This document summarizes the success of Privalia, a flash sales company that transformed into a highly mobile business. It describes Privalia's business model of limited-time deals on best brand products through mobile and email pushes, driving customer attraction, desire, urgency and engagement. Key results shown include growing mobile traffic and sales, with over 70% of sales from smartphones. The document identifies important success factors such as understanding metrics from a single customer view, optimizing content and product development for mobile, and increasing mobile-focused advertising investments.

1. SUCCESS CASE
Mobile
Commerce
26th / NOVEMBER / 2014

2. SUMMARY
OVERVIEW
BUSINESS MODEL
RESULTS
KEY SUCCESS
FACTORS
KEY TAKE-AWAYS

3. PRIVALIA OVERVIEW
SALES GROWTH (NET REVENUES)
2006 2007 2008 2009 2010 2011 2012 2013
2014
400
350
300
350
200
150
100
50
KEY DATA
18M MEMBERS
2006 2007 2008 2009 2010 2011 2012
2013
18
16
14
12
10
8
6
4
2
3 000+ BRANDS
Monthly Visits: 34 M
Monthly Visitors: 4 M
Monthly Visit Frequency 8,5

4. PRIVALIA OVERVIEW
MISSION & VALUES
Inspiring people every
day
to look better and save
money

5. SUMMARY
OVERVIEW
BUSINESS MODEL
RESULTS
KEY SUCCESS
FACTORS
KEY TAKE-AWAYS

6. BUSINESS MODEL
ESSENCE

7. BUSINESS MODEL
IMPACT ON CUSTOMER
BEST BRANDS & PRODUCTS
AGGRESSIVE DISCOUNTS
LIMITED TIME
LIMITED STOCK
NEW STUFF EVERY DAY
PUSH COMM
LOW PRICE POINTS
CATEGORIES
1
2
3
4
ATTRACTION
DESIRE
URGENCY
ENGAGEMENT
PURCHASING
AUTHONOMY

8. PRIVALIA OVERVIEW
MAGIC RECIPE
DESIRE
+
URGENCY
+
ENGAGEMENT
+
AUTHONOMY
HIGHLY
MOBILE
FRIENDLY

9. SUMMARY
OVERVIEW
BUSINESS MODEL
RESULTS
KEY SUCCESS
FACTORS
KEY TAKE-AWAYS

10. RESULTS - MOBILE GROWTH
TRANSFORMING INTO A MOBILE BUSINESS
% Mobile traffic Privalia % Mobile Sales Privalia Global
Global
70%
60%
50%
40%
30%
20%
10%
0%
69%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
52%
Note: Only Online Flash Sales Businesses

11. RESULTS - MOBILE GROWTH
TRANSFORMING INTO A MOBILE BUSINESS
TRAFFIC SALES
76,3% 61,1
72,4% 54,9%
68,9
%
%
51,6
%
51,2
%
43,7%
Data:: September 2014

12. RESULTS -PLATFORM BREAKDOWN
70% OF MOBILE SALES COMING FROM SMARTPHONES
SMARTPHONE WINS…
Visits
Sales
82% 18%
70% 30%
… AND APPS DRIVING
THE MOST OF MOBILE SALES
74%
APPS
26%
MOBILE
BROWSER

13. RESULTS - DOWNLOADS
TRANSFORMING INTO A MOBILE BUSINESS
8.5 MILLION
WORLDWIDE
63% 37%
iTunes
Google Play
26.815 27.431
4,0 4,1
1349 276
4,2 3,9
648 3285*
2,7 2,2
* Including France
Reviews
Europe Worldwide
Privalia
BuyVip
Vente-Privee
5 million 8.5 million
2.50 2.51
2.21
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Accumulated App Downloads (million)
2010 2011 2012 2013 W44
Spain Italy Brazil Mexico
1,3

14. SUMMARY
OVERVIEW
BUSINESS MODEL
RESULTS
KEY SUCCESS
FACTORS
KEY TAKE-AWAYS

15. KEY SUCCESS FACTORS
BEYOND THE POSITIVE IMPACT OF THE BUSINESS MODEL
1 UNDERSTANDING THE RIGHT METRICS
2
3
4
CONTENT STRATEGY
PRODUCT DEVELOPMENT
ADVERTISING

16. KEY SUCCESS FACTORS
UNDERSTANDING THE RIGHT METRICS
SINGLE CUSTOMER VIEW
= NO SILOS
 ALL VISITORS LOGGED-IN
 SAME ACCOUNT IN ALL CHANNELS

17. KEY SUCCESS FACTORS
CONTENT STRATEGY
 PRE-SALES & EXCLUSIVE EVENTS
 RUN & BUY PROMOTIONS
 100% EMAILS MOBILE OPTIMIZED
 SHARE THE APP PROGRAM (IN BETA)

18. KEY SUCCESS FACTORS
PRODUCT DEVELOPMENT
OCTOBER - 2010
MARCH - 2011
MAY - 2011
MARCH - 2012
JAN - 2014
IPHONE
ANDROID
IPAD
M-SITE
WINDOWS PH,
BB10…
…
 UX
 PAYMENT METHODS
 SAVE CARD
 MULTIPLE PRODUCT VIEWS)
 …

19. KEY SUCCESS FACTORS
ADVERTISING
ADVERTISING INVESTMENT %
4%
12%
23%
40%
50%
60%
50%
40%
30%
20%
10%
0%
2011 2012 2013 2014 2015
INTERNAL PROMOTION INSTALLS

20. KEY SUCCESS FACTORS
ADVERTISING STRATEGY
ACQUISITION ENGAGEMENT
MOBILE
NETWORKS

21. SUMMARY
OVERVIEW
CHANNEL
PERFORMANCE
KEY SUCCESS
FACTORS
KEY TAKE-AWAYS

22. KEY TAKE-AWAYS
DO I BUILD AN APP?
1. STRATEGY ACCORDING TO YOUR BUSINESS MODEL
2. BE CAREFUL WITH THE SMALL PICTURE: GATHER THE
RIGHT INSIGHTS!
3. CONTENT STRATEGY IS KEY TOO SUCCESS
4. P. DEVELOPMENT: PLATFORMS, UX & FUNCTIONALITY
5. PUT MORE MONEY ON MOBILE ADVERTISING AND MAKE
ZUCKERBERG & OTHERS HAPPY

23. THANKS!