Asias 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
discussed or presented herein, or all views of the company. The information has been researched by the company with due care and all and any evaluations
or assessments stated herein represent the companys opinions. We advise you that some of the available information has been independently verified and
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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
ZALORAs 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
ZALORAs 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 ZALORAs 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 ZALORAs 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