Presentation August 2016 “To make brands successful in e-commerce ” 1
We Are the Market Leader in Brand E-Commerce Solutions in China Leading Global Brand Partners Across 8 Categories Largest brand e-commerce solutions provider, with 20% market share (1) Apparel Appliances Electronics Home End-to-end solutions with omni-channel capabilities Insurance Auto Cosmetics & FMCG Food & Health 120 brand partners (2) , 8 categories RMB2,204MM GMV (3) , up 81% yoy Our Mission is to Make Brands Successful in E-Commerce Notes: Exchange rate used: 1 USD = 6.6459RMB as of June 30, 2016 1. Source: iResearch . Based on China’s total brand e -commerce solution provider market size of RMB26 billion (US$4.2 billion) in terms of transaction value in 2014. 2. As of June 30, 2016. 3. For the 3 months ended June 30, 2016. Gross merchandise volume, includes value added tax and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of the goods that are returned and (iv) deposits for purchases that have not been settled. 2
Market Opportunity China Brand E-Commerce (1) Represents Only 3% of The Drivers Total Retail Consumption in 2014 US$4.3Tn Retail Consumers Brands Consumption Rising Highly US$445Bn consumer fragmented Online Shopping aspirations retail market US$129Bn Brand in China E-Commerce (1) Demographic dividend from High Growth Potential Brand image younger (China Brand E-Commerce Market Size, US$ BN) 379 and control consumers E-commerce Low as their key 129 penetration retail strategy rate in lower 4 in China tier cities 2010 2014E 2017E 35% 60% 69% % of B2C % of 5% 29% 42% Online Shopping 3
Why Brands Come to Baozun V.S. Fragmented Market Mature Market Multi-channels Brand site + Amazon Quickly evolved Stable demands demands End-to-end solution Single service provider providers 4
We Bridge Brands to Consumers End-to-end Solutions Across E-Commerce Value Chain Warehousing Store Digital Customer IT Solutions & Operations Marketing Service Fulfillment Brands Consumers Brands Consumers Official Official Brand Marketplace Mobile O2O Stores Stores Omni-Channel Penetration 5
Why Brands Value Us Self-Operated by Other Service Brands Providers Solid Sales Result Better Consumer Engagement Cost Efficiency Robust Technology and Warehousing Capabilities Omni-channel Capability Regional Expansion Benefit to Brand Partners: High Low 6
Our Business Model IT Solutions 1 A Service Fee Model 2 Store Operations Services Revenues (Net) 3 Digital Marketing 4 Customer Service Consignment Model B 5 Warehousing & Services Revenues (Net) Fulfillment C Distribution Model Inventory Ownership Product Sales Revenues (Gross) 7
Key Investment Highlights 1 2 Seamless Omni- Proprietary Channel Technology Experience 3 4 5 Warehousing Insightful Digital Experienced Team and Fulfillment Marketing Capabilities 8
Seamless Omni – Channel Experience 1 9
Scalable and Reliable Proprietary Technology 2 Omni-Channel Brands Marketplaces Digital Assets System Official Sites Seamless Integration Nebula Brand System Enterprise Resource Planning Official Official Brand Mobile Store Platform Site O2O Third-Party Systems Offline Store POS System Shopdog Payment Warehousing Logistics Vendor Gateways Systems Systems Efficient End-to-end Enabling Higher Designed for System Compatibility Throughput Scalability & Reliability 10
Proven Warehousing and Fulfillment Infrastructure 3 Category-tailored and Automatic Warehouses Best-in-Class Fulfillment Capabilities 13MM 500K 800K annual orders inbound outbound fulfilled (2) pieces orders per day (1) per day (1) +100% yoy 7 self-operated warehouses with aggregate GFA of 180,000 sqm (1) Partnership with Leading Logistics Services Providers Platinum Client Status Premium Service One of SF Express’ Top 5 Customers in China (3) + Integrated Delivery Tracking System Geographic Coverage Next Day Delivery in over 100 Cities Volume Discounts & Quality Assurance Cost Efficiency Note: 1. As of August, 2016 2. For the 12 months ended June 30, 2016 11 3. According to SF Express
Robust and Insightful Digital Marketing 4 12
Visionary Team with Deep Industry Knowledge 5 Vincent Junhua Beck Qiu Chen Wu CEO and Co- CFO COO and Co- founder founder Brand-oriented E C C E E C Passionate and visionary Tony Wu Aaron Kwok Rose Wang Service and CTO VP, Appliances VP, Beauty & [insert pic] and Electronics Luxury and technology-driven Cross Border culture B C B C C E Diverse and complementary Stella Xu Peter Liang James Yu backgrounds Senior Director Senior Director Senior Director of Sales of Logistic of Home and Operations Auto C C B E C rand, ommerce B E C 13
Our Growth Strategies 5 4 Extend our Geographical 3 Enhance our Reach in Asia Fulfillment Strengthen our 2 Capabilities Data Analytical 1 Expand and Capabilities Optimize our Deepen our Brand Partners Existing Portfolio Relationships with Brand Partners A O Z U N Z U N B 14
Strategic Roadmap and Key Milestones Category Channel IPO on NASDAQ expansion expansion - (NASDAQ: BZUN) Mobile Category Channel expansion expansion Expansion into Started to Hong Kong and provide brand e- Indonesia commerce Series B solutions Series A Ali Ventures ... 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 First brand Category Category Launched closeout Expand into partner expansion expansion retail platform Taiwan Category Channel expansion expansion - O2O Series C Channel Channel Build localized expansion expansion market leadership Series D 15
Latest Update 1 2 3 4 Held the First Global The Only 1 Six-Star Established an e- Baotong established – Brand E-commerce Service Provider on commerce JV with CJ focusing on logistics Summit Tmall Baozun takes 51% of A wholly-owned The rise of omni- The only one Six the JV and manages warehousing and channel brand e- Star Service the e-commerce logistics solutions commerce Provider operations. CJ is subsidiary The overall mood of The best on in 308 responsible for brand Provides standalone the industry remains Star Service selections and launch service to an incredibly upbeat Providers in China expanded number of and optimistic An important channel brands for Korean brands to Integration with Chinese consumers Cainiao 16
Financial Highlights – Robust GMV Growth & Optimizing Model Mix Total GMV Breakdown Net Revenues Breakdown RMB MM RMB MM 700 2204 34.3% 518 +87% 24.8% 75.7% 1215 62.7% 65.7% 75.2% 24.3% 37.3% 2015Q2 2016Q2 2015Q2 2016Q2 Distribution Non-Distribution Product Sales Services Asset Light Less Inventory Risk Increased Margin 17
Financial Highlights – Income Statement Summary Total Financials In RMB million 2016 Q2 2015 Q2 YoY GMV 2,204.4 1,215.4 81% Total revenues 700.3 517.6 35% Non-GAAP net income (1) 8.2 7.4 11% Financials Excluding MKF (2) In RMB million 2016 Q2 2015 Q2 YoY Total GMV ex MKF 2,164.9 1,177.3 84% Total Revenue ex MKF 693.5 494.3 40% Non-GAAP operating income ex MKF (3) 39.8 21.6 85% Non-GAAP operating margin ex MKF 5.7% 4.4% Note: 1. non-GAAP numbers exclude share-based compensation expenses. 2. Financials excluding MKF exclude MKF’s direct revenues and expenses . 3. The operating loss from MKF was 5mm in 2016Q2, decreased by around 50% YoY. 18
Financial Highlights – Healthy Working Capital Position Working Capital Turnover Day 2016 Q2 2015Q2 Var. 2016Q1 Var. AR days 50 43 7 49 1 AP days (108) (83) (25) (105) (3) Inventory days 81 64 17 80 1 WCD 23 24 (1) 24 (1) Notes: 1. Accounts receivable turnover days = # days in the period * average accounts receivables balances as of the beginning and the end of the period / revenues 2. Accounts payable turnover days = # days in the period * average accounts payable balances as of the beginning and the end of the period / cost of product sales 3. Inventory turnover days = # days in the period * average inventory balances as of the beginning and the end of the period / cost of product sales 19
THANKS! “To make brands successful in e-commerce ” 20
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