RAISING THE BARLOAD.16, Oslo, September 22, 2016 Marcus East, Global Digital Director, M&S

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‣ INTRODUCTION ‣ SILICON VALLEY INSPIRATION ‣ THE FUTURE ‣ Q&A

INTRODUCTION

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INTRODUCTION

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MARKS AND SPENCER - DIGITAL TRANSFORMATION

32 MILLION CUSTOMERS

1,382 STORES WORLDWIDE

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MARKS AND SPENCER - M&S.COM

7.4mM&S.com Customers

7.8mWeekly Site Visits

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AGILE

MOBILE FIRSTFAIL FAST

RELIABLE TECH

THE FUTURE

“THERE'S NO CHANCE THAT THE IPHONE IS GOING TO GET ANY SIGNIFICANT MARKET SHARE. NO CHANCE.”

Steve Ballmer, 2007

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WHAT DOES THE FUTURE LOOK LIKE?

DELIVERY & FULFILMENT INNOVATION

INTERNET OF THINGS

CONVERSATIONAL ECOMMERCE & AI

PERSONALISATION & INTELLIGENT AGENTS

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DELIVERY & FULFILMENT IS A KEY BATTLEGROUND‣ INNOVATION IN THIS SPACE IS

ESSENTIAL

‣ 80% OF CUSTOMERS WILL CONSIDER SWITCHING RETAILERS IF THEY GET A POOR DELIVERY EXPERIENCE

‣ 66% OF CUSTOMERS WILL CONSIDER SWITCHING RETAILERS IF THEY GET A POOR CLICK & COLLECT EXPERIENCE

Source: 1 &2 JDA and Centiro, “Customer Pulse Report UK 2016” conducted by YouGov, June 20, 2016

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INTERNET OF THINGS IS COMING‣ TODAY THERE ARE 22.9B INTERNET

CONNECTED DEVICES - BY 2020 THERE WILL BE OVER 50B

‣ THE ABILITY FOR DEVICES TO INTERACT WITH EACH OTHER, AND WITH RETAILERS OPENS UP INCREDIBLE OPPORTUNITIES

‣ AUTOMATIC REPLENISHMENT AND DIAGNOSIS COULD SIGNIFICANTLY ENHANCE CONVENIENCE AND CUSTOMER EXPERIENCE, ALLOWING BRANDS TO DIFFERENTIATE

Source: Hotel New Resource by Statista

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CONVERSATIONAL COMMERCE AND AI‣ MESSAGING APPS HAVE

OVERTAKEN SOCIAL NETWORKS AS THE PRIMARY ONLINE COMMUNICATION METHOD

‣ COMPANIES ARE TRIALLING THE USE OF CHATBOTS AS A WAY TO DELIVER BETTER CUSTOMER SERVICE AND EXPERIENCE

‣ CHRIS MESSINA, PREDICTS THAT 2016 WILL SEE THE BEGINNING OF CONVERSATIONAL COMMERCE AS A MAJOR TREND

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PERSONALISATION & INTELLIGENT AGENTS‣ CUSTOMERS WANT PERSONALISED

EXPERIENCES THAT MAKE THEIR LIVES EASIER

‣ THEY ALSO WANT PRODUCTS THAT ARE PERSONALISED TO THEM

‣ INCREASINGLY, RETAILERS WILL HAVE TO PROACTIVELY DELIVER VALUE TO CUSTOMERS, BASED ON DEEP UNDERSTANDING OF CUSTOMER BEHAVIOUR

‣ THIS IS ANOTHER POINT OF DIFFERENTIATION, ONE THAT WE’RE ONLY BEGINNING TO SCRATCH THE SURFACE OF…

Q&A

THANK YOU