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C A P I T A L M A R K E T S
D A Y 2 0 1 6
Z A L A N D O
O P E R A T I O N S
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D A V I D S C H R Ö D E R ,
D R . C H R I S T O P H S T A R K ,
L I S A M I C Z A I K A
1. Introduction and Overview
2. Logistics Network Expansion
3. Latest Innovations
4. Q&A
T A B L E O F
C O N T E N T S
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• Payment processing
• Payment Customer Care
• Dunning & collection of
arrears
• Fraud prevention
• Allowance accounting
O P E R A T I O N S S U P P O R T S T H E Z A L A N D O P L A T F O R M
W I T H F O U R K E Y S E R V I C E S
C O N T E N T
C R E A T I O N
• Photography capturing &
editing
• Texting of product
descriptions
• Tagging of key words
• Creative development of
new formats
P A Y M E N T S L O G I S T I C S C U S T O M E R
C A R E
• Warehouse logistics
(inbound, storage, parcel
outbound)
• Returns handling & logistics
• Transport & shipping
• Network planning
• Warehouse planning
• Mail & phone support
• Chat
• Social Media
• Self-help / Smart FAQ
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0 0 0
2 5 5 2 5 5 2 5 5
1 1 5 1 2 2 1 3 2
2 2 9 2 2 9 2 2 9
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O U R M I S S I O N A S Z A L A N D O O P E R A T I O N S I S
T O B E C O M E T H E B E S T F U L F I L M E N T P A R T N E R F O R F A S H I O N I N E U R O P E
• Offer a compelling local shopping experience proposition in all our markets
• Ensure perfect day-to-day execution and a consistently high level of service quality
• Introduce key innovations along the value chain
• Plan ahead and secure enough capacity options to enable long-term growth
• Expand capacity as needed on time, in budget and without compromising quality
• Provide flexibility to capture all growth opportunities while keeping efficiency up
• Ensure continuous improvement in costs, lead times and process quality of all processes
• Take advantage of innovative technology to create step changes in operational excellence
• Foster a true lean culture within the whole organization
C U S T O M E R
S A T I S F A C T I O N
S U S T A I N A B L E
G R O W T H
O P E R A T I O N A L
E X C E L L E N C E
1
2
3
6
C L E A R C U S T O M E R C E N T R I C I T Y F O C U S L E A D S T O
S I G N I F I C A N T I N C R E A S E I N C U S T O M E R S A T I S F A C T I O N
P A Y M E N T
C O N T E N T
C R E A T I O N L O G I S T I C S
C U S T O M E R
C A R E
• Full face model roll-out
• Shop the look
• 360 degree format
• Invoice offering
• Pay later
• Apple pay
• Surprise & Delight
• Chat
• Self-help
• Lead time reduction
• Same day delivery
• Return label in parcel
• Direct reimbursement
+ 1 %
2013 2014 2015
+ 6 %
2013 2014 2015
+ 7 %
2013 2014 2015
+ 1 4 %
2013 2014 2015
Note: Customer satisfaction in percent of customers evaluating service as 1 or 2 on a scale of 1 to 5 with 1 = very satisfied, 5 = not satisfied.
(1) YoY as per Dec-2015.
Satisfaction in % Satisfaction in % Satisfaction in % Satisfaction in %
C A G R
1 NPS at all-
time high
+10 points1
7
C O N T I N U E D C A P A C I T Y E X P A N S I O N
S U P P O R T S B U S I N E S S G R O W T H
• Team ramp-up
• Integration of second
partner
• Scaling of payment
systems
• Selective team ramp-up
• Team ramp-up
• Ramp-up of service
providers for selected
markets
• Ramp-up
Mönchengladbach
warehouse
+ 8 %
2013 2014 2015
+ 2 7 %
2013 2014 2015
+ 2 6 %
2013 2014 2015
+ 5 %
2013 2014 2015
P A Y M E N T
C O N T E N T
C R E A T I O N L O G I S T I C S
C U S T O M E R
C A R E
# articles in ‘000 # transactions in m # shipments in m # contacts in m
C A G R
2
8
C O N T I N U O U S I M P R O V E M E N T C U L T U R E
D R I V E S O P E R A T I O N A L E X C E L L E N C E
• Cell-based production
• Increased sample rate
• Improved tooling and
higher degree of
automation
• Process improvements
across customer journey
• Focus on self-help tools
• Productivity gains
across all processes and
warehouses
• Additional automation
- 2 1 %
2013 2014 2015
- 1 9 %
2013 2014 2015
- 5 %
2013 2014 2015
- 1 7 %
2013 2014 2015
Time to online in days Payment costs in € / order1 Logistics costs in € / item Contact rate in % of orders
P A Y M E N T
C O N T E N T
C R E A T I O N L O G I S T I C S
C U S T O M E R
C A R E
3
(1) Excludes fraud and external processing costs (e.g ., PayPal, Credit Card fees, etc .).
C A G R
10
H U B & S P O K E L O G I S T I C S N E T W O R K
• Current network enables €5.5bn in revenues
• Next hub facility being planned, will enable up to €7bn in revenues
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1 3 8 8 10 12
20
31 36
45 45
55 56
75 72 76
80 80 83 83
E U R O P E A N P O P U L A T I O N I N S T R I K I N G D I S T A N C E
L E V E R S T O A C H I E V E
2 0 2 0 T A R G E T
2011 2012 2013 2014 2015 2016 2020
95
• Additional warehouses (hubs and satellites)
• Partner program / marketplace models
• Offline integration
Same day (LH1 < 2hrs), in % Next day (LH1 < 8hrs), in % 2nd day (LH1 < 16hrs), in %
go-live
Brieslang
go-live
Erfurt
go-live
M’gladbach
go-live
Stradella
go-live
Lahr
(1) LH = l ine-haul.
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Benefits:
• Brands can leverage our infrastructure
• Happy customers receive one single parcel
(from multiple brands)
• Cost efficient solution to consolidate orders
Pilots:
• Ongoing: Fulfillment by Zalando for MVMNT
• H1/16: Fulfillment by Zalando for zlabels
F U L F I L L M E N T B Y Z A L A N D O :
I N V E S T I N G I N T O C A P A B I L I T I E S A N D R U N N I N G F I R S T P I L O T S
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L A T E S T I N N O V A T I O N S
S A M E D A Y D E L I V E R Y R E T U R N S P I C K - U P S U R P R I S E & D E L I G H T
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S A M E D A Y D E L I V E R Y W I L L B E C O M E
T H E N E W S T A N D A R D I N M E T R O P O L I T A N A R E A S
SAME DAY IS NOT JUST A BUZZ WORD ANYMORE ZALANDO: SAME DAY PILOT AREAS
Berlin
Köln
Düsseldorf
Essen
“Royal mail expands same-day
parcel delivery”
Nov. 2015
“Post NL launches same-day
delivery service”
Nov. 2015
“Morgen ist schon zu spät”
Oct. 2015
“Amazon launches same-day
delivery in Germany”
Oct. 2015
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100%
59%
P R E L I M I N A R Y O B S E R V A T I O N S F R O M
S A M E D A Y D E L I V E R Y T R I A L S
41% FASTER RE-ORDER IF PREVIOUS ORDER
WAS DELIVERED SAME DAY
POTENTIAL TO DECREASE SDD1 COSTS
TO LEVELS FOR NATIONAL EXPRESS
… previous order
was not a SDD
order
… previous order
was a SDD order
Avg. time between two orders if…
0 100 200 300 400 500 600
Same Day
National Express
EUR/order
Orders/day
Example Berlin: ~250
SDD orders per day
(silent upgrades)
(1) SDD = Same Day Delivery.
41%
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R E T U R N I N G W I T H Z A L A N D O A S S I M P L E A S 1 - 2 - 3 !
1.
2.
3.
O N L I N E / I N - A P P
R E T U R N S E R V I C E
P R E P A R E R E T U R N
A N D S T I C K A R O U N D
H A P P Y C U S T O M E R
picture
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… A N D C U S T O M E R S A R E W I L L I N G
T O P A Y F O R I T
F I R S T T E S T C A S E S I M P L E M E N T E D W I T H P R O M I S I N G C U S T O M E R F E E D B A C K
O N G O I N G : L O N G - T E R M T E S T T O E S T I M A T E I M P A C T O N C L V
S E R V I C E I S P E R C E I V E D
A S V A L U E A D D I N G …
80% satisfied
20%
neutral/
less
satisfied
0-2 EUR 67%
CLV = customer l i fetime value.
>2 EUR 33%
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SURPRISE & DELIGHT AT ZALANDO
SORRY THANKS
No matter how hard we try, sometimes things go wrong.
That is when we apologize and try to make it up
to customers by sending a little surprise.
„Dear Zalando Team, many many thanks for
this fantastic surprise! You are the best!!!!“
Facebook Post
It is not just about apologizing - we aim to show
our customers that we care. That‘s why we seize
opportunities to surprise our customers and say thanks.
“What a great surprise, just because my parcel
didn’t arrive today! You made my day, thank
you Zalando!”
Facebook Post
Turning a negative experience into good one and
thereby increasing satisfaction and retention
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“Company”) in any jurisdiction. The distribution of this presentation may be restricted by law in certain jurisdictions and p ersons into whose possession any
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which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are no t historical facts, sometimes
identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “ anticipates”, “targets”, and similar
expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Com pany or cited from third party
sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly f rom any anticipated development due to a
number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in Germany, changes affecting interest
rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of l egal proceedings and actions and the
Group’s ability to achieve operational synergies from past or future acquisitions. The Company does not guarantee that the as sumptions underlying the forward-
looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this
presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward -looking statements in this presentation are
made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of the Company with an y of the recipients thereof shall, under
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undertake any obligation to review, update or confirm investors' expectations or estimates or to release publicly any revisio ns to any forward-looking statements to
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D I S C L A I M E R