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aCommerce Indonesia Accelerating your growth in e-commerce Intro | Nov 2014

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aCommerce IndonesiaAccelerating your growth in e-commerce

Intro | Nov 2014

Singapore | Thailand | Indonesia | Philippines 1

Contents1

Opportunity in Indonesia

About us

Products and services

Proposed Fee

Singapore | Thailand | Indonesia | Philippines 2

In the next 5 years, online shop in Indonesia will grow at least 10x from 3% to 30%

2

SOURCE: McKinsey Consumer Insights Indonesia 2013

1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.

Singapore | Thailand | Indonesia | Philippines 3

Other online research shows a more aggressive number: 46% intended to buy online in the next 12 months

3

77% of sellers say that a reason

for selling online is that there are lots

of people buying online

Indonesian online shoppers…

46%of online Indonesians who have never shopped online expect to buy online within the next 12 months

41%

37%

20%

14%

14%

14%

14%

use search engines to research

use social to research

retailer/store website

news / magazine websites

online blogs, forums or message boards

emails and e-newsletters

product comparison websites

SOURCE: TNS Online Shopper Study – Indonesia – February 2013 Base: Online shoppers across all categories (Recent online shoppers n = 511)

Singapore | Thailand | Indonesia | Philippines

Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg

Unit ID SG PH TH China US

Population M 248 5.2 95 67.5 1350 315

# Online M 75 3.9 33 32 513 246

% Online % 30% 74% 34% 46% 38% 79%

Retail Sales USD B 134 31 34 139 2,380 4,700

B2C E-commerce Market USD B 0.9 1.1 0.4 1.1 190 343

E-commerce % of Retail % 0.7% 3.5% 1.1% 0.6% 8% 9%

10XIDR 10

Trillion

IDR 100

Trillion

Indonesian Market in

4 – 5 years

4

In the next 5 years, online shop transactions in Indonesia is expected to grow 5-10x

Singapore | Thailand | Indonesia | Philippines 5

For one of top online shop, the growth has already been driven by outside Jakarta customers

5

Customers by location (%)

Customers by gender (%) Customers by age group (%)

SOURCE: Internal Data and Analysis of Top Online Retailers Fashion category in Indonesia 2013

Male 43

Female57

16-20

21%11%

21-25

21%

>3631-3526-30

19%27%

2%

<15

Jakarta % shrinks from 41% to 22% in 6 months

Most sales now already come from outside BIG cities

Sumatra Kalimantan Others

370% 300%

Jakarta Java excl. Jakarta

70+% 370%

Singapore | Thailand | Indonesia | Philippines 6

Contents6

Opportunity in Indonesia

About us

Products and services

Proposed Fee

Singapore | Thailand | Indonesia | Philippines 7

7

Our VisionPowering Ecommerce in Southeast Asia

aCommerce means commerce anytime,

anywhere, anything

Our MissionBuild Ecommerce technologies and

services that help companies build brand

value, acquire customers, drive sales, and

scale their business

Our Vision and Mission

Singapore | Thailand | Indonesia | Philippines 8

In Indonesia, 50+ retailers/marketplaces and brands are working with us

8

Retailers / Marketplaces Brands

Singapore | Thailand | Indonesia | Philippines 9

We have presence across multiple SEA countries and are supporting Clients enter / grow regionally

9

Thailand

Singapore Indonesia

Philippines

• 2x 1500 sqm expandable to 20,000 sqm

• Accessible from Jakarta: 5 mins from inner toll road, outer ring toll road, 1 near airport, another near harbor

• 90+ staffs

• 3600 sqm• 10 mins from downtown

Bangkok• 130+ staffs

• 200 sqm• 15+ staffs

• 500 sqm• 10+ staffs

Malaysia, Vietnam

Coming soon

11.7M USD in funding from NTT Docomo, Sumitomo Ventures, CyberAgent Ventures, Inspire Ventures, Sinar Mas, AsiaPacificDigital, Ideosource, and Ardent Capital

Singapore | Thailand | Indonesia | Philippines 10

Indonesia: in 8 months, we grew to a full scale operations with 2 Fulfillment Centers and 2 Distribution Centers

10

1,500 expandable to 5,000 1,500 expandable to 20,000 200,000 items

2 FCs:

15,000 inbound

FC1:

2,000 to 5,000 outbound

FC2:

1,000 to 3,000 outbound

2 DCs:

3,000 to 6,000 outbound

Own delivery:

40 riders

Own delivery:

4 vans

Singapore | Thailand | Indonesia | Philippines 11

Our key management team across countries11

Paul SrivorakulGroup CEOExperience:▪ CEO & Co-Founder,

Ensogo Group (acquired by LivingSocial), Admax, DMS Group, NewMedia

Peter KopitzGroup COOExperience: ▪ Co-Founder & MD,

Zalora, Rocket Internet▪ VP, Head of Execution,

ACL Bank

Piers BennettGroup CFOExperience:▪ CFO, Ensogo (acquired

by LivingSocial), DMSGroup, ValuE-commerce

John SrivorakulGroup CTOExperience:▪ CTO & Co-Founder,

Ensogo (acquired by LivingSocial), Admax, NewMedia

Sheji Ho Group CMOExperience:▪ Sr. Product Manager,

Moda Operandi▪ Head of Customer

Acq., LivingSocial, Gilt Groupe

Tom SrivorakulCEO (Thailand)Experience:▪ Co-Founder & MD,

Ensogo (acquired by LivingSocial), DMSGroup, NewMedia

Hadi WenasCo-CEO (Indonesia) Experience:▪ Co-Founder Zalora

Indonesia, Rocket Internet

▪ Engagement Manager, McKinsey & Co

Adrian SuhermanCo-CEO (Indonesia) Experience:▪ VP of Digital,

Telkomsel▪ CEO (Indonesia),

LivingSocial/DealKeren

Ray AlimurungCEO (Philippines)Experience:▪ VP of Business Dev.,

Lazada, Rocket Int.▪ Sr. Product Manager,

Amazon.com (USA)

Sabina ChangCEO (Singapore)Experience:▪ Category Manager &

Head Merchandiser, Apple, Amazon, Walmart.com

Singapore | Thailand | Indonesia | Philippines 12

Contents12

Opportunity in Indonesia

About us

Products and services

Proposed Fee

Singapore | Thailand | Indonesia | Philippines 13

Our products and services13

Cross Border ‘International’ Ecommerce

From customs clearance to local FDA approval and cross-border logistics, we

can scale your Ecommerce business across S.E. Asia and rest of world

E-Fulfillment & Delivery

Our specialized E-fulfillment centers can manage all your local Ecommerce

logistics needs from Managed Drop-Ship, Flash Logistics and temp

controlled storage to custom packaging, next day delivery, and COD

Additional services include: Production, Call Center.

Multi-Channel Development

We design, develop, and operate Brand/Retailer storefront in marketplace(s)

connected to our centralized inventory/fulfillment platform

Performance Marketing

We conduct funnel analysis and optimize your e-commerce website; manage

media buying in Facebook, Google, local Ad networks, develop ad banner &

copy, monitor regularly and optimize for conversion (transaction, revenue)

Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines

14

Brand Site

(Maybelline.co.th)

Marketplaces

(Qoo10.sg Official Loreal

Store and LINE Flash Sales)Popshop Storefront

(Maybelline FB page, Vichy Site)

Technology development for multi devices multi channels

Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines

Example of SBC Website: lolalo.la

15

Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines

Example of Magento Website: erafone.com (coming soon)

16

Singapore | Thailand | Indonesia | Philippines 17

Channel management and marketplaces17

We manage your brand across multiple marketplaces and online retailers

BrandGives inventory to

aCommerce to manage, fulfill, and delivery on

their behalf

$

BrandReceive sales and marketing data,

sometimes direct customer emails

Production

Customer Service

Delivery

Fulfillment

Marketplace provides:

aCommerceprovides:

Marketing

Payments

$

Sales

Customers

Singapore | Thailand | Indonesia | Philippines 18

Channel management process18

1) Develop channel management strategy, sales & marketing plan, set goals & KPIs

2) Design, develop, and integrate store to fit channel requirements and brand guidelines

3) Merchandising and supply chain planning

4) Train call center team to learn products, T&Cs, inbound-outbound calls

5) Manage inventory, fulfill orders (quality control, storage, pick, pack, label, ship)

6) Customer delivery and payment collection (Cash or Credit card)

7) Maintain webstore, manage promotions, and product content updates. Daily tracking and reconcile with supply chain and accounting

Singapore | Thailand | Indonesia | Philippines 19

Example of Brand stores in marketplaces19

Loreal Official E-Store in Qoo10.sg

Tefal Brand Store in Tarad.com (Rakuten TH)

OPI Brand Store in Elevenia.co.id

Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines

Launches new products on LINE FLASH SALE

LINE Flash

Sale

Sold out in

5min

85% new

customers

20

Singapore | Thailand | Indonesia | Philippines 21

Our products and services21

Cross Border ‘International’ Ecommerce

From customs clearance to local FDA approval and cross-border logistics, we

can scale your Ecommerce business across S.E. Asia and rest of world

E-Fulfillment & Delivery

Our specialized E-fulfillment centers can manage all your local Ecommerce

logistics needs from Managed Drop-Ship, Flash Logistics and temp

controlled storage to custom packaging, next day delivery, and COD

Additional services include: Production, Call Center.

Multi-Channel Development

We design, develop, and operate Brand/Retailer storefront in marketplace(s)

connected to our centralized inventory/fulfillment platform

Performance Marketing

We conduct funnel analysis and optimize your e-commerce website; manage

media buying in Facebook, Google, local Ad networks, develop ad banner &

copy, monitor regularly and optimize for conversion (transaction, revenue)

Singapore | Thailand | Indonesia | Philippines 22

Our marketing process22

After we integrate operations and fulfillment, we focus on marketing

and sales by acquiring members, converting them to buyers, and

retaining and growing loyal customers.

Maintain & Enhance Ecommerce Platform

Acquire Convert Retain Grow

Measure & Analyze Data

Singapore | Thailand | Indonesia | Philippines 23

Building loyal customers and repeat business23

Converting online traffic to buyers is critical for any Ecommerce site. We test

and optimize the best marketing-to-sales channels for driving customer

loyalty.

Dormant

Buyers

Singapore | Thailand | Indonesia | Philippines 24

24

Strategic partnership with Kapan LagiNetwork, the biggest content portal group with targeted online visitors

Local Affiliate Network

Thorough funnel analysis from homecatalogueproductshopcartcheckoutpaymentdelivery to maximize ROI

Design & CR Optimization

PopShop and LINE m-commerce are examples of our innovation products to push more conversions

Other proprietary channels

Paid Marketing requires us to manage the tech, media planning, and buying to optimize CPA (cost-per-acquisition)

Paid Marketing

Organic marketing and CRM go hand-in-hand in driving existing customers to repurchase and acquire other customers

Organic Marketing & CRM

SEO optimized content creation to boost site ranks and drive more free traffics to minimize Customer Acquisition Cost

SEO Optimization

Different marketing services

Singapore | Thailand | Indonesia | Philippines 25

25

Happy Customers

High QualityTraffics

ConvertingWebsite

ExcellentCustomer

Experience

Key questions / analyses

• How likely are customers to refer YOU to their friends and family?• By location, By age-groups, By payment type, By category, etc• How is your Repeat Customers %? Repeat frequency?• What are the current major pain points?

• What are the overall actual Onsite Conversion Rate? • By channel, by location, by device, etc.• What's the specific conversion in each step leading to transaction?

(funnel analysis) • By channel, by location, etc.• How user browse through your website? (page flow analysis)

• What are the Conversion Rate, Average Order Value? Average Items per Order?

• By new customers vs existing customers?• By non-paid vs paid channels?• By different channels?

Conversion optimization framework

Singapore | Thailand | Indonesia | Philippines 26

26

Converting website: Funnel analysis to increase transactions from current traffics

Singapore | Thailand | Indonesia | Philippines 27

27

Example of mouse flow measurement

Three things we measure:▪ Every event action and banner on

key pages▪ Detailed traffic sources to key

landing pages via UTM▪ Mouse flow on key pages

(temporary)

Example of detailed UTM link:▪ http://www.zalora.co.id/Drop-Waist-T-Shirt-Dress-

134208.html?wt_sm=id.Social%20Media%20PR.Facebook.P04-09-2000.09Apr_2000_f_sales_apparel_banner_EZRADress.09Apr_2000_f_sales_apparel_banner_EZRADress&utm_medium=Social%20Media%20PR&utm_source=Facebook&utm_campaign=P04-09-2000&utm_content=09Apr_2000_f_sales_apparel_banner_EZRADress

▪ The link contain detailed info of: channel, date uploaded, product category, gender, brand, campaign, banner A/B testing code

Conversion measurement: You can't optimize what you can't measure

Singapore | Thailand | Indonesia | Philippines 28

28

Illustration

Cost Per Order (CPO)

Revenue

Revenue / Cost ratio (ROI)

Customer Acquisition Cost

Customer Lifetime Value

Get as many transactions with lowest cost

Get as many revenue with lowest cost

Get as many new customers with lowest cost

Get as many new customers with high value

Optimizing for High Quality traffics start with identifying specific conversion goals

Singapore | Thailand | Indonesia | Philippines 29

• Not only we increased the ad

visits but we also increased the ad

transactions

• We also indirectly increased the

non-ad visits and transactions

(spill-over effect)

• CIR is Cost Income Ratio (the reverse of ROI)

• We optimized CIR from 1.33 to 0.50 in just 8

weeks

• CIR of 0.50 means for every dollar revenue you

get, you spent on 50 cents on marketing

Example of actual client reports that we help manage and optimize Online Marketing

Singapore | Thailand | Indonesia | Philippines 30

Our products and services30

Cross Border ‘International’ Ecommerce

From customs clearance to local FDA approval and cross-border logistics, we

can scale your Ecommerce business across S.E. Asia and rest of world

E-Fulfillment & Delivery

Our specialized E-fulfillment centers can manage all your local Ecommerce

logistics needs from Managed Drop-Ship, Flash Logistics and temp

controlled storage to custom packaging, next day delivery, and COD

Additional services include: Production, Call Center.

Multi-Channel Development

We design, develop, and operate Brand/Retailer storefront in marketplace(s)

connected to our centralized inventory/fulfillment platform

Performance Marketing

We conduct funnel analysis and optimize your e-commerce website; manage

media buying in Facebook, Google, local Ad networks, develop ad banner &

copy, monitor regularly and optimize for conversion (transaction, revenue)

Singapore | Thailand | Indonesia | Philippines 31

E-Fulfillment process31

After site development, we setup: payment systems, accounting

processes, call center training, ERP and WMS, then transfer your

inventory to our fulfillment center for fast shipping and C.O.D

Acommerce Management Platform (AMP)

Call Center Reps & Software

Payment Gateway

Accounting Process

Fulfillment (Pick & Pack)

Dispatch & Route Plan

Delivery & COD

Order Management System (OMS)

Warehouse Management System (WMS)

Transportation Management System (TMS)

Singapore | Thailand | Indonesia | Philippines 32

aCommerce Management Platform (AMP) & Tech Stack32

AMP Dashboard

Partner

ProfileFulfillment

Reports

Inventory

ReportsSales

Reports

B.I.

Reports

Billing

Reports

Shipping

Reports

Data Management

Reporting

Dashboard

&

Business

Intelligence

Data Management

System

Marketing Systems

Google Adwords Google Analytics Facebook Adroll Campaign Monitor

Customer Service

Voxtron Phone Support Live Chat Desk.com (Ticketing) Phone Orders

Warehouse Management System (WMS)

NetSuite

Dispatching System

aCommerce Developed

Delivery System

Delivery Manager Route Planner Mobile Delivery App

Warehouse

Tools

Dispatching

Tools

Delivery

Tools

Operations Tools

Finance & Payment Systems

Netsuite Payment Gateways Banking Platforms

E-commerce Site (Magento) mCommerce Site (Magento) PopShop Platform (Magento)

Customers (Brands, Retailers, & Publishers)

Marketing

Reports

3rd Party Platforms

we custom build on

or API

Proprietary systems

we’ve built in-house

Tech Partners:

Singapore | Thailand | Indonesia | Philippines 33

33

Goods to be sold will be inbounded before LIVEGoods with complete documentation and proper planning will be inbounded within 24hrs

Goods to be stored in aCommerce Fulfillment Center while LIVE

New inbounded products will go through: Photoshoot Digital editing Content creation

Orders to be processed (picked and packed) within 24hrs

Packed orders will be shipped same day & delivered within promised delivery date: Jakarta: 1-2 days Others: 3-6 days

COD payment will be collected at delivery point and transferred once a month

Transactions happened in: WebStore Phone Order

Call Center

Complaints Post-service Upselling

Production

Inbound Storage OutboundTransaction

DeliveryE-Fulfillment

Best-in-class process to support you to deliver excellent customer experience

Singapore | Thailand | Indonesia | Philippines 34

Detailed activities in each fulfillment process34

DetailsProcess Photos from 24/7 CCTV

INB

OU

ND

Unload, Unpack, Receive, Visual QC, Location Assignment, Put-Away, Goods-Received ReportAdd-on: Advanced QC

OU

TBO

UN

D

Generate Picking List, Pick Items, Standard Packaging, Generate Invoice, Dispatch to Delivery Team,Manage Delivery Team, Provide TrackingAdd on: Packaging production, Special care handling, etc.

STO

RA

GE

Store, 24/7 Security (CCTV), Stock Record, Return Excess Item (if necessary)Add-on: Additional stock counting

Singapore | Thailand | Indonesia | Philippines 35

aCommerce Managed Drop-Ship allows multi-brand retailers and marketplaces to offer a better customer experience

35

Better experience and lower fulfillment costs for merchants and customers

Customer buys 3 products from 3 different merchants on a multi-brand site or marketplace

aCommerce picks up “unpacked” items from 3 merchants

aCommerce consolidates the individual items and assembles the order at the fulfillment center, all processed and fulfilled same day

Customer receives the order in one branded package next day via our express delivery

Singapore | Thailand | Indonesia | Philippines 36

36

Pick-up across Greater Jakarta and nationwide delivery

▪ Pick-up Management provide package pick-up services in Greater Jakarta (Jabodetabek) from 2 Distribution Centers We plan to expand to next Top 5 cities in the next 6 months (Bandung, Surabaya, Medan, Semarang, Denpasar) and other big cities

▪ Shipping Management provide Delivery services to all Indonesia– Greater Jakarta deliveries: managing own riders with advanced Transportation

Management System (TMS) optimized for customer experience and Value Added Services (e.g., COD, D/CCOD, QRCOD)

– Outside Greater Jakarta deliveries: managing and curating multiple 3PL partners, optimized based on their quality, capacity, and Value Added Services provided (e.g., COD)

Singapore | Thailand | Indonesia | Philippines 37

37

Real Time Status

Technology investment sets aCommerce apart from other 3PLs (1/3)

▪ All our couriers are equipped with smartphones to allow them to send real-time status of success or failed delivery

Singapore | Thailand | Indonesia | Philippines 38

38

Real Time Status

Technology investment sets aCommerce apart from other 3PLs (2/3)

▪ The same application allows couriers to search for direction and courier manager to monitor rider performance and provide support if necessary

▪ Technology roadmap includes allow user to get access to where the courier is and estimated of time of delivery based on LIVE location

Singapore | Thailand | Indonesia | Philippines 39

Technology investment sets aCommerce apart from other 3PLs (3/3)

▪ The same application allows couriers to get digital signature of recipient and photo proof(s) of success or failed delivery

▪ All the information will then be kept as a digital Proof Of Delivery

39

Real Time Status

Singapore | Thailand | Indonesia | Philippines 40

Cash On Delivery is available in Greater Jakarta and other Top 30 cities in Indonesia

40

Cash On Delivery

Jakarta Pusat, Jakarta Utara, Jakarta Timur, Jakarta Selatan, Jakarta Barat, Kota Bandung, Kota Bogor, Kota Bekasi, Kota Depok, Kota Cimahi, Kabupaten

Gresik, Kabupaten Sidoarjo, Kota Surabaya, Kota Malang, Kota Madiun, Kota Kediri, Kota Denpasar, Kota Tangerang, Kota Tangerang Selatan, Kota

Yogyakarta, Kota Jambi, Kota Surakarta, Kota Semarang, Kota Banjarmasin, Kota Palangka Raya, Kota Samarinda, Kota Balikpapan, Kota Batam, Kota Bandar

Lampung, Kota Banda Aceh, Kota Pekanbaru, Kota Makassar, Kota Manado, Kota Padangpanjang, Kota Padang, Kota Palembang, Kota Medan

▪ Cash On Delivery (COD) is critical to unleash online shopping in Indonesia▪ Together with delivery couriers, aCommerce can provide COD service in Greater Jakarta and Other Top 30 cities

across Indonesia with maximum value per transaction of IDR 2mio▪ In-progress to add more COD cities in East Indonesia

Singapore | Thailand | Indonesia | Philippines 41

Debit (Mandiri, BCA) and Credit Card (Visa Mastercard) On Delivery is only available in Jakarta for now

41

Debit / Credit Card on Delivery

▪ Riders carry two mobile EDC machines from Top 2 banks with largest market shares▪ Both can accept ALL credit cards▪ Each can accept Debit Cards from Mandiri and BCA

Singapore | Thailand | Indonesia | Philippines 42

(coming soon) QR Code payment by FlashIZ42

QR Code payment

1. ENTER 4 DIGITS PIN

CODE

2. ENTER AMOUNT 3. CONFIRM TO

GENERATE QR CODE

4. CUSTOMER SCANS THE

QR CODE5. INSTANT

CONFIRMATION for BOTH

▪ Courier: Generate QR Code if user select COD payment by QR Code

▪ Customer: Scan the QR Code provided by Courier

Singapore | Thailand | Indonesia | Philippines 43

Example of small thing we did for e-commerce customers43

Failed Delivery Management

▪ 1st attempt delivery is non-scheduledFailed 1st attempt will prompt rider to leave failed delivery notification slip so they can arrange a scheduled delivery

▪ 2nd attempt delivery is scheduledWe give customers 24hr to call for scheduled deliveryIf no call, we call customers to schedule 2nd attempt delivery

▪ There will be extra charge for extra attempts beyond 2nd attempt

Singapore | Thailand | Indonesia | Philippines 44

Group buying model will be very similar to our Flash Logistic for flash sales and daily deals

44

Flash fulfillment is important for specific ecommerce models (e.g. Flash Sales) that requires

processing high volume of orders within a short turnaround time.

1) Focus on selling one product at a good price with thousands in-stock

2) Our Customer service learns the product and terms and conditions

3) Pick up the product from your warehouse and delivery to our fulfillment center

4) Prepack the 1000’s of single orders and prepare for ‘mass’ shipping

5) Packages are insured and carefully delivered next day to customer

6) Confirm customer pick-up, process payment (Cash or Credit card)

7) Accounting pays out in 30 days due to potential returns and refunds

Singapore | Thailand | Indonesia | Philippines 45

Our products and services45

Cross Border ‘International’ Ecommerce

From customs clearance to local FDA approval and cross-border logistics, we

can scale your Ecommerce business across S.E. Asia and rest of world

E-Fulfillment & Delivery

Our specialized E-fulfillment centers can manage all your local Ecommerce

logistics needs from Managed Drop-Ship, Flash Logistics and temp

controlled storage to custom packaging, next day delivery, and COD

Additional services include: Production, Call Center.

Multi-Channel Development

We design, develop, and operate Brand/Retailer storefront in marketplace(s)

connected to our centralized inventory/fulfillment platform

Performance Marketing

We conduct funnel analysis and optimize your e-commerce website; manage

media buying in Facebook, Google, local Ad networks, develop ad banner &

copy, monitor regularly and optimize for conversion (transaction, revenue)

Singapore | Thailand | Indonesia | Philippines 46

S.E. Asia Market Entry

Cross border Ecommerce46

SEA

SEA

Cross Border Expansion

▪ Enter SEA with a local partner that can help you expand across the region with economies of scale

▪ Leverage the upcoming “free trade” ASEAN Economic Community (AEC 2015) policy to expand your business across the region

▪ Build and own direct consumer relationships, collect data, and control the customer experience

Singapore | Thailand | Indonesia | Philippines 47

Cross border fulfillment and services47

Customs clearance and FDA approvals by market (i.e. Beauty & Food) May take 4-12 weeks depending on country

Provide agent or merchant of record agreements to expedite local distribution and sales

Provide warehousing (bonded optional), fulfillment, and delivery in local markets

Drop ship from one market to the rest of SEA, we handle return processing, customer service, and payment collection

Singapore | Thailand | Indonesia | Philippines 48

International Shipping Method: Duty paid or Unpaid48

You should provide consumers with a DUTY PAID solution that can speed up transit

time in the case of high-value orders. This provides the ultimate customer experience

as consumers do not like getting unexpected invoices.

International

customer

order

International

customer

order

Shipping

costs, Duty &

VAT are

calculated

Only

Shipping cost

calculated

Carrier issues

customer import

duty invoice

Carrier settles

import Duty in

local country

Order is

returned to

merchant

No

Customer

Pays Duty

Carrier

settles Import

duty in local

country

Yes

Duty Paid

Duty Unpaid

Good Experience

Bad Experience

Customs

Singapore | Thailand | Indonesia | Philippines 49

Products and Service

Contents49

Opportunity in Indonesia

About us

Proposed Fee

Singapore | Thailand | Indonesia | Philippines 50

Proposed fee structure: Magento Technology

50

One time fee UNIT QTY FEE

Design & Development of Magento based e-commerce* Price will increase if the hour spend increase for these services: global header, footer, page background, messaging, content area, create content, static blocks, styling, Magento/error template, faceted navigation, product listing, product zoom, image gallery, related products, product reviews, cart items, messaging, totals, shipping calculator, coupons, development server, deployment, source control, project management tools setup (assembla, Github), launch configuration and checklist

1 WebStore1 IDR 120,000,000

RECURRING FEE (monthly)

Amazon hosting fee + Server management (Optional): *We will bill Amazon / other 3rd party invoices at a cost

WebStore/Month 1IDR 5,000,000 to

IDR 15,000,000

Application Maintenance (Optional)Scheduled and unscheduled maintenance to include response to support tickets and minor enhancements, development/maintenance updates, account manager for weekly support, server monitoring and backup, and application monitoring. Maintenance and Minor Upgrade service is up to 40 hrs per month

WebStore/Month 1 IDR 12,000,000

Licensing Fee (Optional)Based on Magento package selection

WebStore/Year 1 USD 15,000

PAYMENT TERMS 50% Down Payment at the beginning of the project30% Mid-development project phase20% After UAT

Singapore | Thailand | Indonesia | Philippines

51

One Time Setup Fee

Description Market Price (IDR)

Web development 5,000,000

Web design 10,000,000

Onsite configuration (tracker) 15,000,000

Onsite SEO 15,000,000

Upload content 5,000,000

Total Value 50,000,000

25,000,000

Proposed fee structure: SBC (Instant Package) Technology (1/2)

Singapore | Thailand | Indonesia | Philippines

52

Description Basic (5jt)

Standard (15jt)

Pro (20jt)

Hosting

Maintenance

Content management

Campaign management -

Standard marketing

(SEO and Social Media)*

-

Advance marketing

(Paid channel and Email

Marketing)*

- -

Customer service* - -

Order processing Opt Opt Opt

Fulfillment Opt Opt Opt

Delivery Opt Opt Opt

14

*detail discussion to follow

Monthly Fee Package Options

Proposed fee structure: SBC (Instant Package) Technology (2/2)

Singapore | Thailand | Indonesia | Philippines

MARKETING UNIT QTY FEE

1) Onsite Analytics configuration: insert tracking pixel in each landing page components, setup Google Analytics account, structure trackable components for future analysis

One time

1IDR 15,000,000

2) Onsite Health Check/Funnel Analysis: monitor landing pages and banners performance, conduct purchase funnel analysis: home > catalog > product > cart > checkout. Once every 6 month

WebStore

assessment

IDR 25,000,000

If (1) + (2) One Time 1IDR 40,000,000IDR 30,000,000

3) Search Engine Optimization (SEO):3a)Onsite Search Engine Optimization (SEO) setup: Research and analyze relevant keywords, review current SEO performance, create SEO text for key landing pages (main, category, brand), update metatags, etc. within the website3b) Offsite SEO: Once completed, proceed to create linkbacks to strengthen Offsite SEO

Month 1 IDR 15,000,000

53

Proposed fee structure: Marketing (1/2)

Singapore | Thailand | Indonesia | Philippines 54

Proposed fee structure: Marketing (2/2)54

MARKETING UNIT QTY FEE

Social Media Management: Design, create, A/B test, evaluate posts to achieve agreed KPIs, e.g., engagements (likes, shares, comments), transactions, revenue. Services include banner and ad-copy creatives. Still required Customer Service related inquity to be handled by CS Team.In-house equivalent of: designer, copywriter, and social media coordinator.

Per month 1 IDR 12,000,000

Online advertising channel + Optimization: Conduct media planning, media buying, create Ad (banner, text), monitor daily ad, conduct A/B testing, refresh non-performing ad to optimize for agreed KPIs, e.g., transactions, revenue, new customers, customer acquisition cost, etc. There are 5 buckets of channels, in order of proposed priority: Facebook, Google Search Engine Marketing (SEM), Facebook Retargeting, Google Retargeting, Google Display Network (GDN)Options for Optimization Goal: for Signup, Account setup, etc.

Channel / Month

1

USD 5,000 – 10,000Optimization fee of 20%

USD 10,000 – 49,999Optimization fee of 15%

USD 50,000 – 99,000 Optimization fee of 12%

Singapore | Thailand | Indonesia | Philippines

Production UNIT QTY FEE

Digital image creation for non-model: photoshoot up to 3 angles, enhance photo images

Item 1IDR 50,000

Min of 100 SKUs

Digital image creation for model: photoshoot up to 3 angles with model, enhance photo images

Item 1IDR 70,000

Paket of 200 SKUs

Digital image creation for model: photoshoot up to 3 angles with model, enhance photo images

Item 1IDR 90,000

Paket of 100 SKUs

Content creation: create product description, optimize keywords for search engines in Bahasa

Item 1 IDR 20,000

Content creation 2nd language: create product description in English. Can only pick 1 language to be search engine optimized.

Rack 1 IDR 20,000

ProductionProposed fee structure: Production27

Singapore | Thailand | Indonesia | Philippines 56

Thank You56

Thailand Office946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500

Indonesia OfficeApt. Istana Sahid – Mezzanine, Jl. Jend. Sudirman Kav. 86, Jakarta 12940, Indonesia

Singapore Office#2-13 Oxley Bizhub, 61 Ubi Road 1, Singapore 408727

Hadi WenasCEO IndonesiaE: [email protected]

Rena GraciaClient Service ManagerE: [email protected]

Philippines OfficeaSpace Manila, 3rd flr., 110 Aboitiz bldg, Legaspi Street, Makati, Philippines 1200