1. Fashion and Consumer & Retail
Update: November 2011 1
Valentin Loktionov
BCS Area, Moscow, November 2011
Fashion
and
Consumer&Retail

2. Fashion and Consumer & Retail
Update: November 2011 2
Content:
Understanding the Fashion Industry.…………………………. 3
Understanding the Retail Industry…….…………………………. 4
Panalpina Suppliers Management Fashion & Retail..…………. 5
Panalpina Ocean Freight Best Sellers…..……………………… 7
Panalpina Air Freight Best Sellers…………………………..…... 8
Reliability, Security vs. Lead Time ( Far East Routing)….…….. 9
Customs Clearance Services…………………………………….. 10
New Warehouse in Moscow………..………….…………………. 13

3. Fashion and Consumer & Retail
Update: November 2011 33
Understanding the Fashion Industry:
« …a while ago fed by the ordinary consumption of exceptional
people, luxury activities are supported today by the exceptional
consumption of ordinary people … »
• Global market worth over 200 billion Euros, controlled approx. 30% by French Groups
• Double digit growth even in crisis years 2008 and 2012
• Globalization of market and demand with emergence of new markets like Russia, Ukraine and
Kazakhstan
• Managing Vendors in Fashion is an emerging trend and Panalpina Specials
• Strong competition in the Industry: Door-to-Door solutions including Customs, Distribution and
Warehousing is available in Russia, Ukraine and Kazakhstan now.

4. Fashion and Consumer & Retail
Update: November 2011 44
Understanding the Retail Industry:
«… we are moving out of the era of mass and cheap into the age of luxury
and ‘made for me’. Mass customization is a trend created by
commoditization, which has in turn been created by globalization… »
• Strong competition in the Industry
• Availability to manage complex solutions and volumable shipments / distribution
• Dominated by mega stores (big box or hypermarkets )
• One size does not fit all for supply chains
• Multi channel offer: FTL / FCL vs. LTL / LCL. Customs clearance in various locations.
• Warehousing for small / big size clients: X-Dock and Pallet Storage, Mezzanine.
• Focus on emerging markets, including Russia

5. Fashion and Consumer & Retail
Update: November 2011 5
Panalpina Suppliers Management Fashion & Retail:
Typical Scheme:
Client Provides Buyers Forecast with Suppliers Details,
Shipping Windows and Closing Dates. Client provides
qualitative / quantity criteria for PO assessment.
Panalpina manages Suppliers shipments,
POs acceptance and system input, Physical
Goods inspection against Agreement with a Client.
Tools:
• Panalpina Intra Systems
• Interface with Client Systems: Manhattan; SAP, 1C.
Panalpina has got local IT Department to build up
an interface with any Client’ software to provide
an input into Client’ systems if required.

6. Fashion and Consumer & Retail
Update: November 2011 6
Panalpina Suppliers Management Fashion & Retail:
Receive goods Verify Cargo VS P/L Article, color , size check by pcs
Report to Client /Suppliers Sort/ Pack ok by carton, by pcs Overall Quality check
Quantity / Quality / Weight Control at Origin or Transshipment
prior the final Customs Clearance at Destination (for Import).

7. Fashion and Consumer & Retail
Update: November 2011 7
Panalpina Services at a Glance:
Air Freight Freight
Air Ocean Freight
Ocean Freight Road Freight
• Multi ULD Transport • FCL and LCL Transportation • Overland from Europe
• Samples, POS Transport • Intermodal Transportation • Customs Clearance
• Chartering and Regular • Customs Clearance • PO Management
• Customs Clearance • PO Management • Consolidation/
• PO Management • Consolidation/ Deconsolidation
• Document Check/ Deconsolidation • Document Check/
Management • Document Check/ Management
• Door-to-Door Delivery Management • Distribution FTL /LTL
• Airfreight Regular • Weight Control on item level
Domestic Distribution

8. Fashion and Consumer & Retail
Update: November 2011 8
Panalpina Ocean Freight Best Sellers:
Services:
• Full container loads (FCL)
• Less than full container load (LCL)
• Door-to-door intermodal services
• Port-port, door-port, port-to-door services
• Global coverage with consolidation services
• Oncarriage by truck, rail.
Specials:
• Vendor Management Services for Fashion and Retail Clients
• Customs Clearance
• PO Management
• Weight Control on Item Level

9. Fashion and Consumer & Retail
Update: November 2011 9
Panalpina Air Freight Best Sellers:
Services:
• Import / Export Customs Solutions MOSCOW
• Dedicated Offices in Domodedovo and Sheremetevo Customs with LUX Client WHS
more 150 personnel. Field Personnel helps to speed up operations MOSCOW
excellence. Shanghai
• Customs Clearance solutions for every capital city plus Yantian
St.Petersburg and Ekat. HoChiMinh
• Alternative solutions for airfreight combinations depending on
Jakarta
customer’ requirements: DIRECT AIR; AIR to Europe and on-truck
delivery; RAIL China+ AIR; SEA to Dubai + AIR
Specials: LUX
Client WHS
• Dedicated Fashion Industry expertise in Customs Clearance. MOSCOW
• Air Fright Domestic Distribution Russia. Urumqi
• Karaganda Customs WHS +
Malaysian Air service in Kazakhstan
• Vendor Management for Far East Fashion / Retail Suppliers.

10. Fashion and Consumer & Retail
Update: November 2011 10
Reliability, Security vs. Lead Time
on Routing from Far East to Russia:
Reliability, Security vs. Lead Time PANALPINA Rating Panalpina’
on routing from Far East to Russia RANKING Reliability/ Lead Time,
Security** incl. Customs*
SEAFREIGHT to Moscow via
FINLAND Kotka 1 1 42
RUSSIA St.Petersburg, FCT 2 2 46
RUSSIA St.Petersburg, PLP 2 2 46
RUSSIA St.Petersburg, Ust Luga 3 3 46
RUSSIA Vostochniy / Vladivostok 4 3 37
ESTONIA Tallinn 4 4 49
AIRFREIGHT to Moscow via
Moscow Domodedovo 1 1 7
Moscow Sheremetevo 2 2 7
LUX Luxemburg 2 3 17
COMBINATIONS, NON DIRECT to Moscow via
RAIL-AIR Urumqi 1 1 23
SEA-AIR Dubai 2 2 33
* Estimated Time. **Panalpina provides reliable and secure transportation only, but we tried to prioritize within each group.

11. Fashion and Consumer & Retail
Update: November 2011 11
Customs Clearance Services:
Panalpina is one of E-Customs pioneers in Black and Caspian Sea Area.
• Declaring the goods prior to arrival;
• Declaring upon arrival;
• Import customs clearance;
• Export customs clearance;

12. Fashion and Consumer & Retail
Update: November 2011 12
Panalpina Customs in Airports:
The Panalpina station in the European part of Russia is the gateway to Russia and it also acts as
transit point for shipments into other CIS countries. Moscow has several airports, of which the two
most used are Sheremetevo and Domodedovo (with Vnukovo a distant third).
Domodedovo (DME) Customs Terminal
Slightly less red tape and more modern facilities. Fit for
Fashion clientele, although lack Customs Inspection
space, zone remain a bottle neck for years to come, both
DME and SVO Customs.
Sheremetevo (SVO -1 and SVO - 2) Customs Terminals
SVO-2 is the larger and more up-to-date of two terminals.
There is no physical connection between the two terminals, they
are essentially separate cargo terminals using the same set of
runways.
Vnukovo (VKO) Customs Terminal
A perspective part of future development. Presently, Vnukovo
is lacking scheduled cargo carrier presence, but situation may
change in 2012.
Pulkovo (St.Petersburg); Borispol (Ukraine); Almati and Karaganda (Kazakhstan)
Customs Terminals are operational and support full Panalpina’ range of services.

13. Fashion and Consumer & Retail
Update: November 2011 13
Panalpina Overland Customs:
Kashirskiy Customs Terminal, 37km Moscow
The most widely used Customs point for Fashion and Consumer&Retail goods
clearance by Panalpina.
Russian Government has invested a hefty portion into facility’ upgrade. Facility
become a know-how center to translate knowledge across the organization for
overland customs clearance solutions.
Lately been overpopulated with the clientele so that Panalpina decided to develop an
alternative facility named Lvovskiy Terminal.
Lvovskiy Customs Terminal, 45km Moscow
Panalpina’ all new terminal to complement and extend Kashirskiy’ capacity. The
other advantage is this terminal is fit to allow truck / rail customs clearances.
Railroad solutions become more popular for imported goods ex-Far East
Smolensk Customs Terminal and other facilities
Future tells that Customs Terminals will migrate closer to the borders and
Panalpina has already done pilots with Smolensk Customs Terminal to be at the
edge of latest trends.
St.Petersburg Baltic, Ust Luga Customs;
Kiev, Ilichevsk, Odessa Customs (Ukraine);
Almati (Kazakhstan) Customs are operational and support full Panalpina’ range of services.

14. Fashion and Consumer & Retail
Update: November 2011 14
New Warehouse in Moscow:
• Starting from the 2012 New Panalpina A-class
warehouse in Krekshino Logistics Park ,10’200 sqm
• 25 km South-West of Moscow Circle Highway
(MKAD), between Kievskoye highway (M3) and
Minskoye highway (M1)
• Services:
Temperature & Humidity Control and General Storage
Shelving & Possibility for GOH facilities
Inventory Management
Reverse Logistics
Local Distribution
Bar Code Scanning
Re-Packaging and Re-labeling
Quality Control
Pick and Pack