
Startups are Changing the Way We Shop. Mobile, Online and In-Store Shopping are Quickly Converging According to New Research from Architect Partners
PALO ALTO, Calif., Dec. 1, 2011 /PRNewswire/ -- The way we shop is rapidly being influenced by scores of innovative young companies who are helping retailers, brands and consumers fundamentally reshape how goods and services are bought and sold. Architect Partners LLC, the M&A advisory firm exclusively focused on Internet, mobile and digital media clients, today published "The Evolution of Shopping".
"Shopping is at the early stages of profound change," according to Eric Risley, Managing Partner of Architect Partners. "Our newest report, The Evolution of Shopping, highlights why this evolution is happening, offers a framework to describe a very complicated ecosystem and features some of the most innovative companies making things happen."
"Retailers and brands are leveraging these changes to devise and implement strategies that are more consumer-centric. An entire infrastructure is emerging to support their efforts," according to Dr. Phil Hendrix, Director of IMMR, a research consultancy and contributor to The Evolution of Shopping.
"We stepped back to the fundamentals to help us understand the innovation we're seeing," explained Steve Payne, Partner with Architect Partners. "We crafted a seven step framework describing how products are bought and sold. We then mapped over 300 companies against this framework."
According to the U.S. Census Bureau, U.S. retail sales exceeds $4 trillion annually. Much of this spending is likely to be influenced by this evolution. Incumbent suppliers to retailers and brands such as SAP, Oracle, IBM, Microsoft, NCR, Epicor, Visa, Mastercard, American Express and many others have major stakes in the outcome. Competition is beginning to emerge from a new set of competitors such as eBay, Amazon, Salesforce.com, Google and Apple. Many emerging companies will also be important disrupters.
"Marquee M&A transactions have already occurred within this area, according to Tom Brehme, Principal with Architect Partners. "I'd highlight eBay's M&A appetite which has included the acquisitions of Hunch, Zong, Magento, WHERE and GSI Commerce for a total of over $3 billion just in the past year. "We're aware of over 75 significant M&A transactions under the theme, evolution of shopping, announced since the beginning of 2010."
Entering the holiday shopping season tangible signs of this evolution are clear. IBM's Cyber Monday Report 2011, demonstrated online shopping continues to register strong growth, up 33% from 2010. Also, mobile device initiated purchases are beginning to become meaningful, representing 6.6% of Cyber Monday 2011 sales.
Access to The Evolution of Shopping presentation is available on Architect Partners' website at http://architectpartners.com/the-evolution-of-shopping/.
About Architect Partners LLC - insight-based M&A advisory
Architect Partners is a new breed of investment banking boutique focused exclusively on M&A advisory within the rapidly converging Internet, mobile and digital media sectors. Complementing Architect Partners' advisory efforts, AP frequently publishes strategy, sector and M&A research. Please visit www.architectpartners.com to sign up to receive our research.
Contact for further information:
Eric F. Risley
650.430.6446
[email protected]
SOURCE Architect Partners LLC
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