03_WIOBIZ_Pink_Store

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Strategic Priority: O+O

Feedback from WIOBIZ Version 3

May 2025

Strategic Priority’s from 2024 H&B Conference:

Strategic Priority: O+O 1. Enhance end-to-end customer journey through better system stakeholder collaboration (p.1/2) 1. Further enhance End-to-end customer journey and shopping experience for both Online and Offline (Goal: Seamless, Frictionless & Fast) • Strengthen responsiveness of IT and System Capabilities and Support

• Establish robust IT architecture to future proof of O+O needs • Leverage on local IT partners to facilitate faster execution

• The follow initiatives have been implemented to build a strong culture of inter-department collaboration and alignment between key system stakeholders (eLab, GIT, TechLab, CRM, GSC):

1. Bi- monthly/quarterly “BU O+O Meetings” where BU Head, BU Functional Heads and Group stakeholders come together to align on top system priorities to drive our online business (with focus on Own Platform) 2. Recurring update meetings between different Group teams to ensure visibility and alignment on departmental priorities (e.g. Monthly update between eLab x GSC, eLab x GIT) 3. Bi-weekly SteerCo meetings on major projects to advance progress. The process is further strengthened with the involvement of “O+O Champions” to achieve holistic view of interdependencies between Group systems. Examples include • CDC, AIMAS Marketing automation and O+O Coupon Engine • Any store return, PCI Checkout Enhancement, CCE COD, PCM 2.0 3

1. Further enhance End-to-end customer journey and shopping experience for both Online and Offline (Goal: Seamless, Frictionless & Fast) • Strengthen responsiveness of IT and System Capabilities and Support Strategic Priority: O+O 1. Enhance end-to-end customer journey through better system stakeholder collaboration (p.2/2)

• Establish robust IT architecture to future proof of O+O needs • Leverage on local IT partners to facilitate faster execution

• Some projects have also leveraged local IT partners to speed up the implementation timelines. For example: • WTCMY WhatsApp member registration feature – developed locally (LIVE) • WTCPH and WTCID for Selling in-Store Consignment items online – eLab to build on-top of their existing local solution “Consignment+” as an interim solution to accelerate implementation (In-progress) • WTCTH developing a local solution to replace the AfterShip order tracking system (In-Progress)

Strategic Priority: O+O 2. Differentiation of Watsons Online Shopping (p.1/3)

2. Ensure highly effective awareness efforts about the benefits and differentiation of Watsons Online Shopping (i.e. wide assortment, member’s only benefits, exclusive promotions, speed and convenience) Key Initiatives to create stronger Watsons differentiation:

(Please find out description of each feature in the APPENDIX)

Wide Assortment • Watsons Marketplace enabled by Seller Centre, Selling in-store Consignment items Online (detailed updates on next section)

•

Membership Experience •

•

Member Missions (LIVE in PH, other BUs on-going)

• Member Card Face Designs (LIVE in PH, other BUs target go-live date: Q2)

• Point Sharing (LIVE in MY, other BUs target go-live date: Q2)

• Point Donation (target go-live date: Q2)

• Redemption Centre (LIVE in MY) and subsequent enhancements (On-going)

• Earn Member Point on Marketplaces Order thru OCR – a feature to upload MP receipts to Watsons for

earning Member points (TH, PH, ID – for SHP, LZD, TTS -Target go-live date: Q2)

Strategic Priority: O+O 2. Differentiation of Watsons Online Shopping (p.2/3)

Key Initiatives to create stronger Watsons differentiation:

Exclusive Promotions • “Own Platform Coupon” deals – feature is LIVE with ongoing enhancements to improve the experience • time- sensitive “flash” coupons to drive customer urgency (LIVE in TW, MY, TH; Other BUs on-going) • Limited coupon quantities to get customers to act quick (LIVE in TH, Other BUs on-going)

•

• O+O coupons that can be used both online and offline to drive app usage even within offline stores – (target go-live in WTCMY: Q3; Other BUs to follow)

• Mix & Match Promotion Feature (target go-live date: Q3)

• “Add - on Deals” feature: To entice customers to add more to their order immediately after checkout • LIVE in WTCHK, other BUs UAT in progress (target go-live date: TW & SG Q2, Other BUs in Q3-Q4)

• AIMAS Marketing automation Tool •

Customers to receive promotion communications auto-triggered by pre-defined scenarios, making them more instantaneous and personalized to the shopper’s behaviour (LIVE in TW, HK; rollout to other BUs is ongoing) 6

Strategic Priority: O+O 2. Differentiation of Watsons Online Shopping (p.3/3)

Key Initiatives to create stronger Watsons differentiation:

Speed & Convenience • Checkout 3.0 • Overhaul the express and checkout experience so that customers can easily choose between standard or express checkout options (Start going LIVE in May) AI Chatbot • Reduce dependency on live agents so that customer enquiries can be resolved at quicker speed (LIVE in MY & TH, other BUs on-going) • The AI Chatbot will be continuously enhanced with more features to meet customer needs e.g. Order status checking, Product recommendations, etc. (On-going) Guest Checkout • Drive up first-time purchase of new website/app visitors by significantly reducing friction from account creation, log-ins, etc. (target go-live date: Q3) • Customers will also be reminded of the benefits of creating an account throughout the journey to convert them from “guest” to “ eShopper /Member” 7 • •

•

Strategic Priority: O+O 2. Differentiation of Watsons Online Shopping (p.3/3)

Key Initiatives to create stronger Watsons differentiation:

• Improved payment experience - new payment options or new payment service providers • [TW, HK] Switch to new PSP (LIVE)

• [SG] PayNOW (target go-live in Q2)

• [ID] QRIS Payment (target go-live in Q3)

• [PH] PayMaya, BDO Instalment (target go-live in Q2) , non-BDO Instalment (target go-live in Q3)

Strategic Priority: O+O 3. Watsons OP as H&B Marketplace (p.1/1)

3. Transform Watsons Own Platform to become an H&B Marketplace

• To make Watsons an online one-stop shopping destination there are two key initiatives allowing for quick expansion of assortment:

1. Enabling in-store consignment items to be available for purchase online (target go-live date: Q3)

2. Creating a “Watsons Marketplace” by offering sellers a full suite of operational functionalities so that Watsons can onboard new Sellers and products with pace (“Watsons Seller Centre”)

• The following slides provide an update on Watsons Seller Centre Project, the roadmap and timelines

Watsons Seller Centre: Current Barriers to creating a Watsons Marketplace

• To build a "Watsons Marketplace," we need to streamline how new Sellers can quickly start selling on the Watsons platform. The current "Supplier-deliver-direct" solution doesn't meet this requirement.

• Below are the key features that third-party marketplaces offer Sellers, which currently relies on our Watsons staff to execute, hindering the speed in which we can expand our assortment.

On-boarding new Sellers

Online merchandising

Performance Monitoring

• Create product listing • Updating product information and content

• Decorating Seller’s Online store front • Setting product promotions

• Tracking weekly sales and item performance • Delivery & Fulfillment service level tracking • Finance payments and invoicing

The Watsons Seller Center Solution addresses these challenges with these Key Features

Last Mile Delivery APP

DIY Promotion

Flash Sales

FlagShip Store

Streamlined Product, Inventory & Order Management (APIs and Console available)

Financial Reporting

Performance Analytics

Watsons Seller Center is a one-stop service marketplace platform offered for sellers to manage their products, promotions, orders, storefront in BU’s eshop. BU can perform product, promotion approvals and commission handling as part of supplier management.

Watsons Seller Center Core Features

Product Listing Management

Order Management

Inventory Management

API Integration with Supplier

Promotions & Marketing

Payment & Financials

Self-Manage Seller CMS

Later Phase

Supplier Service Level Management (SLA)

Customer Supplier Communication

Performance Analytics

Manage supplier’s performance based on stock & order KPIs

Allow customers to directly contact suppliers to ease BU’s customer services workload

Key Projects Roadmap for Watsons Seller Center, Online selling of In-Store Consignment items

Dec 2023

Jan Feb Mar 2024

Aug Sep Oct Nov Dec Jan Feb 2025

2026

2027 Q1 Q2 Q3

Apr May Jun

Jul

Mar Apr May Jun Jul Aug Sep Oct

Nov Dec

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

To Be Determined

In-Store Consignment

To expand the Online Platform product range by store consignment items

Interim solution: ID: Enhanced from Consignor Trax PH: Enhanced from Consignor+

Long term solution: Extended from Watsons Seller Center

Seller Center

To expand the Online Platform product range by utilizing supplier operations for product and order management

Partial Solution

Legend

Kick Start, Requirement Collection

Development and UAT

1 PNSHK launch trial with Supplier Haagen Dazs 2 PNSHK launch trial with Supplier Meow9 ( 500 Products ) 3 PNSHK further expand with Supplier Meow9 (4700 Products)

Peak Campaign Period

Strategic Priority: O+O 4. O+O Stores of the future (p.1/1)

4. Explore O+O Stores of the future • Integrate service / experience shopping journey as part of store design • More effective use of CRM and technology in in providing personalization • Trial new retail brand formats e.g. Look at Me, Kruidvat, Rossman, Pure Health, & Pure Beauty

• The launch of AIMAS and CDC 2.0 also improves the store shopping experience. For example: • Instant notification on points earned upon purchase in offline store (Target go live: Q2) • Receiving notifications on spotlight offers from nearby stores, enabled by geo-fencing technology (Target go live: Q3)

• Implementation of “My Colour Studio” seasonal color analysis tool in stores across various markets (LIVE in HK, TW and MY, Other markets TBC)

New retail formats: • Pure Beauty – WISDD’s Watsons Pink – Sky Avenue in Malaysia. • Look at Me – WISDD is reviewing & directing on the overall design for North Edsa (New Store) – target opening is Dec 2025. • Pure Health – Currently no BU is in a position to launch this retail brand.

•

3 rd Party Marketplaces Improving Online Business in Marketplaces (p.1/1)

• Marketplace API integration to improve service levels and reduce the level of manual work from internal staff : • Order & Inventory management (OMM) for Express Marketplaces • GrabMart (ID LIVE, PH target go-live Q2, SG target to-live Q3) • PandaMart (PH target go-live Q3) • GoMart (ID target go-live Q3) • Product Content Management (PCM 2.0) – for GrabMart, Shopee, Lazada (target go-live date: Q4) • This would allow for easier and more efficient management of product images and other content for 3 rd Party Marketplaces

Appendix: Additional informaiton on key enhancements

Member Experience Enhancements - Member Missions

Watsons members can select 5 personalized missions from a curated list of 10 to launch their adventure. Earn points for each mission accomplished, and unlock bonus rewards by successfully completing all five challenges.

Member Experience Enhancements - Member Digital Card Face, Point Sharing, Point Donation

Member Digital Card Face

Member Point Sharing

Member Point Donation

Member Experience Enhancements - Redemption Centre

Watsons members can unlock exclusive rewards by redeeming their points at the Redemption Centre , where a diverse selection of items awaits!

Own Platform Online Coupons

Coupon Zone

Flash & Campaign Grab

Homepage and PDP to grab coupons

Own Platform Online Coupons – 2024 11.11 Performance

TW was the champion BU, generated HK9.5m sales; taking up 43% of BU total

Total number of orders in 11.11 period

Total Order Value (in HKD) $ 1,337,111.72 $ 9,516,157.51 $ 4,668,251.70 $ 1,637,686.94 $ 4,728,729.95

AOV (in HKD)

Orders that are 1 st order for customers

first order / total %

2,809

$ $ $ $ $ $

476.01 361.47 990.30 304.74 369.95 391.26

489

17% 16%

26,326

4,258

4,714 5,374

287 413

6% 8% 9%

12,782

1,125

401 630 100

156,895.31

16% 19% 10%

30,060.97

47.72

119

23,663.68

236.64

Total Sales HKD 22.1m!!

• TW coupon order sales is 43% of all BU sales orders with coupons • SG has highest AOV of $990 , which is almost double / triple comparing to other BUs

Own Platform O+O Coupons – can use online or in-store

Member QR Code

Coupon Zone (Online coupon journey remains unchanged)

From Member Card Face

Mix & Match Promotion – execution for online

Buy 1 Free 1 Promotion Landing Page

PDP

Better UX: A Pop-up after Add to Bag

Reduce chance of missing discount: A reminder for customer to complete Buy X Free X offer

More flexibility for customers: Allow customer to choose the pairing item instead of auto assign

I always use the Brown one, with Buy 1 get 1, let me also try the green one too!

Customer

“Add - on Deals” (p.1/3) Encouraging customers to add extra items to their order

This feature allows customers to make additional purchase on selected products with extra fixed discount (i.e. 10% OFF) and deliver with the parent order at no extra delivery charge .

Criteria of making Additional Order in Parent Order:

Additional Discount

Delivery mode = CDS only Not include SDD items Not virtual product only

• • • •

Within additional order period

Forgotten Items

“Add - on Deals” - Entry Points (p.2/3)

• These deals are shown immediately after checkout to entice additional purchase of items

Other Entry Points

Additional OrderPage

Entry Points of Additional Order Page exist on APP only

2. APP Push

1. Order History Detail Page

Thank YouPage

3. Homepage

Add-on Deal Performance in WTC HK (p.3/3)

Data Period: Sep 10 - Oct 16 (47 Days)

30K OP APP Order

Additional Order

2,705 Views ( 31% of Eligible order )

256 orders ~7 orders/day

CR 9.5%

13k OP APP CDS Order

( 3% of Eligible order )

( 44% of APP order )

Child order

27% of parent order HK$220

ATV:

( 29% of APP order ) 8.6k OP APP CDS Eligible Add’l Order

33% of parent order 4 Items

IPB:

AI Marketing Automation (AIMAS) System to allow auto-triggering of communication to customers based on specific behaviours, enabling a more personalized shopping experience

Trendy Make Up Suggestion

Item in Your Cart is NOW 50% off!

New Product You Might Like

Your Foundation is Almost Finished! Check It Out with Best Price!

Lucky Draw, Survey after Purchase

Consideration

Awareness

Conversion

Retention

Repurchase

Boosting awareness with Data-Driven Campaigns & conversational AI

Personalized Content Delivery with predictive analytics

Conversion optimization with Personalized Incentives

Personalized Experiences and automated post purchase engagement

27 Accelerating growth with Automated Feedback , loyalty and referral programs

AI Chatbot

➢ From 3 rd Party Chatbot to Inhouse AI chatbot

To-be

As-is

Inhouse solution (eLab)

• Third party tool (Freshchat/Omnichat) • Option-based bot • With predefined response

• •

Conversational bot

• With dynamic response & sentiment handling

Conversational flexibility

Sentiment analysis

Tier by tier

Checkout 3.0 Enhancements

My Bag

Checkout Step 2

1) Unified checkout journey across OP Web and OP App

2) Simplified decision-making in checkout

3) Maximized assortment for customer shopping

4) Optimized ‘Express’ option if free gifts are unavailable

5) Allowed partial checkout in CCE if CCS is disabled

Thank you

Pink Store Health & Beauty Strategy

Sky Avenue, Malaysia

Our Objectives

Leading beauty market segmentation & redefining beauty retail experience

Elevating and curate an immersive beauty experience for our customers

Our Long-Term Goal

Expanding key mall presence - securing second/third store

To Grow market share

- reinforce our position not just with direct competitors but also amid growing lifestyle specialty retailers eg KKV, Miniso, Colorist

Store Concept

• Diamond Concept Pink Beauty store

• High-end lifestyle store location

• Experiential Focus

• More Beauty Service & Advisors

• Category of focus including cosmetic, skincare, premium haircare , fragrance & accessories

• Lifestyle & Trendy assortments with Educational display

• IG wall & sitting area

• In trend & Top selling item corner

Store Information – Sky Avenue 2

• Target market : Young, affluent, Beauty Enthusiasts, Trend

followers

• Store open on 14 th Jan . LTM Apr AWS is +38% above IRR

• 80% Beauty ( cosmetic & skincare) focus vs normal WS 40%

• 50% lesser SKU ( around 3500 sku) vs normal WS of

similar size

Pink Store

Total Company

• Around 10% SKU are exclusive Pink only