CHINA’S CROSS-BORDER TRADE ADJUSTING TO … TO THE E-COMMERCE PHENOMENON Hong Kong Indonesia...

Strictly Confidential

CHINA’S CROSS-BORDER TRADE

ADJUSTING TO THE E-COMMERCE PHENOMENON

Indonesia Philippines Malaysia Thailand Singapore Vietnam Hong Kong

James Chang, Co-Founder & Cross-border COO

Strictly Confidential

▪ Strong GDP growth with expected GDP growth: 5.5%

p.a. by 2020

▪ Young and growing population as 60% of SEA

population will remain younger than 35 years old in 2020

▪ Rapid urbanization is propelling the growth of tier 3/4

cities that lack offline retail alternatives

▪ Globally, B2C online retail sales has taken off when

mobile-internet penetration hit 35%, already case in

ID,TH,MY,SG

▪ Significant increase in mobile penetration and

accelerated shift to online

▪ Over half of total traffic on Lazada’s platform comes

from mobile

Booming

Macro-

environment

Leapfrogging

Infrastructure

Barriers with

Mobiles

Rising

Adoption of

Online

Shopping

3 Mega Trends in South East Asia

2

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Fastest Growing Internet Market Expected to have ~480M online users by 2020

Source: Google | Temasek e-Conomy SEA, eMarketer

SEA Internet Users Projection 2015 - 2020

~260M

Online Users

3

Strictly Confidential 4 Source: 2016 Bain & Company, Inc. “Can Southeast Asia Live Up to Its E-commerce Potential?

US

CHINA

SEA

% of E-Commerce Sales as Total Retail Sales

Shows Potential for Further Growth

CR

OSS

BO

RD

ER

B2

B

B2

C B2

B2

C

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LAZADA OUR STORY

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Indonesia

Thailand

Philippines

Malaysia

Vietnam

LAZADA ONLINE RETAILER

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Introduction of Cash-on-delivery

LAZADA PIONEER PAYMENT

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Start of Lazada Express

LAZADA REINVENT LOGISTICS

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1 Online Revolution 12.12 st

LAZADA “OUR” SINGLES DAY

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Start of Marketplace

LAZADA 3P PLATFORM

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Start of Fulfillment by Lazada

LAZADA SUPERIOR CX

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Cross-border Trade

LAZADA BREAKING BORDERS

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LAZADA PART OF ALIBABA ECOSYSTEM

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CHALLENGES LAZADA SOLUTIONS

• Global Shipping network

• Own first mile, last mile &

sorting with Lazada Express

• Fulfillment network

• Payment / remittance alliance

• Undeveloped infrastructure

• Geographic diversity

• Scattered logistics network

• Complex regulations &

customs

• Local payment methods &

cash on delivery

LAZADA LOGISTICS SEA

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LAZADA LOGISTICS VISION

“Create the leading logistics

ecosystem in Southeast Asia”

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75 PARTNERS +

MAIN SORT CENTERS 5

LAZADA DELIVERY NETWORK

“Assigning the right partner for each parcel”

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LASTMILE HUBS “Raising the bar: 25% faster deliveries with better economics”

78

LAZADA LAZADA EXPRESS

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Medan

Palembang (2016)

Balikpapan (2016)

Surabaya Jakarta

11 FULFILLMENT CENTERS “Closer to our customers for high quality deliveries"

LAZADA LAZADA FULFILLMENT

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LAZADA LAZADA GLOBAL SHIPPING

• Express Outbound Center • Global Transshipment Center • Global Reverse Logistics Center