B2C Business, At Your Fingertips April 2009 Strictly Confidential 2 Contents Part 1 Eco-system and the Business Part 2 e-Channel Value Creation Part 3 Financials and Use of Proceeds Part 4 Investment Highlights Appendix 3 Unique Outsourcing Model in China’s Online Shopping Industry E-Channel Expert As plexity increases, revenue share will increase 10%~15% Brand Owners panies Online Advertising + B2C Website Construction and Management Product Line Management + System Integration + Logistics Warehousing Platform B2Cs Online Shoppers Revenue sharing: 20%~30% of total sales according to different plexity and product Consignment model: CG does not own the products it sells Revenue sharing: 1%~% of total sales (2~% to Taobao; 1% to Paipai) Online Ad expense sharing: 20% of total Ad expense Outsourcing Cooperation 1 2 3 Official Website “CG Department Store” 4 Future Model: Multi-channel and Multi-platform Brand Owners panies Wholesale: B2C websites has the system integrated with CG and does not need to keep the inventories Wireless Market …… Specialized Store …… Official Website …… B2C Website …… Vertical Store …… Other Websites …… Platform B2Cs Shoes Apparels 3C Total Supply Chain Planning, Control, and Fulfillment E-Channel Marketing E-Store Management Product Structure Management Warehousing System and Integration Capabilities 5 Full merce Business Solution Provider Planning, implementation, evaluation, and optimization Product information Build and manage user-centric web stores Store display Electronic payment services Order management and merce processing Sticky and Scalable “One warehouse, lots of stores” Currently, CG does not need large-scale investment in warehouse building: with special cooperation model, CG’s representatives in brand owners’ warehouses will carry out the warehousing operations Multi-site and multi-3rd party platform integration CRM and call center capabilities Pricing Supply cha
