E-COMMERCE 2.0 From social media to social commerce September , 10th 2009 Speaker : Jean Claude Donato Co-founder & Partner OMNINO L.L.P.

FACTS & FIGURES E-commerce In France only: 22 millions online customers (out of >70 millions «French») +28% growth of online sales Q1 2009 (recession) 83% of age 18-34, 70% of 35-49 & 65% of 50+ S$62 millions is what you will make if you capture only 0.1% of French online market by 2010 (total S$62b) Numbers speak volume ! 1 Trillion US$ e-commerce revenues globally in 2008 97 billion US$ e-commerce GDP in APAC in 2008 & $171b by 2011 20% & 48% growth rate of e-commerce in China & India (2008) In Europe only: 75 billions EUR (UK), 21 billions EUR (FR), 13billions EUR (DE) sales of e-commerce in 2008 (products + services)

SO WHY EUROPEANS BUY ONLINE? = SUNNY SINGAPORE MALLS ALWAYS OPENED 15MIN TO NEAREST MALL ORCHARD SHOPPING = COLD & RAINY EUROPE MALLS CLOSED SUNDAY & AFTER 6PM 2HRS TRAIN TO DOWNTOWN ONLINE SHOPPING

WHAT IS THE FUTURE OF COMMERCE ? OR CERTAINLY BOTH ! HYPOTHESIS #1 : CHEAP PRODUCTS WILL LEAD THE WORLD HYPOTHESIS #2 : SOCIAL RESPONSIBLE, GREEN & QUALITY ASIAN BRANDS WILL WIN

RETAIL and E-COMMERCE 1.0 Mass market & hard selling Expensive Marketing and Operation costs High Risk, Low margins, Physical outlets / Stocks BASIC NEEDS PASSIVE CONSUMERS RETAIL & E-Commerce 1.0 vs Social & E-commerce 2.0 Year 2000 SOCIAL and E-COMMERCE 2.0 Social driven / Consumer reviews Fairtrade, labels, and green values Quality over quantity / Low CAPEX NICHES, SOCIAL (INTER)ACTIVE Year 2010

E-COMMERCE 1.0 : The success of 2000 but still strong in 2010 Mass market / Low branding Not social / Hard selling Niche market / Good branding Social functions / Soft selling

Mass market / Low branding

Not social / Hard selling

Niche market / Good branding

Social functions / Soft selling

E-COMMERCE 2.0 : In its infancy now but for how long? Anyone can review, sell, advice, recommend any products or services

CONSUMER SEARCH & BUYING BEHAVIOUR E-commerce 1.0 & 2.0 : How to drive revenues online? ACQUISITION REACH YOUR NICHE SEM/ SEO ONLINE VISIBILTY ENGAGE AUDIENCE BRAND RECOGNITION CRM DATAMINING EMAIL MARKETING RETENTION, LOYALTY

FEW STEPS & TOOLS TO LAUNCH YOUR PROJECT YOUR BRAND/PRODUCT Create your e-commerce Platform ~3 months OTC $100-200K Create a Microsite (blog your brand / engage your audience) Invest a minimum budget on online advertising, SEM , aggregators & affiliates programs & close B2B deals ~6 months $100-200K/Year Create one or severals Facebook Accounts & invite friends, create groups, find fans, blogs, forums, etc. ~3 months $0-50K/Year Timeline : >1 year Budget : $ 200-400K

TIMELINE & ROI WEBSHOP (IT budget) SALES SEM /SEO & Adv. (Mktg budget) ROI ~ 1 year Budget Year#1: $200K to $400K TO+12m TO+9m TO 100K 200K SGD TO+6m

E-COMMERCE 2.0 SWOT ANALYSIS Launching first your brand online is often more efficient and you start making profit while looking for a Franchisee or local distributors / outlets OPPORTUNITIES THREATS STRENGHTS WEAKNESSES Customers feedback Brand awareness & Sales Asian lifestyle is trendy Advice #1 : Don’t be cheap Be green & responsible! Asian brands are unknown in E.U. Consumers need to understand what is social commerce  Advice #2 : Do both 1.0 & 2.0 & Give yourself >1 year Many competitors like Amazon but new players are fragmented Big community base but not yet converted to social commerce  Advice#3 : Work in partnership with current leaders (affiliates / B2B deals) New starters have reduced margin Low budget reduce time to ROI  Advice#4 : Start to invest now but release your budget in 2 nd half of 2010

Launching first your brand online is often more efficient and you start

making profit while looking for a Franchisee or local distributors / outlets

Customers feedback

Brand awareness & Sales

Asian lifestyle is trendy

Advice #1 : Don’t be cheap

Be green & responsible!

Asian brands are unknown in E.U.

Consumers need to understand what is social commerce

 Advice #2 : Do both 1.0 & 2.0

& Give yourself >1 year

Many competitors like Amazon but new players are fragmented

Big community base but not yet converted to social commerce

 Advice#3 : Work in partnership with current leaders (affiliates / B2B deals)

New starters have reduced margin

Low budget reduce time to ROI

 Advice#4 : Start to invest now but release your budget in 2 nd half of 2010

Market study & Strategy E-commerce site & IT Localization / Legal issues Sales & Marketing / B2B Operations and support Risk & Upside sharing WHAT WE DO : CONSULTANCY, IT & OPS, SALES & MKTG Our E-COMMERCE E-Business all together* Retail YOUR ASIAN BRAND & QUALITY PRODUCTS Business Partner agreement

Market study & Strategy

E-commerce site & IT

Localization / Legal issues

Sales & Marketing / B2B

Operations and support

Risk & Upside sharing

CONTACT US Jean Claude DONATO Co-Founder & Partner [email_address] Christophe LAGUET Co-Founder & Operations Director [email_address] Website : www.omnino.com.sg Our Clients & Partners : E-Business all together* Other brands are welcome !