Презентация Пола Роговски (Paul Rogowski), директора по логистике lamoda, с Бизнес-завтрака UPGRADE "Fashion Retail Весна" 15.03.2017

1. Integrated pla,orm for fashion e-commerce in Russia & CIS
_____________________________________________________________________________________
Paul Rogowski, Senior Director LogisAcs

2. LAMODA

3. Casual
and Basic
Fashion
and Design
Exit price
Entry price
High
price
Low price
Lamoda developed a balanced assortment with 1000+ brands per season

4. E-COM IN RUSSIA & CIS

5. Russia & CIS are large and highly attractive consumer markets
with strong internet growth potential
POPULATION
210 mln
FASHION
“HUNGRY”
CONSUMERS
ONLINE
PENETRATION
3-4% vs.
10%+ WEST
SOLID BASKETS
+50 EUR
RUSSIA
KAZAKHSTAN
UKRAINE
BELARUS

6. Running e-commerce business in Russia requires
a customized approach in e-commerce
Lack of trust in online shops
due to lack of human
contact
Outbound calls: call customer aRer
placing an order to confirm it and
get addiAonal details
RelaAvely cheap labor
in regions of Russia /
CIS
+ =
Preference to pay
in person
Low prevalence of
non-cash transacAons
Cash on delivery: customer does
not have to prepay ordered items,
payment is made on delivery
+ =
Wish to try goods
before paying
Long lead Ames
of returns
Try-on & parWal rejecWon:
customer can try on ordered items
and then choose what to purchase
+ =
Sales rep delivery: fashion oriented
delivery by sales reps is a must,
ideally integrated w fulfillment in
MOW
Postal services &
courier delivery not
suitable for fashion
Preference over
faster lead Ames
+ =
Consumer’s mindset Market specifics ImplicaWon for e-commerce

7. LAMODA OPERATIONS PLATFROM

8. We created a superior, fully integrated value chain with core competencies in-house
Express delivery
via sales force
DELIVERY
High speed
fulfillment
FULFILLMENT
CENTER
24/7 availability
with high service
CALL CENTER
Fast and
high quality
E-PRODUCTION
Well designed,
stable soluAon
providing best user
experience
WEB
DEVELOPMENT
Online and offline
promoAons
MARKETING

9. High performance fulfillment center designed for efficient e-commerce operations
SUPER FAST, RELIABLE AND COST EFFICIENT FULFILLMENT CENTER AS A BASIS FOR THE BEST-IN-CLASS LOGISTICS
STORAGE INBOUND OUTBOUND
99,98% STOCK ACCURACY AND OPERATIONS
QUALITY
CAPACITY UP TO 8 000 000 ITEMS
2,5h IN AVERAGE TO PROCESS ORDERS
BRANDED PACKAGING FOR
BIG PARTNERS
ALLOWS SAME DAY DELIVERY IN MOSCOW,
NEXT DAY IN 150+ CITIES
CYCLE STOCK-TAKING
EVERY 2 MONTHS
INBOUND UP TO
240 000 ITEMS PER DAY
95% OF NEW ARRIVALS AND TRY-ON REJECTIONS ARE
AVIABLE ON SITE IN 24h
TRY-ON RETURNS WITH QUALITY CHECKING, PRICE
LABELS CUTTING, ALARM AND HANGERS REMOVING,
ETC

10. LM Express
Coverage - 67% of purchasing power in CIS,
try-on opAon everywhere where LME is presented
External Delivery Companies - XDC
Coverage – remaining 33% of purchasing power in CIS
Lamoda last mile delivery includes both own infrastructure
and network of external delivery companies
Lamoda delivery – 100% of purchasing power in RUSSIA, BELARUS, KAZAHSTAN and UKRAINE

11. UKRAINE
33% of value is shipped via selected partners under strict account management
RUSSIA BELARUS
KAZAKHSTAN

12. Through faster lead times and higher service level at moderate cost
LM Express achieves higher Customer Lifetime Value1 (CLV)
IMPACT
DRIVER
Higher service level,
DIT Scale potenAal
Beher goods control
& transparency
Higher service level,
DIT
Lower RR & higher
net sales
Comparable cost
per order
Faster return cycle
& less lost value
Higher repurchasing
rate
Higher CLV
Beher service
overall
XDC
LME
1. Customer LifeAme Value (CLV) is a predicAon of the net profit ahributed to the enAre future relaAonship with a customer
LM Express VS XDC: Customer LifeAme Value comparison

13. LM Express infrastructure provides unique and fastest delivery
to the biggest cities and satellites
~50% of
populaAon
> 580 ciAes
and satellites
~70% of
purchasing
power
LM EXPRESS
COVERAGE
DAILY CONNECTIONS: >208
LME Same Day in Moscow
LME Next Day (coverage - 65%)
XDC: 2-5 days
DELIVERY TO CITIES
Trains: 3
Trucks: >160
Flights: >45
Санкт-Петербург
Хабаровск
Тюмень
Омск
Челябинск
Уфа
Екатеринбург
Пермь
Ижевск
Казань
Астрахань
Владикавказ
Нальчик
Барнаул
Волгоград
Воронеж
Иркутск
Чебоксары
Кемерово
Майкоп
Краснодар
Красноярск
Липецк
Тамбов
Нижний Новгород
Новосибирск
Ростов-На-Дону Самара
Саратов
Сочи
Ставрополь
Тверь
Томск
Калуга
Тула
Смоленск Ярославль
Кострома
Иваново
Москва
Минск
Гомель
Могилев
Брест
Гродно
Алматы
Астана
Караганда
Шымкент
Павлодар
Актау
Атырау
Актобе Кокшетай
Костанай
Петропавловск Уральск
Усть-Каменогорск
Талдыкорган Тараз
Кызылорда

14. LM Express offers a highly reliable and time flexible delivery chain across CIS
• 208 daily network
movements
• >90% contracted out to
25 partners
• Extensive conAngency &
backup planning
• 24/7 control tower
monitoring transport
• OpAmized for fast and
slow lead Ames
• 55+ LM Express Hubs
• 36 RU
• 15 KZ
• 2 BY
• About 1 500 Salesmen
• 8 addiAonal pick-up
points in Moscow and
St. Petersburg
• 12 pick-up points in CIS
• Coverage of 500+ ciWes
• Next day delivery to
150+ ciAes across CIS
• High quality Same Day
Delivery in Moscow
• “Try-on” and “cash-on-
delivery” products
• Last mile fully operated
by own workforce
• Tablet soluAon available
for improved client
interacAon
• An average return cycle
of 7 days for LME
Regions
• Next day returns for
Moscow, 2 days for St.
Petersburg
• Schedules opAmized for
inventory value &
transportaAon cost
DIRECT NETWORK LOCAL HABS LAST MILE RETURN
INTEGRATED AUDIT, REPORTING AND PERFORMANCE MANAGEMENT APPROACH

15. LM Express is a professional salesforce, not a typical courier company:
delivering customer service VS parcel from A to B
Typical
courier
LME sales
representaWve
• PosiAve and helpful a¤tude
• Trained and incenAvized on customer service
• Neat and professional uniform
• All the required equipment
• Portable cash register
• Portable payment terminal
• Bag, Pen, Notepad, Calculator
• Try-on equipment
• Bejer connecWon with the client
• Higher sales conversion
• Upselling opportuniWes
• Customer insights
Delivery with strong focus on salesforce development: successful sales starts with professional a¤tude

16. Our tablet solution improves productivity and customer experience
by professionalizing interaction with clients
DIRECT NETWORK
OPERATIONAL EFFICIENCY
§ Instant status update in ERP
§ Delivery control
§ Real-Ame fleet management
CUSTOMER
§ Orders on screen with rich media and
suggesAons
§ Order specific informaAon
§ Opportunity for upselling
§ Deep integraAon with CRM
SALES FORCE MGMT
§ Real-Ame tracking of KPIs
§ Ranking to build compeAAon and
drive performance
§ GamificaAon to moAvate personnel
IMPACT
§ Higher producAvity and efficient
transacAons by minimizing non-value
adding acAviAes
§ Geo locaAon of driver enables city
head to monitor performance during
the day
§ Beher customer experience due to
arrival Ame noAficaAon and driver
mapping + more convenient and
ahracAve interacAon
NEXT PLANNED FEATURES
§ Personal area for sales reps
§ AssisAng rouAng
LME sales force tablet app

17. Lamoda Customer support service – best-in-class solution in the industry
OUTBOUND
LINE 95%
calls completed within
5 minutes aRer order
placement
INBOUND
LINE 90%
incoming calls
handled within 20
seconds
QUALITY
CONTROL 9,2
average saAsfacAon
score aRer the call

18. 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

19. ENTRY POINTS INTO CIS E-MARKETS VIA LAMODA
Lamoda’s aims to be the #1 digital partner for lifestyle brands in Russia and CIS
WHOLESALE MARKETPLACE B2B

20. LAMODA TEAM
www.lamoda.ru | www.b2b.lamoda.ru
T H A N K Y O U