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Zalora IR Deck - May 2014

Zalora IR Deck - May 2014

Zalora IR Deck - May 2014

  1. 1. Asia’s leading online fashion destination Kinnevik Capital Markets Day Berlin, May 22nd
  2. 2. Disclaimer 2 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 company’s opinions. We advise you that some of the available information has been independently verified and may be based on statements by third persons, but no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. Certain statements contained herein may be statements of future expectations and other forward-looking statements that are based on our current personal views and assumptions and involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of our team shall assume any liability whatsoever (in negligence or otherwise) for any loss or unrealized profit whatsoever arising from any use of this presentation or the statements contained herein as regards unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained in the presentation, or otherwise made in connection with this presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any investment and neither this presentation nor any part of it shall form the basis of or be relied upon in connection with the entering into any commitment or contract whatsoever, and is solely intended to communicate information regarding the company, its business track-records and team members. No one should base their investment decisions on this presentation but should form their personal opinions on the basis of further available information and evaluations and assumptions. In addition, any prospective investor should consult its own attorney and business advisor as to the legal, business, and tax and related matters concerning any investment decision.
  3. 3. 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
  4. 4. 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
  5. 5. ...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 20122000 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
  6. 6. 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. 7. 7 ZALORA’s Shops are Simple and Stylish and leave the Centre of the Stage to the Products on Catalog
  8. 8. 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 partnersAssortment 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. 9. 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. 10. 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
  11. 11. 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. 12. 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. 13. 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
  14. 14. IT Infrastructure Built to Perform and to Scale 14 ALICE Desktop Mobile Analytics Search BOB Orders, Customers, Suppliers, Pricing Data ProductsContent 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
  15. 15. 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 UniversityResponsible for Private Label • Inditex • Holds an MBA from INSEAD MICHELE FERRARIO HARRY MARKL MAGNUS GRIMELAND PATRICK SCHMIDT TITO COSTA COOPER MCGUIRE AVNI PUNDIR
  16. 16. ZALORA Is Backed by Blue-chip Global Investors 16 Selected Investors
  17. 17. • 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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