AGENDA Lead Change in Retail: Detonating Smart Marketing Interpretation of China’s beauty consumption trends and in-depth look at SK-II’s successful marketing in Jingdong. Introducing JD.com. Terry Wang General Manager, JD beauty JD.com - Terry Wang is the general manager of JD Beauty. In this role, he oversees strategy, planning,sales and client relationship management for JD Retail’s beauty business at JD.com. - Wang joined JD.com in March 2018. Under his leadership, JD Beauty has established partnerships with many international beauty brands including L'Occitane en Provence, Sulwhasoo, SKII, andKOSE. - Since Mr. Wang joined JD.com, JD Beauty has consistently set new sales records. Wang is a beauty industry veteran of over 20 years, having held several key management positions at companies including Parfums Christian Dior, La Prairie Group, LOreal Luxe China,and Sulwhasoo.

1. Terry Wang
General Manager of JD Beauty
JD Retail, JD.com

2. JD.com
$67.2 Billion
net revenue in 2018
Largest
retailer in China, online or offline(1)
320+ Million
Annual active customers(2)
3rd Largest
internet company globally(1)
Note: (1) All in terms of revenue. (2) In 2019
99% of China’s Population
Covered by JD’s logistics network 80%+
orders placed through mobile
~600
warehouses

3. Rapid Growth of China’s Beauty Market
Online growing faster than offline
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
500
1000
1500
2000
2500
3000
2013 2014 2015 2016 2017 2018
Total retail sales of China’s beauty market
Increase ratio of retail sales for China’s retail beauty market
0%
10%
20%
30%
40%
50%
60%
70%
80%
2013 2014 2015 2016 2017 2018 2019
Increase ratio of online beauty product consumption
Increase ratio of total retail sales of China’s beauty m
uGlobal beauty market grew by 4.12% YOY in 2018.
uFrom 2012 to 2018, CAGR(1)
of China’s beauty market of 11.8%
uFrom 2013 to 2017, CAGR of online sales of beauty products of 29.47%
Note: (1) Compound Annual Growth Rate (CAGR). (2) Data Source: Qianzhan Industrial Research Institute, China's National Bureau of Statistics

4. JD Beauty’s Customer Profile
Young people from 1st and 2nd tier cities are main force for beauty consumption
Data Source: Qianzhan Industrial Research Institute, China's National Bureau of Statistics
Age
Cities
0-
18
04-
49
25-
29
30-
34
35-
39
18-
24
50+ unknown
1sttier 2nd-tier 3rd-tier 4th-tier 5th-tier 6th-tier
Proportion 16% 27% 14% 12% 11% 20%
Y-O-Y Increase 18% 20% 24% 26% 23% 24%
uRevenue growth of beauty products equal for male and female
consumers
u18-34 years old account for 63% of revenue
Significant sales growth among 18-24 year-old consumers
uConsumption in 2nd
-tier cities is highest, accounting for 27% of
revenue, followed by consumption in 6th
tier cities, accounting for
20% of revenue
age Increase ratio

5. JD Beauty’s Customer Profile
Men tend to buy more expensive products, young consumers spend more
Data Source: Qianzhan Industrial Research Institute, China's National Bureau of Statistics
0 1 2 3 4 5
134 136 138 140 142
u More female consumers
u Male consumers tend to buy more expensive
products
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Average number
of items per
person
Female
Male
uYoung consumers aged 16-35 account for
80% of revenue
Per Consumer
Transaction
Number of customers
Increase in number of
customers
16-25 26-35 36-45 46-55 56+

6. Why Brands Choose JD Beauty
JD.com Helps Brands
Connect with the Young
Integrated Marketing Solutions
Premium Experience
Share Insights with Partners

7. Connecting Brands with the Young
Bringing more young customers to OLAY
More New and Young Users
72% of users come from tier 1 or 2 cites
74% are new users 65% are under 30
u Connecting OLAY with more high-
end young consumers
u Helping brands understand the
preferences of young consumers
through big data
u Working together to launch
products catering to young
consumers

8. Premium Experience
u 99% of China’s Population
Covered by JD’s logistics network
u 90% of orders
being delivered same- or next-day
u JD Luxury Express delivery service u Innovative Gifting Concept

9. Integrated Marketing Solutions
u Integrating IP, e-commerce platform, access to high-end customers
u Customizing gift boxes
u Social media exposure, traffic, etc.

10. Share Insights with Partners
u Identify and target high-potential audience group for marketing
u Maybelline cooperation: ROI 106%↑ for March 1-9, 2019
Aware
Appeal
Act
Advocate
Evolve marketing strategies
Execute marketing campaigns
Enhance marketing initiatives
Evaluate marketing effectiveness

11. Cooperation with Japanese Brands - SKII
u Unbounded Retailing cases
u SK-II PLUS Future X
u SK-II together with JD plus members, build Future X experience store
-

12. JD Worldwide- Japness Cosmetics Traceability Journey
JD Worldwide traceability inspection team visited 6 Japanese cosmetics brands,
including rijikunbu, Naris, Rohto, Kracie, M-mark and ROSETTE. Through the
whole live broadcast of the camera of the "traceability inspector", the number of
viewers reached 70 million.

13. JD Worldwide-
%
The training case of Japanese new product—
M-mark