 2008 I took a trip around the world and as you can see here there's some beautiful mountains sticking out in fact you probably can see that this is Mount Everest this is on a flight over Nepal and as I descended I went into one of the most beautiful areas into Bhutan in the Himalayan mountains and I climbed up to 10,000 feet tiger's nest hanging in the walls the monasteries hanging in the walls of the mountain and there's I saw a few a few monks huddled around something and they were all looking at something I was wondering what are they doing and in the middle of that there was a mobile phone and they were buying ringtones and getting excited about that and then I went to the local market and they were selling their fresh goods and vegetables and there she was on her cell phone texting her friends and obviously also doing the next deals for the purchase of her vegetables so markets shopping influenced by mobile phones in a way never never before on the consumer side the monks and on the seller side in the vegetable market in Bhutan in the Himalayan mountains now back to the developed world we're leaving Nathan's world we're going into the into the developed world again and here we are beautiful mall a three trillion dollar market in the united states alone every year and yet a lot of things are happening here circuit city is being taken down on the left and borders is taken down on the right something very fundamental is happening because the beauty of all this mobile technology all this cool stuff all this online stuff is also unfolding its power on the not on the other side of the equation imagine a world let's be really provocative we're 50 percent of all shopping happens online that's going to take a long time some would argue much longer than others but imagine that world same-day delivery standard you get your stuff the same day you deliver you order it in the morning it's there in the afternoon what does that mean for retail for shopping what does it mean for consumers and for the people who run the stores so a lot of things need to change two things the first thing is the design of the store needs to change into a beautiful experience the other thing that needs to happen is a digital overlay on top of the physical world you can use mobile phones as the personal lens on the store we can't change much there the retailer needs to change the design of the store but we can change how we do put a digital interface we already know this from the physical world where you walk around and it tells you there is 15 percent off all bedroom furniture on sundays you get your newspaper this is how it looks you like to go through that beautiful isn't it so what if you could take all that stuff and actually turn it into a better experience something personalized where all of this goes into one phone into one experience and you look at it and it says welcome back Jenny welcome to the store and here are the things you've liked here the things you may like and by the way there's a special discount for you and maybe we can take this a step further and take all these coupons all this incredible amount of overload of information and turn it into something much more beautiful simple and actually economically better for the players involved a reward for you a chopkick we're actually rewarding you just for walking into the door you don't even need to buy anything but you have your phone with you so in other words it becomes a personalized experience the world changes where is this going in the future it goes even further apple announced this in this is apple and in june 2013 there was a word on the screen called ibeacons ibeacons is a sensor technology a broadcast technology to know you're actually inside the store this is one of them you stick them against the wall the battery lasts five years and every second for five years it sends a signal so when you walk into the store it says phobie welcome back to macy's you have a hundred liked items that you liked at home and 50 kicks are waiting here a reward and she walks in and here's the device do you see that and it sends a message to her phone that she's now here gps can't do that way too inaccurate so she walks in and then you can even walk around and it could say the same thing in the handbag department remember you like the handbag at home actually it's right here you may not want to forget that it shows it on her phone says welcome to the handbag department at macy's and there it is in reality so online meets offline and for the first time the offline world becomes an interactive experience truly personalized and if you take this further there is some scary and some amazing stuff going on faces can become interfaces in essence you become a person that is recognizable for machines for cell phones if you opt in of course it can go all the way the other way if you don't do it right but now you can personalize in a way where you just walk in and we know what's going on we know from butang there is interest in mobile shopping we also know from the western world and from the first world in the the developed world that there can be a lot of money made but also money a lot of money lost in the physical retail world so the question i want to ask you is in five years from now why would anybody want to go to a physical store anymore how can we make that a great experience something that actually is an amazing thing that is not just equal to online shopping but different and better in its own way so in the news with a new sense of technology how do you make that great in the physical world and i would argue the future of online is actually in offline