Roadshow Presentation

Transcription

1 Roadshow Presentation September To make brands successful in e-commerce

2 We Are the Market Leader in Brand E-Commerce Solutions in China Largest brand e-commerce solutions provider, with 20% market share (1) Leading Global Brand Partners Across 8 Categories Apparel Appliances Electronics Home End-to-end solutions with omni-channel capabilities 99 brand partners (2) Food & Health Cosmetics & FMCG Insurance Auto RMB1,215MM GMV (3), up 84% yoy Our Mission is to Make Brands Successful in E-Commerce 2 Notes: Exchange rate used: 1 USD = 6.2 RMB as of June 30, Source: iresearch. Based on China s total brand e-commerce solution provider market size of RMB26 billion (US$4.2 billion) in terms of transaction value in As of June 30, For the 3 months ended June 30, Gross merchandise volume, includes value added tax and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of the goods that are returned and (iv) deposits for purchases that have not been settled.

3 Huge Market Opportunity in Brand E-Commerce China Brand E-Commerce (1) Represents Only 3% of Total Retail Consumption in 2014 Showing High Growth Potential (China Brand E-Commerce Market Size, US$ BN) 379 US$4.3Tn Retail Consumption 129 US$445Bn Online Shopping US$129Bn Brand E-Commerce (1) % of B2C % of Online Shopping E 2017E 35% 60% 69% 5% 29% 42% Source: iresearch 3 Note: Exchange rate used: 1 USD = 6.2 RMB as of June 30, Brand e-commerce defined as B2C e-commerce conducted through official brand stores or official marketplace stores

4 Why Brands Come to Baozun How to define my China e-commerce strategy? Where to start - which channels and execution roadmap? How to connect with Chinese consumers? How to integrate my China e-commerce IT platform with my global system? Questions Faced by Brands Interested in China E-Commerce What about online merchandising, warehousing and fulfillment? How to do digital marketing and CRM? How to do omni-channel? 4

5 We Bridge Brands to Consumers End-to-end Solutions Across E-Commerce Value Chain IT Solutions Store Operations Digital Marketing Customer Service Warehousing & Fulfillment Brands Brands Consumers Consumers Official Marketplace Stores Official Brand Stores Mobile O2O Omni-Channel Penetration 5

6 Why Brands Value Us Solid Sales Result Better Consumer Engagement $ Cost Efficiency and Scalability Robust Technology Infrastructure Omni-channel Capabilities Expertise for Local Complexity in China Our Success Cases Pioneer luxury brand in China e-commerce Omni-channel experience Highly synergistic relationship for 7 years Leading global sportswear brand across geographies 6

7 Our Business Model A Service Fee Model Services Revenues IT Solutions Store Operations Digital Marketing 4 Customer Service B Consignment Model Services Revenues 5 Warehousing & Fulfillment C Distribution Model Product Sales Revenues Inventory Ownership 7

8 Key Investment Highlights Leader in Brand E-Commerce Solutions Seamless Omni- Channel Experience Proprietary Technology Operational and Fulfillment Capabilities Insightful Digital Marketing Experienced Team 8

9 1 Leader in Brand E-Commerce Solutions in China No.1 Market Share in China (1) Why Are We Better Than Others? Highly Fragmented >1,000 players The Go-to Brand E-Commerce Solutions Provider in China 20% First mover with the most experiences Seamless omni-channel experience Robust fulfillment infrastructure and capabilities Integrated proprietary e-commerce technology infrastructure Trusted partnerships with 99 global brands (2) 9 Note: 1. Source: iresearch. Based on China s total brand e-commerce solution provider market size of RMB26 billion (US$4.2 billion) in terms of transaction value in As of June 30, 2015

10 2 Seamless Omni Channel Experience Official Mobile Store Platform Official Brand Store Platform WeChat Store Platform Browser CHANNELS WeChat TOUCH POINTS Consumer Marketplace Store Integration Telephone SMS Notification Call Center Platform Offline Store POS System In-Store Service Back-end SCM Platform Membership Product Price Promotion Inventory Cross-Channel Integration 10

11 2 Seamless Omni Channel Experience (cont d) Product Listing & Inventory Sharing Online to Offline Traffic Sharing Offline to Online Traffic Sharing Unified Product Detail & Centralized Inventory Sharing Place the order online Product delivered at the door Other channels Official Brand Store Scan the QR code in offline store to place an order online Collect or return the product in offline store 11

12 3 Scalable and Reliable Proprietary Technology Brands Marketplaces Digital Assets System Brand Enterprise Resource Planning Seamless Integration Offline Store POS System Third-Party Systems Open Interface / Others Logistics Vendor Systems Warehousing Systems Payment Gateways Efficient End-to-end System Compatibility Enabling Higher Throughput Designed for Scalability & Reliability 12

13 4 Comprehensive Store Operations Capabilities Digital Asset Management Content Management Merchandising Tools and Real-time Inventory Allocation Digital Analytics Marketing Execution Services Product image management Site authoring Assortment planning Regular reporting Event design Product description management Copy writing Cross-store inventory allocation Ad hoc analytics Event execution Product page design optimization Site structure management Inventory replenishment Data tracking Results analysis T C A R raffic onversion verage order size epeat purchase 13

14 4 Dedicated and User-Centric Customer Services Design for Local Communications Dedicated Teams for Each Brand Partner 9am to 10pm everyday 362 days a year Deep Brand Knowledge Base Brands Joint Training Sessions Baozun-Developed Product Handbook Internal Knowledge Sharing 14

15 4 Proven Warehousing and Fulfillment Infrastructure Category-tailored Warehouses Best-in-Class Fulfillment Capabilities 6.8MM annual orders fulfilled (2) 150K inbound pieces per day (1) 350K outbound orders per day (1) 7 self-operated warehouses with aggregate GFA of 91,000 sqm (1) Partnership with Leading Logistics Services Providers Platinum Client Status + Integrated Delivery Tracking System Premium Service One of SF Express Top 10 Customers in China (3) Geographic Coverage Next Day Delivery in over 100 Cities Cost Efficiency Volume Discounts & Quality Assurance 15 Note: 1. As of June 30, For the 12 months ended June 30, According to SF Express

16 5 Robust and Insightful Digital Marketing Traditional THE BAOZUN WAY Search Engine Marketing Media Services Search Engine Optimization Performance-based Creative Services Customer Relationship Management Affiliate Marketing Community Marketing Individual Service Individual Service Individual Service Individual Service Valuable Transactional Data and Analytics Continuously Enhancing and Evolving Closed-loop Digital Marketing Services 16

17 6 Visionary Team with Deep Industry Knowledge Brand-oriented Passionate and visionary Service and technology-driven culture Diverse and complementary backgrounds Vincent Qiu CEO and Cofounder Junhua Wu COO and Cofounder E C E C E C E C [insert pic] Tony Wu CTO Aaron Kwok VP, Appliances and Electronics B C Vicky Lu Senior VP Alex Shi VP, BD/PR B [insert pic] Beck Chen CFO Nicolas Zurstrassen Senior VP, Marketing Ji Zhou Head of HR and Corporate Strategy B C B E C rand, B E C ommerce 17

18 Our Growth Strategies 1 Deepen our Existing Relationships with Brand Partners 3 Enhance our 2 Strengthen our Fulfillment Data Analytical Capabilities Expand and Capabilities Optimize our Brand Partners Portfolio Extend our Geographical Reach in Asia A O Z U N B Grow our Closeout Retail Platform Maikefeng 18

19 Financial Highlights Income Statement Summary In RMB million 2014 Q Q Q2 YoY GMV , , % Total revenues % Non-GAAP operating profit (1) % Non-GAAP OP margin 2.1% 1.8% 2.3% Adjusted non-gaap net income (1) (2) % Adjusted non-gaap net margin 2.2% 2.0% 2.5% Note: 1. non-gaap numbers that exclude share-based compensation expenses. 2. Adjusted non-gaap income is adjusted with investment loss and share based compensation 3. As of June 30, 2015, cash and cash equivalents was RMB890.8 million. 4. For the quarter ended June 30, 2015, net cash provided by operating activities was RMB26.4 million. 19

20 THANKS! 20 To make brands successful in e-commerce