- Conference: Developing e-Commerce activities in China, Hong Kong, May 15th - Presentation from Gary Chu (VP Asia Business Development, arvato Bertelsmann) - Contents: Introduction on arvato Bertelsmann e-Commerce Value Chain Multi-Channel retail strategy One-stop shopping solutions IT Front End solutions Back End operations CRM and eCRM Multi-Channel management

1. Improve e-Commerce Performance
via End2End Process Optimization
Gary Chu
Vice President
arvato Asia Business Development
Email: Gary.Chu@bertelsmann.de
1 | May 16, 2012

2. Bertelsmann AG
The world’s most international media group
Employees: 100,626 *
Business Volume: > 15.3 bio. €*
Media Content Services
The leading broadcast and The largest general-interest The leading magazine One of the largest international
production company in Europe. book publisher in the world. publishers in Europe. provider of outsourcing
services (BPO).
Employees: 12,184* Employees: 5,343* Employees: 11,822* Employees: 68,325 *
Business volume: 5.8 bio. €* Business volume: 1.7 bio. €* Business volume: 2.3 bio. €* Business volume: 5.4 bio. €*
Magazines
Leonie Swann, Dan Brown
Newspapers
Idols The Bill J.M. Coetzee Toni Morrison
Family Feud John Grisham
* Figures adjusted for the fiscal year 2011
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3. Bertelsmann arvato
Supply Chain
Marketing Services Financial Services Customer Services IT Loyalty Program
Management
 e-Commerce  B2B/ B2C  DeutschlandCard
 Billing & Invoicing  IB & OB Call  Data Center
 CRM & eCRM Warehouse
 Payment Process  Email  E-Commerce  Web Miles
 Digital & Affiliate  Direct to Retail
 Collection  Live Chat  CRM
Marketing
 SAP
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4. arvato in Asia
Gurgaon & Mumbai, India Chiba, Japan
 Customer Services  SCM
 Marketing Services  Fulfillment
 SCM
Hong Kong Beijing, China
 SCM  CRM
 Fulfillment  Customer Services
 CRM  IT
Singapore
Shanghai, China
 CRM
 Customer services  CRM
 Financial services  E-commerce
 SCM  Customer Services
 E-commerce  Financial Services
 SCM
 IT
Sydney, Australia Shenzhen/Guangzhou, China
Nanchang, China
 Customer Services
 CRM
 SCM  Customer
 SCM
Services
 Customer Services
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5. The e-Commerce Value Chain
Traffic Generation
Baidu Google Sina Sohu Tencent Weibo Kaixin Mogujie Rayli
Search Engine Portal SNS Vertical
Channel Shop
Management Management
Official Website Tmall Amazon
Back-end
Management
Project Management / IT / Process
Customers Order Inventory
Payment W&L Mgt
Service Management
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6. Multi-Channel Retail Strategy
Suppliers
Data
Fulfillment
Back-end system
Legacy systems
Resellers / Dealers
POS
Distributors
B2B / Partners Retailers
Kiosk
Web
B2B sites Customer procurement /
systems
Tele, mobile
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7. The Strategic Challenges & Transition
 Marketing Strategy & Process Alignment
 Retail Process Migration & Optimization
 Operation Process Change & Integration
 Consumer Data Integration
 A Strategy & Organization Transition
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8. One-stop Shopping Solutions
Business
Consulting
IT Front End Solutions Operations & Marketing
E-commerce Implementation and Data management Order Fulfillment Campaign Shop Online
consulting maintenance • Data capture • Logistic & • Campaign Management Marketing
• Website • Website
IT Outsourcing • Data migration distribution planning • Web page design • Tracking Pixel
popularize development • Database •Sales recognition • Campaign • Campaign landing • Conversion
planning • Java/.Net base management and posting to supporting page design Tracking
• Business process • Data finance -on-site • EDM design • Optimization
customized
Consulting Synchronization • CSR operation -DM/Mail/SMS • Flash design automation
development
• Website usability • Address management -Telemarketing and coding • Data recency
• SaaS solution • Mini site
consulting Validation • Inventory booking • Mailing • Optimization
• Online channel • Interface to Bank • Archiving • Stock take production solution tactics
development • System integration • Customer management • Print-on- • User experience • Budget
• Online marketing • ERP integration segmentation • Inventory control demand optimization allocation
design • Single Sign On • Database • Optimized • Card • Website usability • Ad format
• ROI forecast/ • Wiki/BBS/Blog Marketing warehouse production optimization supported
analysis • Statistic & management • National & • Product upload • Reporting
• Point redemption
• Shopping process Analysis • Picking & packing International • Site image data • Data insights
management
consulting • Distribution control Postal Delivery maintenance
• E-CRM
• Enterprise portal
planning
Integrated infrastructure
 Infrastructure consulting and design  Data hosting  Desktop support  IT Management consulting
 System integration implementation  Application environment hosting  on-site and remote support  Information security consulting
 Infrastructure maintenance  Hardware hosting and maintain  3G mobility solution  Risk evaluation
 Database implementation and maintenance  Data security  Cloud-compute service  IT auditing
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9. IT Front End Solutions
Hybris IBM WebSphere Commerce
 Designs, develops, operates and  Designs, develops, operates and
maintains Hybris solution maintains IBM WCS solution
 Hybris Software Developers:
 WCS Solution Engineers:
- Team Germany 50+
- Team China 50+
- Team US 30+
- Team China 10+ (and Java developers  IBM Premier Business Partner
50+)
 Hybris Development Partner (modules)
and Multiple-Hybris Partner of the year
Demandware arvato In-house Solution
 Designs, develops, operates and  Designs, develops, operates and
maintains demandware solution maintains official website for Sephora,
Sisley, etc..
 WCS Solution Engineers:
- Team Germany 10+  In-house Developer and Engineers:
- Team China 50+
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10. The Websites References
Hybris – Benefit IBM WebSphere – Li Ning
Demandware – GERRY WEBER arvato in-house – SEPHORA
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11. Back End Operations
Order Fulfillment
Warehouse
OMS Customer Service Financial Service
and Logistics
 IT
 arvato OMS  WMS  Service  Value Chain
 Virtual Inventory Mgmt.  IB & OB Call; eMail;  Billing & Invoicing
 Platform Integration  Warehouse Live Chat; Data Entry  Payment Processing
 Order Routing  60 high-security WHs in globe  Collection
 Competency
 Order Consolidation Tool  Other 60 WHs in China  Risk Management
 China: 3500+ Seats
 3rd Party Interfaces  Warehouse coverage in
 India: 1000+ Seats
APAC, including Singapore,  Customers
Hong Kong, Japan, India,  Singapore: 200+ Seats
 SAP Australia  Manila: 300+ Seats
 Nationwide Delivery No.1 Software
Company
No.1 Global
Search Engine
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12. CRM and eCRM
arvato CRM and eCRM
OUR VALUE
 e-Commerce Consulting
 Data Mgt
 Member Mgt
Data
 Marketing Campaign Planning
Management
 Marketing Campaign Mgt
 ROI Analysis
 Integration of SNS e.g. weibo
OUR CUSTOMER
Campaign Report
Management and Analytics
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13. Multi-Channel Management
Multi-Online Stores Multi- Payment Gateways
Official Website
Single Consumer
Data Base Centralized Multi-Customer Services
arvato data centre OMS
has passed
ISO27001
Certification
Multi-Warehouses Multi-Delivery Partners
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14. CUSTOMER
14 | Name | Company | Customer | May 16, 2012 LOGO