Asia’s leading online fashion destination

Kinnevik Capital Markets Day
Berlin, May 22nd
Disclaimer
2 Strictly confidential
Overview of ZALORA Group
The information contained in this presentation is public information only, but it does not necessarily represent all information related to the issues
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Key Facts
• Addressing a fashion market of 600M people in
South East Asia and Australia, worth Eur 60B+
3
• Pan-regional approach, localized service
• Customer-first approach: next day delivery, easy
free returns, approachable customer service
• 1.5M+ customers served to date
• 1M+ items shipped in the last two months
• Top Global Brands + Private Label
ZALORA Targets the EUR 60Bn+ Fashion Market and 600 Mn
Potential Customers in South East Asia and Australia…
4
Fashion Market – EUR 70 Bn in 2014
Population by target market
Indonesia
247 Mn
70
66
63
59
55
51
+7%
2016
2013
2012
2011
2015
2014
Source: Industry Research
EUR Bn
Philippines
96 Mn
Vietnam
88 Mn
Thailand
67 Mn
Malaysia
30 Mn
Australia
23 Mn
Hong Kong
7 Mn
Singapore
5 Mn
NZ
4 Mn
...Where the Number of People with Internet Access is Already
Huge and is Growing Very Fast
5
Source: Industry Research
0
10
20
30
40
50
60
70
80
90
2004 2008 2012 2000
Malaysia
Thailand
Indonesia
China
Australia
Vietnam
Singapore
Italy
Philippines
United States
Hong Kong
Monthly active Facebook
Users – (Mn people) Internet users – (per 100 people)
7
11
13
13
19
30
48
Vietnam
Philippines
Indonesia
Malaysia
Thailand
SG + HK
Australia
Global
Ranking (#)
#4
#8
#13
#19
#21
#22
Who We Are
ZALORA is filling the
online-fashion gap
that exists in Asia
Pacific and is
redefining how high-
street fashion is
accessed in this part
of the world
We provide
affordable high-
street fashion that is
not readily available
to offline shoppers
in emerging markets
6
7
ZALORA’s Shops are Simple and Stylish and leave the Centre of the
Stage to the Products on Catalog
Our Pan-Regional, Localized Model Offers Strong, Defensible
Competitive Advantage Along the Full Value-Chain
• Local Cash on Delivery set-up
• Localized payment methods
• Scale to negotiate with Credit
Card partners Assortment
Marketing
and onsite
8
• Localized web Pages
• Strong online and offline
local presence
• World-Class team
Payment
Logistics
and
delivery
Customer
Service
• Local and Global Brands
• Scale allows us to design
and manufacture high
quality private label at
affordable prices and good
margins
• Local Warehouse for next-day
delivery in all capital cities
• Easy and fast return service
• Local Language
• World-Class infrastructure
9
1.6 Million Customers Served since launch;
Customer served grew 135% in last year!
Total Customer Base (Million #)
• 70% Female
• 30% 18-24 years old
• 45% 25-35 years old
1.6
0.7
+135%
End of Q1 2013 End of Q1 2014
10
ZALORA’s Marketing Created a Leading Brand in 2 Years
Approach
• Budgeting based on Customer
Acquisition Cost /Customer
Lifetime Value targeting
• Editorial Content
• Increasing Focus on Branding
and Positioning
• Mobile as a Key Channel
• 4.8M Facebook fans
• 6M+ Newsletter Subs.
• 17M+ Monthly Visits
• 33% of Visits from Mobile
1) All data as of March 2014
An Appealing Product Offer at Affordable Pricing is the 1st Pillar
of ZALORA’s Success
Beauty
Other
3%
13%
Male Footwear
10%
6%
Female Footwear
7%
20%
Female Apparel
39%
2%
Sports
Male Apparel
Accessories
1) Data as of March 2014
Sales by Category
(1)
Selected Brands
11
12
Private Label is a Key Pillar of ZALORA’s Strategy, Today
Representing 1/3 of Sales
Private Label
Brands
Q1 2014
32%
68%
Q1 2013
21%
79%
ZALORA Group Sales Mix % Private Label Brands
13
We Have Built Scalable Operations Across the Region
(1)
Logistics
Customer
Service
Payment
Production
Set Up Key Results
• 7 Warehouses
• More than 100 Riders
• ~500k items shipped in April
• 2.3 days average delivery time
• >30% w/own fleet in SEA
1) Data relate to March 2014; 2) orders (or items) shipped within 24 hours of receiving the pick request or receiving the cross docked items / total orders (items)
within period; 3) excluding contractors
• 7 CS Centres
• 150 CS Agents
(3)
• World-class quality
• Capacity: up to 1,800 SKUs per day produced
• Cash on
Delivery
• Paypal
• Regional Production in KL
• Local Studios
• 23 photoshooting Studios
• Credit
Card
• Local
systems
• More than 160k contacts managed per month
• 93% of calls answered in 20 seconds
• Up to 90% CoD in emerging Countries
IT Infrastructure Built to Perform and to Scale
14
ALICE
Desktop
Mobile
Analytics
S
e
a
r
c
h
BOB
Orders, Customers,
Suppliers,
Pricing Data
P
r
o
d
u
c
t
s
C
o
n
t
e
n
t
Redcat (on Redshift)
Bob replica for data
mining
„Responsys“
Customer Relationship
Management System
„Netsuite“
ERP System
BOB – OMS Sync
BOB Data Feed ERP
BOB Data Replica
OMS Data Feed ERP
„ZOPS„ + „OMS“
PO/Order/Warehouse
Management System
A Strong Leadership Team at the Helm of the Company
15
Responsible for Operations, IT
• McKinsey & Co., Synergo Private Equity
• Holds an MBA from Columbia Business School
Responsible for Purchasing
• McKinsey & Co., Munich and Singapore
Responsible for Marketing
• McKinsey & Co., Synergo Private Equity
• Holds an MBA from MIT Sloan
Responsible for Marketplace
• McKinsey & Co.
• Holds an M.Sc. From Harvard University
Responsible for Finance, Business Intelligence,
HR
• Goldman Sachs, Viet Thai International
• Holds a BA from Duke University
Manages Australia & NZ
• Groupon, Boston Consulting Group
• Holds an M.Sc from Purdue University
Responsible for Private Label
• Inditex
• Holds an MBA from INSEAD
MICHELE FERRARIO
HARRY MARKL
MAGNUS GRIMELAND
PATRICK SCHMIDT
TITO COSTA
COOPER MCGUIRE
AVNI PUNDIR
ZALORA Is Backed by Blue-chip Global Investors
16
Selected Investors
• Clear leader in a very large, growing market
• Strong relationships with best high-street
fashion brands
• Private label at the core of our assortment
• Delivering outstanding customer experience
17
What to Remember about ZALORA

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