i3 - July/August 2017 - 43

By Steve Smith

Business

R E TA I L ST R AT EG I E S

B8ta's CEO, Vibhu Norby,
Takes on Tech Retail

few years ago a software engineer developed an innovative
new product, but was frustrated when he was told he
couldn't use technology to simplify the way products sold
at retail. "This is how retailing works," he kept hearing. That software
engineer - Vibhu Norby, who created the Nest - is now looking
to change that as CEO of B8ta (pronounced "beta"). With former
Nest executives William Mintun, COO, and Phillip Raub, CMO,
Norby co-founded a new type of retail concept in 2015.
They decided it was time to provide better
solutions to small and large companies
launching new products and looking for
more control over their brands. "The transactional nature of a company selling a
product to a retailer and a retailer marking
it up - without the manufacturer having
any visibility or control of the marketing of
their products at retail - doesn't make
sense in today's world," says Raub.

The Strategy

So B8ta developed a data and software
business model using brick-and-mortar
locations to give consumers the ability to
touch, feel and play with new innovative
tech products. And get your head around
this: B8ta doesn't make money on the products it sells. This is a subscription-based
operation that has four brick-and-mortar
stores and departments in one major chain
so far. B8ta's locations include its original
1,400 square foot location in Palo Alto, CA.
Its stores range in size from 2,000 to 2,400
square feet in Santa Monica, Seattle and
its newest store in Austin, which opened
in May. A San Francisco outlet is opening
this summer and Lowe's SmartSpot,
which focuses on smart home products,
also uses B8ta technology.
The suppliers - which B8ta calls
"makers" - keep 100 percent of the
money on every sale. B8ta charges for
in-store space and services. "A maker
will pay for a display where they can test
pricing, different types of marketing
messages and upload content [for their
C TA . t e c h / i 3

are described as "Sense, Home, Play
and Move." B8ta carries up to 120 different products from 200 suppliers. Raub
says, "If you have a new product you are
eligible." The company's experience with
Lowe's SmartSpot departments has been
"very open because they were very nimble
to get products and utilize our technology,
so they were up and running quickly."
The first Lowe's SmartSpots opened in
Livermore, Burbank and Aliso Viejo, CA,
devices], which we provide through an
last November.
easy-to-use portal," says Raub.
B8ta is also working "to change the retail
Products are shipped to B8ta and manumentality to make it less transactional and
facturer representatives "are required to
more of a partner mentality," Raub says.
train our team as part of the ongoing pro"All the talk of brick-and-mortar dying is
cess. We have a highly knowledgeable staff
that can describe the attributes of the prod- a little overblown. B8ta's products are not
commodity based, but are
ucts," Raub notes. "For makunique items that you want
ers it is a learning curve and
to see, touch and feel. You
an opportunity to underB8ta is
have to have that discovery
stand if their products are
working to
[at a store] and try these
priced properly and if the
change the
products. They are all out of
content on their displays is
resonating with customers. retail mentality, the box, nothing is in packWe feel invested in making
making it less aging or behind glass. That is
them successful by coming
transactional part of the experience."
That experience may give
in and learning what's
and more
new life to brick-and-mortar
working and what is not,"
of a partner
stores, for B8ta and for those
Raub explains.
mentality.
retailers who decide to partThe four main categories
ner with the company.
that B8ta sells at its stores

JULY/AUGUST 2017

http://http:///b8ta.com http://www.cta.tech

i3 - July/August 2017

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