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

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:

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 • •

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