press conference on commerce/logistics€¦ · yutaka nagao. dual values. dual values. reduce....

Z Holdings CorporationMarch 24, 2020

Press Conference on

Commerce/Logistics

Z Holdings Corporation

President and Representative Director, CEO

Kentaro Kawabe

Growing well above market growth rate

Over 3X

Shopping BusinessTransaction Value

FY2013 FY2018

Shopping

Users get what they want, when they want it

Strengthen logistics/delivery

Strengthen logistics/delivery

1. Use of group assets (ZOZO/ASKUL)

2. MOU on business alliance with

Yamato Holdings

3. Linkage with physical stores

1. Use of group assets (ZOZO/ASKUL)

2. MOU on business alliance with

Yamato Holdings

3. Linkage with physical stores Today

Strengthen logistics/delivery

Linkage with physical stores

MOU on business alliance with Yamato

Holdings

Strengthen logistics/delivery

Yamato Holdings

MOU on business alliance with

Yamato Holdings

Business alliance – Effects

Significant improvement in logistics quality

・Higher rate of next day delivery

Burden on tenants reduced

Shopping Mall

Yamato Holdings

Yamato Holdings Co., Ltd.

Representative Director,

President and Executive Officer

Yutaka Nagao

12/

Yamato Holdings Co., Ltd.Representative Director,President and Executive Officer

Yutaka Nagao

Dual values

Dual values

Reducelogistics burden

dramatically

EnhanceCX through better delivery service

Expansion of EC

Expansion of EC

EC expanding across

industries

Expansion of EC

2015 2018 2020(Estimate)

JPY20T

2010

Approx. JPY13.8T

Approx. JPY7.8T

Approx. JPY18T

Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey )

Expansion of EC

2015 2018 2020 (Estimate)

JPY20T

2010

Approx.

JPY13.8T

Approx.

JPY7.8T

Approx.

JPY18T

4.8B(Estimate)4.3B

3.7B

3.2B

Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)Ministry of Land, Infrastructure, Transport and Tourism: Statistics on Package Delivery Business

Parcels

Taking EC logistics to the next stage

Yamato Group’s logistics network

Adding convenient

EC functions

Taking EC logistics to the next stage

Taking EC logistics to the next stage

70Logistics terminals

5,400PUDO

(Pick Up & Drop Off stations)

3,700Sales offices

180,000Distributors

Physicalnetwork

120Logistics

warehouses

Taking EC logistics to the next stage

38 mil

Kuroneko Members Digitalnetwork 1.2 mil

Yamato Business Members

Taking EC logistics to the next stage

Building a data-poweredEC ecosystem

Available to all store operators

Phase 1

Leave it all to usReceiveorders

Downloaddata

Batchpicking Issue slips

Singlepicking Packing Delivery

Receiveorders

Downloaddata

Batchpicking Issue slips Single

picking Packing Delivery

Handled by YAMATO

Fulfillment

Pick &Delivery

Schedule

StartacceptingMarch 24

Start of services

nationwideJune 30

Let’s create the future together

Exclusively for buyers who purchased from tenants that use Yamato’s new services

Get your shipping virtually free campaign

PayPay Bonus Lite equivalent to shipping fee givenJune 30, 2020 – December 2020 (plan)

※Details to be announced

Shopping Mall

Strengthen logistics/delivery

Linkage withphysical stores

MOU on businessalliance with

Yamato Holdings

Z Holdings Corporation

Director, Senior Managing Corporate Officer

Takao Ozawa

Deliver

Pick up

Removing the barrier between online & offline shopping

X Shopping

Cross

Before

Warehouse

Inventory just for e-commerce

Limited line-up(Type/size/color)

Warehouse

X ShoppingAble to search &

purchase items available in physical stores

Know if items are in stock before

you visit the store

EC inventoryPhysical store

inventory

Extensive line-up

倉庫Warehouse

Search items on map

Illustrative purpose only

Store/inventory/price displayed for searched item, and can be purchased right away

Takoyaki maker: In stock (9)¥1,999 -

Go to store / Call / Purchase

B Store Shinjuku (5th floor)X-XX-X Shinjuku, Tokyo

Takoyaki maker: In stock

EC 9兆 兆EC

(EC ratio: 6.22%)

Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey )

Size of BtoC merchandising market

X Shopping – Targeted market

X Shopping

Approx. JPY 9 T

Approx. JPY 141 T

Approx. JPY 141T

Approx. JPY 150 T Expand market

EC

Physical store

EC

Physical store

Approx. JPY 9 T

Able to search & purchase items available in physical

stores

PayPay Mall

How the service will be used

# Illustrative purpose only

Purchase/pick up（From around Fall 2020)2

Order

Just pick up at stores

Search physical store inventory

1

Inventory in physical stores

Check physical stores with inventory (11 stores)

TokyoPayPay Store Akasaka

Experimenting display of physical stores’ inventory

(Display only)

Starting in March 2020

※Brand names shown above are registered trademarks or trademarks of companies providing the services

Search physical store inventory

1

Inventory in physical stores

Check physical stores with inventory (11 stores)

ZOZO, Inc.

President and Representative Director, CEO

Kotaro Sawada

PayPay Mall ShopGrand opening

on December 17, 2019

Since its grand opening on December 17th, the gross merchandise value continues to increase

ZOZOTOWN is the strongest shop within the Fashion Category

1W2W

3W

4W

5W

6WZOZO

Merchant A

Merchant B Merchant

CMerchant

DMerchant

EMerchant

FMerchant

G

*Results of PayPay Mall + Yahoo! Shopping (December 17, 2019 – January 26, 2020)* Based on weekly results (cumulative)

Quick launch by applying ZOZO’s assetsZOZOTOWN and

PayPay Mall Shop strategy

ZOZOTOWN PayPay Mall Shop

Opened 1100 shops all at once

Bilateralgrowth

Sharing brick and mortar inventory data

ZOZOTOWN PayPay Mall Shop

Receive brick and mortar inventory data from

ZOZOTOWN

Considering ways to apply brick and mortar inventory data of brands that

contribute to 50% of salesExperimenting ways to display brick and mortar inventory data

Bilateralgrowth

ZOZOTOWN and PayPay Mall Shop strategy

Visitors’ trendZOZO seeks to meet the expectations of users who browse ZOZOTOWN just as they would browse through a catalogue

Frequent visitors who do not make purchases

Which store carries this item in stock?If they have it in stock, maybe I should

go to the store?

Many users browse ZOZOTOWN as they would browse through a catalogue

Users’ behavior

Visit website

Search for products

Read product details

Add item to cart

Purchase item

In addition to PayPay Mall Shop, aiming to send traffic from ZOZOTOWN to brick and mortar

ZOZO will also contribute to increasing sales of brick and mortar through ZOZOTOWN

Before

After

ZOZOTOWN

ZOZOTOWN

After verification in PayPay Mall

Display brick and mortar inventory data

Increase sales

Brand shops

Brand shops

Online Offline

Both companies will continue to find effective solutions to create more synergy

ZOZO and ZHD will work together closely and implement various solutions

PaymentUSED

LogisticsMedia

PayPay MallEngineering

support

Providing new shopping experience to many more users

50/

Yahoo! JAPAN‘s shopping engine will be released to external operators

XS（Cross-Shopping）

Engine

Operators’ challenges

51/25

・System investment・Continuous updates and additional developments・Risk of information leakage・Customer attraction

Need to make endless efforts to secure a continuous EC growth

Centralized operation of own EC site &

store in mall Able to operate own website, Yahoo! JAPAN Shopping,

PayPay Mall

├Payment methods: credit cards, PayPay, etc.

├ Linking with Yahoo! JAPAN ID, various sales promotional functions (e.g. coupon,

online magazine, etc.)

├Available also in apps

X Shopping function(Linking with inventories of physical stores）

CRM/personalization/

recommendation using AI

XS Engine

Outline of XS（Cross-Shopping）Engine

XS Engine

Seamless linkage with Yamato’s new logistics services

XS Engine New logistics services

First case: LOHACO

※LOHACO is a registered trademark or trademark of ASKUL Corporation.

ASKUL Corporation

President & CEO

Akira Yoshioka

※ With the opening of Store in PayPay Mall in October 16, 2019, transferred LOHACO Yahoo! JAPAN Shopping Store to LOHACO PayPay Mall Store

Revenue of LOHACO PayPay Mall Store

Shopping Mall

Growing steadily

Logistics CRMProductPaymentAttract customers

Construction/operation of website

Challenges encountered in own EC site

・Continuous service investment・Response to security risks→Increase in personnel/depreciation cost

Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain

Logistics CRMProductPaymentAttract customers

Construction/operation of website

Use of shopping engine

※Operated by ASKUL

XS Engine

Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain

Logistics CRMProductPaymentAttract customers

Construction/operation of website

Effect of using shopping engine

・High quality service・Continuous response to security risks→Low cost structure

Strength fortified

※Operated by ASKUL

Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain

Continuous growth

※ With the opening of Store in PayPay Mall in October 16, 2019, transferred LOHACO Yahoo! JAPAN Shopping Store to LOHACO PayPay Mall Store

Revenue of LOHACO PayPay Mall Store

Shopping Mall

Today’s announcement・Strengthen logistics/delivery through

collaborations with Yamato

・Strengthen linkage with physical stores

・Offer shopping engine to external

operators

Virtually free

shipping

XShopping

XSEngine

Users get what they want, when they want it