Detsky Mir Expansion Strategy slide image

Detsky Mir Expansion Strategy

detsky mir 4 Zoozavr - entering promising pets supplies market Store Format ■ 200sqm total/170sqm selling area ■ At shopping center or street retail, close to a chain food retailer ■ Comprehensive assortment: ~6.5k SKUs in store >10.0K SKUs online - Upcoming private labels range ■ Store capex of RUB 3-4m ■ Cross-integration with DM: stores, ordering, pickups, logistics Effective online coverage of entire Russia via DM's footprint 3003ABP сеть зоомагазинов Why Zoozavr? ■ Russian pet supplies market is large at RUB 296bn (2020) ■ Solid market growth outlook 8.3% 2020-24E CAGR, outpacing children's goods Rising pet ownership rate, while children's birth rates are sluggish Same low elasticity to macro as children's goods ■ High fragmentation with weak competition Top 5 specialist players account for only 8% market share No highly recognized brand or large, well-funded and efficient player ■ Large overlap with children's goods target customers and suppliers 10-22" КИБЕР ЕДНИ SOMEE 1000 ΤΟ ΒΑΡΟΣ СО СКИДКОЙ 0.50% Source: Company data КИБЕР SMA 1932 ДНИ D 50% TIBHA 2002 Performance highlights in 2020 ✓ RUB 350m sales Share of online sales reached 56% in total sales Loyalty program members generated ~75% of total sales Immediate steps ✓ 70+ new stores in 2021 ✓ Launch of 7 private labels with 600 SKUs in 1Q'22 ✓ Develop veterinary supplies category to differentiate vs. online competition 2 21
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