Detsky Mir Expansion Strategy slide image

Detsky Mir Expansion Strategy

3 Detsky Mir marketplace Why DM Marketplace? Provide our shoppers with broadest possible assortment they have come to expect Provide our suppliers a great platform to reach customers and manage inventory Lower costs than competitors by building on top of existing infrastructure Limited capex and no extra working capital DM Marketplace profile Assortment % % Long-term vision detsky mir ā˜ Overtake key local competition in relevant SKUs (2,400k SKUs) ā˜ GMV representing double-digit share of our online sales 19-22% fixed/actual commission rate Cost structure - Mainly logistics, delivery, personnel Low marketing cost vs other MPs thanks to "free" traffic / strong brand Initially focus on children's FMCG and fashion Pricing PP Mid-to mid-high price segments Economics 3PL commission-based model Customers Shoppers: same target base, same loyalty program Merchants: local producers and well- known international brands Service platform DM provides interface and logistics/ delivery on same platform as its 1P e-Commerce New verticals To be launched based on success of core categories 1H 2021 highlights 1,200 Number of suppliers added 1.0 GMV (RUB bn) 4.4% Share of marketplace in total online sales (%) 1,400 Brands shipped Key initiatives in 2021 Achieve 5% share of GMV in e-commerce Transition to a structural commission (similar to Ozon and Wildberries) Deeper monetisation of merchants Automation of logistics processes Improvement of reverse logistics management Source: Company data 18
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