Bring Southeast Asia ECommerce Opportunity To Crossborder Sellers

Bring Southeast Asia eCommerceOpportunity to Crossborder Sellers

Agenda Why selling on Lazada? How to sign up on Lazada? Selling on Lazada Seller successful storiesStrictly Confidential2

eCommerce is booming in Southeast AsiaStrictly Confidential3

Untapped eCommerce OpportunitiesOnly 3% Online Retail Penetration Rate SEA: The world’s fastest growing internet region.Expected to grow to more than US 200 billion by 2025eCommerce is the fastest growing at a whopping 32% annuallyHUGE POTENTIAL FOR GROWTH(ECOMMERCE SALES AS PERCENTAGE OF TOTAL RETAIL, %)CHINA14% - 293 billionUSA14% - 270 billionSEA3% - 6 billionSource: Bain & Co, Temasek Holdings & GoogleStrictly Confidential4

3 Mega Trends in Southeast AsiaStrictly Confidential5

A Mobile-First MarketSEA Higher than Global AverageSource: We are socialStrictly Confidential6

Lazada Group Business OverviewCelebrated our 4th anniversary in March 2016COMPANY OVERVIEW The leading online shopping and selling destination in SoutheastAsia Widest footprint in the region LAZADA PRESENCEHK / ShenzhenLaunched in 5 markets in March 2012: Indonesia, Malaysia, thePhilippines, Thailand and VietnamLaunched in Singapore in May 2014Headquartered in SingaporeOne-stop shop to access 30 million products, sourced locallyand internationally, across more than 15 categoriesLazada B2CeCommerce marketpositionChinaSourcing hub#1#1Vietnam#1PhilippinesPop: 108mPop: 93mThailandPop: 68m Created an end-to-end ecosystem enabled by best-in-classlogistics and payment capabilities#1 Backed by the world’s largest retail commerce company – AlibabaGroupMalaysiaPop: 30mSingaporePop: 6mMajorityinvestor#1IndonesiaPop: 254mSource: Company Information, IMF DatabaseStrictly Confidential7

Lazada Group – Crossborder OverviewMeeting the growing popularity and demand of international goods in Southeast AsiaScalable solution for sophisticated sellers to access six markets with one contractCentralized account management via Seller CenterComprehensive customer support, including customer service in local languages at free of chargeSuperior logistics capabilities enable Chinese merchants to drop off their parcelsat the LGS sortation centers in Shenzhen or YiwuSource: Company InformationStrictly Confidential8

Lazada – A One Stop Shop - More than 15 product categoriesA wide assortment of products, from electronics to lifestyle; a one stop shop.Automotive & GadgetsWatches, Sunglasses& JewelleryToys & GamesTravel & LuggageGroceriesTV, Audio/ VideoGaming, GadgetsComputers & LaptopsHealth & BeautySports & OutdoorsMedia, Music & BooksCamerasHome & LivingBaby & ToddlerFashionMobiles & TabletsHome AppliancesSource: Company InformationStrictly Confidential9

Lazada’s Seller CentreEnabling sellers to make the best decisionILLUSTRATED SELLER DASHBOARDKeeping local sellersupdates on the latestnews in the eCommerceecosystemA multi-functional andpowerful tool thatempowers and informssellers on their business withLazada.Alerting the seller to what’spertinent to their business;enabling them to sell betterwith LazadaEnsuring sellers don’tmiss out on businessopportunitiesHelping sellers to tracktheir businessperformance withLazadaSource: Company InformationStrictly Confidential

Marketing through leading applications 60MILLIONAPP DOWNLOADSMARKET LEADINGMOBILE PLATFORM.#1APP IN SEASHOPPING CATEGORYDURING ONLINE REVOLUTION 2016 Improved customerengagement Awarded by Google Play“Top Developer App”. Featured on Apple Appstore's Shopping Category Best-in-class Android and iOS applications optimized site for all major browsers Innovative mobile marketing leveraging chat appsSource: Company Information, AppAnnieStrictly Confidential11

Marketing – examples of large campaigns benefitingSellers and Brands5 Major Regional Campaigns per YearTet / Lunar NewYearLazadaAnniversaryRamadanOn-going Local CampaignsFebruary: Celebrate the lunar new year in SEAMarch: Celebrate Lazada’s birthday Great deals for customersJune: Celebrate Ramadan with LazadaSuperbrandsJuly: Onsite showcase of Lazada’s bestbrandsOnlineRevolutionNovember-December: Biggest sale of the year with megadays on 11/11 and 12/12Typical CampaignSales UpliftDaily RevenuesNormalDayCampaignDaySource: Company InformationStrictly Confidential1212

PaymentsLazada offers a wide variety of reliable payment options Unsophisticated, with a significant of the paymentsthrough cashApproximately 70% of residents do not have access totraditional banking servicesCredit Card penetration in some markets is below5%To offer the best online shopping experience, Lazadaoffers multiple payment methods: Cash on Delivery Credit/Debit Card Paypal/AMEX MasterPass HelloPaySource: Company Information, MckinseyStrictly Confidential13

Agenda Why selling on Lazada? How to sign up on Lazada? Selling on Lazada Seller successful storiesStrictly Confidential14

How to sign up on Lazada?What are the steps to create your shop?2ActivateSellerCenter1Application Form Go towww.lazada.com/sell.Complete your applicationform and upload a validcorporate BusinessRegistration document.Sign e-contract You will receive an emailentitled “Registration forSeller Center”.Reset your password toactivate your SellerCenter account.4PaymentProviderSign Up*3GetTrained You will receive an emailentitled “Get trained andpass the test”You can either (1) attend alive webinar or (2) watchinteractive videos andpass our short test You will receive an emailentitled “Lazada - Sign upand Link yourCrossborder PaymentProvider” Sign Up to our paymentthird party by providing therequired documents*Note that this step is notmandatory to go live but highlyrecommended51 SKUapproved You will receive an emailentitled “Upload yourfirst SKUs”Upload 1 SKUs in yourSeller Center account,follow the requirementand have at least 1 SKUapproved by LazadaQuality Control.If you have any questions during theregistration process, please contact HKPSC1. Submit your request under Enquiry Form2. Select “New Seller Registration Status” for “topic of yourquestion”3. Select ”All” for “Venture with issue”Strictly Confidential15

How to sign up on Lazada?Step 1. Complete the application form Fill in online signup form in English at http://www.lazada.com/sellStrictly Confidential16

How to sign up on Lazada?Step 2 - 52Just reset SC password4Sign Up to Payoneer or World First as a corporateaccount and wait for approval (5-7 days)3a) Join our online webinar or,b) Watch videos and pass the test ( 50%)6Upload SKUs following content guideline; at least1 SKU be approved (usually 3 working days)Strictly Confidential17

How to sign up on Lazada?Reasons seller won’t go liveIf your shop is still not live after MY SC activation, please check thefollowing points:12To attend the online training (live webinar or video self learning test with atleast 50% of correct answers)To upload SKUs in your MY Seller Center , and make sure at least 1 SKU pass QCStrictly Confidential18

Agenda Why selling on Lazada? How to sign up on Lazada? Selling on Lazada Seller successful storiesStrictly Confidential19

Selling on Lazada4 steps to sell and grow on Lazada1ListingUpload your products bysingle or mass uploadfollowing content guideline.Be aware of our productsand category requirement2Selling3ShippingAfter uploading yourproducts, customers cansee them first onwww.lazada.com.my.Learn how to promote yourproductsYou have to ship out orderswithin 48hrs. LGS only forall crossborder sellersStrictly Confidential4Get PaidPayment provider accountmust be successfullyintegrated into SellerCenter before seller canreceive the payment20

Selling on LazadaResources: Online learning platformLazada University HK PSCTraining Materials: You could watch the video and PDF to learn by yourself.Top Questions: Quickly help you solve the common asked questions.Training Sessions: Register and attend to the free online sessions we provide.Request Form: If you questions are not solved, please submit your request here.Go to Lazada University, to learn, to grow!Lazada University website: http://www.lazada.com/sell/universityStrictly Confidential21

Selling on LazadaLogistics: 100% Geographical reach in Southeast AsiaSource: Company InformationStrictly Confidential22

Selling on LazadaLogistics: Lazada Global ShippingThe benefits of using “Lazada Global Shipping” (LGS) and 1 direct impact on your sales6 Less cancelations & lost parcels Significant improvement on LEAD TIMEwith daily injection in Southeast AsiaHigher % of success deliveryLower % of cancelled / nondelivered items2Competitive rate cards throughCONSOLIDATION and LOCALFULFILLMENT VOLUMES73Increased sales Shorter lead time lead to highercustomer satisfaction level (NPS)and better shop ratings Customers sort by delivery timeand are more likely to find yourproducts with shorter deliverytimes LGS seller are eligible for specialsales opportunities, e.g. flashsalesIMPROVED CONTROL by managinghand over and volume allocation throughin house managed sorting facilities atorigin and destination4MODULAR APPROACH enabling moreFLEXIBLE and SCALABLE managementof partners to handle peaks and valleysand other unknowns diverse team withStrictly Confidential23

Selling on LazadaLogistics: Lazada Global ShippingReverse logisticsDispatchfrom CN7 calendar daysSortationCenterDispatchfrom 3PL(s)Last MilePartnersCustomersAs easy asdelivering tocustomerslocally7 calendar daysPick upReverse logisticsLive NowNot LiveSellers can drop off and/or request pick up for all orders based on dispatching countryStrictly Confidential24

Selling on LazadaLogistics: Lazada Global ShippingShenzhen Sortation CentreFloor 3, Zone 1A, Block B, DEDI Industrial Park,Fuyuan Road, GaoXin Development Zone, FuYongStreet, BaoAn District, ShenZhen, 福园一路德的工业园B栋3楼Hong Kong Sortation CentreYiwu Sortation CentreUnit B, 6/F, Roxy IndustrialCentre, 58-66 Tai Lin PaiRoad, Kwai Chung, ��中心6楼B单位Strictly Confidential2/F, Shentong Ecommerce Building,Lugang International Logistics 25

Selling on LazadaPayout solution: Payoneer and World First For now, there are two optionsas Lazada’s payment solution:Payoneer and World FirstManagement ToolsOnlineMobile Lazada will payout to yourpayment account on weeklybasis Sellers can withdraw funds atany time to their local bankaccounts in local currency.Seller’sPayment ProviderAccountStrictly ConfidentialSeller’s Local BankAccount26

Agenda Why selling on Lazada? How to sign up on Lazada? Selling on Lazada Seller successful storiesStrictly Confidential27

Seller successful storiesWatchesKoreanHealth & BeautyConsumer ElectronicsOur crossborder sellers’ journey to grow with LazadaStrictly Confidential28

is your gateway to Southeast Asia, one of theworld’s largest and fastest growing markets.Strictly Confidential29

Thank you

eCommerce is the fastest growing at a whopping 32% annually HUGE POTENTIAL FOR GROWTH (ECOMMERCE SALES AS PERCENTAGE OF TOTAL RETAIL, %) 14% - 293 billion 14% - 270 billion 3% - 6 billion CHINA USA SEA Source: Bain & Co, Temasek Holdings & Google Untapped eCommerce Opportunities Only 3% Online Retail Penetration Rate