2017 StrategyCHINA280INDIA 27THAILAND 15SINGAPORE 13AUSTRALIA 23MALASIA 20 INDONESIA 19STRONG PLANS FOR SEPHORA ASIASales 1.5 Billion Euros CAGR +18% until 201910 COUNTRIES ( Retail + Digital )Network to 404 Stores 143 New Store openingsFast expansion of E Commerce +20% of business 7Philippines2016-2019 Ambitions+22%Store Number228261315360404ASIA OUR AMBITION X296% 91% 88% 84% 79% +10%+17%+22%+22%4% 9% 12% 16% 21% VCHINA206INDIA8THAILAND7SINGAPORE11AUSTRALIA6MALAYSIA16INDONESIA8404 Stores by end of 20199 New Countries with Online ASIA EXPANSION INCREASING FOOTPRINTNew DoorsIncrease% Online StoresChina+ 75+ 37% Singapore+ 2+ 18%+ 1Malaysia+ 4+ 25%+ 1Australia+ 14+ 156%+ 1Thailand+ 10+ 200%+ 1Indonesia+ 12+ 171%+ 1India+ 19+ 225%+ 1Philippines+ 7 + 1Hong Kong + 1New Zealand + 1Total + 143 + 54%+ 9China Singapore Malaysia Australia ThailandIndonesiaIndia (5 Stores only)Hong Kong (Digital Only)Philippines (2016 Digital + 2017 Stores)New Zealand (Digital Only)STRONG PLANS FOR SEPHORA ASIAULTIMATE OMNI CHANNEL EXPERIENCE7 Markets Omni Chanel Stores drive harder our points of difference-DRIVE our Omni channel uniqueness: only Beauty player with B open Philippines -Explore new markets digitally -Continue building fundamentals for the future in India/IndonesiaREINVENT CRM “ONE ASIA CRM” BREAKTHOUGHMake Beauty Personal Enhance customer experience engage more reward more, better and more often Obsessive Recruitment of Millenials into our beauty community Be more relevant and personalize New APP “my beauty journal” Be where ever she goes: One Asia data system Create a Super IDA digital platform rewarding purchases Right assortment, Relevant Communication| Trend driverStrengthen Differentiation Increase no of Exclusive brand and exposure on Exclusives2017 Skin Care Strategy2017 Skin care Strategy213Further penetrate Masks!Entry Segments - Entry steps - Booster step-Toner, Essence Lotion Meeting Millennial-Asian: glow from SK, heart shape face -LiftingNatural land Play with ingredient 1342vVarious product & acceptable price v in store experience vAnimation pushing vStory telling -booster conception Perfect heart face Team plantRose Fruit Traditional medicine Honey 2017 Makeup Strategy Sephora is the Makeup Champion in China. BE SEEN AS FACE EXPERT.1.Extend face routine by exploring new trends : Sculpting, strobing, glow.BE THE MARKET LIP PLAYGROUND1.Own the Matte trend & Red Color Trend. 2.Bring Newness in a big way.CONTROL BETTER EYE CATEGORY1.Be the brow champion offering the largest assortment of the market. 2.Drive EyelinersFACE LIPEYESNAILACCESSORIESINCREASE ACCESSORIES ASSORTMENT1.Push stronger for accessories & convey professional makeup approachSEPHORA IS FUN & NAIL IS FUN1.Be ready for the peak season & make it big. 2. Bring new innovativeSERVICES Nationwide Roll out to push all Segments!STRATEGIC SEGMENTSTACTICAL SEGMENTS213More attractive offer to consumerPrice Gap ReductionRoller Ball More assortment and business share13221Niche is Coming42017 Fragrance Strategy11Price Communicationqq New Price New Price CommunicationCommunication 37 brands, total 880 New Price products, -7% discount Price Gap 1.2 vs FrancePrice Gap 1.2 vs France qq Sephora Good Skincare Price Sephora Good Skincare Price ReductionReduction MTD July, Sales Volume +130.3%, Sales Value +61.6% qq Value sets to reduce price Value sets to reduce price GapGap q Massive Sampling & GWP on Key segment (qty) Reduce S+ Price Gap 20% pricing corridorBoost Appeal in Entry levelNew / Koreans/ Chinese brands to meet entry level Drive Price Parity for ExclusivesGenerous offers for our Customers Best Value Set Offer Great Gifts! GWPs!Sephora offers our customers the most trials! Targeted sampling | Quality touch points Samples to build your brandExplode In Store Service Skin Care Diagnosis machines to better serve our customersNew Skin Care table BEAUTY PLAY Services Pilot phase.ONE AMBITION & ONE OBJECTIVE : Provide the Best In Class Make-up services in China 10% of our sales driven by services WE NEED AN EXCITING MENU OFFER that will make our client come back.WE NEED A VISIBLE & PLAYFULmake-up bar areaWE NEED TO BE PROUD & SHOUT about our amazing service offer to our clientsWE NEED THE MOST PROFESSIONAL & welcoming makeup artist in stores. LAUNCH DATE in 9 PILOT STORES SEPTEMBER 2016 & ROLL OUT JAN 2017Assortment Selection Process: 1)Sephora: Share kit types and quantities 2)Brands: Pitch SKUs (P & Q) 3)Sephora: Review and shortlist final SKUs 4)Vendor: Follow up with brands on imagery, photography, packaging, production & assembly, shipping and delivery into the stores.What is it? A brand new program in Sephora ChinaPlan to launch on March 2017Handpicked selection of deluxe samples/ full sized products of best sellers packaged into a limited edition kitIncredible value for money for every Beauty AddictVery Go