WE WORK FOR MOM

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10/9/2014

WE WORK FOR MOM Darrell Cavens, CEO, zulily

zulily started with two customers Typical ee-commerce business model

Customers

vs.

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There has got to be a better way to hop! Know your customer, forget everything else

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Conventional Wisdom We launched a business 4 years ago that:

There

Charges for shipping Does not rely on product search a rather long time to ship hasTakes got to be a better way Does not readily take returns Has no product reviews

to hop!

How could that possibly work? “This can’t be near a billion-dollar business. How many people really want to shop this way? How many small brands really want to sell this way?” -Forrester Research Analyst, Oct 2011 4

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Optimizing for a Different Experience

Fresh and new every day Unique and diverse product offering There has got to be a better Incredible value way to hop! Browsing to discover “Zulily is winning in an Amazon-dominated market as its curated sales events connect with consumers’ impulse and gift purchasing on an emotional level, in addition to the convenience of mobile commerce and exceptional value.” -William Blair Analyst, July 2014

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Changing the Way People Shop BROWSE AND DISCOVER

DIRECTED PRODUCT SEARCH

“I’m looking for a specific item” • • • • •

Early e-commerce – more like order entry than experiential shopping experience Commoditized products Focus on price and convenience Razor thin margins Low repeat purchases per vertical

“I’m browsing to discover what’s on sale” • •

Visit without the intention to purchase Focus on merchandise where consumers seek out value, breadth, and uniqueness User wants to discover new brands Frequency of visits and purchases – using the site becomes a habit

There has got to be a better way to hop! • •

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There has got to be a better way to hop! Take the Customer’s Lead

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Expansion of Categories children’s apparel (33%) infant two – six years old tween girls tween boys accessories shoes

non-children’s apparel (67%) women’s apparel

infant gear

shoes & accessories

toys & books

intimates

entertainment

special sizes

electronics

maternity/nursing

sports equipment

kitchen

pet accessories

There has got to be a better way to hop! home décor

114% YoY

114% YoY

[ ]% YoY

400+ merchandising professionals | 15,000+ 8 brands

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Going Mobile U.S. mobile online shoppers (M) 29% ’12 – ’17 CAGR

189

52

2012

2017

Approx. 49% of items ordered on zulily mobile platform

Tailored Experience

segmentation

personalization

relevance

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There has got to be a better way to hop! Instill A Customer-Centric Culture

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“Everything we do—big and small—is for our customers” Staying Customer Centric

Details, Details, Details

• Boutique shopkeepers at scale • No detail left behind • Individualized customer service

editing photography studios transportation

• Pay attention to feedback and incorporate into experience

daily site curation mobile experience customer service fulfillment

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There has got to be a better way to hop! Unprecedented Growth

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Unprecedented Growth

There has got to be a better way to hop!

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