STRATEGIC DEVELOPMENT AND GROWTH_21092013

MARKETING MEETINGSEPTEMBER 2013

BY THEFACESHOP VIETNAM

1. MARKET EXECUTIVES: MARKET – COMPETITORS AND OURS

SYNOPSIS

2. BUSINESS GROWTH: REVENUE- STORES AND IN CUSTOMER GROWTH

3. KEY PRODUCTS LAUNCH RESULT IN 2012

4. VIETNAM MARTKETING IN HIGHLINE: PROMOTION – PR – CMR

5. CHALLENGING: HAND CARRIED – PRESSURE OF FIRST MOVERS

1. VIETNAM MARKET EXECUTIVES: COMPETITORS AND MARKET

Competitors in numbers , their growth, and their mechanics

40

26

23

16

12 11 11 10

7

4

THEFACESHOP Yves Rocher Bourjois TonyMoly The body shop Etude House Skin Food NYX Nature Republic It's Skin

TFSV IS TAKING LEADERSHIP AND WE WILL CONTINUE TO ENHANCE THIS POSITION• From Jan 2013 closed 04 stores due to economic-crisis (malls closed)• Opened 05 news stores two of them are Road Shop plan 01 more by year end• In July have 03 multiple brand store plan to have 17 mores by year end

NUMBER OF STORES AND TFSV’S POSITION IN THE MARKET

1. VIETNAM MARKET EXECUTIVES: COMPETITORS AND MARKET

PLAYERS IN THE MARKET AND WHERE WE ARE

PRICE

BRAND PERFORMANCE

BenefitLo’ccitane

THEFACESHOPTONYMOLY

REPUBLIC N

Misa

Skind Food

Etude H

The body Shop

BOURJOIS

YVES ROCHER

•Offering wide range product’s selection•Augmented customer service delivery

1. VIETNAM MARKET EXECUTIVES: COMPETITORS AND MARKET

MBS double after ONE year Customers are new need F2F contact

Cash payment more than 98% banking developing at primary level

AVG bill annually growth 15% REV growth by BA’s consultant

Income disparity 06 cities account for 82% GDP e-commerce will not work in short term

Internet users account 40% out of 86 millions but focus in HN - HCMC

FB is widely used but not officially approved by Government

EMERGING

MARKET WITH

CHARACTERISTIC

LIKE VIETNAM’S

BRICK and

MORTARBUSSINESS TYPE WILL PLAY IMPORTANT RULES IN NEXT

COMING YEARS

MARKET SITUATION

E-COMMERCE? YES, BUT WITH OUR WAY

BUILDING STRONG BRAND EQUITY

DATA MANAGEMENT BY ERP SYSTEM

HIGH TRAFFIC WEBSITE

CHANNEL DEFINE

CALL CENTER SET UP

LOGISTIC TEAM

DUO BUSINESS TYPES

Brick and MortarE commercial

Done but need seamlessly enhance In 2014 (Est.) In 2014 (Est.)

2. BUSINESS GROWTH: SALES REVENUE AND MAIN KIPS

7,914

6,821

YEAR OF 2013 YEAR OF 2012

SALES GROWTH 2012 VS 2013

Note: in 1.000 USD

EIGHT-MONTH PERIOD COMPARISION KIPs DEFINED IN AOP REAL PLANNED

• SALES GROWTH 17% 45%

• AVG bill value growth 15% 15%

• No. of bills 9% 26%

• No. of news MBS 78% 91%

• No. of store 3% 13%

• Multiple Brand stores 20% 92%

2. BUSINESS GROWTH: SALES REVENUE AND MAIN KIPS

STORES GROWTH FROM 2010

22

32

38 4044

45 - 48

2010 2011 2012 REAL 2013 (YE) PLANNED 2013 PLANNING 2014 (YE)

Like never before 04 stores closed in 1 year due to economic crisis’s impact

2. BUSINESS GROWTH: SALES REVENUE AND MAIN KIPS

SALES GROWTH: CHANNELS REVENUE CONTRIBUTION UTD

93.9%

3.0%3.0%

0.1%

Existing stores New stores New channel (GT) Online selling

Existing stores 7,438 New stores 235 New channel (GT) 241 Online selling 5

In 1000 USD

Yes, we are facing with

challenging in channel expansion (solution part 4):

• Retail stores opened 05 news but 04 closed due to Landlord’s bankruptcy

• GT with hand carried offering discount up to 50%

• Online sales on Zalora.com is not yet an effective channel now (*)

2. BUSINESS GROWTH: SALES REVENUE AND MAIN KIPS

MBS GROWTH: IN WIDTH FOR EXPANSION AND RE-EMPT AND IN DEPTH FOR RETENTION

Pla

875

Gold

1.925

Silver

10.272

Bronze MBS

115.473

JUNE – 2013: AT 128.5K

Pla

1.338

Gold

2.526

Silver

12.076

Bronze MBS

125.505

AUG – 2013: AT 142K

Pla

385

Gold

676

Silver

4368

Bronze MBS

104.543

JAN – 2013: AT 114K

Beneficial offering in: Birthday - March Women day - Oct Women day -Member day - Cross sales program

2. BUSINESS GROWTH: SALES REVENUE AND MAIN KIPS

MBS GROWTH: IN WIDTH FOR EXPANSION AND RE-EMPT AND IN DEPTH FOR RETENTION

750

points

less

750 points

Less

500 points

Less 250 points

Beneficial offering in occasions: Birthday - March Women day - Oct Women day - Member day - Cross Sales program

Higher 750

Less

750 USD

Less

500 USD

Less 250 USD

Pla

Gold

Silver

Bronze

3. KEY PRODUCTS LAUNCH RESULT IN 2013 (WEIGHTED SALES CONTRIBUTION)

0.2% 0.2% 0.6% 3.9% 9.0% 17.6% 22.3% 22.4%

99.8% 99.8% 99.4% 96.1% 91.0% 82.4% 77.7% 77.6%

Jan Feb Mar Apr May Jun Jul Aug

New products Existing products

Jan Feb Mar Apr May Jun Jul Aug

New products 2.0 1.9 7.2 31.9 85.0 145.8 212.4 274.6

Existing products 1,063.2 911.2 1,159.8 791.8 854.9 683.3 739.0 950.4

TOTAL REVENUE 1,065.1 913.1 1,167.0 823.8 939.8 829.2 951.4 1,225.1

IN 1000 USD

Chia Seed Chia Seed Chia Seed Chia Seed Chia Seed

Natural Sun Natural Sun Natural Sun Natural Sun

CC Cream CC Cream

4. NEXT MOVING AND FOR BISUESS GROWTH IN 2014

CHANNEL EXPANSION CUSTOMER SERVICE PROMOTION

RETAIL STORES

Focus on new ROAD SHOP to minimize the impact of low traffic to mall due to economic-crisis est. 02 more by Year End

Marketing support by GWP, EDU TRAINNING, EVENTs … activities to stimulate agents as benefit that they could not have from Hand Carried Suppliers

GT STORES

NEXT: ONLINE SALES VIA OUR WEB STITE

PEOPLE

SERVICE RECOVERY SYSTEM

Training both INTERNAL and EXTERNAL staffs. Measured by KIPs: number of comments, complains, thank you notes ...

Hotline – Call Center – FB – and Comment’s at POP all are case by case resolved

NEXT: IMPROVED DATA PROCESSING

DRIVE MORE TRAFFIC

SMART SCHEME

NEXT: MAKRKETING INTEGRATED

Promote: POS join promotion

Data Analysis and marketing integrated:• CRM identify the potential CUS• Promotion offering scheme• PR-Event trial- demonstration

5. CHALLENGING AND SUGGESTION

CHALLENGING SUGGESTION TO HQ

Hand carried and economic sluggishness are well considered as our challenging in next coming years those issues are limit channel expansion and online selling

Pressure of first mover competitors with cheap price policy and copy our innovation require us to seamlessly moving forward in all aspects to retain and develop customers

Manpower: cost of new recruitment as our talent staffs need time and cost to educated while opponents just waiting for their matureness and offering better benefit to attract

Please have clear action to prevent crossed marketing selling

Customer development: HQsupporting welcome gifts and advise in strategic development. New product launching are highly appreciated

Strategic partnership with Korean firms right in Korea and then support local markets performance.

Ex: Lotte Mark and TFSK

END OF PRESENTATION

THANK YOU FOR YOUR ATTENTION