Mobilising

Wireless Retail
Marcelo Claure

28 February 2012 1
Who is Brightstar?

 Brightstar is the world's largest wireless

distribution company and a leading global services
company to the wireless industry

 We run the wireless supply chain for some of the

world's leading operators and retailers in the
world
2
What does Brightstar do for mobile retail?
 We run and manage many operator,
company-owned stores around the world
 We run the wireless category at many of
the world's leading big box retailers
 We run the .com business for the world's
largest retailer
 We are opening up a retail chain with
Jennifer Lopez focused on the Hispanic
market in the U.S.
 We ship our products to tens of thousands
of specialized wireless retailers around the
world
(ranging from table cloth outlets to
Phones4U or Best Buy Mobile) 3
The mobile retail ecosystem is changing
Retail has expanded beyond the traditional in-store
shopping experience…

BRICK &
MORTAR ONLINE MOBILE

4
Mobile consumers want to shop differently…

• Research product & plans In-Store Pick Up

• Start a transaction online
• Get credit approved

OR

Buy it online…WHERE
• Touch and feel the devices in-store MANY TIMES IT WILL
• Chose device & rate plan BE CHEAPER 5
Retailers need to act & think differently

Online
Interface

Retail 2.0 –
a seamless customer experience across multiple-channels and touchpoints 6
 What does that mean?
Mobile consumers are shopping
17 % visited more across channels
than one channel
54 %
7%
3%
4%

51 %

17% Visited More than One Channel

Source: 2011 ForeSee E-Retail Satisfaction Index for US Holiday 7
NRF – Managing Forward: Analytics to understand the Multi-channel and Multi-device customer. Larry Freed
 And the New Mobile Retail
Environment is Getting Heated

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Practices are bordering on the unethical

Is Best Buy becoming the Amazon Store Front? 9

Reaching a point of desperation for some

"What we aren't willing to do is let

online-only retailers use our brick-and-
mortar stores as a showroom for their
products and undercut our prices
without making investments, as we do,
to proudly display your brands," reads
the letter, signed by the retailer's CEO
and its Executive VP of Merchandising.
Gregg W. Steinhafel
Chairman, President & CEO
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With an unfair playing field

In the U.S. brick and mortar retailers are at a distinct

disadvantage because e-tailers do not pay sales taxes
but brick and mortar retailers do
$500 phone @ 7% = $35 11
Who is doing it right?

Apple Gets It 12
It did not start out smoothly
"Sorry Steve, Here's Why Apple Stores Won't
Work," BusinessWeek wrote with great certainty in 2001.

"It's desperation time in Cupertino, Calif.," opined TheStreet.com.

"I give [Apple] two years before they're turning out the lights on a very painful and
expensive mistake," predicted retail consultant David Goldstein. 13
But the challenges led to opportunities
In 2001, Apple had just four products
to fill the 6,000 sq. ft. stores, but what
seemed to be a challenge, ended up
being the ultimate opportunity.
“Because we don't have enough
products to fill a store that size, let's
fill it with the ownership experience:
Genius Bars, theaters, and face-to-
face help and friendly people. We had
a liberty that most retailers that are
overstuffed with products don’t have.
They just don't have the space to
innovate.“

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Ron Johnson, 2006
The results are tremendous
A “computer company” took wireless by storm and has become the
world’s most profitable retailer…
$4000 sq/ft

$2700 sq/ft
Was the gold standard

$1000 sq/ft

$400 sq/ft

$300 sq/ft

...and the world's most profitable OEM in wireless making 75% of

the industry's gross profit
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What do you get with Apple
Apple provides a seamless consumer environment across retail, online, and
mobile all transacting on one common platform
called iTunes…

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How does Apple do it…
Personal Pick Up Service
 Apple let its customers order online, pick up at a local store in
12 minutes, and even pay via their iPhone.
 If a item isn't in stock, you are sent a pickup date notice after
the order completes and then receive another alert when it
reaches
the store.
 People who opt for the in-store pickup option are given
priority over other customers, allowing them to cut to the
head of the line to grab their item.
 Unhappy buyers are able to return items bought online to the
retail store.
 And you can even buy some of the products (like accessories)
from your iPhone or iPad pick up your product in-store and
even leave… all without needing to speak to anyone
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And around the corner
there are more
complexities…

Connected
Devices
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Connected Devices are Driving Complexities
2012
Hyper-
connectivity

 More Products
 More Functionality
 More Applications 19
Retailers need to Start Asking Questions
 How are we going to sell
wireless refrigerators or washer
dryers or even home security
system?
 How do we bundle product
offerings or sell products
separately when everything is
connected?
 How do we manage inventory
and optimize the supply chain?
 How do we train our
sales people? 20
And we haven’t even covered
the world of services…

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Consumers are Demanding Services…
 Buy back and trade in services to capture the
residual value on their devices like iPhone or
iPads
 Insurance to protect their increasing expensive
and complex devices
 Mobile security to protect their private
information across multiple devices
And mobile retailers have to offer these
services to consumers 22
So what does tomorrow look
like for mobile retailers?

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Conclusions
 Mobile retail is changing into a
multi-channel environment
where consumers can shop
seamlessly across many
different touch points
 The introduction of more
connected devices will drive
significant complexities
 Consumers are requesting more
services from mobile retailers
and they will have to deliver
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