Flow Commerce CEO Rob Keve speaks with COO/CFO Travis Heard of Outerknown to explore the brand's cross-border strategy, including the challenges they encountered and how Flow was able to help.

1. 1
The Path Ahead
Your cross-Border Strategy in Response to Today's Environment
Rob Keve, Co-Founder & CEO
rob@flow.io
www.flow.io
Travis Heard, CFO & COO
travis@outerknown.com
www.outerknown.com

2. 2
www.outerknown.com
"We created Outerknown to reimagine the
way clothing is made and inspire industry-wide
systematic change, establishing a connection
between the products we create and an
environment in which we can all thrive."
UNCOMPLICATED CLOTHING.
TRULY BEST-IN-CLASS.
SMART DESIGN WITH A
POSITIVE IMPACT.

3. 3
Case Study
I. WHY GO GLOBAL?
II. WHEN TO GO GLOBAL?
III. WHAT ARE THE CHALLENGES OF CROSS-BORDER?
IV. HOW DO YOU PROVIDE LOCALIZED E-COMMERCE EXPERIENCES?
V. WHAT ARE THE RESULTS?
&

4. 4
• Local currency,
rounding, display
• Targeted pricing
and margin
• Product classification
• Duty/tax calculation,
• Restrictions
• Carriers integrations
• Optional ship rate
cards
• Labels, tracking,
windows
• 70+ payment
methods
• Local acquiring
• Rich local language
checkout
• Optimization of all
unique international
parameters
• Localized/Integrated
Google merchant
center
Flow is a Turn-Key and Modular Solution
With an emphasis on flexibility, scalability and self-service
Product
Localization
Landed Cost
Carrier
Management
Localized
Checkout
Conversion
Optimization

5. 5

6. 6
I. WHY GO GLOBAL?

7. 7
Why Go Global?
• Outerknown’s mission to shape a better
tomorrow by setting a higher standard for design
that works in harmony with the environment
while creating durable and desirable products
that stand the test of time, resonated with
domestic and international consumers
• Founder and professional surfer Kelly Slater is a
true global citizen with celebrity status and an
international following
• Over 158K followers on Instagram and 65K on
Facebook from a global audience

8. 8
Top 5 Reasons Brands Go Global
1. Global nature of search and m-commerce
2. Fast-growing social media following
3. Celebrity founder or influencer
4. Cheaper CAC, easier to reach
5. Existing international distribution
% Cross-Border Purchase*
*Flow Commerce InternationalStudy & Research Report, 2019

9. 9
Low Hanging Revenue in Today’s Climate
You have site traffic
from overseas already,
it’s just not converting
Convert existing international traffic into sales and diversify your dependency on domestic sales
Ecommerce in many product
categories and most geographies
are fast accelerating
Today’s climate points
to the importance of
geographic diversification1
2
3

10. 10
%
6%
International
Traffic
International
Ecom Sales
28%
Uncaptured
Sales
Low Hanging Revenue in Today’s Climate
Convert existing international traffic into sales and diversify your dependency on domestic sales
… due to poor Conversion Rates
Local currency not
displayed or accepted
Checkout not in
local language
Unavailable local payments
and high declines
Tax and duty unclear
Slow, expensive
shipping
Expensive or no
refunds and returns
International Traffic is surprisingly high… … yet results in disappointing Sales…
Global Search
Mobile & Social
Commerce
Referrals, WOM
& Influencers
Source: Flow Analysis, Similarweb, IR1000
2
1 3

11. 11
Low Hanging Revenue in Today’s Climate
Convert existing international traffic into sales and diversify your dependency on domestic sales
34%
6%
+Y %
with paid
marketing
Intl
Traffic
Intl
Ecom
Sales
Flow-
Enabled
IntlSales
=
Product
Localization Landed Cost Carrier
Management
Localized
Checkout
Conversion
Optimization
2
1 3

12. 12
Ecommerce in many product categories and most
geographies are fast accelerating
2
1 3
*SimilarWeb E-Commerce Traffic Analysis, May 2020
**Signifyd.com, COVID-19 Weekly Pulse Report for Ecommerce, 2020
57% 52%
43%
48%
2019 2020
E-Commerce SiteTraffic AnalysisYoY
Growth (March + April)*
International
Domestic
International
Domestic
Vertical
Weekly % Change
(Week of 5/5-5/11)
Cumulative % Change
(Since 3/3)
Electronics 9% 88%
Luxury Goods 6% 45%
Grocery & Household Goods 2% 58%
Home Decor 0% 57%
Fashion, Apparel & Luggage -1% 22%
Consumer Medical Supplies & Supplements -1% 42%
Auto, Parts & Tires -3% 75%
Beauty & Cosmetics -4% 10%
Leisure & Outdoor -6% 152%
Alcohol, Tobacco & Cannabis -6% 70%
Commodities & Collectibles -6% 76%
General Merchandise -11% 71%
Business Supplies -23% -28%
Total -3% 51%
E-Commerce Category Performance March-May 2020**
52%
Domestic

13. 13
*Nosto, REPORT: Effects of the Covid-19 Outbreak on Fashion,
Apparel, and Accessory Ecommerce, Updated May 12, 2020
Today’s climate points to the importance of geographic
diversity
2
1 3
SALES CHANGE VS 2019 *
United States +37%
United Kingdom +49%
France +25%
Germany +64%
Sweden -21%
ANZ +80%
• Fashion and Apparel in major markets grew 25%-80%
• Many international markets are generating significantly more sales than 2019

14. 14
Low Shipping and logistics can be optimized for international
• Flow has the visibility into global carriers to provide guidance for optimized shipping and logistics
• Flow helps merchants pivot easily from shipping carriers based on delays and local logistics disruptions
2
1 3
Carrier Comparison: Lanes Suspended During COVID-19

15. 15
II. WHEN TO GO GLOBAL?

16. 16
When To Go Global?
Had strong following and needed to build stronger
relationships with community
Developed strong distribution networks through wholesale
partners and awareness was growing on a global scale
Growing international demand for the brand hit critical
mass through social media

17. 17
5 Signs That A Brand is Ready to Go Global
1. International traffic to your site is high, but conversion is low
2. Strong international demand for your good or segment
3. Need to diversify market presence and reduce
dependence on domestic sales
4. Capitalize on consumer awareness from other channels
5. Pre-empt competition in other overseas markets

18. 18
III. WHAT ARE THE CHALLENGES OF CROSS-BORDER?

19. 19
What Are The Challenges of Cross Border?
• Difficulty localizing global pricing and marrying
international catalog with wholesale partner needs
• Lack of control and visibility into the international
customer experience
• Inability to provide tax and duty functionality and
remittance options to consumers
• Prohibitively high shipping costs eroding unit economics

20. 20
Top Challenges to Cross-Border E-Commerce
Local
currency not
displayed or
accepted
Checkout
not in local
language
Unavailable
local payments
and high
declines
Tax and
duty unclear
Slow,
expensive
shipping
Expensive
or no refunds
and returns

21. 21
8%
9%
11%
14%
14%
14%
15%
21%
22%
28%
36%
50%
54%
I can't find the product/brand I am interested in
The retailer doesn't accept my local currency
I do not trust cross-border retailers
I prefer buying from local retailers
I want to be able to talk to customer service
My preferred payment methods are not available
The site is not in my home language
I'm concerned about site security
I don't understand what the final tax and duty amount…
Currency exchange makes it too costly
Taxes and duties are too high
Delivery of product is too slow
Shipping is too expensive
Top Barriers To Cross-border Shopping for Cross-Border Shoppers*
*Flow Global Research Report, 2019

22. 22
IV. HOW DO YOU PROVIDE LOCALIZED
E-COMMERCE EXPERIENCES?

23. 23
How Do You Provide Localized
E-commerce Experiences?
• Pricing and catalog localization
• Offering multiple payment methods and
mitigating fraud
• Cost effective shipping and logistics
• Accurate duties & taxes calculation
• Pricing controls to align with wholesale
partners
• A/B testing variables within each experience
• Select the right technology partner to
address every part of the buyer journey

24. 24
5 Ways To Localize The Customer Experience
#1
Localize
browsing &
pricing
#2
Catalogue
targeting &
exclusions
#3
Duties & taxes
calculation &
display
#4
Local
payment
methods
#5
Direct,
international
shipping
options
Optimize settings by country

25. 25
Be Locally Global in Weeks
Integrate as quickly as 1-2 weeks, expand into 200+ markets and see immediate global sales lift
Pre-Integrated
Continuous
Development
Very Flexible
Into E-com Major Platforms
New Features Weekly
API First
Over 1,000 End Points

26. 26
V. WHAT ARE THE RESULTS?

27. 27
What Are The Results?
• Global price parity in all international
markets with granular control over the
entire product catalog
• Attractive global shipping rates to support
global unit economics and ability to offer
free shipping worldwide
• Running global marketing programs with
consistent global messaging and offering
promo codes to international consumers
>100%
60%
15%+
Increase in international sales
since implementing Flow
Reduction in
shipping costs
Of sales are now
international
70% 2020 Year-to-date increase
in international sales
300% International traffic
growth YoY

28. 28
LOOKING AHEAD

29. 29
Looking Ahead
• What’s next for Outerknown?
• What advice would you share with
brands looking to expand internationally?
• Where should brands start with pursuing
a localized digital-first strategy?

30. 30
Takeaways
 Know your international site traffic and
under-leveraged international potential
 Act. Don’t wait – opportunity cost is high
 Think big. Your consumer segment is the
same internationally.
 Define. Ensure a strong, thoughtful
international consumer experience
 Solve. Find ways of addressing
internationally simply, flexibly and
inexpensively (e.g., Flow)

31. Rob Keve, Co-founder & CEO
rob@flow.io
www.flow.io
Thank you.Travis Heard, CFO & COO
travis@outerknown.com
www.outerknown.com