was quite an effort.
And now with all the tools available now it's a lot easier to get into a business but I also think that there's a lot of consolidation going on so I think it's harder to grow a business and you know grow into a large business in particular.
I think because these large sights Amazon Facebook.
Google the beginning on more and more of the entire end and process and so the more pieces they don't have that the lesson Advantage you have.
I even if you saw on those platforms it can still sometimes be a disadvantage so.
I think e-commerce continues and grows like crazy I don't I have concern for the really small business owners though going forward.
Yeah and it's Russian cuz I have that same concern and you know you and I have known.

[28:20] Know more people that have gotten out of the business owner still in it and then put then what kind of countercyclical e happens there,
is baffalo like some of these small business platforms like Magento Bigcommerce and Shopify there exploding so there's these it seems like there's these Merchants out there that have,
yeah that are doing well like Shopify just hit I think the 500,000 small store owner,
what's a kind of Wonder like who are those people and you know that that seems to be where things have shifted the marketplaces if that so competitive that the a lot of folks have gone to just creating there a little, but then I don't quite understand how there,
going to differentiate themselves and get their name out there wifey that's exactly right so 15 years ago the easiest way to start with on eBay.
So every small company in the world start on eBay and then they sorta grew or didn't grow a coordinate the eBay's growth are Amazon's girls and now the Shopify and the other.
Consolidated sites we can do a lot of different things on one place now everything is Shifting to calm and that's a that's a big change I don't know.
I can't I can't judges level success over anything else yet I being too soon but it's definitely a big change in the marketplace in the last 2 or 3 years.

Jason: 
[29:42] Yeah it's it is fascinating I mean,
play I would argue the eat of your really successful Amazon Seller that like or or any plat Marketplace seller like that that shouldn't be your only platform that you should you should have a presence on a platform you own into the.
The extent that you do earn your own traffic and aren't you know and earn your own customers.
Like you don't want to be actively driving them to the marketplace you you do want to be driving them to that that platform you own so I totally get why.
The the shopify's of the world would be successful alongside the the big marketplaces but is you guys are both aware like.
You know painfully difficult and expensive to grow a meaningful audience on that on that digital property that you own versus.
Nina taking advantage of the the incredible traffic that that Amazon in particular has belt.

Scot & Guests: 
[30:40] Is there a true and you know I've always go to Amazon and eBay Caesars.
As a market expenses an advertising expense and you're paying those fees they bring you the customers.
And so you know on your own. It's you're on your own until you bring customers to you it's a much different situation and much more difficult situation but if you can if you can achieve it I think you have a lot better chance of surviving long-term.

Jason: 
[31:05] Yeah for sure we will use the I used to have this kind of derogatory term for people that.
Brands that tried to use Facebook as their only digital platform in Fitchburg Facebook's a wonderful tool.
But I used to call them digital sharecroppers because they're you know you're you're planting your crop shirt you're putting all your equity in this land that you don't own and you know in the early days.
Facebook change the terms and conditions of how you could use that land.
Very frequently in that you know was a huge disruption to to all those Brands and you know it does feel like.
The marketplaces today are are very similar to that like there's huge opportunities there but you are a digital sharecropper like you know if the day that Marketplace decides that they've hit some critical mass and don't need you anymore.
You know that your your your business is definitely in Jeopardy so it's.
Scary to have all those eggs in that in that one basket is good to own some land of your own.

Scot & Guests: 
[32:04] Yep and that's been a major change the last couple years as well so so back in the day.
EBay wooden Scott can attest to this I think even said one time that it seems like people just kind of flavors over there sometimes wear any 6 months. They can make it a complete change the marketplace that really disrupted louder seller base.
Can I get used to that and then or later something else will come along and just kept going like that what you could never really establish eBay presents Amazon.
Another hand they watch the products the truck didn't change at all the solid for a long long time.
Until the last time say couple years and now Amazon surround to the point with her information.
A new Rose new changes that you know can hurt some sellers I can help other sellers but but it's almost like Amazon let you grow your business bigger before they decided I didn't need you and I don't know witches.
What the worst scenario is there you know you can get shaken off by eBay or you can get kind of gets trampled on by Amazon at some point.
Either either have those risks which again why I'm sure every consultant tells people to sell in multiple marketplaces and make sure the doc is a priority.

Jason: 
[33:13] Yep.
So keeping the fan show light let's turn to a much more important topic I heard a rumor that you rival Scott as a Star Wars fan.

Scot & Guests: 
[33:29] Boy that depends on what metric you're talking about but I'm a huge Star Wars fan absolutely.
I have a big question what's your favorite movie.
Thesaurus really starting to warm to that one.
Tricky question is what's the best one of the three new ones that's the tough one.
Yes another one another tricky 1ru if you could only watch one more movie this year,
would you do Blade Runner or pussy we've got is there another Marvel and coming up and then then you have Last Jedi.
Is it Last Jedi Bar None or would you consider some the others.
Man that's a tough one I mean it's definitely Last Jedi but I am really looking forward to Blade Runner.
I think Ridley Scott if you got the right guy I've got the right directors you got the right characters again.
I'm really really hopeful that they could do something spectacular with that.

Jason: 
[34:48] So the question I always like to ask and this may be the the wrong audience for this but so I have A2 year old son what order should I be showing him the movies.

Scot & Guests: 
[35:00] Machete Star Wars movies I would say 4 5 6 7 8.

Jason: 
[35:08] Okay I get 456 first a lot but that that's.
The skip the prequels is a good one there is like there's some fan edits of the prequels that are much better like I wonder could we replace the could we make one of those the official Canon instead of the the George Lucas versions.

Scot & Guests: 
[35:28] What you can probably edit those three movies together to make one pretty good movie I mean that's definitely cool things happened but how to pick one that's hard to even recommend them.

Jason: 
[35:40] I think none of the fan edits that I've seen that are you know some of these have had millions of hits on on YouTube none of them have Jar Jar Binks in the middle.

Scot & Guests: 
[35:48] But that's alright uh I think the woman Darth Maul I'm sure you guys have seen that at your fan is amazing really good really good fanfiction there.

Jason: 
[36:00] And I apologize for digressing but like perhaps my the funniest Star Wars thing I ever saw on television as you guys remember when Stephen Colbert did the.
The contest for the the lightsaber green screen fight.

Scot & Guests: 
[36:17] Yeah that's good I did I was good.

Jason: 
[36:22] So super super quickly for listeners they may not be as big a Geeks as as Scott and Kevin the.
Tons of people on the internet where do I.
Making your own videos of lightsaber fights and so Stephen Colbert decided hey he would do this funny contest he would pretend to be fighting with a lightsaber in front of a green screen and make the video available this fans.
And he would have a contest with prizes for the free the three fans that made the best scene using his.
His greensaver is green screen lightsaber fight and so they they show the the two finalists on on this Colbert show and the first one is this you know woman Lisa from.
From the you know I like Minneapolis or whatever and she's she's got this great video that she made featuring Stephen Colbert fighting the video and then.
The the other finalist is George from.
Marin County California and as as they're talking like it becomes obvious that it's George Lucas.

Scot & Guests: 
[37:31] Yes it was hysterical.

Jason: 
[37:32] And he's he's like in his own thing and they've like you know they've like.
Cut new scenes for the movie this thing but the best question was you know Stephen is asking them both like do you own all the movies and George George's like I own all of them except the first one there's some dispute about the first.

[37:53] Which I thought was a funny line.

Scot & Guests: 
[37:55] Yeah that that in like that the SNL auditions for Star Wars 7 was great too that's so cool. Star Wars is the entire ecosystem around it is also awesome.

Jason: 
[38:08] Would you say that something that Star Wars has in common with a Jason and Scott show that it's a sort of that kind of cultural phenomenon.

Scot & Guests: 
[38:15] Yeah I think you guys just need to add a conference right you need to have a Jason Scott convention and.
Bring a bunch of your gas there and everything else in a certain place and I don't know is there I know Scott's wearing a red jumpsuit right now probably I don't know what you're wearing Jason but you know some sort of attire for the show we could all wear it would be cool.
Yeah we get wicked mix in a Star Wars convention at the same time how awesome would that be.

Jason: 
[38:39] I'm thinking it's going to be at your that that at Scott's new residents which is that that the new hotel.

Scot & Guests: 
[38:46] Absolutely I can't wait for that.

Jason: 
[38:51] So I do before we get out I just want to wrap up like we had a good conversation about where the future of marketplaces are going I'd be curious if you had a maybe.
SAE more General POV about you know how what what retail looks like in the future like does this digital.
Disruption like you don't continue to play out how it's playing out now to see any big changes coming that the other listeners be thinking about.

Scot & Guests: 
[39:20] Personally I think that we're honestly really only beginning to see the beginnings of the acceleration.
Honestly I don't know that's not good news for people but I think these large companies that are getting much larger much faster are described in.
On a scale that that we've never seen before and will probably accelerate so I worry about things for example like even Brands themselves you know I worry.
I worry that when you get when when is going to come in like Amazon starts doing a ton of private-label stuff I just a time and way more than we even even know about.
And then answer to something with that like a voice product like Alexa.
The combinations to it is really deadly and when you fit when he think about how deadly it is it's a little scary you know if you ask Alexa to buy something Alexis probably not suggest you it's on Amazon brand suggestions.
And when you can when you take those you know brand spend billions of dollars on.
On marketing and their packaging and they're looking their feel and when you remove all of that I'm invoice removes all of that so.
I get this weird thing that Amazon is attempting to.
Accelerates the death of Brands but but taking a lot of that margin that Brands used to enjoy and sort of shipping over to itself.
So I definitely that Trend coming and maybe accelerating Scott yeah it's it's their stuff only you know when you ask.
Her can't say it cuz she's right here.

[40:52] For Alexa when you ask her for her batteries you know that's going to be an Amazon basic battery I think there's definitely rust there I think,
brands are not really putting all that together I don't think you know Jason's earlier point they take Amazon seriously it off and then I don't think they get the voice thing and how it really,
is a different way to shop where all the packaging and all that looking field doesn't really matter.

[41:24] The decisions you have to make tonight bet exciting if you want to space not have toothpaste.
I think Amazon is realize that and I think they're going to do their best to sell you Amazon toothpaste instead of your own and by the way they'll give it to an in an hour right so.
Amazon has been spending all this time building this gigantic ecosystem in the background and I think you're just now beginning to see if that's it.
Yeah yeah and then you know the Counterpoint,
to that which I feel is ironic but I'll I'll do this is that you know when we first started Channel advisor it when was kind of like you had to be able to answer the Google question you know,
how is Google now you have to answer the Amazon question so these things tend to go and 10:15 year cycle so,
we'll see you know I think they'll be there's some company we probably don't know the name of yet you have some some dudes in the garage somewhere and there will be another competitor to Amazon that,
the tides so it probably won't be as game over it feels like when you're in the in the heart of it but it is a little scary.

[42:30] Yeah I mean if you think about brand searches right so they used to be all Google now it's it's got to be pretty split between Google Amazon and eBay.
And in Facebook I should say Facebook in particular so even that even the even way to find products is draft dramatically changing.

[42:49] Absolutely well we really appreciate you sharing your thoughts Kevin and and of course being such a long-term listener we really appreciate it and you give us a lot of great feedback,
we will try to integrate your feedback here tonight and do more kind of live questions and those kinds of things and we hope you listen to the next hundred episodes.
I love the show I love it and thanks for let me find next we be on.

Jason: 
[43:14] Thanks so much for being on.

Scot & Guests: 
[43:16] Discontinuing with episode 100 listener preciation we are excited to welcome on to the show Ted for felski Ted is on Twitter as Ted,
TD underscored gives gives and he's always one of the first people to start a conversation after we put a show out there so not only is he an avid listener but he's also very,
timely on on his downloads mustn'ts,
Ted lives in Austin Texas and is part of the e-commerce startup Community there he is the father of 3 boys and co-founder of simplytapp welcome to the show 10.
Hey guys will thanks for having me I always enjoy your show so I'm glad to be here on your podcast as well.

Jason: 
[43:58] We are thrilled to have you Ted Scott mentioned that you're currently the co-founder simply tap and we're going to get to that in just a minute,
do you know when we have guests on the show we always like to get a little bit of the color about their career matriculation and how they got where they are so can you.
Can you give us the Reader's Digest of a of how you got here.

Scot & Guests: 
[44:20] Yeah definitely so my career kind of started.
You're out of college with a degree in finance going straight into International Business Development for the World Trade Center so I did that for about a year-and-a-half and then found my way.
Down to Texas on a Consulting gig which.
Ultimately led me to my actual degree in finance over the boutique firm here in Austin Texas called Arthur Financial Services.
Doing technology evaluation for the energy and oil and gas Industries.
And so I always knew I wanted to start my own company and you know.
God willing and gave me a opportunity when my co-founder of simplytapp move down here from Knoxville in about 6 years ago and so we.
Yeah we kind of met.
Online it away before tender was big or before meet up with big I just threw some some blogs and we hit it off and he had a great idea I had a great idea we mashed them together and started a company in off at once.
Cool what would really appreciate you listening to the show when when did you hear about the show and when did when did we kind of pick you up as a listener.
Well I've been I think I've listened to every episode for the last say.
Maybe April 2016 so coming up on a year and a half or so and.

[45:50] What I was looking for when I found your your show was some smart guys with some opinions around the.
E-commerce and commerce space so when I found yours not only did I find it interesting but I also enjoyed listening to.
Take the given take you both hat and so obviously you guys spend a lot of time covering the world of Amazon because it's such a big part of the current ecosystem right now.
At least how it affects everyone both from an employment standpoint to an idea standpoint to it infrastructure standpoint and so.
I thought that was something that I had necessarily heard the level of detail and so that's really gravitated me towards Georgia podcasting.
You would come out with with good episodes one after another and so I can listen to them.
At normal speed where is most of them they you know you stood him up a little bit you get to about 1.7 maybe 2 x.
And you get some faster but I've set through a regular speed with you guys since the beginning so and then obviously I started following guys on Twitter.
And your website reached out to try to.
Find out as much about you guys as possible to make sure the stuff I'm hearing your podcast is legitimate and I think it is,
devious plan is working with pulled you into the the evil web that we have one.

[47:32] And it your your diction to.
Starbucks though Jason is a little bit over-the-top I hear that mentioned every so often and I just wonder how much Starbucks this guy drink if he takes it with him on trips and mouth isn't it everywhere already sell.

Jason: 
[47:46] Yeah it's it's a little bit of a problem I actually had a moment this morning I huge line at the Starbucks so I thought I'd be really Advanced user and do Mobile Pay to skip the line.
So I do Mobile Pay and I'm sitting there waiting and I never comes and never comes and then I go to the phone and realize I sent the mobile pain to a different store.

Scot & Guests: 
[48:05] Oh yeah I actually saw your Tweet there but they were nice enough I thought that was a real.

Jason: 
[48:09] Oh my God they were rock stars they when they realize what I did they made my drink for me anyway didn't charge me in save my day.

Scot & Guests: 
[48:17] Bullets I think the price they probably was in your show so they're like.
India favorite guess that we've had on the show that that's kind of come to mine favorite guests.
You know you guys have had so many good ones over the years while since I posted over the year and a half.
Not really you know everyone seems to be pretty good and I'm not a big names guy so.
I really don't remember anyone that jumps jumps out that's like why I'm glad you guys had that on there because I was to a couple of them and I always match him up so.
So no sorry.

Jason: 
[49:00] Know where they're all so good that you can't pick up it's like picking when your favorite.

Scot & Guests: 
[49:04] It's a Neverfull a while honey I can pick that but I'm kidding.
You know what one of the episodes I really enjoyed was when you guys decided to put a token name on the new checkout process or shopping experience from Amazon.
Seems like every time that they come out with a new way to deliver a product or service.
You know you guys come up with another acronym for it that is really hard to explain or or remember or say it but you guys use it as if it's a thing so.

Jason: 
[49:36] #j

Scot & Guests: 
[49:37] Appreciate that yes that's the one.
Yeah... Was I think here in Texas I think of JJ Watt which is the football.
Little bit bigger deal than Jay water itself or maybe someday lumpy you know he'll retire Hill go into the announcer booth and JWoww still be around.

Jason: 
[50:00] I feel like it's always going to be safer to say to Jeff Bezos the Jay Watts not a big deal than it's ever going to be to say to JJ Watt that he's not a big deal.

Scot & Guests: 
[50:08] Well you know I mean there for people who follow just Beason Amazon me he has been bulking up there has been a lot of memes lately with him you know looking like Arnold Schwarzenegger so I mean.

Jason: 
[50:20] Know know know he looks totally fit but he still looks like maybe JJ's right arm.

Scot & Guests: 
[50:24] Yeah fair enough fair enough so it's working obviously as you guys cover Amazon.
An undercut of all the to do and how they affect the rest of the industry is obviously here in Austin Texas Whole Foods has been a staple of one of the corporation's at kind of the Hallmark for what it means to be Austin right it's this.
Upstart started neon 25 30 years ago from hey I just want to produce and Supply Wholesome foods that are well.
You can't find in general Grocers and so obviously with the news of them acquiring them I was really excited because my office is about a block-and-a-half from their headquarters and I go there quite frequently for lunch so I know the prices of everything another people.
Know when the announcement was made that Amazon was essentially going to a choir Whole Foods.
I walked in there and the place was some pins and needles but to be fair you know the day that the acquisition actually went through.
And I'm sailing back I was expecting maybe a sign or you know everything to be saying free on it because it's.
Our delivery for something you know I didn't see any of that but the people.
We're in good spirits and so I thought that was at least initially a good sign.
The communication between Amazon and Whole Foods is going to be.

[51:58] Good enough or you know smooth enough to wear.
What makes Whole Foods Whole Foods and experience hopefully won't get washed away by technology day one it's going to maybe gradually going to go in that direction so nice.
Turn off people are scared at least here in Austin for the for that acquisition Bill actually go through.

Jason: 
[52:24] No I think that is true and I only have to say.
The day one experience was remarkable I think we've all been super impressed with how much they got done in terms of integration on that on you. That that first day of the.
Under Amazon control this Monday.

Scot & Guests: 
[52:44] I don't know what you guys experience but headquarters never moves you know they put a new payment systems they put in terminal they put in new ideas that app never works like,
this'll last post ever touch so it's weird because it is headquarters it should be you know of a flagship you think they would get that one right,
straight away but there was nothing integrated in nothing to headquarters was just nothing at all,
so except for some commentary about why why the employees couldn't use Alexa for something so.

Jason: 
[53:19] That's funny it that's a common thing so that the headquarters Store the store that's closest to the headquarters for almost all retailers like.
Always has this unique character and like one of the things is it's almost always run by a totally cynical manager who's not impressed by anything right because.
Can you think about it every vendor that ever called on Whole Foods has gone to that store and they explore that store and they probably like stopped and talked to the manager about how important they were to Whole Foods and all that sort of stuff.
And you know of course all the Senior Management from the company shop there and all those things in like if you were going to be Star Struck by by the executives coming into your store.
You wouldn't do very well in that that.
Headquarter store so that the surviving manager there 10 tends to usually be a guy that walks to the beat of his own drummer.

Scot & Guests: 
[54:12] Yeah I think that's definitely true you know I've met quite a few of their their Executives being so close and you calling on them from time to time whether it be something that I would working on that I want to show them we're just in general curiosity they,
they've all been pretty open even though they do get solicited constantly but even pretty open I've been able to.
Have some pretty good conversations and coffee and what not have lunch with them so I haven't in a while obviously they've had other things on their mind.
But they've been really great Bunch for as large as I've become so I'm excited to see what happens to them not to make this an episode about.
About Amazon and Whole Foods but.
I think it's going to be exciting and I think there's going to be some Growing Pains But ultimately it's going to really Drive.
The industry as a whole towards better things from a consumer perspective.

Jason: 
[55:11] No I totally agree I do want to change topics to we mention you're the co-founder of Simply tap and tell us a little bit more about that.

Scot & Guests: 
[55:21] Absolutely so simply tap is a cloud-based payments company the idea was born from.
My desire to want to do something in a meaningful industry.
I'm being in finance specifically in the energy world I thought it was just phenomenal how you can take this material and it just runs everything right and I still looking at the world around me I said you know what there's there's something very similar to,
two oil and gas and that is currency that's a meal money basically its Financial systems and so.
With a degree in finance I said well that's pretty perfect than I do about three years of research and finally went Doug came down.
On to Austin he had been working on us a specific.
Not to get too confident but a specific architecture software architecture for doing cryptographic based payments.
And today that that system is the one we've created and it's used on over 500 million devices worldwide mainly Android it's called host card emulation or agency in so when we came together.
I saw that and I said this is this is what you've made hear your idea here is in phenomenal so I you know put my business development had onto my marketing hat.
You know we started the company and since then you know we've had a large Bank clients and small Bank clients around the world.

[56:53] But ultimately you know over the last year we've said well there's a whole lot of Green Space here in the United States and so we are going to create a new.
A new mobile payment in a new shopping experience called game g a n e and so that's really what we as a company have been working on this past year and so we're looking forward to to launching yet.
Star over the next month or so and see where it goes.
Know it's it's been fun ride we were venture-backed we have great gravy C's and fries and Ventures and Lightspeed Ventures and blue sky from Canada.
It's been fun and it's exciting and I know Scott you have gone down this path in your previous life and honestly now with spiffy and you've been around the block.
But it's this is my first time accepting someone else's money and then requiring to return that back to them.
100 fold if you will so it's something that I'm very.
Thankful of had the chance to experience and grow team build a product in Market that Prada.
It's all been is open very exciting and it's all been very kind of.
Nice to do it here in a place like Austin or there so many resources to to learn and to grow and to kind of pull from.
That's awesome congrats on the funding the we just had I don't know if you heard it or not but we had Shane from Zola on and I believe Lightspeed was an investor in those guys they're they're very active in the e-commerce space as I'm sure you know.

[58:32] We were a core Payments Technology and and the patents we have around it RR.
Are very very strong however has a small company it becomes.
Delicate to put the least and how you how you handle yourself.
So unlike many of the things a light speed run Commerce invests in which is more on on platforms that are to enable Commerce or speed up Commerce or grow Commerce from.
Cat facilitating position this one was was more of a linchpin to make Mobile payment actually happen.
I'm so it's a very technical technology that we use now Visa NASCAR DMX and everyone around the world leverages.
But yeah Lightspeed is a is a wonderful Venture Capital firm how to see the not Basin Austin we are fortunate for them to seek us out at the time.
That doesn't usually happen but we were in a space that they really liked I want individual there and.
Notice women introduce themselves if we want to give you a bunch of money we said I don't know if we can trust you you know and the dance began you know over 6 months and then finally they convince us that they work or not,
we're going to steal everything from us and you Story Goes On so.

Jason: 
[1:00:09] That that's a great story and just just to make sure I have it right so simply tap.
Which is almost a B2B play that would have license technology to other folks that would use it for for mobile cloud-based payments and then game which is Gano is a.
Consumer-facing app that you guys have lunch that fits art of the echo system that leverages that technology do I do I have that right.

Scot & Guests: 
[1:00:35] Yeah you got that right so it's it's Gane . But that's that's fine I mean you got softener so it's just me going to be listening as my own.

Jason: 
[1:00:49] Now Jeff Bezos isn't going to find your app.

Scot & Guests: 
[1:00:51] All good I don't need him find anything that you can worry.

Jason: 
[1:00:55] And when you guys say host card emulation.
I'm taking a wild guess but so you're using NFC chip in the Android to sort of spoof the NFC antenna that would be in a nfc-enabled piece of plastic is that.

[1:01:12] Kind of true or no am I totally wrong.

Scot & Guests: 
[1:01:15] Know your you're quite right with a couple technical differences so an NFC radio is simply just a radio it can it can pass just been any protocol NFC.
Is a particular protocol that everyone leverages.
Or I should say what people know as of NFC and so what we essentially do is we take that cryptographic element which is typically considered a secure element.
And we host that in a remote server so at the time you want to make a payment what we've done is we've we've incremented the cryptographic element a number of times.
And then sent those essentially loaded transactions ready to be used down to the device for storage,
a time of payment over NFC or really any means we deliver that,
that cryptographic element that send merged with the transaction itself so it can then be validated on the back and buy a large processor.
Stop a process that would process that particular issued product so it works with just about any.
Every it's a universal standard now.
But yeah it's it's on Android devices it was on Windows devices and blackberry but obviously those aren't around anymore so it's now Android.

Jason: 
[1:02:44] So one burning question so obviously the newer Apple devices have an NFC radio in them but likes.
Heretofore they haven't opened up that radio 2.
What are useful things we'd like to do it almost sounds like they're starting to an I thought I had read that they were going to start opening that up in some some Limited Format are you up to speed on that at all is there any any hope in the future of.
I'm getting NFC functionality out of the the Apple.

Scot & Guests: 
[1:03:13] Well I'd like to preface this common by no one knows what Apple do until Apple does it but we do know Apple quite well.
And what I would I'd like to say is it was great to see them it help the entire ecosystem when they chose to adopt.
NFC technology as for payment.
There's great advantages to opening it up and leveraging a architecture that we've you know.
What created the industry called height post-credit Malaysian it would offer all the things that you might like to do with that particular type of radio or frequency.
Making the experience that you have with the device in the world around you much more interactive and much more powerful potentially now they have recently opened up what they would say the readability for their NFC chip.
Which allows you to Simply hit a tag and RFID tag.
And then if there's a URL based there it will then pull the oral up just like you were to go to a website or provide you with information.
Based off the products so one of the examples of this is RFID lock tags on very expensive bottles of wine typically this is seen in China or areas where.
You can simply refill a bottle with bad wine charge the good one prices and so what this.
Opening up in the way of Apple allows them to do is now you can just a simply walk up to the the bottle of wine in the store.

[1:04:52] Wherever they'll go is to stop hearing about a product and it will then either provide you information about that particular part.
Or it can potentially allow your mobile device to download a coupon or a code.
Or take you to a website where you can learn more about that particular product where it came from maybe it could be pulled directly into a health app where,
hey if scans it says no this is no good for you because it has XYZ and we know you're allergic to XYZ so it's a great step forward.
It's going to be used pacifically for marketing and it's not necessarily.
Fully opening their NFC stack as as people in the industry.
Cool all this fancy payments talk is over my head but,
makes me ask how you feel about Bitcoin and cryptocurrency cuz I'm assume you have a lot of time thinking about that when we were giving to last session say.
Bitcoin was all the rage on in Silicon Valley and you couldn't get through one meeting without them asking what your Bitcoin play.
And I'd scratch my head and say look you know if the government doesn't take it as this is my general stance if the government doesn't take.
You can't pay your taxes with it and the government can't regulate it then it will never exist here in the United States as a main form currency not to mention that.

[1:06:22] There are very large incumbents like visa and MasterCard on the banking system as a whole that will not allow a cryptocurrency as a de-facto currency to exist because they already have the compute power they already have the infrastructure.
So for Bitcoin as a currency to become mainstream and many of my friends with hate me for this because their Bitcoin.
I'll put that way it just won't be supporting the ecosystem and the incumbents can simply squash it through regulation what screw do just.
Bearing it throughout marketing dollars so.
You have the currency know what chain is more interesting there's other Alternatives but you look at and you have to compare the Computing cost of walk chain with the existing cost of computing a cryptographic keys.
It's kind of you know it's not Cheaper by any means the decentralized.
Essential system is not cheaper here just spreading off the cost across the notes.
And if those nodes one day decide that it's too expensive for them will guess what your your network of nodes gets you no crappier.
Because now you're losing computer power so I know it's going to be a big fight it's better suited for countries with currencies that are have wild.
Deflation or inflation.

[1:07:53] So I won't most likely won't hear work here in the United States for ever until these except sit as their defacto.

Jason: 
[1:08:02] It's interesting in general with wood agreed with you and share your skepticism but the one thing I didn't see coming that seems like it's helping to make it slightly more mainstream is ransomware.

Scot & Guests: 
[1:08:13] Very fair very fair you know the problem is you can as an organ well I see the problem is and you're right ransomware offers this.
This way but you know.
Anna silly want to go and find and hold Bitcoin and no one does right so if it if it's not an everyday occurrence and the payment systems as they stand today no this very very well.
If you can get someone to change their habits and Amazon in anyone else will notice to then you really have no chance write a one-off purchase from a retailer I'll let Kohl's.
Even if they give you a deep discount and you never go back,
you didn't win anything you just discounted your products and services and you're not you're not making any moment towards them adopting your brand or knowing your brand any better you just trick them or force them to.
Of the economics of it to experience what you want to experience.
It's going to be a long fight ransomware will always exist being in people with cryptocurrencies at hopefully.
You know I obviously it's not a good use case come mainstream use case your fraud and theft and blackmail but it is a use case and you know it maybe if it keeps growing and.
Everyone's like hell yeah I need to have a little jingle of Bitcoin in my pocket.
Cuz I know I'm vulnerable and someone's going to hack me and all my pictures are going to be frozen or stolen or my business whatever.

[1:09:49] That does a use case.

Jason: 
[1:09:51] If you had some of the pictures on your phone that Scott has on his you'd want to carry a little bit coin.

Scot & Guests: 
[1:09:56] I think it wouldn't I think you just leaving locked forever that what you couldn't get back to him because yeah.
When one quick,
final question you're at you're there and Austin. Quite a hotbed of metal e-commerce but but high-tech can,
investing in things like that do you is there a kind of a community of e-commerce people do you get the shipping guys down there like shipstation you've got that coremetrics bazaarvoice,
Bret Hart and his kind of crew or down there how does that work in and did you pick Austin or you just kind of ended up there.
Well so I didn't pick Austin I was actually living in Chicago before I moved down to Austin and it was College buddy before you got married at 4 months I had some time so I took that Consulting gig here in Texas and I can live anywhere.
So he was an awesome I said sure sounds like a good place.
But as far as the I mean I'm here there's a ton of opportunity and it's a great great Community but as far as the Commerce Committee goes you know what.
It's definitely here.
Because the size of Austin is so much smaller more accessible than say so can Valley or New York.
It's easy to get in touch with and have conversations with but I can't really say that there is a.

[1:11:28] Yeah I don't go out and play poker with with five other you know individuals who are all in the payments or e-commerce space even though it's there's so much of it here it doesn't happen as much as you would think.
I've often thought about starting a you know I'm morning Club of some form around e-commerce but what I found is.

[1:11:52] There's there's anecdotal stuff that everyone runs into when you're selling things online when your building logistics for whatever product you're selling and everyone has a little bit of different take which is nice but the end of the day Commerce is Commerce,
and you know the tools that emerge as as best.
Best use case tools or advantageous tools they all seem to be in your hands all the same time.
Time for whatever reason the sales guys are getting those tools you know how to the businesses.
Have have a good Rolodex to call on in so you know I think that the individuals here in Austin are are quite.
You're in tune with the heartbeat of e-commerce and since they don't have necessarily the.
Changed up the social constraints of some of the bigger cities that have a little bit more complexity to them.
I think they're able to try things very rapidly here and I think that's one of the attractive.
Reasons why large corporations not only cost but there's a spirit of entrepreneurial exploration really is alive and well here and.

[1:13:02] E-commerce Community here is strong I wouldn't say we don't all good coffee every morning.
But you can definitely get coffee with just about anybody you want there's some places better than Starbucks I have to tell you that though you know.

Jason: 
[1:13:20] I totally accept that just to be clear.

Scot & Guests: 
[1:13:23] You only drink Starbucks.

Jason: 
[1:13:25] To Starbucks for me is that they're consistent and ubiquitous everywhere I definitely make no claims that they're they're the.

Scot & Guests: 
[1:13:32] Los Osos McDonald's.

Jason: 
[1:13:34] Yes this FairPoint but let just say they they're they're consistent ubiquitous and they they meet my particular requirements I lived in.
Portland Oregon for 10 years and you could actually be like stoned for walking into a Starbucks there that was sit in sidered such a low brow Coffee House in in Portland but I survived it.
So definitely sound in addition to the robust VC communaute entrepreneurial community and Austin and it's also I hear a pretty good place to get some barbecue and some good eats so.

Scot & Guests: 
[1:14:08] It's a it's a it's a foodie town for sure so if you guys come down I'll take you around will get some Starbucks will get that India get some barbecue after that we'll see you soon.

Jason: 
[1:14:22] I'm in I'm in I might wait till the rain stops.

Scot & Guests: 
[1:14:26] Yeah yeah thanks guys loitering.

Jason: 
[1:14:28] But we do definitely want to thank you for being part of episode 100 we're super excited about it and will certainly look forward to having you back at episode 200.

Scot & Guests: 
[1:14:40] Wonderful well thanks guys so much and I look forward to listen to every episode twice from here on out.
Text Ted we really appreciate you listen to the show so diligently and following us on the social channels best of luck with simply tap and game thanks guys.

Jason: 
[1:14:59] Will it happen again even with our dramatically extended length for this special hundred episode we have still used up all at a lot of time,
so certainly want to thank Reds and Kevin and Ted we really appreciate you taking the time to join us in celebrating episode 100 and we hope to have you all back for episode 200 as a reminder listeners are always welcome to continue the dialogue on our Facebook page,
and for sure if you like today show please go to iTunes and give us five stars 100th episodes of perfect opportunity for you to go,
finally write that review and give us the five stars it really helps us out on we appreciate it and of course as a reminder,
we're going to be podcasting shop.org this year and a couple weeks at the digital Summit in Los Angeles,
near my home town of San Diego so excited about that so that's going to be September 25th through the 27th,
course we've negotiated a 10% discount for a listener so if you go to the shop. Org website and use the promo code js10,
the number 210 you'll be able to get that discount and it's a URL that only a digital analyst tagger could love but will will put it in the show note so you can click on it.

Scot & Guests: 
[1:16:14] Jason congrats on 100 episodes been a pleasure working with you so far and thanks again for listening we really appreciate you not only just listening but really engaging and and challenging us to think about new things and talk about new topics it's always this is what really keeps us going is the listener so we really appreciate you sticking through the Jason Scott show for 100 episodes.

Sep 8, 2017

EP099 - Tulip Retail CEO Ali Asaria and News

Amazon News

Other news

Digital Retail Newsmaker

Our Digital Retail Newsmaker segment, features an interview with Ali Asaria (@aliasaria), CEO and Founder of Tulip Retail. Tulip Retail is a mobile application provider focused on empowering workers in retail stores.  They recently raised $40M in venture capitol, lead by Kleiner Perkins.

 

Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes.

Episode 99 of the Jason & Scot show was recorded on Thursday, August 31th 2017.

http://jasonandscot.com

Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.

A weekly podcast with the latest e-commerce news and events.

New beta feature - Google Automated Transcription of the show:

Transcript

Jason: 
[0:25] Welcome to the Jason and Scott show,
this is episode 99 being recorded on Thursday August 31st 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scott Wingull.

Scot: 
[0:41] Hey Jason and welcome back Jason Scott show listeners Jason you know what I got 99 problems and are podcasting ain't one.

Jason: 
[0:49] I'm sorry to hear about your other problems but I'm super excited we're about to have the Y2K of our podcast.

Scot: 
[0:56] I know you'll have to see what happens when we go triple digits this whole thing could fall apart on us.

Jason: 
[1:00] My naming conventions for our audio files way up with iTunes like everything's going to break.

Scot: 
[1:07] Don't tell me that I'm actually legit right now.

Jason: 
[1:10] I didn't mean to make you nervous I've actually I programmed everything at three three digit so until we get to 1000 we're good.

Scot: 
[1:16] I'd Optical you have been on the road as per usual and I think you were most recently up in Boston tell us what's going on in that part of the world.

Jason: 
[1:27] Yeah yeah I've been traveling light I'll be on the road I think almost every day this month,
and I was in Boston this morning and yesterday which is a great retail City I was meeting with a couple of clients and some of my colleagues but one store in particular I had been meaning to get to that I finally got to,
is the ministry of Supply Flagship in Boston and is in a retailer and what's pretty cool is.
They have a make on demand.
Wool Blazer machine in the store so you you can figure an order your Blazer.
And they literally knit it in the store on demand.

[2:12] So it's kind of you know which is definitely a potential potential future Evolution for a lot of retail is kind of you know.
The Maid to Order personalized products at Masco and and pushing manufacturing out to the edge and all these things and you know.

[2:30] In the distant future we might have a lot of this manufacturing capability in our homes but for many years before we have that.
It'll make sense to be putting it into retail store so it's just think it's kind of interesting concept to watch.
I saw them sell a couple sweaters while I was there and definitely not a perfect experience at the moment I think it takes about 3 hours to knock out one of these sweater so you're you're ordering it you're leaving the store to do some more shopping and then coming back later that day to picking up.

Scot: 
[2:58] Because you don't just stand there and robots kind of so it on to you Westworld style or that's not how it works.

Jason: 
[3:04] That would be awesome that will be a future version no it's a pretty big machine that looks like a fancy 3D printer it's pretty funny fun to watch.
And what's interesting you'd almost expected the like that it would be a little gimmicky in that the product want to be that good but it's actually it's a stylish wool Blazer and it's like a.

[3:25] The the Yarns are like high-tech wool it's like an athletic performance wool so it's like it's intended to breathe and Wiccan and you know it's it's meant to be convenient travel garment that.
That look stylish but but doesn't make you too hot and sweaty.

Scot: 
[3:45] Call how do they get your body measurements with a Kinect kind of a thing.

Jason: 
[3:49] So they are not doing like a 3D scanner for the body measurements they the measure you the old-fashioned way with a.
A tape system but one of the disappointments is they are not custom making the sizes yet so they do they measure you but they measure you to figure out which of the standard sizes they'll make you.
So you can custom pick the colors.
And some options and things like that but you can't for damn pole say I want 2 more inches in the in the Chester's or shorter sleeves or something like that which.
Seems like a obvious thing you'd want and expect in a made-to-order garment.

Scot: 
[4:26] Is there some complexity around like making it kind of fit right and back on stuff.

Jason: 
[4:32] I think it's it's early like I think this is intended to be a permanent machine there some other versions Adidas is done one of these with sweaters and it was sort of a pop-up shop in Berlin for a couple months this is intended to be a permanent fixture in the store.
But I think you know we're seeing generation one of the experience and I think they've said that there.
They're you know going to see what customer adoption is like and and eventually expand to make door sizes.

Scot: 
[4:56] Thankful well thanks for the trip report and,
one thing I want to talk about is it's tomorrow is force Friday and for this is like a Star Wars Insider thing but before they do the movies the first wave of merchandise comes out that's called Force Friday,
so I'm actually making a huge sacrifice I am forgoing Midnight Madness for Force Friday to be on the podcast here tonight far listener so that's how much I care about her listeners Jason I'm willing to give up a little bit Star Wars action.

Jason: 
[5:30] I am super grateful I hope you don't miss anything super valuable by not being a right at midnight but I've actually I feel like there's been a lot of things pulling on your,
testing your dedication to the podcast is that I don't know of our listeners are aware of this but we we actually had to delay the recording of last week's podcast because you are a celebrity appearing on The Today Show.

Scot: 
[5:53] I wouldn't say I was a celebrity it was just kind of one of those things aligned much like an eclipse and I was I was able to be on the Today Show it was kind of fun so got to talk about,
it's funny I'm sure you've done these things where you talk for 30 minutes about something and they use like a 10-second snippet but I talked a lot about it we'll talk about it later in the show,
the tie between Walmart and Google so they were looking for experts couldn't find anyone I guess you were traveling and they ended up finding me so and I was the one guy that answered his phone I like 9:30 at night.

Jason: 
[6:27] Is funny they actually called me first and they had me send a picture and then they got the picture and said you know what you have a face for podcast we're going with Wingo.

Scot: 
[6:36] Applebaum was funny the only wall we had at Channel visor that had the logo where the camera can fit in Halogen orange wall and it made me look like a Oompa Loompa so that was exciting.

Jason: 
[6:48] I'm glad you noticed that because I did but I felt that it want to bring it up unless you.

Scot: 
[6:52] Everything's I have like spray on tan but that that's not the case.

Jason: 
[6:57] Yeah I have to be honest I feel like that was shoddy work on the cameraman like I feel like they could have fixed that.

Scot: 
[7:02] Well you know they don't have the professional crew like we do here at the Jason Scott show.

Jason: 
[7:07] Exactly the audio engineer on the Jason Scott show would never let you sound Orange.

Scot: 
[7:12] A couple other quick things for get into it the,
as a recording this we found out today that September 12th is the big day when Apple's going to announce something which we all know is going to be the iPhone 8 so that's going to be exciting and I'm sure they'll be some e-commerce implications we have a couple of things tonight we'll talk about,
and then I'm going to cook Commerce on September 13th to 14 really just as a spectator to come look and see what they're doing I'm super excited they're doing a tour of a prime now facility so I look forward to reporting back to letters on what I see there,
if any lister's are at that event and want to connect shoot me a note on Twitter or LinkedIn or where.

Jason: 
[7:53] And it's adorable that you think you're going to go there without me because I of course will be the one sitting next to you.

Scot: 
[7:59] Bloom I wasn't sure if you're going make it that's exciting.

Jason: 
[8:01] I am I am having to take a red-eye from a client obligation on the west coast so I might be a little sleepy but hopefully they're there will be a Starbucks in Manhattan that I'll be able to find.

Scot: 
[8:11] I'll be waiting there with a Trenta for you so that you're ready to get refueled and and hit the ground running.

Jason: 
[8:18] I totally appreciate it a side note on the world's best planned obsolescence like I thought you no one's expecting they're going to announce and iPhone 7S which might be available.
Very soon after the announcement and the iPhone 8 that's going to be probably a pretty constrain product and might not be available for a month or two.
After the announcement maybe that's the sort of common speculation and there's also a lot of speculation that they're going to launch a new Apple watch at the event and so they,
Apalachee solve the problem for me you know what I was going to be sad cuz I'm going to want the aid and that means I'm going to have to delay gratification and wait to get it,
but on the day they announced the announcement announce the announcement yeah I got off the plane and my Apple watch exploded.

[9:03] The screen not an actual exothermic explosion but the screen flew off.
So now I have a legitimate reason to buy the Apple watch so that'll that'll acute fulfill my my short-term gratification and then then the iPhone 8 will be my longer-term when I guess.

Scot: 
[9:21] Dump yard so Elon Musk doesn't call them explosions their violent release of atoms so that's what you're watching.

Jason: 
[9:29] Yes not as violent as some of his Rockets thankfully.

Scot: 
[9:34] Well Jason this time of year between summer and kind of the Fall is the crazy time in the world of digital retail cuz everyone's pushing out all the things they've been working at out for the since last holiday,
and getting ready for this holiday season and true to Fashion it's been a crazy busy news week so let's jump into it and then,
one thing for listeners to stay for years we have a new segment today it's called digital retail newsmakers and,
that will follow a short update on the news and first thing we want to cover tonight is Amazon news.

[10:25] Yes so the first thing that we have to cover here is we are kind of deep into this Whole Foods Amazon,
integration so the sequence was Thursday last week was I believe the 23rd or 24th,
Amazon sent out a press release saying we have received,
that the transaction is going to close on Monday and here's some of the things were going to do,
and that release itself really set the not only the internet on fire but also the stocks of the grocery companies so I saw that several of the main grocery companies were down 8%.
And I thought it was funny because when they,
that in the precious there was three or four bullets and it was almost a bullet for bullets list of the things you and I predicted on our Whole Foods Deep dive that we did right after the announcement.
The quick take so pat on the back to us because I think we got most of the stuff right.

Jason: 
[11:29] Yeah yeah I feel pretty good and then one thing we,
we did talk a little bit about on the show but the other thing a ton of people were predicting that there would be a lot of them Regulatory impediments and that that would slow down and that the government was going to look at it.
Really closely and I think both of you and I discussed on the show and then did a bunch of Prince interviews where we we said that that was silly on that that this was going to.
Not have any antitrust issues whatsoever and sure enough it it it got very fast approval.

Scot: 
[11:57] Yeah yeah and then so the day one activities were pretty impressive were you able to pop into Whole Foods on day one.

Jason: 
[12:04] I was and yet impressive is definitely the word the the speed at which they got so much done is truly impressive and scary to a lot of the folks that have to make a living competing against them.

Scot: 
[12:19] Yeah the so.
The biggest one is price cut so they picked some of the most popular items and did some pretty substantial price cuts and and then kind of said more to come,
this is nursing you know you're starting to see this kind of,
you know you hear of this whole fake news and how the news media covers things in the political side of things but seeing e-commerce where.
Yeah I saw some people report as much as 40% off and you know what day it done is just really kind of found two things that had been discounted and then didn't average that was one way of looking at it,
and then the most conservative article I read said that it was only like 1% and what this person did as they took like.
Every SKU in the store and.
Including like that you know the 50 to 100 top sellers and then they just kind of looked at the math that way and that one's kind of the dinner some cuz it was clearly designed to get the worst results and it basically said well you know the prices have achieved more than 1% we checked.
10000 items and so I thought that was funny that it's clearly they they either had absolutely no idea how Commerce works or they were just trying to.
Prove a point that it wasn't that big of a discount.

Jason: 
[13:33] Yeah I mean it it does go like there's an age-old problem with.
Like tracking prices and you know everyone has a different basket of goods and and you know every basket is going to have a.
A different outcome in so you know the most interesting studies are the ones that like pick a consistent basket of goods over a long period of time and then you can see.
Ctrends.

[13:57] But you know I just have to say like the fact that they got prices changed at all in my mind was super impressive and their brilliant about milking those price changes for for a huge amount of PR but just in general.
They got a bunch of Amazon signage up in the stores they got a display in every store that was merchandised with a bunch of Echoes that were for sale.
And you know they they they change prices on you know a hundred items that are you know likely price sensitive items that that people are paying attention to in generated a bunch of media that prices are lower in Whole Foods which is.
Going to drive a bunch of extra traffic to Whole Foods weather.

[14:40] Does customers particular baskets are lower or not so you look at all that that they got done on the first day that they took control of the store and you go you know man in a traditional grocery store that list of activities would take nine months to deploy.

Scot: 
[14:54] Yep and it goes even deeper so when the arrow kind of points from Whole Foods to Amazon so the things I saw they had you know a really good selection of Whole Food private label and that's called,
whole 6330 another word for 365 and so that was on Prime now it was promoted categorized and you know the pricing seem to be pretty aggressive I didn't check exactly to the store but it seemed to match the,
a couple things I saw on Main Amazon you had some things so that that was also an impressive that they got that done so quickly.

Jason: 
[15:33] Yep absolutely there they are just operating at a different speed than everyone else in and that you know should should really be a wake-up call if if you're you're planning to compete with them.

Scot: 
[15:46] Yeah nothing in the announcement that I thought we had talked about that a lot of people poo-pooed but is definitely happening like it's two things so number one they're kind of it's not a day one thing cuz there's an integration.
Amazon Prime will become the whole food customer reward program and then,
I know folks that have gone in and chatted and heard from cashiers that there will be an overall Prime discount to your entire basket.
One cashier said 10% I have no idea how they're going to verify your Prime imagine maybe a mobile app or something but that's going to be interesting to watch roll out.
And another one that you know is interesting in and unite talk about this kind of being able to,
I think a lot of people are really obsessed with this are they going to just ship is going to become a shipping station and this kind of thing and actually the reverse was announced where Amazon's going to put Lockers in there so if you're going to Whole Foods you have some Amazon returns you bring them with you,
I just told her to lock her and now you saved yourself a trip to the UPS store or whatever it is you need to drop those off.

Jason: 
[16:49] Yeah yeah bunch of the crazy things on day one and I'm sure we've only seen the first wave of the interesting integration so it's it's going to definitely be a fun one to watch.

Scot: 
[17:00] And then continue on the Amazon news11 tidbit I saw we've talked about this on the show or fair amount where you know I think the Amazon ad.
Kind of opportunity is way bigger than people realize and there's a lot going on there so there's an article in digiday where they talked about.
Not Amazon has really kind of opened up in within the Amazon Marketing Group AMG and AMS a lot of AP eyes that allow for more programmatic bidding so as you know being in the ad to yourself you know the.
Biggest advertisers have these pretty complex things they want to do they want Total Control they want to be able to programmatically do things the first generation of the Amazon API would basically say or or Amazon's.
Add technology basically said Mr Advertiser that's great but here's our little system this toy built you're going to have to use it yourself that really kind of delayed adoption so now when it comes to things like the bility to you spin up.
Retargeting campaigns display ad campaigns and then search programmatic search kind of things they have a piece out there now that they are pretty actively.
Getting into the hands of advertisers which eyemagine is part of a Q4 push to to really kind of dramatically grow that business so so that's pretty interesting and I still think that's probably the most underappreciated kind of.
What could be another multibillion-dollar pillar for Amazon is is the the Amazon ad technology.

Jason: 
[18:32] For sure.
Another interesting Amazon announcement partly because of the irony is that they announce their,
a new fulfillment center that they are opening and the location is quite interesting because,
they are taking over a 900,000 square foot mall and Randall Ohio so this is one of the very first.
Indoor Regional malls close back in 2005 and you know there's a lots of Taco in the mall again and World about you know what.

Scot: 
[19:19] You think they really turn it into a cell phone I kind of envisioned I'm having a bold as it don't you think.

Jason: 
[19:25] Yeah the location yeah I think the I think Amazon's fulfillment centers are highly optimized I don't I don't imagine they would reuse the space.

Scot: 
[19:34] Yeah it's called it like a huge fulfillment center I think it's going to 800,000 square feet which Amazon's building of it like 1.5 21.9 now it's actually a small fulfillment center for Amazon.

Jason: 
[19:46] Yeah but I mean to put that inside that's a very typical sized you know Regional mall and so your point like a regional mall is a small Amazon fulfillment center.

Scot: 
[19:59] Yeah and then I think it's a nursing cuz I'll probably a lot of jobs inside of there too so I don't know what do you say so.

Jason: 
[20:05] I think they Dance 2000 people on day one.

Scot: 
[20:09] What is to do the math of the conversion rate for every dollar you lose in retail and how many employees does that and then what's it look like over at Amazon I think that would be a fun exercise will do a deep dive on it.

Jason: 
[20:21] Awesome are there is a lot of good dialogue around that Trends in in retail hiring and what happens with unit e-commerce Jobs go up as as brick mortar Jobs go down on all this or something so that be a great thing to deep diver.

Scot: 
[20:35] Another quick hit on amazon.com Square put out a pretty interesting chart I will put it in the show notes and what they did is they did one of their comps Corey studies with Millennials and they found that shocker Amazon is the number one app with millennials,
and they asked interesting series of questions like you know what app would it be most hard to live without an Amazon came out on top of that,
I and another interesting fact wait on that as you had Amazon it number one and then you had some Social Media stuff,
Google was in there but it's kind of me okay third the size of of.
Of Amazon it's just another maze data points that kind of shows that as people.
A Amazon has become the de-facto kind of product search that the people look for and then be,
as people look for products they are not really going to Google anymore they're going to Amazon.

Jason: 
[21:29] Yep and you know it that isn't surprising I've just done a bunch of consumer research on behalf of of some clients and you know one of the huge takeaways is is Amazon is just simply becoming a loved brand and.
You know they're there an important part of the consumer's life they're not just a place to get stuff so it makes perfect sense that their app would be the.
The sticky one of the top of the Heat.

[21:57] I think there's also a lot of interesting not Amazon news this week.
One of my favorites is there was an article in the Wall Street Journal this week talking about citing Warren Buffett and talking about.
Retail and Brands being on a collision course.

[22:18] And this was that super exciting for me because I have been that that is slide one in my my retail Trends presentation for the last 6 months so when.
Warren Buffett agrees with me that's one of the rare occasions when I feel like I'm probably on to something.

Scot: 
[22:34] Call did Warren call you for advice on this.

Jason: 
[22:37] She did not but essentially like the the the spin here is.
Retailers and brands have always been Frenemies that retailers have been trying to create their own private label brands.
Forever but you don't allow the more recent Trends are the the stigma around private labels is going away and customers are much more happily adopting them and.
As a result.
National brands are losing their equities are losing their Equity you know stores are all getting Consolidated so the retailers have more power and from Warren's position who owns a lot of cpgs.
You know you know what I think he's saying that the retail and brands are on a collision course and the retailers are winning.

[23:26] Which which I certainly think is is possible in one sense I think the industry interesting thing we talk a lot like.
These products retailers are making are no longer private labels like they're their National Brands the.
Kirkland is the best sounding you know sells more on Amazon than they do on on Costco right like that's that's a brand it's not a a private label for Costco and you know that the Amazon Echo.
Is it certainly not a private label product like it's it's the market-leading you know best ecosystem product in a space.
So I certainly think that the trend is true I think it's beyond.
Just private labels but one of the interesting subtext under this is the this article kind of echoed a lot of Articles have been in the news this this week.

[24:21] The one one of my competitors in the space wpp announced servisoft Revenue quarter and you know people are making a lot of.
Conversation around hey is advertising or digital advertising.
Dying or weighing it looks like he's big big Ad Agency holding companies are starting to see soft soft sales so you know a lot of.
People that care about me or asking you know if my curse in Jeopardy and I do think.
That that we're seeing those kind those digital ads really start to wane like that.
What I call interrupted rim and advertising like interrupting when someone wants to see in order to you know force-feed them this advertisement just.
Is a decreasingly.
Effective tactic and it's the the analog versions are less effective in the digital versions are less effective and I think you know our friend Scott Galloway like he calls advertising is increasingly becoming.
Attacks that poor people pay any talks about all the.
The the rapidly adopted ways that more affluent people are paying to avoid ads and you you get your your media from Netflix without ads and.
You pay for ad blockers and he pay for subscriptions to you newspaper to get it without ads and said I feel like this traditional.
Interrupter of an advertising is sort of dying and you know so agencies like mine or having to reinvent themselves to serve customers in ways other than advertising and and of course the.

[25:53] The particular company I work for it doesn't really do that kind of advertising so so it doesn't particular dust.
But the big article that came out that really triggered all this was about a week ago and it was marked picture who's the chief customer officer at P&G.
And he announced that they had really concluded the digital advertising wasn't working and they were they were going to cut at least a hundred million dollars of their digital ad spend because it wasn't effect.

[26:19] And that's interesting because I do think there's a strong Trend towards.

[26:26] Eliminating some of this this interrupt driven advertising but I don't think that's the whole story of Procter & Gamble.
Patrick gamble has some some some serious activist investors that are kind of in their shorts right now and you know there's a lot of pressure on them to cut costs and it really looks to me like.
They just did a brain-dead analysis and some of their marketing activities and are trying to justify the fact that they're having to significantly curtailed their spending so you know their there they're doing like.

[26:56] Kind of brain-dead last-click attribution on a on a whole bunch of marketing spend and just saying hey hey you know we don't anticipate sales are going to significantly go down when we.
We stopped spending this this hundred million dollars but it you know it it really kind of.
Doesn't feel like they they've done a very detailed analysis on how you know how,
you have and how that media is or could be influencing sales in their wholesale partners and and you know they're there,
they just seem really rudimentary on the metrics Mark Mark is like one of the most powerful guys in advertising and he spends all his time talking about,
a metric called visibility like whether or not you can just see an ad,
and wow it's super important that that that metric be right it seems like someone about 32 levels below Mark should be focused on that and someone at marks level should be a lot more focused on,
how can I marketing tactics drive more profit for human and you know it just seems like,
like tractor is kind of lost lost sight of that kind of view on on their digital marketing spend.

Scot: 
[28:01] Sold articles are nursing say think so Buffett and then also one of Sam Walton's descendants of sold quite a bit of Walmart stock,
and it's just confusing cuz the Articles kind of time together but like you can tell the,
the two events that happened separately in Warren Buffett's not really saying the reason I'm selling Walmart stock is because of this battle of between Brands and retailers but but it's interesting to because he's he's kind of.
With his wallet he's buying Brad's and Son retailers but then he's kind of saying that he thinks retailers are winning that battle what's your.

[28:38] Which kind of your view on that.

Jason: 
[28:39] Yeah I don't I agree he he I'm a less sophisticated investor than you but part of me feels like he has a very disciplined investment strategy,
that you know is based on value investing and so you know in a market where the cpgs are losing power to the retailers are the retailers stocks becoming,
yeah less likely to meet his value criteria and does he feel like if he can pick the the subset of winners among the cpgs that those are potentially better.
Better value investment censored you know better fit his in his particular investment profile.

[29:20] I don't know if that's true or not I was that's internally speculation on my part.

Scot: 
[29:24] Yeah it's it's a little confusing the way they time together but they're not really meant to be together.

Jason: 
[29:31] Yeah for sure it's going to be an interesting space to keep watching,
I think we talked on the show it's going to be increasingly hard to make a living selling other people's stuff and so what you just are going to see is you know,
retailers are going to start looking a lot more like Brands and Brands you don't going to have that retail distribution so they're going to have to start selling direct to Consumers and so they're going to start looking more like retailer so I definitely wouldn't we say collision course I think the two businesses are going to know start looking a lot more the same than different is as we progressed.

Scot: 
[30:02] I'm just glad that we have a little break from the mall again merkel's it's getting kind of a little old.

Jason: 
[30:08] Yeah and I don't think we have much of the data points but like,
a bunch of surprisingly good earnings quarter this year so they're a bunch of companies kind of surprised us with some beats even if they're there future outlooks weren't particular promising.

Scot: 
[30:25] Yeah I think that's why actually had quite a strong quarter and surprise whilst reading.

Jason: 
[30:29] Yeah and and again though like had caution that that wasn't the new normal and then there's talk one way down to spite the fact they had a big beat.

Scot: 
[30:37] I mentioned it to the top of the show with the Today Show kind of live there but the other big news in e-commerce was Walmart in Google really kind of.
Deeply partnering to effectively take on Amazon and yeah I think I think it's early to call this one but what's really interesting in this story to me is the whole,
you know enemy of my enemy is my friend so you know here's two companies that have never really had,
an alliance I'm aware of other than I'm sure Walmart's large Google Advertiser in that kind of thing really kind of aligning and saying,
hey you know we need to create a counter to this this Amazon kind of meth it's growing and and figure out what we can do there it's interesting too cuz Google has always play this kind of you know,
we're neutral we just in traffic to all the different retailers we don't have a favorite retailer but it's starting to sound like Walmart is one of their favorite retailers.

Jason: 
[31:35] Yeah and I mean you know you think of that like it's it's increasing in the case that Amazon's big competitors are are these platform Echo Systems more so than.
Then other retailers and so you know that that puts them much more odds with Google and Facebook than it does Walmart so it's interesting you note.
Google and Facebook have some monetization problems versus Amazon's model in so you don't Google Plus Walmart feels like a more valuable.
Competitor to the to the Amazon Echo System and I think you called it but like one of the most interesting parts of that announcement is not that hey you can order Walmart excuse.
Through Google home,
it certainly is interesting and by the way Walmart's up till like 67 million skus now so there you know it's a pretty pretty deep assortment,
but the most interesting thing is Walmart is sharing first-party data with Google and so what would that lets Google do is.
You know have much better inside and what you purchased in the past and be much more predictive so that your your voice experience can be much more impressive in its going to accurately guess.
What size Campbell Soup you buy or what size Ruffles potato chips you buy and so they they get that SKU right cuz you know voice.
Ordering becomes a disaster when they don't have good data about you and have to guess which of the hundred variance you might you might be interested in buying.

Scot: 
[33:03] Yep another quick one that I saw is so so.

[33:10] Google shoppings at ad unit is called Product listing ads and saw that they are running a new pill a ad unit usually the way this works is you go to Google you search for,
you know I don't know.
Screwdriver or power drill or whatever and that's you see a bunch of those products from multiple retailers we saw unit that effectively was kind of a retailer take over so you would search for,
I think the one we found with some office supplies at the Go staplers and they had,
The Container Store where you could just kind of say as a user you would only see Container Store Staples in the ad unit and then there would be the same number of kind of,
products with in there so that was kind of nursing not in a Google test tons of things all the time that we're always looking for new ones so I thought that was kind of interesting single retailer ad unit,
that we hadn't seen before I will put a link to that in the show notes as folks are interested in learning more.

Jason: 
[34:03] Yeah that's toy interesting another one we saw was that the target.
It seems to have moved off of AWS and that that's interesting for a couple reasons listeners World member about a month ago,
Walmart launched too aggressive initiative we're not only did they say will not use AWS but we're encouraging any vendors that that's support us to not use AWS and now you see,
Target moving off of AWS like the the obvious impetus for all of this is.
These retailers don't need to be paying money to a competitor that that competitor can then use to develop new products and offerings,
they make them you know more competitive with Amazon and so so you know this is always been,
kind of the case but I think it's it's becoming much more apparent that retailers are recognizing it's foolish for them to use any Amazon Services even if their services than aren't competitive because they're all of course.
Supporting and funding.
Efforts that are competitive so if your Microsoft Azure or Google Cloud platform like,
you know this is probably great news for you you got you know a lot of retailers are,
are modernizing their it infrastructure and moving to the cloud and increasingly it's clear that the one category in the world that's not going to adopt AWS as the dominant Cloud platform is going to be the retail one.

Scot: 
[35:34] Cool and I know we're up against time we want to make sure we have room for a newsmaker but you know long time Lester's will know we are very enthralled with augmented reality and virtual reality and there's a bunch of news there.
So I put it on my Star Wars hat one of the ones that was exciting is as part of the retail launch day of of this Force Friday they have added an AR functionality to the Star Wars app.
I know the way this works is you go to your retailer and there will be a display there and you hold up the AR app to a QR code like thing and then there's a Star Wars character that appears in virtual reality or augmented reality that you can see.
Did you can take pictures of them and collect them so one of the clever things they've done is there's something like.
20 characters 15 to 20 characters so as Star Wars people you kind of try to collect these things and let's say you're going to Walmart on tomorrow on Force Friday,
well they're going to rotate characters to characters you see over the next four or five days will be different so they're kind of using this this virtual kind of technology to draw people,
back to the stores versus just having him come in one time so I thought that was kind of interesting marriage of of the Two Worlds that we like there.

Jason: 
[36:48] Yeah I am not surprised at all that you are the earliest adopter and I'm excited to give it a try myself another interesting AR.

[37:00] Milestone is this week both Google and apple release their variance of AR kits,
which are essentially their api's for developing AR & VR but mainly AR experiences in their mobile phones and this is a huge deal,
Google this had some AR technology called Tango,
but it was really restrictive it only worked on very specific Hardware configurations and now Google is released this AR kit which works,
on the majority of Google Hardware out there so it already works out over 100 million devices apple is released a kid that's works on basically all the.
The Apple devices that can run the current operating systems in this is really likely to usher in.
A huge crop of new you know highly functional AR apps in the.
In the app stores like you look at a successful Arab like Pokemon go in the developers had to develop it on themselves and now you're getting.
Napi from from the hardware manufacturer that that is much more robust and higher performance and.
And takes the burden off the programmer to do all that so we've talked a lot on the show about.
How AR apps are going to be important part of retail and you know that the availability of these api's is is definitely going to be a catalyst for seeing one of those so I'm excited to see what comes.

Scot: 
[38:24] Yeah I'm kind of seen some indications that there's e-commerce is a category that they're really interested in and,
I think Ikea is a lunch partner and you know it'll be interesting to see,
I'm imagining so apples really excited about this we couldn't event coming up in a couple weeks you know what if we had a retailer on stage I don't think that's ever happened where we had a retailer on stage kind of talking about new technology,
let me nursing to watch and see what the retail implications are.

Jason: 
[38:55] For sure and I akea is the perfect lunch partner cuz they're one of the retards that went to the work to program their own custom AR app.
I'm the day already had so it will eyemagine it was super easy for them to sort of adopt and expand it to use the new new kits.

Scot: 
[39:11] Yep in the last little tidbit so company when we did our deep dive on a rvr that we talked a lot about is magically.
And I belong away depend for their headset was released today or are at work it's off to the patent pipeline so that's definitely an interesting read if you're into this whole world,
there's there's,
the air BR world is please pretty split on this a lot of people think this company is really kind of you know never going to ship something and that it's really vaporware and other people feel like maybe they're getting pretty close now this patents up.

Jason: 
[39:44] Yeah yeah for sure I'm eager to find out more let you know they've had some patents on the kind of underlying technology before this Pacific patent is actually about.
The wearable glasses version and at least you know the Pak patent makes it feel seem like.
They expect to be able to build a pretty lightweight convenient device.
That that might be consumer-friendly and and that's interesting cuz a lot of people have feared that the technology you know like the prototypes of the moment the smallest one is a pretty heavy backpack.

[40:17] So the fact that they think they can build it into assetto eyeglasses is is very encouraging and so with that we should.
Turn to our next topic is Scott mentioned earlier tonight we are trying a new segment that we're calling digital retail newsmakers so what we're going to do is pick interesting companies in the e-commerce ecosystem,
it has an interesting recent news and talk to the folks involved to get the inside scope,
so Scott who is this week's digital retail news maker.

Scot: 
[40:57] Will Jason on August 22nd which was last Tuesday Kleiner Perkins which is one of the bluest of Blue Chip Venture Capital firms out there announced a 40 million dollar investment in Toronto based.
Tulip.
And here's the kicker all these headlines about Molly getting all the buzz around e-commerce Amazon Etc while read about store closures,
tulip is not an e-commerce company but it really focuses on providing a mobile application platform to store associates that are in.
Source so we are really excited to have alyas area live from Toronto he is the CEO of tulip retail with us here tonight.

[41:36] Thank you so much for having.

[41:38] Sure sure before we jump into it I wanted to bring up kind of a beef I have with you I was a very early Blackberry user,
and from because I was on the BlackBerry from definitely like 2000 2007-2008 super pretty heavy user I think I've got all the way from the little kind of.
Pager kind of form to the bigger ones and my favorite app was brick breaker breaker which I learned that you had some kind of a involvement in tell us the backstory on that.
Yes it is quite a backstory but it's funny cuz like for a lot of my career I always always get introduced as the guy who created Brick Breaker and now it's funny cuz it's times past,
what does time passes lesson bus people remember that game and sometimes.
Recapture to be like the excitement that was created from that that one out that I created that was on that one more time so I'm like a hundred and fifty million mobile.

[42:34] Yeah they were calculated the hours consumed done on your brick breaker.
Oh man there's actually so many articles written about how much wasted time has been like that has been lost like from even likes to senior people like that I think the former president Obama used to be a big player I feel sort of guilty about it but not too.

Jason: 
[42:50] You are single-handedly responsible for lowering our GDP.

Scot: 
[42:54] Even ready to be at least I could you imagine the numbers on that.

Jason: 
[43:09] So obviously we have hinted at part of your background but Allie for listeners that don't know you why don't you give us the the recap of what your background is and how you came to tulip.

Scot: 
[43:22] Yeah so I mean my background is I mean I studied Computer Engineering at University called Waterloo here in Canada and I was really focus on Hardware that time and I got this new job at this.
It's relatively new company called blackberry and started working there and wherever and eventually work there full time.
But quickly I mean after I graduated University I I felt like I had to start something so I started this company I mean about 10 10 11 years ago.
Caldwell. Yay and it was literally just me in a closet.
I'm trying to build an e-commerce site from scratch I rode by wrote the code myself and I was packing the boxes myself and then we'll does he agree to what is now like one of the largest e-commerce companies in Canada,
in that process it for the beanie Mike rewrite I literally like when I started well that's yeah I didn't know anything.
About retail about merchandising about Warehouse Logistics and vendor management Ida learn all that from scratch as an engineer.
And then that kind of led me to do what I'm doing now is building software for retailers having dinner retailer for a big part of my career.

[44:20] What tell us more about well. CA what did what did you sell there.
Better inside your Pharmacy and eventually groups of being what's I would describe it maybe it's like diapers.com for Canada so it sells everything from baby to Health and Beauty it's kind of largest largest company in Canada in that category online.
Get it sounds like it's still operational so is that something you sold or or what how did you know what was the end result that.
It was kind of interesting so I was the CEO up to about 4 years ago and at that time.
Rebuilt how much software there that I actually went to the board and I said hey look there's a ton of value here I want to step down as a CEO of this retailer so that I can build a software company out of all this,
great engineering that we have here and the potential for it and so to actually started with me you know promoting,
who is Dennis to out who is now the CEO of so that I can step down and pull out a lot of the IP and that's that's how we begin,
tulip with me kind of saying there's actually made me more value in this softer than there isn't any in the rest of the pictures.

Jason: 
[45:28] Very cool,
and I guess I don't know if irony is the right words got always correct me with when I use bad diction but the wheel that CA is if as I understand it is is premature play,
e-commerce site and then it seems like the biggest play for tulip is is is clearly an omni-channel pitch.

Scot: 
[45:52] Yes it's got me this is kind of the irony of my career but I think maybe a lot of lessons make sense right is that it's so much of my life was focused on trying to.
Compete with physical retailers by building an online,
retailer in love and in that process I was competing with all these retailers that I eventually build relationships with and so I would I would know all the folks at companies like Toys R Us that we now work with and some of the other folks and.
What I started to realize was that what the thing that I think a lot of us know but it have any figured out how to really capitalize on which is.
90% of retail still happens inside these places called physical stores and there's so much opportunity there but it feels like 90% of the Innovation is all happening on that on the comp side only on the outside.
My career is now about kind of trying to take all of that Innovation that I learned that I originally deployed Annie, try to replace that inside storage.

[46:46] Cool so so 4 years ago you started tulip in when did you know you wanted to kind of go the store router was it kind of you edited there in somewhere.
Yeah we started right away saying that stores matter and there's a massive opportunity there but I don't think we knew exactly what we were going to do there.
The journey from me really sad was with me sitting with a bunch of big retailers that I built relationships with over the years and saying like help me understand what are your biggest challenges.
And what I started to learn like just by sitting on the floor inside the stores and talking to heads of stores was that.
It's really hard to innovate inside physical retail because they're stuck with these old green screen like you don't point-of-sale terminals that were built in the 1980s and the culture of stores and so difference and there's like one of our retailers has 40,000 employees there,
all we know part-time and high turnover and so you're in this world where they're so much.
The man from customers to innovate on their retail experience but when you're a retailer front operate these like very complex businesses it's really hard to adapt with the software in the technology that we have right now and so I was just like hey this is all opportunity this is a,
big tough scary but big opportunity and so that's kind of what we went on.

[47:57] Got it so so soon I'm an e-commerce guy and I don't know much about stores which would be a good assumptions give me kind of the elevator pitch for for tulip.
Diane and why stores need to use this.
90% of retail is happening inside physical stores but I think the part that we forget is when we say.
What's happening in physical stores it's happening with real human beings going up to other real human beings called store associates and buying through them and so you have this large job it's actually the largest job in North America I didn't know that,
retail store associates of job which is never had tools before so we've all experienced customers.
Frustration of going into a big retail chain and try to talk to a store associate that looks like they just were hired the day before and they can't answer basic questions that.
You was a consumer can answer on your own phone right I can I can sometimes look up inventory an answer more complex you know product questions on my own phone and I would expect a store so she filled answer answer the opportunity to realize.
Give this massive massive job category that's never had gray tools before.
What happens if we actually gave them the tools to be able to answer customers questions and pull up inventory from other channels and help people transact across you, and in-store regardless of where that product is.
Well if we could do those things.
Maybe there's a potential lift and in the sales that we can do inside stores and that was the theory when we started we had no idea like at the massive opportunity and in the lift that we could create once we once we did and that's kind of where all the success companies come from.

Jason: 
[49:32] Perfect that you know we we used to make the joke like for a longtime store associates weren't even you know a common rule in a retail store was it store associates couldn't even use their own phone in the store.

Scot: 
[49:44] I work with these folks right so now I sit on the floor sorry but I mean I'm sitting on the floor with these door so I started to see the other side of it.
Open very young people who know how to use technology cuz now everybody knows how to use a phone but they're so frustrated because they can't get access to basic information sometimes the only computer they have is the point-of-sale terminal so if there's people checking out.
There is nowhere for them to,
research information sometimes they're using their own retailers like mobile app because that's all they have and so I feel for these folks now and I didn't even though maybe in my previous career I used to kind of make fun of them because I see now what it's like being on the floor inside a story you want to help customers we don't have tools rent.

Jason: 
[50:24] Oh yeah it's it's believe me it's it's a difficult job and we you know and like originally doing all these rules,
we are nobody wanted the sales associates to have more technology cuz frankly everyone was afraid they'd be playing brick breaker on it all day long and not talking to customers so I guess there's some irony there,
but the the you don't when customers started walking in with their own phones and having all this information in the sales people are completely unequipped we used to talk.
About you know the sales associates were essentially bringing a knife to a bazooka fight like it was.
Totally asymmetrical so makes perfect sense to start equipping those the sales folks.
You you can help me as an advocate a little bit because it is you may know from listening to show Scott doesn't really get the value of retail store so you know Scott.
Scot as a drum in his office called retail Mulligan and and he just constantly beats it.

[51:22] And you don't Infernus him like there are in fact a lot of stores closing and there are in fact,
actor water stores facing some headwinds but I just beat you know curious what what's your general like so you know your future is tied to the future of the store's what what what do you think's going to happen to physical retail.

Scot: 
[51:41] I think you can see I'm a little biased because I bet my career in my entire company on that idea that stores matter right but I think like from our perspective right like you're seeing is right we see a lot of the retailers we work with right now,
as tulip enters into the retailer to start our work with them.
The head of stores has been mandated to close 10% of the stores but increase sales by 15% in those in the remaining store and so what's I think what's happening I think we're all seeing as that,
even if the shift towards like you know you, goes from 10% to 15%.
There's still a massive number of transactions that were going to continue to happen inside the stores in a space where there's like three trillion dollars retail transactions in North America and so you have a massive massive category on the other hand.
You know 5% shift online means lots of jobs lost and so.
The world in which tulip lives is we're working with me Taylor's that are saying yes stores will have to close and we have to correct for them the right number stores for the remaining ones.
Bad experience that we drive for those customers we need we really need to up our game and it can't just be by.
Lowering prices or in a fighting on trying to not have Amazon have access to the channel it's got to be about creating a differentiable experience inside stores at customers.
Actually want to come to and that's kind of the world in which tulip plants ring.

Jason: 
[53:02] It makes perfect sense I'll just eat like the customer behavior is fundamentally changed as a result of.
These digital tools that they've now become accustomed to and you know one of the big examples we always use his ratings and reviews to become super important for customers and making decisions,
but none of those digital tools are available in the overwhelming majority of stores writing so you know a super common problem for a retailer is what is the in-store digital experience that,
brings all those digital amenities to the The Shopper that they become accustomed to from their online shopping,
and most of the answers to that question are inconvenient like they're they're super expensive and very hard to maintain and you know,
digital signage and digital fact tags and you know there's there's a lot of baggage attached to doing everything on the customer's mobile phone and having him be kind of heads down in your store and by the way it's super hard to get the customer to download your mobile app anyway so they're all these these headaches and,
it it it seems like providing the the sales associate which is the one variable in the store you can control.
With access to these digital tools to use on behalf of the customer or with the customer seems like one of the the best solutions to that problem.

Scot: 
[54:17] Right I think you see that right when people talk about the,
the end of stores you look at something like the Apple store right be like apples in this position where they don't have to open physical stores but they continue to open them and they're doing phenomenally well right and so I think we see this world in which like another we work with examples right bonobo started online.
Did really well and then started opening physical stress you see all these like these folks were doing well online still opening stores but the stores feel very different,
in terms of experiences it's different,
how you drive a perfect experience for a customer,
device they can share that with a customer cuz they know that to the customer that matters but in addition to that they'll also pull up pricing from other retailers write a big part,
the selling process for some of our some of the rituals we work with his saying.
Are you afraid that this product is cheaper on Amazon let's go to Amazon together and look at that price because they know that the customers thinking in the back of their heads.

Jason: 
[55:15] Well so of all the sort of features that can exist on that tulip tablet you know I'm imagining things like inventory information product information you know customer,
Behavior information although sorts of things I get is there one one experience that you feel like.
Is the overwhelming leader I would just be curious I once they sings Get deployed like what's the the most go to feature for for the majority of sales associates.

Scot: 
[55:42] Yeah there's there's basically two big experiences that we drive that usually Drive the most left right.
The first one is on the channel selling so that's the ability for the store associate to say,
whether or not the product you're looking for is in the store in front of us right now I can sell you any product from online and in the store in one basket and so that's that's key for that for a lot of the details who can't carry all of their inventory at one location.
Does the second big thing that we do which is really interesting cross we learned a lot about her last years was is what's called clienteling and basically.
Try and retailer on a lot of their business but like a significant percentage of the business for a lot of the best high-end luxury retailers happens through these one-on-one interactions that they have with customers and so a lot of a tulip does in that case.
Is we help retailers write personal email text or says it's my personal emails during SMS messages to their best customers saying.
Hey this just came in I thought it would look right with that thing that you bought before I put these these three items together and putting them on hold for you at a building that really one on one relationship that you can only get with that with a great tool plus a great store.

[56:46] Awesome and so you mentioned but no bus which I guess now you get to count Walmart as a customer it's always nice to upgrade took like 5 minutes to switch that logo.
What are some of other retailers that are utilizing your technology.
Able to talk about in class which is a big pig to play fetch 800 locations across America,
one of our best customers Saks Fifth Avenue and that whole network of retailers that are associated with them in miles from specialty retailers like,
Toys R Us to the bonobos to Chanel it's been it's been very interesting to see how different ringtones work.

[57:31] Cool and then says I fell off and we're always love to hear the story to the extent you can tell it of fundraising you know it's pretty clear that you convince the the nice Folks at Kleiner,
10 fasting what you're doing so that they're they're Believers is this the first round of funding you've done and,
you know what what's the point of you of some of the feces out there that are raised that are looking that you're talking to are they do you run into some of that are like.
Stores what are those or are they all pretty open-minded to that that kind of pitch these days.
Yeah I think that's like one of the tough kind of side effects to the rise of Amazon are all the challenges we talk about one more time trying to compete with Amazon that I think not everyone knows about it is that it is next to impossible to raise money right now.
For a business that is in the econ category right well. See experience that a lot just because VC's are very well aware of how difficult it is to compete at scale when once you have to go head-to-head against Amazon.
I'm in that same kind of,
light when we started to if I started to talk to me season but when I wanted to do next and I just was told basically by everyone that I was crazy why are you going after this category that's.
It's going to be massively shrinking and no by the way retailers are the worst customers and so hard to work with but we just felt like it was just too big of an opportunity and I think.
A lot of the things that scare people but the category for me kind of indicated that there was actually something there that people have figured out cool.

Jason: 
[58:59] So you're one of the things that I'm curious about all the you mention for example the the customer follow-up use case and just maybe I would generic be caught like the clienteling use case.

[59:13] Imagine there's a yes or two pads for all those sorts of things build that native functionality into to it and so then you know it's it's in your ekosistem in and all that sort of thing versus interfacing with all the other,
tool that does big retailers you just mentioned.
Likely already have in their ecosystem is like does to try to be a complete solution with everything integrated in one big killed base or are you having the interface with a lot of other retail systems and how's that working out.

Scot: 
[59:46] So I think that's probably the biggest challenge for building tulip is that we're working in a space where you cannot you can't go to a retailer.
The size of the returns that we typically work with and say,
hey please throw it all of the tens of millions of dollars you can vested in all of your big ecosystem and all of that you know that the side effects of what what those things are connected to because we want to swap it out for this other cool app which we just built and so if you look at two of it where anywhere,
rather large company now,
about half of the company literally just does Enterprise Integration since the typical project bras with a big retailer will take some time six months maybe more.
Just integrate with 15/16 back-end systems everything from sap to IBM and all of the mixture stuff that they have so a lot of tulips kind of,
way of working greenhouses to say hey we're going to work alongside all of the systems that you bought already and we're going to have meant them and replace parts of parts of them when you don't have the right system but we can't come in and say please swap everything out at least to start with.

Jason: 
[1:00:46] Sure sure what one other question I'm curious about the,
kind of retailers that are sort of best suited like I'm of the opinion that no retailer is purely self-service or purely sales assistant that like almost every retailer.
Spectrum of those too but there some some classes of retailer that are much heavier sales assisted.
And obviously some of your early customers like I would put in that category but then you know there's huge swaths of retail that are mostly cell service and you mentioned your biggest appointment was Toys R Us I would think of them as a,
mostly self-service environment so I'm I'm tears in my wrong that that you're a better fit in a sales assisted environment or what's what's the strategy there.

Scot: 
[1:01:33] So when we first started we said let's focus on retailers where sales associates really matter where,
retail just saying the store experience and we want to act like it Ramon in Destiny's people that's the category we thought we do the best in we started getting contacted by grocery retailers,
7-Eleven type retailers in quick-service and all the sudden we started to realize that I think what we're going to see is that.
I think personally that every single job in the cattle work like sales associates in Cashiers all of those jobs will have a mobile device in their hands as part of their job for some of the.
Less service-oriented one those mobile devices will be focused on you inventory counting and more of the kind of back in tasks and more of the service books ones will be more about.
The summit tools kind of very famous for out front and center you know sending emails to customers and helping with the I like product information but in the end I'm of the belief that.
Every category retail is going to have to arm its associates with a mobile devices as part of their job that's just so the reality of the Next Generation Enterprise.

[1:02:33] On until we started with a lot of these high-end folks but now we're we're going to be deploying with a lot of the three times that you would traditionally think of his being sales associate Focus.

[1:02:42] Regal one so do you help stores with kannada omni-channel implementation so do you get involved with buy online pickup in-store and ship from store in that kind of stuff.
Absolutely I think like.
You know one of my my big beliefs in this in this industry is that we all kind of maybe did it to service to the industry by over focusing on the word omni-channel because.
Two lot of the consumers and and practically from an experience this perspective I'm just held it really mean anything until you do something with it right and so it's more of a philosophy than it is an an an experience and so tulip ends up being kind of good thing you do after you realize how many shells important,
super a lot of okay we want to build a cell across channels that's an omni-channel selling experience but to do that I need to actually give it tool to.
Perform the sound and so tulip is basically everything we do is if I don't Channel but it's kind of its kind of maybe the post on me channel thing that you do.
What day in matching would be hard and we struggle with us at chill advisory even on the digital side and,
the store side just kind of blows my mind this maybe while you have half your company is on the integration,
peace but you know that the buy online pickup in-store in the ship from store has really high failure rate and no one really publishes one but my guess is somewhere between 5 and 10% based on personal experience.
And I can imagine you're only as good as the systems you're integrating with so if I is a user in going to retailer and having that that.
Pretty high stock out experience it must be frustrating for the clienteling app to be you know a boy we're going to sell this customer widget X and it's going to be awesome and then the store associate.

[1:04:16] Can't find widget X because the underlying data is Bad Hat is that a challenge for you guys and how do you saw that.

[1:04:24] Yeah definitely write like a lot of the returns we work with they don't have a perfect view of inventory a lot of them they don't have photos of most of their products that aren't available online and so a lot of tulips projects end up reviewing to the retailer.
Places where they need to know reinvest in terms of improving data quality and process right.
Is that you can do a lot of things quicker now so you can ask a store associate to go fetch a shoe and then you can find out within.
2 minutes whether they executed on the task and if not you can be assigned that task to another store and the other piece I think none of us really realized until we fully started like working in this space at tulip was the incentive structure behind meant so one of the important things for tulip is not just.
Telling a store associate to go grab a product or instructing them to sell something from online but to make sure that also they get commission for that cuz I work right.
And then one last question I noticed you guys seem to be pretty heavily aligned with Apple so so tell us more about that and is that a formal alliance and in or is it just kind of you prefer their Hardware how does that work.
So this is been kind of one of the biggest surprises.

[1:05:33] FR company right was that when we started tulips we started winning all these big retail accounts and then follow us and we got a call from Apple which we never never predicted.
I was actually that basically what happened was that.
We had I guess went as retailers have bought two of they had triggered the sale for so many iPads and iPod Touches that we got on the radar,
answer that quickly grew to now what is a formal partnership Direction where we're at we're in a partnership with,
appleworks we actually work with them alongside so you look at a lot of the screens on our app they would actually code is IND at in Cupertino with apple and they come along with us to sales sales opportunities actually help supervise project with us into one of the big opportunities of my.
My life now in my career has been filled to work kind of hand-in-hand with some of the best Folks at Apple to help kind of tell this shared Vision around what is the future.
Mobility inside retail in in the Enterprise cuz I will kind of shares the same vision right in their stores near like Hey we're doing so well because we figured out how to.
Innovate on the store experience partly through giving our sales associates better tools if we could just show retail like General retail that same vision.
Mean green salad or devices and so too it's kind of part of that very cool Super Geek question have you been in the spaceship.

[1:06:53] No I've been looking at it I want to go actually where we have appointments coming up that I think will finally go there but I've been meeting just outside of that.
Will have to do a special edition of the spaceship edition of the show so you can give us a report on on what it's like inside of their.

Jason: 
[1:07:08] We're not all meeting at the the iPhone announcement on the 12th.

Scot: 
[1:07:13] Oh yeah it's going to be being from there right.

Jason: 
[1:07:18] In the Steve Jobs theater is if I'm not mistaken.

Scot: 
[1:07:21] Yes I heard I heard.

Jason: 
[1:07:22] What what are the things that's interesting to me about the Apple partnership is just been a lot of time doing technology inside of retail stores and for a long time I would have said.
Oh you know it's like consumer technology like apple stuff is great for proof of Concepts and quick prototyping but when you really want to scale it it's totally inappropriate for.
The store environment that it's it's not hardened and people are going to want to steal and it's really hard to lock them down and you know it's it's hard to keep them charged and you know there a million like frankly very valid reasons why it's not.
That that Hardware isn't perfectly suited for the retail environment.
But I've completely lost that argument and long ago gave it up because it just it just seems like the the argument that,
hey the store associates already know how to use the consumer technology in the consumer Technologies so much cheaper and more ubiquitous and frankly like when any of those bad things happen to it it just cheaper to replace it then it is to buy,
uglier more clunky industrial tablet that cost 5 times as much up front is that is that what you're finding or do any of your clients use industrial.
Hardware for the for the stuff.

Scot: 
[1:08:35] Yeah if you if you ask me that same question I would have been in the same camp as you write I would have said that you have to focus on an Enterprise hard and Hardware Apple wasn't designed for the consumer that's what I thought 5 years ago and so if you want to come a hint at.

[1:08:47] What I think is the secret long-term plan for tulip is that we believe that that mistake that we all made in terms of.
Make the consumerization of the Enterprise write the influence that end workers have in terms of,
what type of hardware and we hope what type of software is deployed inside the Enterprise will that prediction that we all had was so wrong that there's a massive massive opportunity now we think all of software in the Enterprise including UPS in retail.
Is it going to change in the same way that the hardware is where.
We we all miss predicted how how strong I think a lot of the Legacy thoughts we had around what soccer looks like in big companies and in the same degree Hardware so what we're seeing to answer your question specifically is.
Apple's kind of just one in retail even though people didn't predict.
Partly based on real people fight with maybe was too expensive at the timer it wasn't the right thing for Enterprise but all of those predictions ended up being wrong it's definitely the right solution and then what happens is you have any question of.

Jason: 
[1:09:48] Yep yep so I have a feeling that when I sing a lot of new investments in symbol and NCR and all those guys as a result of that I'd be Church though is the natural progression of that trend.
Not that there won't always be some dedicated hardware for Solutions like you but could you imagine.
A blended solution where where there's dedicated tulip tablets in the store and they're searching the sales associates that have that but did the Tulip app is also available for employees to install on there.
I want Hardware to sort of expand the footprint bring-your-own-device.

Scot: 
[1:10:24] Yes.
Yes a lot of our botones talk about bring your own devices and there's a decent like legal and compliance issues around that for in North America that we have we talked to her but definitely all of our retailers have on their road map.
A vision of what Canon campus tours OC do on their own device it's different right because there's privacy issues you're not obvious even allow them to pull up any customers record and that's where thing but there's definitely tools we want to feel to give store so she can access any money off.

Jason: 
[1:10:49] Yep in that that does trigger an interesting thing so you've you potentially on the on the store provided Hardware have proprietary information about the customer and I imagine there's a fine line like you don't necessarily.
Just want to make everything that a retailer knows about that customer transparently available to the sales associate in the store when a customer might see it.

Scot: 
[1:11:15] Yeah it she when we started with one of our best retailers it's like a high-end fashion retailer they started telling us about user stories that we needed to capture and part of,
part of those stories is the idea that hey we have.
The addresses and phone numbers of all of these famous celebrities in North America we can't just even have any of our store so see you know type in,
famous person's name in pull up their phone number and so I'd like to actually has built-in privacy tools to make sure that that's our stuff is locked out it's it's crazy when you start thinking about the information that you could have access to it.

Jason: 
[1:11:45] Yeah I did a project with a a large chain of of wine and alcohol stores and they they were too playing a clienteling solution and they wanted what,
I don't know if it's pop anymore but what used to be popular is this rfm scoring recency frequency monetization score for each customer how much stuff they buy how often they buy a valuable they are but they very specifically didn't want,
they wanted that to be a relative number they didn't want an absolute number because they they they didn't want customer seeing like how much gosh they were consuming for example.

[1:12:18] Which makes perfect sense.

[1:12:22] So where do you think all this is going is it like you see a further Evolution or do you see like is the main played just expand the footprint for the kinds of solutions are offering today or or are they experience is going to get even better.

Scot: 
[1:12:36] Like for me the hardest part of my career now is.
Sitting now inside retail and seeing all of this opportunity and wanting to go after all of it but also trying to stay focused right and so I look up I look at the stores as these massive opportunities to Pivot.
Cross at the thing I see across all of the returns I talk to Everyday is this shared Vision around the future of the store be coming.
Presenting experience center right and so what I push a lot of the retailers that I work with.
To think about is not just about improving their stories and allowing on the shower transactions but to try to build a location that customers would actually pay to go to,
that should be the bar you should be so awesome that it's feels like you're going to Disneyland or you know this place is like the Disney Store they like the Crayola Experience Store we actually have to reserve a spot to get in there,
cancel.
What I think is going to be the future the store is that they're going to be brand experience centers that will be so great that you actually people will stop criticizing stores and see them for what they really truly can be which is,
this really awesome fun way to experience brand whether or not you buy in those stores.
Doesn't really matter it's as long as there's a way to facilitate the transaction and connect it to that towards Branson somewhere.

Jason: 
[1:13:48] I think that makes perfect sense and all of that is going to be a great place to end it because it is happened again we've perfectly wasted an hour of our listeners time.

[1:13:59] So we certainly want to thank you for joining us and wish you all the best with to Apple you look forward to following a future success and just a reminder listeners are always welcome to continue the conversation on our Facebook page and for sure if you like Today's Show jump on iTunes and give us that that 5 star review,
we we greatly appreciate them and it's super important.

Scot: 
[1:14:23] Thank you so much I appreciate it thanks Allie.

Jason: 
[1:14:27] Until next time happy conversing.

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