INVERTED EDGE

CHINAContemporary Fashion Designers from Asia, the Pacific and beyond

| Edison Lim Jun Hao | Lim Jun Hao | Ong Jun Hao | Wayne Kaiends Kang

|

Team Friends

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Maintaining Conclusion

Executive SummaryVision

Challenges Goals

Premier

Intimate

We promise an intimate experience, underscored by services tailored to the individual, designed

to maximise customer shopping enjoyment and convenience, furthering our goal of being a

premier destination to uncover a new Asian shopping horizon.

‣ High Barriers-to-Entry

‣ Overly saturated C2C competition

‣ E-commerce Conundrum

‣ Poor Infrastructure

Model (Business)

Acquire Market Share

Deliver Consumer Value

Strategy

Branding Conversion

Platform Payment

Logistics

Retain

using

to

and

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Maintaining Conclusion

Branding

To provide a niche Boutique experience online

Paradigm shift in

consumer demand

towards unbranded

luxury goods

High Barriers-To-Entry‣ Dominant players in C2C Market.

(Eg. Taobao, Tmall, Alibaba)

‣ Emergence of other B2C luxury

brands online (Eg. Shopbop)

E-commerce

Conundrum‣ Why pay for uncertainty?

‣ Competition from traditional

Brick-and-Motar Stores

Multi-Channel

Integration with a

Mobile focus

Offline Expansion

Dilemma‣ Huge unmet demand

from low-tiered China

cities

Issues

Curated B2C Luxury

Designer Goods

Intimate Customer

Experience using

Innovative

Technology

Solutions

Small Quantities of

High Quality

Designer Goods

External

Internal

Premier IntimateProduct Leadership

Operational Excellence

Customer Intimacy

Brand Positioning Statement

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

Platform

Offline Expansion

Dilemma

Consumer Trends in China

Shift in demand for

unique apparels

‣ Disconnect between young

affluent consumers and traditional

Brick-and-Mortar stores

‣ Huge untapped market potentials

in lower-tier cities

Increase in Mobile

Internet Usage

Multi-Channel Online Integration with a Mobile Focus

‣ Affluent consumers are

becoming increasingly

sophisticated in their fashion

tastes

‣ Increase demand for expression

of individuality

High focus on targeted advertisements on desired customers

‣ 617 million internet users

‣ 80% of which are Smartphone

users

‣ 55% of which have made online

purchases

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

‣ Launch a user-friendly Chinese language based shopping

site

‣ Focus marketing efforts via Qzone and Weibo - 2 largest

and most influential social media site in China

‣ Get opinion leaders on board to market Inverted Edge

Platform

Multi-Channel Online Integration with a Mobile Focus

High Focus on Targeted Advertisements on Desired Customers

Online

‣ Increasing number of Chinese consumers prefer to shop

via smartphones due to convenience

‣ Focus marketing efforts on WeChat - top social messaging

application

‣ WeChat is the fastest growing mobile social network in the

world

‣ Provides easy platform for geo-targeted advertising

Mobile

Platform Plan

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

Consumer Priming

‣ Use of analytics technology to build up a portfolio of desired customers

‣ Couple with targeted advertisements on primed target group

Platform

Multi-Channel Online Integration with a Mobile Focus High Focus on Targeted Advertisements on Desired Customers

Desired

Geo-fencing Technology

‣ Create virtual fences around a desired geographical location

‣ Inverted Edge can specify the location as streets with high-end boutiques, where

one is more inclined to purchase similar products online

‣ Creates higher click-through rate

Flash-sale

‣ Once a programmed smartphone crosses the fence, a flash-sale deal can be sent

directly to the customer

‣ Flash-sale deals will only be sent to desired customer selected through analytics

algorithm

Targeted

Platform Plan

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

PlatformIssuesInsufficient exposure to the consumer market in China

Presence of established players

Inverted Edge to engage popular Opinion Leaders

Chinese heavily rely on

unofficial channels of

information for product

purchases

(Data extracted from Source : Survey Analysis,

China’s Connected Consumers, February 2014)

It is a cost effective way

to spread awareness

“They help to trigger interest in the

products”

17% of Chinese Consumers

rely on key opinion leaders for

fashion guidance

Identify Opinion Leaders

that can embodies their

target female consumer

group (25-45 years in

age)

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

Conversion

A Tailored Customer Experience is Key to Customer Intimacy

Unable to make informed fashion choices due to inconsistent sizing conventions

Online Fit Problem

Targeted SegmentLuxury Designer Apparels: Less likely to compromise on having to return products

Require Second Opinion

Issues

Fits.me On-site Recommendations

Increase Clicks to Sales %

E-commerce removes the ability for customers to mix-and-match

Solution

Goal

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

‣ Increases customer intimacy

‣ Increases customer satisfaction

‣ Prevent customer disengagement

‣ Promotes customer stickiness

‣ Reduces cost incurred with returns

‣ Virtual wardrobe to fit clothing to customer

sizing

‣ Unique tailoring experience for every

customer

‣ Brings the whole shopping experience

closer to that of Brick-and-Mortar store

Conversion

Using technology to empower customers to find their fit,

preventing customer disengagement.

Solution 1:

reduce returns by

70%50% conversion of

first-time buyers

Fits.me

Value

Online Fit Problem

Targeted Segment

Problem

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

‣ Increases customer intimacy

‣ Increases customer satisfaction

‣ Increases customer loyalty

‣ Promotes customer stickiness

‣ On-Site Recommendations to track

customers purchase history and recommend

apparels with similar styles

‣ Brings the whole shopping experience

closer and more personal to that of Brick-and-

Mortar store

Conversion

Using Analytics to empower customers to find what they want

Solution 2:

On-Site Recommendations

Value

Online Fit Problem

Targeted Segment

Problem

Source: http://www.marketingcharts.com

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

Inverted Edge has to partner a major e-payment system

Current Payment Partners

Not Available in ChinaIssue

RecommendationFocus efforts on Alipay before adopting other systems

like Tenpay and Unionpay

‣ Market Leader

‣ Focus on Buyer’s

Protection

‣ Availability of Mobile

Payment

Advantages for the

Consumer

‣ Trustable and Reliable

‣ Contributes to user

experience

‣ Low cost and efficient

way to access Chinese

Market

Advantages for

Inverted Edge

Payment

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

LogisticsIssue

Inverted Edge has to outsource its operational and logistical

needs to a trustworthy third-party, to maintain cost viability.

Sheer size of China Lack of global players Need for a reliable courier service

Recommendation Shun Feng Express

Fast and Reliable

1 - 2 Days Delivery Period

Safe Transportation Service

High National Coverage

Over 7800 Service Centers in

Flexible

Ability to pool shipments with other

online retailers to enjoy cost-savings

31 provinces

300 cities

1900 counties

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

RetainEDGEReward System to Retain Customers

Reward System to fine-tune value proposition and enhance

customer retention.

Loyalty

Discounts

Access to

prelaunch

collections

Private and

exclusive

styling

sessions

Gold ✓ ✓ ✓

Silver ✓ ✓

Bronze ✓

Private and exclusive styling

‣ Highest tiered membership gives customer exclusive visits for

styling sessions

Reward driven system incentivises customers and promotes customer intimacy

Access to prelaunch collections

‣ Grants exclusive visits to prelaunch collections

‣ Provides a valuable experience for fashionista who wants to

be ahead of the fashion movement.

Loyalty Discounts

‣ Upfront discounts for loyal customers to enjoy cost

savings

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

ConclusionRisk Mitigation

Concerns Mitigations Actions

Aggressive advertising

may adversely affect

branding of Inverse Edge

Introduce system to

sieve out intended

recipients of

advertisement

Integration of new

payment system may

result in uncertainty

Conduct audits on

financial accounts every

three months

Data collected for on-site

recommendation might

be compromised

Ensure top-of-line

security protocol

Engage vendor to

implement robust and

secure IT systems

Implementing measures

for enhance financial

security

Using analytics to access

demographics for

accurate targeted

marketing

INVERTED EDGE CHINA

Branding Platform Conversion Payment Logistics Retain Conclusion

ConclusionLong-Term Prospect

Fashion retail market in China is projected to enjoy growths of 11% year on year. The bulk of growth

is likely to be from younger generations who are more affluent and fashion savvy. Moreover,

there is a large and relatively untapped market potential within the tier 2 and 3 cities, where young

consumers are more willing to spend on luxury apparel.

Additionally, trends have also shown that Chinese men constitute 55% of total luxury good sales,

Inverted Edge can diversify their portfolio to include men’s collection catered to the Chinese market.