CEO of ZALORA INDONESIAAnthony FungAnthony Fung

CEO of ZALORA Indonesia

The Growth of E-commerce in

Indonesia

2

Agenda

> WHO WE ARE

E-COMMERCE GROWTH & CHALLENGES

APP AS DRIVERS

305m+€48bn 1.3%610m+

€125bn 2.1%

277m+€63bn 5.9%

662m+€55bn 4.0%

ARGENTINA AUSTRALIA BAHRAINBELARUSBRAZILBRUNEICHILE COLOMBIAHONG KONGINDONESIA KAZAKHSTANKUWAITLEBANON

MALAYSIAMACAUNEW ZEALANDOMAN PHILIPPINES QATARRUSSIA SAUDI ARABIASINGAPORETAIWAN UAEUKRAINE

ZALORA IS PART OF GLOBAL FASHION GROUP,THE #1 FASHION PLATFORM IN EMERGING MARKETSWe are in a fashion market of over € 310

billion, targeting a population of > 1.8 billion.

38m+€18bn 10.4%Population

Fashion Market

Online Fashion Penetration

ZALORA IS #1 FASHION DESTINATION IN SEA

HONG KONG

SINGAPORE

MALAYSIA

TAIWAN

INDONESIA Facebook : 1.3 M fansInstagram: >180k followersGoogle+: >530 k followersTwitter : >66k followers

PHILIPPINES

We are the #1 fashion online website in 6 markets with 31M visitors

ZALORA HAS A BROAD AND LOYAL CUSTOMER BASE ACROSS ITS MARKETS

5

Love fashion and

curated content

S h o p o n l i n e f o r c o n v e n i e n c e &

s e r v i c e

60% Female40% Male

18-45 age range with concentration in 25-35 age group

(Young professionals)

I n c o m e l e v e l s s p a n

Fr o m m i d d l e c l a s s

a n d a b o v e

S h o p o n - t h e -g o

t h r o u g h m o b i l e

w h e n o ffl i n e s h o p s a r e

c l o s e d

*Pea k reven ue h o u r s f o r ZALO RA a re du r i ng o ffic e h o u r s a n d a t n i g h t be t wee n 9p m a nd mi d -n i gh t

ZALORA CARRIES MORE THAN 1,000 BRANDS

We offer more than 1,000 brands – a full spectrum of price ranges and styles. Our brand portfolio consists of the most desirable international brands, the most relevant local brands, and our private label brands (ZALORA, Something Borrowed, ZALIA, 24:01) that are already achieving regional success.

7

Agenda

WHO WE ARE

> E-COMMERCE GROWTH

& CHALLENGES

APP AS DRIVERS

ZALORA TAKES ADVANTAGE OF SOUTH-EAST ASIA’S AMAZING POTENTIAL FOR FASHION E-COMMERCE

Sourcec:CLSA, Euromonitor,iResearch, US Dept of Commerce

Google says by 2025, Indonesia will dominate 52% of all ecommerce activity in Southeast Asia.

0

10

20

30

40

50

60 Total Online Retail Sales Growth, 2015

Countries

%

32

12.12.12

ZALORA and 6 other e-

commerces

12.12.13

12.12.14

12.12.15

12.12.16

22 e-commerces

78 e-commerces

140 e-commerces

208 e-commerces

12.12 HARBOLNAS – THEN AND NOW

The increasing number of e-commerce participants

each year during Harbolnas indicates how

Indonesian E-commerce has been growing significantly

since 2012.

ZALORA TACKLES CONSUMERS’ FEARS OF SHOPPING ONLINE

10Zero tolerance for counterfeits and fake discounts

Zero tolerance for counterfeits and fake discountsCOD, Credit Card SecuredPickup Scheduling, PT Pos30 Days free return with pickupNo personal data sharing60% in-house delivery90% Customer satisfaction30 Days free returnIDR Transactions exclusively

Product quality (e.g. counterfeit)Payment

SecurityComplicated return of goods policiesLack of physical touch and feel of

the item to buyPersonal information being tracked and shared

Late in deliveryEfficiency of customer

serviceTendency to overspendPurchase price in

foreign currency 6%

8%

10%

10%

14%

17%

20%

51%

73%

Source: Macquarie report

11

Agenda

WHO WE ARE

2015 HARBOLNAS FINDINGS

>APP AS DRIVERS

OUR APPLICATION AS MAIN DRIVERS

ZALORA APP as the highest source of transaction with more than >70% of ZALORA customers shopping through the app that has >6m downloads .

2013 2015 2016

We launched our app

Our app generated sales from 20% to

65% with 5,000,000 downloads

Our app generates over 70% of sales

ZALORA strives to better our app

• Personalized content based on user account's shopping and browsing behavior

• Magazines with new content published frequently• Trend / style videos, which will be utilized much

more going forward• Orders status and history tracking feature • Enable customers to share products with friends

through social media• Fashion content discovery through styling videos

and magazines• Optimizing app layout for ZALORA customers using

A/B testing

New App Look

Thank you