Integratedpla,ormforfashione-commerceinRussia&CIS_____________________________________________________________________________________PaulRogowski,SeniorDirectorLogisAcs

LAMODA

CasualandBasic

FashionandDesign

Exitprice

Entryprice

Highprice

Lowprice

Lamoda developed a balanced assortment with 1000+ brands per season

E-COM IN RUSSIA & CIS

Russia & CIS are large and highly attractive consumer markets with strong internet growth potential

POPULATION210mln

FASHION“HUNGRY”CONSUMERS

ONLINEPENETRATION

3-4%vs.10%+WEST

SOLIDBASKETS+50EUR

RUSSIA

KAZAKHSTANUKRAINE

BELARUS

Running e-commerce business in Russia requires a customized approach in e-commerce

Lackoftrustinonlineshopsduetolackofhumancontact

Outboundcalls:callcustomeraRerplacinganordertoconfirmitandgetaddiAonaldetails

RelaAvelycheaplaborinregionsofRussia/CIS

+ =

Preferencetopayinperson

Lowprevalenceofnon-cashtransacAons

Cashondelivery:customerdoesnothavetoprepayordereditems,paymentismadeondelivery

+ =

Wishtotrygoodsbeforepaying

LongleadAmesofreturns

Try-on&parWalrejecWon:customercantryonordereditemsandthenchoosewhattopurchase

+ =

Salesrepdelivery:fashionorienteddeliverybysalesrepsisamust,ideallyintegratedwfulfillmentinMOW

Postalservices&courierdeliverynotsuitableforfashion

PreferenceoverfasterleadAmes + =

Consumer’smindset Marketspecifics ImplicaWonfore-commerce

LAMODA OPERATIONS PLATFROM

We created a superior, fully integrated value chain with core competencies in-house

Expressdeliveryviasalesforce

DELIVERY

Highspeedfulfillment

FULFILLMENTCENTER

24/7availabilitywithhighservice

CALLCENTER

Fastandhighquality

E-PRODUCTION

Welldesigned,stablesoluAon

providingbestuserexperience

WEBDEVELOPMENT

OnlineandofflinepromoAons

MARKETING

High performance fulfillment center designed for efficient e-commerce operations

SUPERFAST,RELIABLEANDCOSTEFFICIENTFULFILLMENTCENTERASABASISFORTHEBEST-IN-CLASSLOGISTICSSTORAGEINBOUND OUTBOUND

99,98%STOCKACCURACYANDOPERATIONSQUALITY

CAPACITYUPTO8000000ITEMS

2,5hINAVERAGETOPROCESSORDERS

BRANDEDPACKAGINGFORBIGPARTNERS

ALLOWSSAMEDAYDELIVERYINMOSCOW,

NEXTDAYIN150+CITIESCYCLESTOCK-TAKING

EVERY2MONTHS

INBOUNDUPTO

240000ITEMSPERDAY

95%OFNEWARRIVALSANDTRY-ONREJECTIONSARE

AVIABLEONSITEIN24hTRY-ONRETURNSWITHQUALITYCHECKING,PRICELABELSCUTTING,ALARMANDHANGERSREMOVING,ETC

LMExpressCoverage-67%ofpurchasingpowerinCIS,

try-onopAoneverywherewhereLMEispresented

ExternalDeliveryCompanies-XDCCoverage–remaining33%ofpurchasingpowerinCIS

Lamoda last mile delivery includes both own infrastructure and network of external delivery companies

Lamodadelivery–100%ofpurchasingpowerinRUSSIA,BELARUS,KAZAHSTANandUKRAINE

UKRAINE

33% of value is shipped via selected partners under strict account management

RUSSIA BELARUS

KAZAKHSTAN

Through faster lead times and higher service level at moderate cost LM Express achieves higher Customer Lifetime Value1 (CLV)

IMPACT

DRIVERHigherservicelevel,

DIT ScalepotenAal Behergoodscontrol&transparency

Higherservicelevel,DIT

LowerRR&highernetsales

Comparablecostperorder

Fasterreturncycle&lesslostvalue

Higherrepurchasingrate HigherCLV

Beherserviceoverall

XDC

LME

1.  CustomerLifeAmeValue(CLV)isapredicAonofthenetprofitahributedtotheenArefuturerelaAonshipwithacustomer

LMExpressVSXDC:CustomerLifeAmeValuecomparison

LM Express infrastructure provides unique and fastest delivery to the biggest cities and satellites

~50%ofpopulaAon

>580ciAesandsatellites

~70%ofpurchasingpower

LMEXPRESSCOVERAGE

DAILYCONNECTIONS:>208

LMESameDayinMoscow

LMENextDay(coverage-65%)

XDC:2-5days

DELIVERYTOCITIES

Trains:3

Trucks:>160

Flights:>45

Санкт-Петербург

Хабаровск

Тюмень

Омск

ЧелябинскУфа

Екатеринбург

ПермьИжевск

Казань

Астрахань

Владикавказ

Нальчик

Барнаул

Волгоград

Воронеж

Иркутск

Чебоксары

Кемерово

МайкопКраснодар

Красноярск

ЛипецкТамбов

НижнийНовгород

Новосибирск

Ростов-На-Дону СамараСаратовСочи

Ставрополь

Тверь

Томск

Калуга

Тула

Смоленск ЯрославльКострома

ИвановоМосква

Минск

Гомель

Могилев

БрестГродно

Алматы

АстанаКараганда

Шымкент

Павлодар

Актау

АтырауАктобе Кокшетай

Костанай

ПетропавловскУральск

Усть-Каменогорск

ТалдыкорганТараз

Кызылорда

LM Express offers a highly reliable and time flexible delivery chain across CIS

•  208dailynetworkmovements

•  >90%contractedoutto25partners

•  ExtensiveconAngency&backupplanning

•  24/7controltowermonitoringtransport

•  OpAmizedforfastandslowleadAmes

•  55+LMExpressHubs•  36RU•  15KZ•  2BY

•  About1500Salesmen•  8addiAonalpick-up

pointsinMoscowandSt.Petersburg

•  12pick-uppointsinCIS

•  Coverageof500+ciWes•  Nextdaydeliveryto

150+ciAesacrossCIS•  HighqualitySameDay

DeliveryinMoscow•  “Try-on”and“cash-on-

delivery”products•  Lastmilefullyoperated

byownworkforce•  TabletsoluAonavailable

forimprovedclientinteracAon

•  Anaveragereturncycleof7daysforLMERegions

•  NextdayreturnsforMoscow,2daysforSt.Petersburg

•  SchedulesopAmizedforinventoryvalue&transportaAoncost

DIRECTNETWORK LOCALHABS LASTMILE RETURN

INTEGRATEDAUDIT,REPORTINGANDPERFORMANCEMANAGEMENTAPPROACH

LM Express is a professional salesforce, not a typical courier company: delivering customer service VS parcel from A to B

Typicalcourier

LMEsalesrepresentaWve

•  PosiAveandhelpfula¤tude

•  TrainedandincenAvizedoncustomerservice

•  Neatandprofessionaluniform

•  Alltherequiredequipment

•  Portablecashregister

•  Portablepaymentterminal

•  Bag,Pen,Notepad,Calculator

•  Try-onequipment

•  BejerconnecWonwiththeclient

•  Highersalesconversion

•  UpsellingopportuniWes

•  Customerinsights

Deliverywithstrongfocusonsalesforcedevelopment:successfulsalesstartswithprofessionala¤tude

Our tablet solution improves productivity and customer experience by professionalizing interaction with clients

DIRECTNETWORK

OPERATIONALEFFICIENCY§  InstantstatusupdateinERP§  Deliverycontrol§  Real-Amefleetmanagement

CUSTOMER§  Ordersonscreenwithrichmediaand

suggesAons§  OrderspecificinformaAon§  Opportunityforupselling§  DeepintegraAonwithCRM

SALESFORCEMGMT§  Real-AmetrackingofKPIs§  RankingtobuildcompeAAonand

driveperformance§  GamificaAontomoAvatepersonnel

IMPACT

§  HigherproducAvityandefficienttransacAonsbyminimizingnon-valueaddingacAviAes

§  GeolocaAonofdriverenablescityheadtomonitorperformanceduringtheday

§  BehercustomerexperienceduetoarrivalAmenoAficaAonanddrivermapping+moreconvenientandahracAveinteracAon

NEXTPLANNEDFEATURES

§  Personalareaforsalesreps§  AssisAngrouAng

LMEsalesforcetabletapp

Lamoda Customer support service – best-in-class solution in the industry

OUTBOUNDLINE 95%

callscompletedwithin5minutesaRerorderplacement

INBOUNDLINE 90%

incomingcallshandledwithin20seconds

QUALITYCONTROL 9,2

averagesaAsfacAonscoreaRerthecall

24/7 WORKING SCHEDULE

E-production provides the highest speed and best quality of content

1500 m2 SPACE

UP TO 1500 SKUs / 4000 IMAGES PER DAY

WORKING WITH

TOP MODEL AGENCIES

BEST-IN-CLASS

FULL-CYCLE CATALOGUE SERVICE

ALL-IN: TOP MODELS, PROPS, PHOTOGRAPHERS, STYLIST, RETOUCHER, MAKEUP, IRONING AND ITEMS PREPARATION

ENTRYPOINTSINTOCISE-MARKETSVIALAMODA

Lamoda’s aims to be the #1 digital partner for lifestyle brands in Russia and CIS

WHOLESALE MARKETPLACE B2B

LAMODA TEAM www.lamoda.ru | www.b2b.lamoda.ru

T H A N K Y O U