Worldwide & Russian Retail Markets Facts 2009-2012. Forecasts 2012-2016 Research.Enter

WORLDWIDE AND RUSSIAN
RETAIL MARKETS 2009-2016
MAKING CONCLUSIONS
BUILDING PLANS

2
ABOUT CSR ENTER
CENTER OF STRATEGIC RESEARCH OF ENTER
(CSR ENTER)has been created in 2011.
One of our ambitious targets is to form trends in the
retail industry, mainly market research and analytics. This
led to the creation of CSR Enter, the core aim of which is
to increase the market transparency.
Public researches can be downloaded for free on
www.enter.ru/research
Visit us on Facebook:
http://www.facebook.com/research.enter
Center of Strategic Research of Enter (CSR Enter) has been
created in 2011.
One of our ambitious targets is to form trends in the retail
industry, mainly market research and analytics. This led to the
creation of CSR Enter, the core aim of which is to increase the
market transparency.
ABOUT CSR ENTER
Public researches can be downloaded for free on
www.enter.ru/research
2

Market Research by CSR Enter:
Visit us on Facebook:
http://www.facebook.com/research.enter
In case of questions & queries, comments and proposals
for partnership, e-mail us: research@enter.ru
«Present Trends in Retail: the New Way of
Shopping»
2 April 2012.

«Online Retail Barometer:
New Knowledge (2Q 2012)»
27 July 2012

«Business Results of the Retailers for 2011
and 1Q 2012»
3 September 2012

«Present Trends in Online Retail: Facts and
Figures»
10 October 2012
«Customer-Centrism: metrics, cases,
facts»
28 February 2013
«Business Results of the Retailers for
2011»
8 April 2013
In case of questions & queries, comments and proposals
for partnership, e-mail us: research@enter.ru

3
CONTENTS
WORLDWIDE AND RUSSIAN RETAIL MARKETS
USA....................................................................................................................................................................6
CHINA.................................................................................................................................................................8
RUSSIA...............................................................................................................................................................10
SEGMENT ANALYSIS
PERFUMES & COSMETICS.................................................................................................................................14
JEWELRY & WATCHES........................................................................................................................................29
FURNITURE........................................................................................................................................................46
SPECIAL FOCUS: WORLDWIDE BEST-PRACTICES......................................................................61

4
METHODOLOGY
TERMS AND MEASURES:
CAGR (Compound annual growth rate) — shows average weighted growth rate over several periods.
Offline Retailers – companies which operate only through stationary retail stores.
Online Retailers – companies which operate through their own website, catalogue or (and) call-center.
Multichannel (both online and offline) – companies which operate both though the Internet and other distant
channels and through traditional retail outlets.
Mixed Product Range – segment which consists of retailers that are specialized on 2 or more commodity
categories.
Weekly Traffic (Unique Weekly Visitors) – average number of weekly unique visitors of an internet retailer’s
website. Traffic of retail segments is estimated by top-3 companies in each segment.

WORLDWIDE AND
RUSSIAN RETAIL
MARKETS
SALES VOLUME & GROWTH RATES
EXPANSION OF E-COMMERCE

6
WORLDWIDE MARKETS
RETAIL IN THE US
USA
Retail Sales* USD bln
KEY FACTS
During 2012 non-food retail grew up 3 times
more than food retail (7.2% vs 2.6%). The
total retail market’s CAGR in the USA reached
6.3% in 2009–2012.
* In current prices (including inflation)
Sources: US Census, analysis by CSR Enter
Food Retail
Non-Food Retail

7
WORLDWIDE MARKETS
E-COMMERCE IN THE US
USA
E-commerce Sales USD bln
KEY FACTS
E-commerce market was growing faster than
the total retail market in the US during 2009-
2012 (with CAGR of 14% vs 6%).
Source: Morgan Stanley analytics
F F F F

8
WORLDWIDE MARKETS
RETAIL IN CHINA
CHINA
KEY FACTS
In contrast to other developed countries
share of food retail in total retail market
is still more than share of non-food retail
(56.2% vs 43.8% in 2012) but non-food retail
is growing much faster than food (28% vs
10%).
* In current prices (including inflation).
Exchange rate: 1 RMB = 0,1585 USD
Sources: NBSC, analysis by CSR Enter
Food Retail
Non-Food Retail

9
WORLDWIDE MARKETS
E-COMMERCE IN CHINA
CHINA
KEY FACTS
E-commerce market in China is growing
rapidly: according to different forecasts the
volume of the market is to raise up by 340 bln
USD in 2016 and catch up with the US level.
Source: Morgan Stanley analytics
F F F F

10
RETAIL IN RUSSIA
RUSSIA
KEY FACTS
Non-food retail in Russia is growing faster than
food retail: with CAGR of 15% vs 12% in 2009–
2012). Share of non-food retail increased from
51.4% in 2009 to 53.5% in 2012.
Exchange rate: 1 USD = 31.065 RUR
Sources: Rosstat, analysis by CSR Enter
Food Retail
Non-Food Retail

11
E-COMMERCE IN RUSSIA
RUSSIA
KEY FACTS
According to CSR Enter estimation, Russian
e-commerce market’s CAGR was approximately
25% in 2009-2012; projected CAGR for the
period of 2012-2016 fluctuates from 22% to
35% by different estimations.
* Forecasts made by Fast Lane Ventures and InSales are
estimated till 2015.
Sources: analysis by CSR Enter, Morgan Stanley, InSales, Fast
Lane Ventures
7
10
13
19
26
36
43
8
11 13
15
19
23
28
2010 2011 2012 2013П 2014П 2015П 2016П
E-COMMERCE IN RUSSIA
* Forecasts made by Fast Lane Ventures and InSales are estimated till 2015.
Morgan Stanley Estimation CSR Enter Estimation
Fast Lane Ventures Estimation InSales Estimation
RUSSIA. E-commerce Sales*
USD bln
Sources: analysis by CSR Enter, Morgan Stanley, InSales, Fast
Lane Ventures
KEY FACTS
q  According to CSR Enter estimation,
Russian e-commerce market’s
CAGR was approximately 25% in
2009-2012; projected CAGR for
the period of 2012-2016 fluctuates
from 22% to 35% by different
estimations.
2013F 2014F 2015F 2016F

12
RETAIL IN RUSSIA
Non-Food Retail Segments
RETAIL IN RUSSIA
RUSSIA. Non-Food Retail Segments
Sales, USD bln (estimation)
2011 2012
Electronics & Home Appliances
Household Goods & DIY*
Kids’ goods **
Furniture
Perfumes & Cosmetics
Jewelry & Watches
Pets’ Products
+23%
+24%
+12%
+15%
+13%
+13%
+21%
Segment
CAGR
2012-2016
~ 11%
~ 13%
~ 16%
~ 12%
~ 16%
~ 19%
~ 10%
~ 17%
Share of
Internet Sales
~ 2%
~ 6%
~ 4%
~ 4%
~ 1%
~ 9%
CSR Enter estimation based on official statistics
* Textiles, household chemical goods, tableware, floor coverings, building materials
** Excluding baby food
Sources: analysis of CSR Enter, Rosstat, GFK
Exchange rate: 1 USD = 31.065 RUR
2,9
7,5
11,1
11,3
14,3
22,3
37,7
2,4
6,6
9,8
9,8
12,3
18,0
30,6

13
18%
12%
9%
Товары для красоты и здоровья
Парфюмерия и косметика
Одежда и обувь
13.9%
11.3% 12.3%
8.5%
29%
29%
28%
Мебель
Товары для дома и DIY
Ювелирные украшения и часы
15.1%
12.9%
20.8% 18.8%
10,7%
7,8%
4,7%
Парфюмерия и косметика
10.3%
7.4% 7.7% 7.6%
37%
28%
13%
Автозапчасти
Спортивные товары
12.1% 11.6%
16.1%
11.2%
8%
6%
3%
Товары для спорта и отдыха
7.9%
2.7%
10.8%
5.2%
2.0% -0.5% 0.8% -1.3%
GROWTH RATES OF WORLDWIDE MARKETS
1st QUARTER 2013
* Non-food retail does not include retail sales of automobiles and petrol.
** In all rates considering 1st quarter 2012 the updated data is taken.
WORLDWIDE
RETAIL GROWTH
RATES SLOW
DOWN
Growth rate 1st quarter 2013
to 1st quarter 2012
Growth rate 1st quarter 2012
to 1st quarter 2011
Sources: analysis of CSR Enter, US Census, Eurostat, NBSC,
IBGE, Statistics South Africa, Rosstat
Health & Beauty
Sports & Outdoor
Apparel & Footwear
Health & Beauty
Apparel & Footwear
Furniture
Household Goods & DIY
Jewelry & Watches
Clothing & Footwear
Auto Parts
Sports & Outdoor
Jewelry & Watches
0,3%
-1,6%
-2,8%
Электроника
Health & Beauty
Electronics
Apparel & Footwear
Retail Non-Food Retail* Top-3 Segments
USA
European
Union**
Brazil
China**
South Africa
Russia**

SEGMENT
ANALYSIS
PERFUMES
& COSMETICS
GET NOWSEGMENT ANALYSIS OF
INTERNATIONAL & RUSSIANRETAIL MARKETSRESEARCH@ENTER.RU

15
METHODOLOGY
«Worldwide markets» section is based on the data provided by National Statistical Services: US Census («Health
& personal care» sales excluding pharmacies and drug stores sales) and National Bureau of Statistics of China
(«Perfumes & Cosmetics» category). Historical sales are calculated in current prices (including inflation), the
forecast sales are calculated according to McKinsey and Euromonitor estimations.
«Online-retailers product range» section is based on the analysis of 5 selected companies of the industry: «Il de
Beaute», «L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru» — in accordance with the SKU available on the website.
Price ranges are calculated according to present classification:
«Worldwide markets» section is based on the data provided by National Statistical Services: US Census («Health &
personal care» sales excluding pharmacies and drug stores sales) and National Bureau of Statistics of China («Perfumes
& Cosmetics» category). Historical sales are calculated in current prices (including inflation), the forecast sales are
calculated according to McKinsey and Euromonitor estimations.
«Online-retailers product range» section is based on the analysis of 5 selected companies of the industry: «Il de Beaute»,
«L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru» - in accordance with the SKU available on the website. Price ranges are
calculated according to present classification:
METHODOLOGY
Economy Mid - Mid Mid + Premium
Perfumes Products < 1 000 1 001 -  1 500 1 501 -  2 000 2 001 -  2 500 > 2 501
Gift Sets < 1 000 1 001 -  1 500 1 501 -  2 000 2 001 -  2 500 > 2 501
Skin & Body Care Products < 300 301 -  600 601 -  900 901 -  1 200 > 1 201
Hair Care Products < 300 301 -  600 601 -  900 901 -  1 200 > 1 201
Make-up Products < 300 301 -  600 601 -  900 901 -  1 200 > 1 201

16
WORLDWIDE MARKETS
PERFUMES & COSMETICS MARKET IN THE US
USA
Retail Sales*, USD bln
Share of Perfumes &
Cosmetics in Non-Food Retail
While the projected CAGR of Perfumes &
Cosmetics market in the US for 2012-2016
is 5%, Internet sales are to grow almost twice
faster (~10%).
Forecast sales are based on the growth rates at constant
prices (Euromonitor) and inflation (US Census).
Sources: US Census, Euromonitor, analysis of CSR Enter
KEY FACTS
2,1%
2012
35.5 3.,4
42.3
46.9 49.1 51.4 53.8 56.3
8.0% 8.2% 7.9% 8.0% 8.5% 8.9% 9.4% 9.9%
2009 2010 2011 2012 2013П 2014П 2015П 2016П
Продажи, млрд. долл. Доля онлайн-ритейла, %
CAGR 2009-2012 = 10% CAGR 2012-2016 = 5%
Retail Sales, USD bln Share of Internet Sales, %
2013F 2014F 2015F 2016F

17
WORLDWIDE MARKETS
PERFUMES & COSMETICS MARKET IN CHINA
CHINA
KEY FACTS
According to the estimation Perfumes and
Cosmetics market share in total retail market
in China is to grow up from 6.6% in 2012
to 17.2% in 2016.
Exchange rate: 1 RMB = 0,1585 USD
Share of Perfumes &
23.5
27.4
30.2
33.2
36.5
40.1
44.2
48.6
2.4%
4.0% 5.1% 6.6%
8.3%
10.6%
13.5%
17.2%
2009 2010 2011 2012 2013П 2014П 2015П 2016П
CAGR 2009-2012 = 12% CAGR 2012-2016 = 10%
2013F 2014F 2015F 2016F

18
PERFUMES & COSMETICS MARKET IN RUSSIA
SALES AND GROWTH RATES
KEY FACTS
The economic crisis of 2008-2009 had no
significant impact on this segment: CAGR
remained high (21%) for the period of 2007-
2009.
Projected growth rate (CAGR) of market sales
in Russia for 2012-2016 is about 16% thus
Perfumes & Cosmetics sales can reach 20
USD bln in 2016.
Exchange rate: 1 USD = 31,065 RUR.
Sources: Rosstat, Euromonitor, analysis by CSR Enter
Share of Perfumes &
RUSSIA
Retail Sales in Current prices*, USD bln
7.3
8.4
9.8
11.1
12.9
14.9
17.3
20.0
2009 2010 2011 2012 2013П 2014П 2015П 2016П
CAGR 2012-2016 = 16%
CAGR 2009-2012 = 15%
2013F 2014F 2015F 2016F

19
Growth in constant prices, %
Growth in current prices, %
MARKET VOLUME AND INFLATION
* The data rate of «Sports & Outdoor» sales in 1Q 2012 is incomparable with 1Q 2011 because of Rosstat methodological change.
1Q 2012 to 1Q 2011 1Q 2013 to 1Q 2012
n/a*
20.1%
10.7%
8.8%
3.0%
6.5%
9.6%
5.2%
3.4%
3.0%
37.5%
28.1%
24.4%
13.1%
11.8%
11.7%
11.3%
10.0%
7.4%
9.5%
8.8%
-1.9%
7.3%
14.2%
9.8%
8.3%
3.5%
24.4%
19.8%
14.9%
22.7%
14.0%
17.1%
14.9%
12.6%
Игры и игрушки
БТиЭ
Косметика и парфюмерия
Мебель
Auto Parts
Sports & Outdoor
Toys & Games
Jewelry & Watches
Furniture
Clothes & Footwear

INTERNET
~ 3-5%
DIRECT SALES + MLM*
~ 40-45%
OFFLINE SALES
~ 45-50%
KEY SALES CHANNELS,
% KEY FACTS
q  The share of direct sales through
catalogs is reducing in favor of
Internet sales. According to CSR
Enter estimation this channel will
grow about 2 times faster than
the total market with CAGR of
about 30% in 2012-2016.
* MLM – Multi-level marketing – is a marketing strategy in which the sales force is
generated mainly from the recruited salespeople
SHARE OF DISTANCE SALES
Sources: analysis by CSR Enter
KEY FACTS
The share of direct sales through catalogs is
reducing in favor of Internet sales. According
to CSR Enter estimation this channel will grow
about 2 times faster than the total market with
CAGR of about 30% in 2012-2016.
20
KEY SALES CHANNELS
%

21
KEY FACTS
q  Maximum peak of retail sales in
Russia within a year has been
reached in December (sales are
2.3x of monthly average) and in
March (1,4x of monthly average)
q  Minimum peaks of retail sales in
Russia within a year have been
reached in April and May
SEASONALITY OF RETAIL SALES *
2012
Source: analysis by CSR Enter
SEASONALITY
0.8
1.1
1.4
0.6 0.6
0.7
0.9 0.9 0.8
1.1
0.9
2.3
* One «unit» stands for the arithmetic mean value of market sales per annum divided into 12 months.
Consequently the diagram illustrates real distribution of annual sales by months.
SEASONALITY
2012
KEY FACTS
Maximum peak of retail sales in Russia within
a year has been reached in December (sales
are 2.3x of monthly average) and in March
(1,4x of monthly average)
Minimum peaks of retail sales in Russia
within a year have been reached in April and
May
Source: analysis by CSR Enter* One «unit» stands for the arithmetic mean value of market sales per annum divided into
12 months. Consequently the diagram illustrates real distribution of annual sales by months.

22
The core sales channel - OFFLINE
SpecialistRetailersMixedProductRangeRetailers
The core sales channel - ONLINE
Producers practicing direct sales through
catalogue and multichannel marketing
* Drogerie retailers - non-food retail chains specialized in day-to-day goods including perfumes, cosmetics, home care etc.
Multichannel retailers
Online retailers
Traditional specialist retailers
Selection - 15 companies with revenue more than 300 mln RUR in 2012 disclosed in mass media and Spark Interfax
Drogerie retailers
The size corresponds for total consolidated revenue of each company (without VAT) in 2012.
KEY TYPES OF THE MARKET PLAYERS
Avon
Oriflame
L’Etoile
Amway
Rive
Gauche
Ile De Beaute
Mary Kay
Faberlic
Yves Rocher
Sangi Stil
Magnit
Cosmetics
Ulybka Radugi
E5.ru
Ozon.ru
Enter

23
Average number of weekly unique visitors within first 13 weeks in 2013, in
thousand
Averagegrowthrateofweeklytrafficwithinfirst13weeksin2013,%
DIY (Do It Yourself)
Furniture
Kids’ Products
Household Goods
Sports & Outdoor
Jewelry
PERFUMES & COSMETICS
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6% Average = 922
200 900100 2000 3000
Auto Parts
Clothes &
Footwear
Mixed Product Range
* Traffic of retail segments is estimated by top-3 companies in each segment.
WEEKLY TRAFFIC OF KEY MARKET PLAYERS
WEBSITES IN 1st QUARTER 2013
Average = 2,4%
Source: monitoring of internet retailers by CSR Enter
GET NOWTOP-66 ONLINE-RETAILERSWEEKLY TRAFFIC REPORTRESEARCH@ENTER.RU
WEEKLY TRAFFIC OF KEY MARKET
PLAYERS WEBSITES IN 1ST
QUARTER 2013

24
WEEKLY TRAFFIC OF KEY PLAYERS WEBSITES IN 1st QUARTER 2013
Unique weekly visitors, in thousand
Average growth rate: 1,1%
121 121 123 121
139
126 130 125
184
195 154
179
154
1 2 3 4 5 6 7 8 9 10 11 12 13
Number of a week
etoya.ru
letu.ru
shop.rivegauche.ru
среднее
Ile De Beaute (etoya.ru)
L’Etoile (letu.ru)
Rive Gauche (shop.rivegauche.ru)
Average

PRODUCT RANGE BREAKDOWN*
IN ACCORDANCE WITH THE SKU AVAILABLE ON THE ONLINE RETAILERS WEBSITES
* According to monitoring of internet retailers by CSR Enter in March 2013.
Selection – «Il de Beaute», «L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru» websites
MAKE-UP
PRODUCTS
SKIN & BODY CARE
PRODUCTS
PERFUMES
PRODUCTSHAIR CARE PRODUCTS
KEY FACTS
q  The most significant number of
SKU are goods from 3 categories:
Make-up Products (34% of the
product range*), Body & Facial
Care products (34%) and
Perfumes products (21%) – in
total almost 90% of the online
retailers’ product mix
ONLINE RETAILERS PRODUCT RANGE
STRUCTURE
21%
2%
9%
34% 34%
GIFT SETS
STRUCTURE
PRODUCT RANGE BREAKDOWN*
in accordance with the sku available on the online
retailers websites
KEY FACTS
The most significant number of SKU are
goods from 3 categories: Make-up Products
(34% of the product range*), Body & Facial
Care products (34%) and Perfumes products
(21%) – in total almost 90% of the online
retailers’ product mix
* According to monitoring of internet retailers by CSR Enter in
March 2013.
Selection — «Il de Beaute», «L’Etoile», «Rive Gauche», «Ozon.
ru», «Enter.ru» websites
25
GET NOWINTERNET RETAILERSPRODUCT RANGE MONITORINGRESEARCH@ENTER.RU

26
The classification is disclosed on «methodology» slide
Economy
26%
Mid –
15%
Premium
31%
Mid +
14%
Economy
19%
Premium
31%
Economy 5%
Premium
40%
Mid
12%
Economy
21%
L’ETOILE EL DE BEAUTE RIVE GAUCHE OZON.RU
Economy
50%
THE MARKET *
Premium
18%
Mid +
14%
Mid
16%
Mid –
19%
Economy
33%
ENTER.RU
Premium
53%
Mid –
16%
Mid
18%
Mid +
16%
Mid +
18%
Mid
16%
Mid –
8%
Mid +
15%
Mid –
12%
Premium
11%
Mid +
7%
Mid 11%
Mid –
21% Mid
14%
* According to total number of SKU of the following companies: «Il de Beaute», «L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru»
PRICE RANGES (ACCORDING TO THE NUMBER OF SKU)

KEY FACTS
§  Consolidated share of top-10
brands (according to the number
of SKU*) is just about 20%
Dior 3%
Clarins 3%
Shiseido 3%
Clinique 2%
L'Oreal Paris 2%
Estee Lauder 2%
Collistar 2%
Payot 2%
Givenchy 2%
Guerlain 2%
Other 80%
TOP-10 BRANDS (ACCORDING TO NUMBER OF SKUs)
Source: monitoring of internet retailers by CSR Enter* According to total number of SKU of the following companies: «Il de Beaute», «L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru»
KEY FACTS
Consolidated share of top-10 brands
(according to the number of SKU*) is just
about 20%
* According to total number of SKU of the following companies:
«Il de Beaute», «L’Etoile», «Rive Gauche», «Ozon.ru», «Enter.ru»
27

Traditional offline market develops steadily. It’s
occupied by federal players competing in quantity and
quality of exclusive purchasing contracts and actively
promoting private labels.
Detailed researches indicate that the premium class
perfume is equally demand by customers both in large
cities and regions. Regional consumers with lower
income are ready to spend for perfumes however they
do really save money on care cosmetics and make-
up products. During the high season buyers prefer to
buy premium class perfumes as a gift (especially in
December)
Internet sales of perfumes and cosmetics are
developing intensively. Enter’ analytics demonstrate
that the conversion of products in this category is 10%
higher compared to the other products. Most likely it
happens due to the fact that Internet consumer comes
for the very particular product: favorite perfume, tested
tone or hair-dyes.
Nevertheless the major brands and retailers give
preference to the traditional offline retailing, being very
watchful to the web-shop window. That definitely stops
the development of e-commerce and stimulates shadow
market.
OFELIA SAMEDOVA
Director of «Jewelry, Watches & Perfumes» Department
ENTER OUTLOOK
28

SEGMENT
ANALYSIS
JEWELRY & WATCHES
IN PARTNERSHIP WITH
«LUCAS ZOLOTO»
INTERNATIONAL & RUSSIAN
RETAIL MARKETSRESEARCH@ENTER.RU

30
METHODOLOGY
«Worldwide markets» section is based on the data provided by National Statistical Services: US Census («Jewelry
stores» category) and National Bureau of Statistics of China («Gold and Silver jewelries» category). Historical
sales are calculated in current prices (including inflation), forecast sales are calculated according to McKinsey and
Euromonitor estimations.
«Online-retailers product range» section is based on the analysis of 5 selected companies: «Sunlight», «Magicgold.
ru», «MIUZ.ru», «Almaz-holding.ru», «Enter.ru» – in accordance with the SKU available on the website. Price ranges
are calculated according to present classification:
Economy Mid Premium Luxury
Jewelry with precious stones Rings < 6 500 6 501 ₋  13 000 13 001 ₋  25 000 > 25 001
Jewelry with precious stones Earrings < 9 500 9 501 ₋  23 000 23 001 ₋  30 000 > 30 001
Jewelry with precious stones Neckwear < 3 500 3 501 ₋  12 000 12 001 ₋  27 000 > 27 001
Jewelry with semi-precious stones Rings < 4 000 4 001 ₋  8 500 > 8 501
Jewelry with semi-precious stones Earrings < 8 000 8 001 ₋  12 500 > 12 501
Jewelry with semi-precious stones Neckwear < 3 000 3 001 ₋  5 000 > 5 001
Jewelry with artificial gemstones Rings < 3 000 3 001 ₋  6 000 > 6 001
Jewelry with artificial gemstones Earrings < 5 000 5 001 ₋  9 000 > 9 001
Jewelry with artificial gemstones Neckwear < 2 000 2 001 ₋  3 500 > 3 501
Jewelry without stones Rings < 3 000 3 001 ₋  6 000 > 6 001
Jewelry without stones Earrings < 5 000 5 001 ₋  9 000 > 9 001
Jewelry without stones Chains < 5 000 5 001 ₋  8 000 > 8 001
Jewelry without stones Wristwear < 3 500 3 501 ₋  6 500 > 6 501
Jewelry without stones Neckwear < 2 000 2 001 ₋  3 500 > 3 501
«Worldwide markets» section is based on the data provided by National Statistical Services: US Census («Jewelry stores»
category) and National Bureau of Statistics of China («Gold and Silver jewelries» category). Historical sales are
calculated in current prices (including inflation), forecast sales are calculated according to McKinsey and Euromonitor
estimations.
«Online-retailers product range» section is based on the analysis of 5 selected companies: «Sunlight», «Magicgold.ru»,
«MIUZ.ru», «Almaz-holding.ru», «Enter.ru» – in accordance with the SKU available on the website. Price ranges are
calculated according to present classification:
METHODOLOGY

31
WORLDWIDE MARKETS
JEWELRY MARKET IN THE US
USA
Share of Jewelry
in Non-Food Retail
While the projected CAGR of Jewelry sales in
the US 2012-2016 is 4%, the same rate for
Internet sales is about 10%.
Sources: US Census, Euromonitor, analysis of CSR Enter
KEY FACTS
1,4%
2012
26.0 26.4
29.1 30.7 31.9 33.1 34.4 35.8
5.8% 6.1% 6.1% 6.2% 6.6% 7.0% 7.4% 7.8%
2009 2010 2011 2012 2013 2014 2015 2016
CAGR 2009-2012 = 6% CAGR 2012-2016 = 4%
2013F 2014F 2015F 2016F

32
WORLDWIDE MARKETS
JEWELRY MARKET IN CHINA
CHINA
KEY FACTS
While the projected CAGR of total jewelry
sales in China for the period of 2012-2016 is
16%, the same ratio for Internet sales is more
than 40%.
The share of Internet sales remains
insignificant vs the background of the
traditional format, but will double for the
further periods.
* In current prices (including inflation). Forecast sales are
based on the growth rates at constant prices (Euromonitor)
and inflation (NBSC).
Exchange rate: 1 USD = 6,3091 RMB.
Share of Jewelry
in Non-Food Retail 2,7%
2012
13.7
20.0
29.1
34.8
40.2
46.5
53.8
62.2
0.3% 0.2% 0.2% 0.3% 0.4% 0.4% 0.5% 0.6%
2009 2010 2011 2012 2013П 2014П 2015П 2016П
CAGR 2009-2012 = 36%
CAGR 2012-2016 = 16%
2013F 2014F 2015F 2016F

33
JEWELRY & WATCHES MARKET IN RUSSIA
KEY FACTS
Projected CAGR of total jewelry sales, watches
and costume jewelry in Russia is about 17%
for the period of 2012-2016. Thus sales of
these products are to exceed 14 bln USD by
2016.
Share of Jewelry
in Non-Food Retail
2012
2,0%
RUSSIA
Retail Sales in Current Prices*, USD bln
0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.91.0 1.2 1.4 1.6 1.9 2.2 2.5
2.9
3.3
4.0
4.6
5.3
6.3
7.4
8.8
10.5
2009 2010 2011 2012 2013П 2014П 2015П 2016П
Часы Бижутерия Ювелирные украшения
CAGR 2009-2012 = 16%
CAGR 2012-2016 = 17%
Watches Costume Jewelry Jewelry
2013F 2014F 2015F 2016F

34
1Q 2012 to 1Q 2011 1Q 2013 to 1Q 2012
n/a*
20.1%
10.7%
8.8%
3.0%
6.5%
9.6%
5.2%
3.4%
3.0%
37.5%
28.1%
24.4%
13.1%
11.8%
11.7%
11.3%
10.0%
7.4%
9.5%
8.8%
-1.9%
7.3%
14.2%
9.8%
8.3%
3.5%
24.4%
19.8%
14.9%
22.7%
14.0%
17.1%
14.9%
12.6%
БТиЭ
Мебель
Auto Parts
Sports & Outdoor
Toys & Games
Jewelry & Watches
Furniture
Clothes & Footwear

35
SHARE OF DISTANT SALES
KEY SALES CHANNELS,
%
KEY FACTS
The share of Internet sales of jewelry in 2012
is about 1% but the segment remains one of
the most promising in e-commerce in general
Sources: analysis by CSR Enter, Euromonitor
INTERNET
OTHER RETAILERS
SPECIALIST JEWELRY
RETAILERS ~ 1%
~50%
~49%

36
SEASONALITY
2012
KEY FACTS
Maximum peak of retail sales in Russia within
a year has been reached in December (sales
are 2.3x of monthly average), January (2x of
monthly average) and traditionally in March
(1,7x of monthly average).
Source: Partner of the research company
«Lucas Zoloto»
* One «unit» stands for the arithmetic mean value of market
sales per annum divided into 12 months. Consequently the
diagram illustrates real distribution of annual sales by months.
2.0
0.7
1.7
0.7 0.6 0.7 0.8
0.6
0.4
0.7
1.0
2.3
January
February
March
April
May
June
July
AugustSeptember
October
November
December

37
MARKET STRUCTURE
SALES BREAKDOWN (2012):
By material type
KEY FACTS
Sales of gold and silver jewelry makes the
largest share of sales of the overall market
(about 44%), with 95% of similar products
produced in Russia. Also, 80% of products
with colored stones are produced in the
domestic market. Exactly the opposite
situation is in the field of diamond products
(only 30% of the products sold were
produced in Russia in 2012)
Source: Partner of the research company
«Lucas Zoloto»
JEWELRY WITH JEMSJEWELRY WITH
DIAMONDS
OTHER JEWELRY
GOLD, SILVER etc.
28% 28%
44%
70%-imported goods
30%-domestic goods
5%- imported goods
95%- domestic goods

38
MARKET STRUCTURE
SALES BREAKDOWN (2012):
By product type
KEY FACTS
The key types of products are rings, as well as
the neck-accessories, occupying more than
60% of the market in terms of sales.
Source: Euromonitor
NECKWEAR
RINGS
EARRINGS
WRISTWEAR
OTHER
36%
27%
14%
16%
7%

39
Ozon.ru
ENTER
585
Yashma
Adamas
MIUZ
Russkie
Samotsvety
Jenavi
Accessorize
Selena
Krastsvetmet
Alltime.ru
Bestwatch.ru
Bronnitskiy uvelir
Sunlight
Specialist online-
retailersCostume jewelry manufacturers with
multichannel retail network
Manufacturers with retail stores
The size corresponds for total consolidated revenue of each company (without VAT) in 2012. Source: analysis by CSR Enter
Online retailers

40
Furniture
Kids’ Products
Household
Goods
Sports & Outdoor
JEWELRY
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6% Average = 922
200 900100 2000 3000
thousand
* Traffic of retail segments is estimated by top-3 companies in each segment. Source: monitoring of internet retailers by CSR Enter
Auto Parts
Clothes &
Footwear
Mixed Product Range
Average = 2,4%
QUARTER 2013

41
85
105
128
147 144 147 146 147
166
187
156
109
135
1 2 3 4 5 6 7 8 9 10 11 12 13
Number of a week
AllTime.ru
bestwatch.ru
miuz.ru
среднее
Average Growth Rate: 7,5%
Average Growth Rate: -3,1%
AllTime.ru
Bestwatch.ru
Miuz.ru
Average

PRODUCT MIX
PRODUCT RANGE BREAKDOWN *
BY MATERIAL TYPE
retailers websites
KEY FACTS
The largest amount of commodity categories
by type of material takes Products with
precious stones (63% of the product range *)
March 2013.
Selection – «Sunlight», «Almaz-holding.ru», «Magicgold.ru»,
«Miuz.ru» websites
42
JEWELRY WITHOUT
STONES
JEWELRY WITH
ARTIFICIAL
GEMSTONES
13%
13%
11%
63%
JEWELRY WITH SEMI-
PRECIOUS STONES
JEWELRY WITH
PRECIOUS STONES
* According to monitoring of internet retailers by CSR Enter in March 2013.
Selection – «Sunlight», «Almaz-holding.ru», «Magicgold.ru», «Miuz.ru» websites

KEY FACTS
The majority of products (among available for
purchase SKU on the selected websites) are
rings (44% of the product range*), earrings
(34%) and neckwear (15%), which together
account for 93% of the product mix
43
PRODUCT MIX
BY PRODUCT TYPE
retailers websites
March 2013.
Selection – «Sunlight», «Almaz-holding.ru», «Magicgold.ru»,
«Miuz.ru» websites
34%
44%
15%
3%
4%
NECKWEAR
EARRINGS
CHAINS WRISTWEAR
RINGS

44
ECONOMY 9%
MID
37%
PREMIUM
33%
LUXURY
21%
Economy 6%
Mid
34%
Luxury 8%
Premium
43%
Mid 44%
Premium
31%
Mid
36%
Luxury
35%
Premium
25%
Economy 3%
SUNLIGHT MAGICGOLD MIUZ
ALMAZ
HOLDING
Economy 19%
Premium
33%
Luxury 18%
THE MARKET*
Luxury 2%
Mid
25%
Economy
38%
ENTER.RU
Luxury
22%
Premium
35%
Economy 4%
Mid
31%
* According to total number of SKU of the following companies: «Enter.ru», «Sunlight», «Almaz-holding.ru», «Magicgold.ru»,
«Miuz.ru»

ENTER OUTLOOK
Conservatism is the major feature of the Russian
jewelry industry and its players. JUNWEX, the main
industry exhibition, demonstrates it perfectly. The key
Russian producers are not keen to make any design
experiments, price making experiments and year by
year the produce the same best-selling SKUs, which
are actually sold in the very same stores for the very
same target audience. It’s obvious that the Tiffany-style
ring will always stay up-to-date as little black dress by
Chanel. Nevertheless I’m sure that those players who
could «gain the time» will win. As the jewelry purchase is
not an investment anymore. It’s proved by active growth
of 17-sided diamonds sales share in comparison to the
traditional 57-sided diamonds; sales of 375 standard
jewelry, and silver jewelry with diamonds.
In contrast to the most Russian producers, Hong
Kong manufacturers optimize the self-cost of jewelry
using computer modeling, the latest technology in the
production, and reducing «manual» work. The Italian
companies do make experiments with the design
without increasing the weight of products (and therefore
its price), and using tricks such as, for example, less
weighted gold.
I think that the future of the jewelry industry in
Russia belongs to the manufacturers which could
take into account jewelry production cost-optimizing
technologies, change the design and involve young and
talented designers, working with the latest promotion
channels.
By now the major sales are made offline. However,
based on 2012 results consumers can and are ready to
purchase jewelry online in case of: a) Trusted website
b) Interesting in and convenient offer (lack of time
for offline shopping). Time, correct product range,
professional e-marketing will drive the online segment.
OFELIA SAMEDOVA
Director of «Jewelry, Watches
& Perfumes» Department
45

SEGMENT
ANALYSIS
FURNITURE
INTERNATIONAL & RUSSIANRETAIL MARKETSRESEARCH@ENTER.RU

47
METHODOLOGY
«Worldwide markets» section is based on the data provided by National Statistical Services: US Census («Furniture
stores» category) and National Bureau of Statistics of China («Furniture» category). Historical sales are calculated
in current prices (including inflation), the forecast sales are calculated according to Euromonitor estimations.
«Online-retailers product range» section is based on the analysis of 12 selected companies: «Hoff», «HomeMe.ru»,
«Mebelrama.ru», «Mnogomeb.ru», «Toris.ru», «Aquaton», «Dyatkovo», «Ormatek», «Stolline», «Stolplit», «Shature.
com», «Enter.ru» – in accordance with the SKU available on the website. Price ranges are calculated according
to present classification:
Economy Mid - Mid Mid+ Premium
Mattresses < 7 000 7 001 -  12 000 12 001 -  20 000 20 001 -  30 000 > 30 001
Furniture set for bathroom < 10 000 10 001 -  18 000 18 001 -  36 000 36 001 -  50 000 > 50 001
Furniture set for living room < 10 000 10 001 -  20 000 20 001 -  40 000 40 001 -  80 000 > 80 001
Furniture set for children room < 10 000 10 001 -  20 000 20 001 -  30 000 30 001 -  50 000 > 50 001
Office chairs < 3 000 3 001 -  8 000 8 001 -  15 000 15 001 -  25 000 > 25 001
Computer desk < 1 000 1 001 -  3 000 3 001 -  8 000 8 001 -  15 000 > 15 001
Furniture set for kitchen < 8 000 8 001 -  15 000 15 001 -  35 000 35 001 -  60 000 > 60 001
Soft furniture (Sofas) < 15 000 15 001 -  25 000 25 001 -  45 000 45 001 -  70 000 > 70 001
Furniture set for dining room (table+ 4 chairs) < 5 000 5 001 -  10 000 10 001 -  20 000 20 001 -  40 000 > 40 001
Bedrooms (bed + 2 bedside tables, wardrobe, bureau,
mirror)
< 20 000 20 001 -  40 000 40 001 -  70 000 70 001 -  100 000 > 100 001

48
WORLDWIDE MARKETS
FURNITURE MARKET IN THE US
USA
Share of Furniture
in Non-Food Retail
While the projected CAGR of total furniture
sales in the USs is 3% in 2012-2016, the
same rate for Internet sales is almost twice
higher (6%).
Источники: US Census, Euromonitor, analysis of CSR Enter
KEY FACTS
4,2%
2012
86.1 87.2 88.8
95.6 98.7 101.9 105.2 108.6
2.8% 2.9% 3.0% 3.0% 3.1% 3.2% 3.3% 3.4%
2009 2010 2011 2012 2013 2014 2015 2016
CAGR 2009-2012 = 4% CAGR 2012-2016 = 3%
2013F 2014F 2015F 2016F

49
WORLDWIDE MARKETS
FURNITURE MARKET IN CHINA
CHINA
KEY FACTS
The projected CAGR of total furniture sales
in China is 16% for the period of 2012-2016,
meanwhile the same ratio for Internet sales
is about 42%, which indicated that online
segment of this market in China is growing 2.5
times faster than the whole market.
* In current prices (including inflation). Forecast sales are
based on the growth rates at constant prices (Euromonitor)
and inflation (NBSC).
Exchange rate: 1 USD = 6,3091 RMB.
Share of Furniture
in Non-Food Retail 5,8%
2012
47.5
55.0
63.8
73.7
85.3
98.6
114.0
131.8
0.2%
0.6%
1.1% 1.2% 1.5% 1.9%
2.3%
2.8%
2009 2010 2011 2012 2013 2014 2015 2016
CAGR 2009-2012 = 16%
CAGR 2012-2016 = 16%
2013F 2014F 2015F 2016F

FURNITURE MARKET IN RUSSIA
KEY FACTS
The projected CAGR of total furniture sales in
Russia is about 12% for the period of 2012-
2016, while Internet sales are to grow by 20%
per year.
Share of Furniture
in Non-Food Retail
3,1%
2012
RUSSIA
Retail Sales in current prices*, USD bln
50
7.9 8.6
9.8
11.3
12.7
14.3
16.1
18.1
2009 2010 2011 2012П 2013П 2014П 2015П 2016П
CAGR 2009-2012 = 13%
CAGR 2012-2016 = 12%
2013F 2014F 2015F 2016F

51
1Q 2012 to 1Q 2011 1Q 2013 to 1Q 2012
n/a*
20.1%
10.7%
8.8%
3.0%
6.5%
9.6%
5.2%
3.4%
3.0%
37.5%
28.1%
24.4%
13.1%
11.8%
11.7%
11.3%
10.0%
7.4%
9.5%
8.8%
-1.9%
7.3%
14.2%
9.8%
8.3%
3.5%
24.4%
19.8%
14.9%
22.7%
14.0%
17.1%
14.9%
12.6%
БТиЭ
Мебель
Auto Parts
Sports & Outdoor
Toys & Games
Jewelry & Watches
Furniture
Clothes & Footwear

SHARE OF DISTANT SALES
KEY SALES CHANNELS,*
%
KEY FACTS
The share of furniture sales through Internet
channel in Russia is only about 4% (Projected
CAGR for the period of 2012-2016 is about
20%).
Sources: analysis by CSR Enter, Euromonitor
52
INTERNET
OTHER RETAILERS
Mixed product range retailers
Retailers specialized in Household goods
Supermarkets
SPESIALIST FURNITURE
RETAILERS
~ 4%
~62%
~34%

53
SEASONALITY
2012
KEY FACTS
Peak sales of furniture are traditionally
autumn and New Year period, from
September to the end of the year when the
market generates nearly half of annual sales.
The period of the most notable decline is
summer, due to the long holydays.
Source: analysis by CSR Enter* One «unit» stands for the arithmetic mean value of market
sales per annum divided into 12 months. Consequently the
diagram illustrates real distribution of annual sales by months.
0.9
0.8 0.8 0.7 0.7 0.7
0.8
1.0
1.1
1.3
1.5
1.7
January
February
March
April
May
June
July
AugustSeptember
October
November
December

54
MARKET STRUCTURE
SALES BREAKDOWN
2012
KEY FACTS
According to CSR Enter estimation, the structure
of the furniture market remains fairly stable.
Thus, the share of soft and cabinet furniture
is over 70%, meanwhile sales of kitchen
furniture are actively developing (share for the
2012 — about 15%).
KITCHEN FURNITURE
CABINET FURNITURESOFT FURNITURE
37% 36%
15% 12%
OTHERS

55
Specialist online-
retailers without
showrooms
Manufacturers with
retail stores
Retailers without
production
capacities
The size corresponds for total consolidated revenue of each company (without VAT) in 2012.
ENTER
IKEA
HomeMe.ruStolplit
Shatura
Lazurit
Maria
Kuhnistroy
Stokdivanov.ru
Mnogomeb.ru
Miass-mebel
Hoff
А-stil
Mebelrama.ru
Yuterra

56
FURNITURE
Kids’ Products
Household
Goods
Sports & Outdoor
Jewelry
-‐3%

-‐2%

-‐1%

0%

1%

2%

3%

4%

5%

6%
Average = 922
200 900100 2000 3000
thousand
* Traffic of retail segments is estimated by top-3 companies in each segment. Source: monitoring of internet retailers by CSR Enter
Auto Parts
Clothes &
Footwear
Mixed Product Range
Average = 2,4%
QUARTER 2013

57
84
93
106
98
122
117
105 109
111
103
110
126
132
1 2 3 4 5 6 7 8 9 10 11 12 13
Number of a week
Mebelrama.ru
askona.ru
shatura.com
среднее
Mebelrama.ru
Askona.ru
Shatura (shatura.ru)
Average

58
18%
16%
14%13%
11%
9%
6%
5%
5%
2% 1% Мягкая мебель
Мебель для спальни
Мебель для кухни
Мебель для гостиной
Мебель для домашнего кабинета
Мебель для прихожей
Мебель для детской
Мебель для ванной
Матрасы
Шкафы-купе
Мебель из ротанга
Soft furniture
Bedroom furniture
Kitchen furniture
Living room furniture
Home office furniture
Hall furniture
Children room furniture
Bathroom furniture
Matrasses
Wardrobes
Rattan furniture
STRUCTURE
retailers websites
KEY FACTS
The basic amount of product types available
for purchase on selected websites are «soft
furniture» (18% of the product range*),
«Bedroom furniture» (16%) and «Kitchen
furniture» (15%) which together account for
almost 50% of the product range.
* According to monitoring of internet retailers by CSR Enter
in March 2013.
Selection – «Hoff», «Mebelrama.ru», «HomeMe.ru» websites

59
ECONOMY
15%
MID–
22%
MID
28%
PREMIUM
16%
MID +
19%
Economy 6%
Mid–
13%
Premium
13%
Mid +
32%
Economy
15%
Mid–
18%
Mid +
22%
Mid–
39%
Mid
16%
Economy
40%
SHATURA MEBELRAMA.RU HOMEME.RUHOFF
Economy
8%
Mid–
18%
Mid
21%
Mid +
16%
Premium
37%
THE MARKET*
Mid
37%
Mid +
14%
Mid
35%
Mid–
32%
Economy
17%
ENTER.RU
Premium
15%
Mid
30%
Mid + 4%
Premium 1% Premium 2%
Mid +
24%
Mid
32%
Mid–
31%
Economy
12%
STOLLINE
Премиум 2%Premium 1%
Mid
32%
Mid–
37%
Economy
24%
STOLPLIT
Премиум 2%Premium 1%
Mid + 6%
* According to total number of SKU of the following companies: «Enter.ru», «Hoff», «HomeMe.ru», «Mebelrama.ru», «Mnogomeb.ru»,
«Toris.ru», «Aquaton», «Dyatkovo», «Ormatek», «Stolline», «Stolplit», «Shature».

ENTER OUTLOOK
Today multichannel (offline and online) sales
of furniture develop rapidly. The perspectives of
the furniture market in Internet are obvious. Both
producers and retailers continue to develop e-sales.
Medium and small companies of the market consider
Internet-related projects mainly as a «trial» and try
to catch the trend, while federal players already
demonstrate positive results both in cabinet furniture
and soft furniture.
Enter’s furniture sales breakdown is practically the
same as the market average. This allows to conclude
that most consumers have no significant prejudice
buying through internet, terminal, contact-center or
catalogue.
ANTON TERENTYEV
Director
of «Furniture» Department
60

SPECIAL FOCUS:
WORLDWIDE
BEST-PRACTICES
BUSINESS MODELS
KEY TRENDS
PROFILES OF KEY INTERNATIONAL
PLAYERS
GET NOWANALYSIS OF INTERNATIONAL
BEST-PRACTICES ANDRETAIL STRATEGIESRESEARCH@ENTER.RU

62
INCREASING SHARE OF
HIGH-MARGIN PRODUCTS
Quick product range extension and
expansion to different sales
channels
WORLDWIDE BEST-PRACTICES
RETAIL STRATEGIES
MIXED PRODUCT RANGE RETAILERS SPECIALIST RETAILERS
Product range extension and sales
channels diversification
Product range extension due to
acquisitions of retailers specialized
on different products
Expansion to different markets
(В2В, С2С, loan facilities etc.)
Target,
Dangdang
Sears,
Amazon
Tesco,
Walmart
Product range extension in related
product categories
Adding with extra services related to
the products the company sells
Carpetright,
Leroy Merlin
Ulta,
Blue Nile
IKEA
DEVELOPING WITHIN
CHOSEN MARKET SEGMENTS

63
Revenue Structure of Target (2012)
Revenue Structure of Sears Holdings (2012)
Gradual increasing share of high-
margin product categories
(«Perfumes & Cosmetics»,
«Apparel & Footwear»,
«Jewelry») due to decreasing
share of low-margin categories
RETAIL STRATEGIES - MIXED PRODUCT RANGE RETAILERS
22% 20% 19% 18%
23% 24% 25% 25%
20% 20% 19% 19%
16% 17% 19% 20%
19% 19% 19% 18%
2009 2010 2011 2012
Home Furnishings & Décor
Food & Pet Supplies
Apparel & Accessories, Jewelry
& Costume Jewelry
Health, Beauty & Household
Essentials
Electronics & Home
Appliances, Sport & outdoor,
Toys
49% 49% 49% 47%
28% 29% 29% 30%
14% 14% 14% 14%
8% 8% 8% 10%
2009 2010 2011 2012
Service and Other
Food and Drug
Apparel & Footwear, Jewelry,
Costume Jewelry
Electronics & Home
Appliances, Auto Parts, Sport
& outdoor, Toys

64
ULTA SALON
CHILDREN’S PLACEBLUE NILE
BETER BED
Wide range of extra
services in the company
outlets
Unique service of
providing customized
products
Wide range of stores (different
locations); wide product range
Purchase convenience and
confidence in retailer
LOYALTY
Gaining client’s trust
Forming a habit to purchase
exactly in this companyTo meet client’s needs in
self-actualization
Customer
acquisition
RETAIL STRATEGIES – SPECIALIST RETAILERS

65
PERFUMES & COSMETICS MARKET — KEY BUSINESS MODELS
CHARACTERISTICSBUSINESS MODELS *
Majority of products — private labels
The main sales channel — chain of sales representatives (brokers)
Lack of personal stationary retail outlets
Internet — additional secondary sales channel with informational function
(delivery — outsourcing)
PRODUCERS PRACTICING DIRECT
SALES & MULTI-LEVEL MARKETING
Avon, Amway, Mary Kay, Faberlic
TRADITIONAL OFFLINE RETAILERS
DEVELOPING INTERNET SALES CHANNEL
Sasa, Ulta Salon, Sephora, Perfumania
Wide chain of offline owned stores
Internet — valuable sales channel (wide product range)
Online sales is growing comparably with total sales or faster
ONLINE RETAILERS,
«GROUP OF INTERNET SHOPS»
Drugstore.com, Quidsi.com
Umbrella brand for specialized internet websites within one large holding
Each separate website has its own brand and product range
Selling 3rd parties products; Lack of private labels
* Without mixed product range retailers Source: analysis by CSR Enter

66
PERFUMES & COSMETICS MARKET – TRENDS
CUSTOMER LOYALTY PROGRAM & GIFT CERTIFICATES
Stimulate customers to purchase more to get additional discounts, bonuses etc.1
FREE SAMPLES & GIFTS
Free offer to try new production; Gifts after reaching the level of receipt2
RELATED PRODUCTS’ SETS
Making a purchase much more easier for a customer (sometimes with offering additional discount)3
CUSTOMER COACHING
Introducing the product range to costumers on special seminars, trainings and through specialized
mass media (website, catalogue etc.)
4
ADDITIONAL PRIVATE CONSULTATING & BEAUTY SHOP SERVICES
Attracting potential customers by relevant (to the product) services professional consultants,
visagistes etc.
5

67
Revenue – $2,2 bln
2012 *
Capitalization – $6,2 bln
By the end of 2012 *
Number of countries – 1
Number of stores – 550
Number of employees: 16 000
Specialization:
Perfumes & Cosmetics, Beauty& Health
products and services
Revenue Structure:
q  According to overall results in 2011 online sales increased by 27% to 2010
q  Share of online sales in the company revenue in 2011 came to 2%
q  According to overall results in 2012 gross profit margin came to 38%
q  More than 50% of total sales accounts for 11 million active users of the customer loyalty program
q  10% of total area in the company stores is taken for beauty shops
* 52 weeks within the year ended 02.02. Sources: the company official website http://www.ulta.com, Internetretailer.com, Bloomberg.com, analysis by CSR Enter
OnlineOffline
2%
98%
1,085
1,223
1,455
1,776
2,220
46 68 119 196 280
4.3%
5.6%
8.2%
11.0%
12.6%
-3,0%
-1,0%
1,0%
3,0%
5,0%
7,0%
9,0%
11,0%
13,0%
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2008 2009 2010 2011 2012
Revenue, mln USD Operational profit, mln USD Operational profit margin, %
ULTA SALON, COSMETICS & FRAGRANCES

68
JEWELRY & WATCHES MARKET – KEY BUSINESS MODELS
Customization of purchase (a customer can make his own individual product: for instance
to choose characteristics (such a setting) of a brilliant
Focus on quality: providing certificates after purchase
«INDIVIDUAL APPROACH»
Blue Nile, Ross Simons, Zale
«AUCTION TRADE»
Bidz.com, JTV Auctions,
Fallingstarauctions.com
Focus on auctions (lasting several hours) – as a result increasing traffic on the companies’
websites
English open auction (ascending-price action) – start from 1$
Dutch auction – start from maximum price, declining till somebody’s purchase
«DISCOUNTING»
Jewelry.com
Majority of products are sold at a reduced price (comparing with prices in a store)
sometimes with discount 30-50%
Liquidation sales with discounts more than 50%
* Without mixed product range retailers Source: analysis by CSR Enter

69
INTERNATIONAL BEST-PRACTICES
JEWELRY & WATCHES MARKET – TRENDS
CUSTOMER COACHING
Informing clients about jewelry through specialized website section – some kind of a library with
information about, for instance, kinds of brilliants, gems etc.
1
CUSTOMIZED OFFERS
A customer can chose any characteristics thus make his own individual product2
EXTRA JEWELRY SALON SERVICES
To increase customer loyalty companies offer relevant care services or insurance3
PAWNSHOP
Attracting new clients offering new service — change old jewelry to new one4
VISUALIZATION
Focus on website interface as on one of the main sales channels — adding 3D review, attaching deep
product characteristics and certificates
5

70
Revenue – $400 mln
2012 *
Capitalization – $478 mln
Number of countries – 45**
Number of employees – 241
Specialization:
Jewelry
Revenue Structure:
q  According to overall results in 2012 total sales increased by 15% comparing to 2011
q  By the end of 2012 gross profit margin came to 19%
q  1/3 of the company website traffic in 4th quarter 2012 came from mobile devices
q  The company website interface gets capability to order customized product
q  From 2013 Xiu.com is to sell Blue Nile products in China
* 52 weeks within the year ended 30.12.
** Countries the company deliver to
Sources: the company official website http://www.bluenile.com,
Internetretailer.com, Bloomberg.com, analysis by CSR Enter
ONLINE
100%
BLUE NILE
295 302 333 348
400
16 19 21 17 12
5.4%
6.4% 6.4%
4.9%
3.1%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
0
100
200
300
400
500
600
700
800
900
1000
2008 2009 2010 2011 2012

71
FURNITURE MARKET – KEY BUSINESS MODELS
Only Internet sales – direct delivery to the client
Collaboration with local partners for the quick delivery from their stores
ONLINE RETAILERS
SELLING OWN AND PARTNERS PRODUCTS
Furniture.com
TRADITIONAL OFFLINE RETAILERS
DEVELOPING INTERNET SALES CHANNEL
Haverty’s (USA), Carpetright (Great Britain),
Cost plus Sofas (Great Britain), The Brick
(Canada)
PRODUCERS
WITH OWN STORES, ALSO DEVELOPING
INTERNET SALES CHANNEL
IKEA, Rooms To Go (USA), Crate&Barrel (USA)
Wide chain of offline personal stores
Internet – valuable sales channel (wide product range)
Online sales is growing comparably with total sales or faster
Majority of products - private labels
The main sales channel – chain of own stores
Internet – additional secondary sales channel with informational function (delivery –
outsourcing)

72
INTERNATIONAL BEST-PRACTICES
FURNITURE MARKET – TRENDS
ROOM DESIGINING
Separate section of website – specialized service that helps to make arrangement of furniture before
purchase
1
CUSTOMIZED OFFERS
A customer can chose any characteristics thus make his own individual product (material, size, color
etc.)
2
WEB SEARCH CONVENIENCE
Capability to search and sort goods by any index: by type, size, color, style etc.3
SMALL SPACE SOLUTIONS
Separate website section – consolidation of all the solution for small apartments4
INCREASING OF RELEVANT PRODUCT MIX
Adding to product range new related products: household goods, garden furniture etc.5

73
Revenue– $519 mln
2012 *
Capitalization – not quoted
Number of countries – 7
Number of stores – 1 219
Number of employees –2 500
Specialization:
Beds, matrasses
Revenue Structure:
q  In 2012 online sales came to 5% of the company revenue
q  By the end of 2012 gross profit margin came to 56%
q  The company website entered top-100 of the most convenient for customers in Holland in 2012
q  % of just-in-time deliveries came to 95% in 2012 in Holland
* 52 weeks within the year ended 31.12.
Sources: the company official website www.beterbedholding.com, Internetretailer.com,
Bloomberg.com, analysis by CSR Enter
OnlineOffline
BETER BED
5%
95%
469 473 490 519 519
41 43 49 50 31
8.7% 9.0%
10.0% 9.6%
6.0%
-3,0%
-1,0%
1,0%
3,0%
5,0%
7,0%
9,0%
11,0%
-
200
400
600
800
1 000
1 200
2008 2009 2010 2011 2012

МЫ ДАРИМ ВРЕМЯ ДЛЯ НАСТОЯЩЕГО.
ЧЕСТНО. С ЛЮБОВЬЮ. КАК ДЛЯ СЕБЯ.
Electronic publication by Enter.ru «Worldwide and Russian Retail 2009-2016. Making conclusions, building plans».
Editorial office: 11/10 Ordjonikidze street. Managing editor: Kolotenko Andrei Vladimirovich.
Authors: Center of Strategic Research of Enter. Release date: 11.06.2013.
Certificate of mass media registration: Эл. №ФС77-48467, date of issue: 06.02.2012.
Issued by Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass
Communications.
This research was conducted by «Enter» LLC exclusively for the purpose of informing and designed for private use.
Any copying and utilization of materials of this research is welcomed and allowed without written consent upon
condition of mentioning CSR Enter (ЦСИ Enter, ЦСИ Энтер) as a source.
All the information presented in this research is collected from publicly available sources. Editorial staff took
all possible measures to ensure accuracy and actuality of information provided in this research.
Editorial staff do not incur liabilities in case of any economic losses and damages resulted from utilization
of materials of this research by third parties.
Any additional information can be provided on demand. All trademarks belong to their rights holders and used
according to legislation of Russian Federation.
Copyright © ООО «Энтер»
This research was conducted by CSR Enter team: Timur Gabdrahimov, Igor Kulyukhin,
Zhanna Bogdashina, Pavel Bulankin, Dmitry Pozdnyakov, Danila Okishev, Andrei
Karalin, Petr Yakovlev, Mark Khlynov.
We also thank our experts, Ofelia Samedova, Anton Terentyev, and our partner of this
research — «Lucas-zoloto» company.

Worldwide & Russian Retail Markets Facts 2009-2012. Forecasts 2012-2016 Research.Enter

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