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ZAPPOS.COM

DELIVERING
HAPPINESS

DOWNTOWN PROJECT
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
1999-Today: Zappos.com, Inc.
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
1999-Today: Zappos.com, Inc.
2009: Amazon acquires Zappos for $1.2 billion
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
1999-Today: Zappos.com, Inc.
2009: Amazon acquires Zappos for $1.2 billion

2010: NYT bestseller Delivering Happiness published
The Power of WOW
Gross Sales $MM

$1,000

800

600
400

200

„00

„01

„02

„03

„04

„05

„06

„07

„08
CLOTHING, CUSTOMER
SERVICE, CULTURE

CULTURE

CUSTOMER EXPERIENCE

CLOTHING
CLOTHING
CUSTOMER
SERVICE
CULTURE
CLOTHING, CUSTOMER SERVICE,
CULTURE

CULTURE

CUSTOMER EXPERIENCE

CLOTHING
DELIVERING
HAPPINESS
CUSTOMERS & EMPLOYEES
“People will forget what you said.
People will forget what you did.
But people will never forget
how you made them feel.”
-MAYA ANGELOU
WHAT‟S
NEXT

DELIVERING HAPPINESS
Clothing
Customer Service
Company Culture

“a great brand is… ______”
ZAPPOS.COM

http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
LAS VEGAS CITY HALL

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
LAS VEGAS CITY HALL
LAS VEGAS CITY HALL
APPLE

http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
NIKE

http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
GOOGLE

http://static.panoramio.com/photos/original/400729.jpg
DOGGY DAY CARE

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
NYU CAMPUS

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
DOWNTOWN VEGAS
FREMONT EAST

http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
DOWNTOWN VEGAS
FREMONT EAST

http://www.lucyvegas.com/sites/default/files/griffin5.jpg
DOWNTOWN VEGAS
FREMONT EAST
DOWNTOWN VEGAS
FREMONT EAST

http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
DELIVERING
HAPPINESS
WHAT‟S NEXT?
Clothing
Customer Service
Company Culture
DELIVERING
HAPPINESS
WHAT‟S NEXT?
Clothing
Customer Service
Company Culture
Community
DOWNTOWN PROJECT

COLLISIONS
CO-LEARNING
CONNECTEDNESS
DOWNTOWN PROJECT
$350M
$50M – Small businesses
$50M – Tech Startups
$50M – Education, Arts, Culture
$200M – Real Estate
THE BIG BET

Accelerating
Collisions, Co-Learning, and Connectedness
THE BIG BET

Accelerating
Collisions, Co-Learning, and Connectedness

…will lead to…
Happiness, Luckiness, Innovation, and
Productivity
ROI
VS

ROC
Instead of maximizing short-term ROI
(Return On Investment)…
ROI
VS

ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
ROI
VS

ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Collisions)
ROI
VS

ROC & ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Collisions)
and institutionalizing ROL
ROI
VS

ROC & ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Collisions)
and institutionalizing ROL
(Return On Luck) – Accelerating Serendipity
DOWNTOWN PROJECT
$350M
$50M – Small businesses
$50M – Tech Startups
$50M – Education, Arts, Culture
$200M – Real Estate
$50M SMALL BUSINESS
$50M SMALL BUSINESS
Criteria
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
Helps Promote Collisions
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
Helps Promote Collisions
Execution Ability
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
Helps Promote Collisions
Execution Ability
Sustainable
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
Helps Promote Collisions
Execution Ability
Sustainable
Unique or First or Best at Something
$50M SMALL BUSINESS
Criteria
Owner Operated - Passionate
Helps Promote Collisions
Execution Ability
Sustainable
Unique or First or Best at Something
Story-worthy
NATALIE
NATALIE
NATALIE
NATALIE
NATALIE
NATALIE
CHECK CASHING
CHECK CASHING
SARAH
SARAH
SARAH
SHIPPING CONTAINERS
SHIPPING CONTAINERS
CONTAINER PARK
CONTAINER PARK
CONTAINER PARK
CONTAINER PARK
LVCK
LVCK
LVCK
MEDICAL CLINIC
$50M TECH STARTUPS
$50M TECH STARTUPS

https://twitter.com/VegasKramer/status/330833896574951424/photo/1
$50M TECH STARTUPS
PROJECT 100
PROJECT 100
COWORKING

https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=523b8f7211d2d802c3ba1d40
COWORKING

https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=5196bb0f498eb4bdee4082f1
LEARNING VILLAGE
LEARNING VILLAGE
LEARNING VILLAGE

https://foursquare.com/v/learning-village/51c4ebf5454a6e38af8a9e85/photos?openPhotoId=51e08991498efac3d12b7387
GOLD SPIKE (FORMER CASINO)

http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7VVqSMlA#vPAm4TwFWc3kw_lM9NJzfQ
GOLD SPIKE (FORMER CASINO)

http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7VVqSMlA#uSzsFfdBhPok_sfEpJk-7Q
GOLD SPIKE COWORKING
LOUNGE
GOLD SPIKE COWORKING
LOUNGE

https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=51f18e5d498eb74dd6fc3edf
GOLD SPIKE COWORKING
LOUNGE

https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=52099aef11d226362f7930d9
GOLD SPIKE COWORKING
LOUNGE
CITY AS A STARTUP

http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
CITY AS A STARTUP

http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
CITY AS A STARTUP
$50M
EDUCATION, ARTS, CULTURE

http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
$50M
EDUCATION, ARTS, CULTURE

http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
$50M
EDUCATION, ARTS, CULTURE

http://photos.lasvegassun.com/media/img/photos/2013/08/27/0827NinthBridge13_t653.JPG?214bc4f9d9bd7c08c7d0f6599bb3328710e01e7b
$50M
EDUCATION, ARTS, CULTURE
$50M
EDUCATION, ARTS, CULTURE

http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
$50M
EDUCATION, ARTS, CULTURE

http://mikerossart.net/images/mikeross_enter.jpg
$50M
EDUCATION, ARTS, CULTURE

http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
$200M REAL ESTATE
WHEN CITIES DOUBLE IN
SIZE
Productivity and innovation per resident
increases by 15%
(But not true for companies)
Accelerate serendipity > Accelerate learning
>
Accelerate productivity and innovation
3 INGREDIENTS FOR
SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to collide
3. Culture of
openness, collaboration, creativity, and
optimism
HOW TO ACCELERATE
LEARNING & INNOVATION
Maximize serendipitous interactions
Density in the office

Density in the city
Collisions vs. convenience
LAS VEGAS CITY HALL

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
DIVERSITY + DENSITY
1.
2.
3.
4.
5.
6.
7.

Zappos employees
Tech Startup Community
Small Business Community
Fashion Community
Art and Music Communities
Other Passion Communities
Local Residents
OUR SECRET WEAPON

http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
LEARNINGS FROM
TED, SUMMIT
SERIES, SXSW, BIF…
Curated Content
Serendipity
Learning
Connections
Community
DOWNTOWN VEGAS
EVERY DAY
Curated Content
Serendipity
Learning
Connections
Community
Fremont St. & Las Vegas
Blvd.
Fremont St. & Las Vegas
Blvd.
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
DOWNTOWN VEGAS
MONTHLY CADENCE
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week
FASHION INCUBATOR
STITCH FACTORY
FASHION INCUBATOR
STITCH FACTORY
RETURN ON
COLLISIONS
ROC
What is the value of a resident that is out
and about in the neighborhood?
RETURN ON
COLLISIONS
ROC
What is the value of a resident that is out
and about in the neighborhood?
3-4 hours/day
RETURN ON
COLLISIONS
ROC
What is the value of a resident that is out
and about in the neighborhood?
3-4 hours/day
x 7 days/week
RETURN ON
COLLISIONS
ROC
What is the value of a resident that is out
and about in the neighborhood?
3-4 hours/day
x 7 days/week
x 40 weeks/year
RETURN ON
COLLISIONS
ROC
What is the value of a resident that is out
and about in the neighborhood?
3-4 hours/day
x 7 days/week
x 40 weeks/year
= 1000 “collisionable” hours/year
JAKE – FLINT & TINDER

http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-Itb.jpg
JAKE – FLINT & TINDER
RETURN ON
COLLISIONS
ROC
What is the value of a purposeful visitor that
contributes to community?
RETURN ON
COLLISIONS
ROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
RETURN ON
COLLISIONS
ROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
RETURN ON
COLLISIONS
ROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
RETURN ON
COLLISIONS
ROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
= 1000 “collisionable” hours/year
RETURN ON
COLLISIONS
ROC

“SUBSCRIB
E”
RETURN ON
COLLISIONS
ROC
1. 100 residents per acre

2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism
RETURN ON
COLLISIONS
ROC
1. 100 residents per acre

2. Street-level activity for residents to
collide
3. Culture of
openness, collaboration, creativity, an
RETURN ON
COLLISIONS
ROC
100,000
RETURN ON
COLLISIONS
ROC
100,000 “collisionable”
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
per
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
per acre
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
per acre per
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
per acre per year
RETURN ON
COLLISIONS
ROC
100,000 “collisionable” community hours
per acre per year

2.3 COLLISIONABLE
HOURS
PER SQUARE FOOT
THE BIG BET
3 GUIDING PRINCIPLES
Accelerate:
1. Collisions
2. Co-Learning
3. Connectedness
And everything else will fall into place…
(productivity, innovation, growth, happiness)
What will people say about downtown?
ZAPPOS, DELIVERING
HAPPINESS, DOWNTOWN
PROJECT
50% OF HUMANS LIVE IN
CITIES

https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
75% WILL LIVE IN CITIES IN
OUR LIFETIME

https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
THE 4 MINUTE MILE
THE 4 MINUTE MILE
A GREAT
BRAND

is a story that never
stops unfolding.
A GREAT
BRAND, COMPANY

is a story that never
stops unfolding.
A GREAT
BRAND, COMPANY, CITY

is a story that never
stops unfolding.
A GREAT
BRAND, COMPANY, CITY, COMMU
NITY

is a story that never
stops unfolding.
THANK YOU!
For a copy of this presentation:
tony@zappos.com
For more information:
www.downtownproject.com

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