MiliooneThe e side of business

Agenda

•Chinese e-commerce of made-in-Europe products

•Milioone’s Mission

•Business Model

–Revenue model Web Agency

–Revenue model Online shop•Value Chain

•About Milioone and partners

•Case studies

•About the Founder

•Q&A

ITALY: 3F products overview

•Italy is internationally known for arts, history and …

3F products: Food, Furniture and Fashion.

•Milan is a global fashion capital

Made in Italy products are mainly originated in small to medium sized enterprises in North Italy.

•The Italian market is looking for new customers abroad.

CHINA: E-Market of Italian products

•Chinese online consumers are mature, require high standards and look for constantly more imported qualitative goods.

•Italy is well-known among China’s Mainland consumers, as the kingdom of high quality food, fashion goods and lifestyle.

•The founder of Alibaba Group, Jack Ma, has visited Italy in March 2014 and expressed his desire to sell more Italian items through Tmall, due to the strong interest of Chinese customers.

•Average Taobao/Tmall transaction for a locally produced item is CNY 80-100 and for an imported item is CNY 500-600. The volume of imported items sold online is steadily growing.

E-Commerce with Unlimited Opportunities

The transaction volume of China’s online shopping market during 2006-2015

Source: iResearch

0

5000

10000

15000

20000

25000

30000

RMB 100 million

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

The transaction volume of online shopping

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

The percentage in the total retail volume

China’s online retail market has been growing remarkably, and its percentage in China’s total retail volume increases on a yearly basis.

E-commerce with Unlimited Opportunities

B2C represents the future direction of e-commerce: The size of the B2C online shopping market is growing year after year, whereas the C2C market is shrinking.

92.2%86.3%

76.8%70.2%

66.2%62.2%

59.3%

7.8%13.7%

23.2%29.8%

33.8%37.8%

40.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2009 2010 2011 2012e 2013e 2014e 2015e

Percentage of C2C transactions (%) Percentage of B2C transactions (%)

Source: iResearch

Structure of the transaction volume of China’s online shopping market during 2009-2015

Note: In 2011, the transaction volume of China’s online shopping market was RMB 773.56 billion, of which C2C was RMB 594.45 billion

Milioone’s Mission

•Milioone is an Italian limited company operating in the field of eCommerce.

•Milioone operates from Milan (soon Zürich and Paris) and Shanghai with a focus on serving European customers looking to benefit from the vast potential of the Chinese eBusiness market.

•Milioone’s mission is to provide the Italian manufactures of Fashion, Food and Furniture (3F) products with one-stop shop services to sell their goods online in China.

•Milioone sells Italian 3F products under its own online shop in China.

•Milioone also serves Chinese web clients interested in selling services and goods into Europe.

•Milioone is totally independent, 100% financed by Italian shareholders.

•Milioone (Shanghai) Consulting Co.Ltd is a WOFE and obtained the Chinese business license since 2012.

Web Agency Revenue Model

Milioone provides eBusiness Services into the Chinese market for European producers as one-stop shop:

• ANALYSIS of eBusiness requirements

• LOCALIZATION of the web site

• MANAGEMENT of the online project

• Online COMMUNICATION of the brand

• OnLine SELLING process

Web agency revenue “dual” model: consulting fee at the initial stage and profit share from online sales after “go live”.

Online Shop Revenue Model

• Milioone operates its own online shop in China.

• Milioone sells 3F Italian products on www.milioone.com,

the online shop born to be the Italian reference in China.

Online shop revenue model: full profit from the online sales.

Value chain online sales

Product sourcing Buying Distribution

1

Invoicing

5 6

• Production of physical goods

• Shipment

4

Shipping Warehousing

• Local warehousein the FTZ

• Production of physicalgoods

• Shipment

• Miliooneresponsiblefor productportfolio and its sourcing

• COGS • XXX €

• Either Milioone or product vendorpays the shipping cost and warehouse

• xxx% • Sales price(about+100% COGS)

• Commissionfor Tmall=3% sales

• Sales price(about+100% COGS)

• Milioonetransmitsthe invoiceto finalcustomer

• Milioone buysfrom vendorand triggersthe customsprocess

• Xxx€/delivery

• Chineselocal player

3

• End userbuys the product

• End userbuys the product

After-Sales/CC

7

• % of Sales + entry fee

• Chinese localplayer

2

Partners

Milioone works with

selected partners

Information Technology Partners

Milioone partners with two Chinese software providers

• QiaoLab provides the web production

• Gridsum provides SEO and SEM

Presentations of both partners attached to this presentation

eCommerce partners

Milioone produces B2C mono-brand e-stores within the two best e-shopping malls

• 360buy.com

• Tmall.com

Presentations of both partners attached to this presentation

360buy Group

21.8%

Tmall.com

54.6%

Tecent B2C

4.5%

Suning.com

4.2%

Amazon.cn

2.9%

Coo8.com

2.1%

Vancl.com

1.8%

Dangdang.com

1.3%

Yihaodian.com

1.2%

Others

5.6%

Source: iResearch, Q3 2012

Chinese market share B2C e-Shopping Malls

Administrative Partners

Milioone relates with

• Bank of China

• Grant Thornton China

to support in any administrative or financial matter.

Payment solutions partners

Milioone has a long-term partnership with:

• Alipay

• Payease

Payment solutions adopted for both milioone.com and for the B2C flagship e-stores.

Case Studies

• YOOX.com

• Ferrari Automotive SpA

• Inter FC

• Pal Zileri

• Prada

• others

YOOX

• Requests: – To Find a payment solution in

China– Value the entrance into the

shopping mall– SEO for yoox.cn

• Solution:– Partnership with:

• Alipay and Payease for the payment solution

• Tmall for the shopping mall

• Gridsum for the SEO

• Results:– Alipay and Payease are the

trusted payment system of Yoox.cn and all the web-sitespowered by Yoox in China

Ferrari Automotive SpA

• Requests: – SEO and SEM campaign– To evaluate the entrance

into the eCommerce market

• Solution:– Partnership with:

• Alipay and Payease for the payment solution

• Tmall for the shopping mall

• Gridsum for SEO and SEM

• Results:– Gridsum made a large SEO

and SEM campaign on 2012 for the Italian brand in China

– Alipay and Tmall organized the start up of the eCommerce in China for Ferrari

Inter FC

• Requests: – To evaluate the

entrance into the eCommerce market

– SEO and SEM

• Solution:– Partnership with:

• 360buy.com and Tmallfor the shopping mall

• Alipay and Payease for the payment solution

• Gridsum for SEOandSEM

• Results:– Start of the eBusiness

activity previewed in mid 2013

Prada (project only)

• Requests: – To evaluate the entrance

into the eCommercemarket

– SEO and SEM

• Solution:– Partnership with:

• 360buy.com and Tmallfor the shopping mall

• Alipay and Payease for the payment solution

• Gridsum for the SEO and SEM

• Results:– Project approved but

freezed due to unexpected business contingencies

Pal Zileri

• Requests: – Chinese version of the official web

site– To evaluate the entrance into the

eCommerce market– SEO and SEM

• Solution:– Partnership with:

• 360buy.com and Tmall for the shopping mall

• Alipay and Payease for the payment solution

• Gridsum for the SEOand SEM

• Results:– Web site localized in Chinese– Start of the eCommerce activity

expected in mid 2013 (launch TBC)

The Founder

Claudio Ferraris

CEO• Claudio Ferraris is a multilingual, globally-minded entrepreneur with over 20

years of international managerial experience in Europe, North America and Asia.

• He has serviced a great number of multinational clients in the areas of web based application development, online branding, marketing and advertisement, customer relationship management (CRM) and mobile device solutions.

• Some of Claudio’s significant achievements are successful projects for Prada, Yoox, Ferrari Automotive, Credit Agricole, GalerieLafayette, 3Suisses, Vodafone, Yamaha Hi Fi, L’Oreal Paris and Maybelline, Néstle Nescafe, Pfizer, Christian Dior and many others.

• Claudio has got an extensive network of contacts in European Fashion, Online Marketing and Advertising business circles.

• The businessman has established his presence in China’s online market over 10 years ago and can be considered a Marco Polo of our century. Claudio was the first Italian entrepreneur who brought European goods into the Mainland China web market.

Claudio Ferraris claudio@milioone.com

Thank you!Q&A