Share by Type of Clothing Russ.Fed.: Regions and Region

Online Fashion Retailers Category Overview

User Interest in Category

Øꢀ Query dynamics Øꢀ User interest growth in category Øꢀ User interest growth forecast Øꢀ User interest on online shopping in regions Øꢀ User interest in Moscow, Saint-Petersburg vs. regions

Øꢀ User interest in Russia vs. CIS

User Interest in Category

Queries related to the scope of clothing and shoe shopping make about 0,5% of the total Yandex queries.

Category queries share in total amount of Yandex queries
Query distribution by segments within the category

0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0%

5%
10%
61%

24%

Clothing

Shoes

Accessories Underwear

Queries on clothes are the most popular in the category. They made up more than 60% of all category queries for last 12 months.

4

Wordstat.yandex.ru statistics, Oct ‘2011 – Sep ‘2013

Category Dynamics

In 2013 user interest in clothing and shoe shopping went up by 23%. (based on statistics from January to September).

40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000
5,000,000
0

+23%

271,560,805
221,538,124

1

2

5

Category Dynamics Forecast

The whole interest in category (clothing, shoes, accessories) is expected to grow by 17% in 2013. In 2014 growth rate will be more moderate: user interest is expected to grow by 14%.

2013

2014

50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000
5,000,000
0

+14%

438,802,
224
384,609,
233

1

2

6

User Interest Growth in Online Shopping

Growth of queries connected with user intent to buy online exceeds user interest growth in category overall - 58% vs. 23% (in total). (based on statistics from January to September)

4,500,000 4,000,000

+58%

3,500,000 3,000,000 2,500,000 2,000,000

25,591,477

1,500,000

16,245,474

1,000,000
500,000
0

1

2

7

Query Dynamics within Category

User interest in clothes and shoes experience more significant seasonal changes than accessories or underwear.

Clothing

Shoes

Accessories

Underwear

30000000

25000000 20000000 15000000 10000000
5000000
0

8

Category Dynamics Forecast (Clothing)

35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000
5,000,000
0

+15%

268,096,
108
233,589,
369

1

2

Queries on clothing made up more than 60% of all category queries. That is the main reason of similarities in trends of user interest in clothing category and whole category “Clothing, shoes, accessories”. Notice that growth rates are getting higher in clothing category. In 2014 growth rate is expected to be +15% (in comparison to14% growth in 2014 in “Clothing, shoes, accessories” category), in 2013 - +15,6% (in comparison with

9

14%).

User Interest Growth Dynamics

In 2013 interest growth in category continued growing, but its rate has slowed down compared to 2012. The number of queries has increased steadily by ≈ +22-33% (depending on group requests) annually.

The growth rate of the amount of queries in category

+49%

100000000
90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000
0
60000000 50000000 40000000 30000000 20000000 10000000
0

-10%
+46%

+4%

-15%
-4%
+54%
-19%

+1%
-16%

-15%
+9%
+54%
-2%
+11%
-19%

Moscow, St.Petersburg and reg.
Russian region (except
Moscow and Saint-
Petersburg)
Russia
1 q. 2013
CIS

3 q. 2013

4 q. 2012

2 q. 2013

4 q. 2012

1 q. 2013

2 q. 2013

3 q. 2013

10

Interest towards Category in Regions: CIS, Russia

In 2013* the number of queries in the category most actively has increased in CIS (+25%). In Russian regions growth rates are relatively higher, than in Moscow and Saint-Petersburg.

200% 180% 160%
Russia

CIS
140% 120% 100%
80% 60% 40% 20%
0%
Russia: regions (excl. Moscow and St.Petersburg)

* (compared to 2012)

11

Interest towards Category in Russian Regions

Share of queries from users in the regions with the highest internet penetration (Moscow and Moscow region, St. Petersburg and the Leningrad region) is gradually reducing. The audience is steadily being reallocated in favor to the regions.

100%
90% 80%

42% 58%
42% 58%
43% 57%
43% 57%
43% 57%
44% 56%
45% 55%
45% 55%

70% 60% 50% 40% 30% 20% 10%
0%

Moscow, St.Pete and reg. RF (excl. Moscow and St.Pete)

12

Regional Popularity

Ural – 6% of queries Reg. popularity – 85%
North-West – 10% of queries

Saint-Petersburg – 7% of queries

Reg. popularity – 108%, 122%
Far East – 1% of queries Reg. popularity – 77%

Siberia – 6% of queries, Reg. popularity – 77%;
Central district – 43% of queries

Moscow – 35% of queries, Reg. popularity – 135%, 155%

South – 4% of queries Reg. popularity – 79%
Volga reg. – 12% of queries Reg. popularity – 81%
CIS – 18% of queries, Reg. popularity – 93%

There is a fairly large margin of interest growth in Russian regions. The majority of traffic on clothing and shoe shopping comes from Central region. Thus, in Moscow popularity rate is 155%, whereas in most other Russian regions it is less than 85%.

13

Данные wordstat.yandex.ru, октябрь ‘2013

Online Fashion Retailers Brand Dynamics

Øꢀ User interest in Russian and
International online fashion retailers

Øꢀ User interest growth towards crossborder e-shops and Chinese trading platforms

Online Fashion Retailers Dynamics

User interest Dynamics

Online retailers share,

(based on retailers brands statistics)

September 2013

Oct 2011 - Sep 2012

Oct 2012 - Sep 2013

20000000

16000000 12000000
8000000 4000000
0

-3%

148%

91%

43%
57%

Russian online stores

International

Megamarkets, cross-

borders and trading platforms
Russian International

For the last 12 months, interest in local online retailers has increased by almost 2 times. As a result, in September, their share has exceeded the share of interest in international retail sites. The shift was caused by changes in popularity among brand leaders: user interest growth to Lamoda , Wildberries and drop in interest to Bonprix.

15

Online Retailers, Cross-Borders and Trading Platforms Brand Dynamics

1000000
900000 800000 700000

Aliexpress eBay

600000 500000 400000 300000 200000 100000
0

Ozon Bonprix Wildberries Lamoda Otto Sapato Quelle

16

Данные wordstat.yandex.ru, январь ‘2012 – сентябрь ‘2013

Online Fashion Retailers Popularity

(based on data for the last 12 months)

7000000 6000000

Russian online retailers International online retailers

5000000 4000000 3000000 2000000 1000000
0

17

Данные wordstat.yandex.ru, октябрь ‘2012 – сентябрь ‘2013

Variation in User Interest in Russian Online Retailers

2012 2013

500% 450% 400% 350% 300% 250% 200% 150% 100% 50%

5000000

313%
57%

4000000 3000000 2000000 1000000
0

28%
23%
35%
45%
4%
135%
451%

0%

18

Brand Dynamics of Russian Online Retailers

800000 700000 600000 500000 400000 300000 200000 100000
0

Wildberries Lamoda Sapato Kupivip Butik Boutique Z95 Brand-in-trend Trendsbrands

19

Variation in User Interest in International Online Retailers

2012 2013

-24%

30% 20% 10% 0%

6000000 5000000 4000000

7%

3000000

-6%

-10% -20% -30%

2000000

-9%
23%

1000000

4%
16%

-22%
-22%
8%
25%

0
20

Brand Dynamics of International Online Retailers

1000000
900000 800000 700000 600000 500000 400000 300000 200000 100000
0

Bonprix Otto Quelle La Redoute Asos Witt Yoox Klingel 3suisses Wenz Zappos

21

Cross-borders and Online Trading Platforms: User Interest Dynamics

2500000

Brand Interest Dynamics

eBay Aliexpress Ozon

2000000

Taobao Deal Extreme

1500000

Shopotam Vivatao

1000000

Club-sale Lightinthebox

500000

Kupinatao

0

Luxtao Kitmall

Brand Interest Dynamics based on enclosed queries related to the category items

25000 20000 15000

Taobao Aliexpress eBay

10000

Ozon

5000
0

22

Cross-borders and Online Trading Platforms: User Interest Dynamics

Brand Queries

50%

1000% 800% 600% 400% 200% 0%

16000000

2012 2013

913%

12000000

-5%

8000000

52%

4000000

New players

-47%
-19%
17%

116%

86%

-200%

0

260%

Brand Queries related the Category

5000%

160000

User interest in cross-border trading platforms is growing rapidly. Their growth rate is more than Russian retailers’ one for both groups of queries: brand or category related (ex. “Taobao clothes”). The main threat comes from TaoBao and Aliexpress as potential competitors in the category.

73%

4500% 4000% 3500% 3000% 2500% 2000% 1500% 1000% 500%

120000
80000

4675%
170%

40000
0

20%

0%

Taobao Aliexpress eBay

Ozon

23

Assortment analytics (by segments)

Øꢀ Clothing Øꢀ Shoes Øꢀ Accessories Øꢀ Underwear

Clothing

Øꢀ User interest dynamics in clothing for men, women and kids

Øꢀ Interest distribution by types of clothing

Øꢀ Interest seasonality

Clothing Query Dynamics

The number of queries on clothing for women is 4 times more than for men and 2 times more than for kids. However, interest growth in men’s and kids’ clothing is higher than in women’s (+30% and +34% compared to 24% respectively).

+14%

8,000,000

+30%

7,000,000 6,000,000

+34%

5,000,000
Women's clothes

+24%

Men's clothes
4,000,000

Kid's clothes
3,000,000
Maternity clothes

2,000,000

Growth january-september 2013/ january-september 2012

1,000,000
0
26

Interest distribution by types of clothing

(based on statistics for the last 12 months)

dress - 25,2%
18%

suits
25%

jackets - 12,2%

coats - 6,4% t-shirts - 5%
3%
3% 4%

4%
5% skirts - 4,4% down jackets - 4% jumpsuits - 3,5% shirts - 3,3% jeans - 3,1% other 18,1%
15%
5%
6%
12%

TOP-3 the most popular search queries are for dresses, costumes and jackets which make up more than 50%.

27

Interest distribution by types of clothing

Women’s clothing

Men’s clothing

dresses - 60,1% men's jackets - 22,7% skirts - 8,8% men's suits - 19,8%

men's shirts - 9,8% men's jeans - 7,4% men's coat - 6,4% men's trousers - 5,8% men's down jackets - 5,3% men's jackets - 4,8% men's t-shirts - 4% sports suits - 3%
6% womens jackets - 4,8%

sarafans - 3,3%
6%
23% blouses - 2,8%
3%

3%
3%
4%
5%
5%
6%
6% women's coats - 2,8% women's suits - 2,7% women's down jackets - 2,6% tunics - 1,9%
5%
60%

20%
9% women's pants - 1,4%

women's jeans - 1,3% women's sports suits - 0,9% other - 6,6%
7%

10%

men's shorts - 2,8%

men's sweaters - 1,9% other - 6,4%

Kid’s clothing

rompers - 45,5%

children's suits - 19,8%

girl's dresses - 14,1%

children's jackets - 6,3%

children's coats - 2,4% children's t-shirts - 1,3% children's jeans - 1%
6% children's down jackets - 2,5%

children's skirts - 1,7% children's pants - 1,2% children's summer dresses - 1% other - 2,5%
45%
14%

children's sweaters - 0,7%
20%
28

Outerwear query dynamics

Demi-season clothes

Winter clothes

jackets

coats

down jackets

jumpsuits

2500000 2000000 1500000 1000000
500000
0
1400000 1200000 1000000
800000 600000 400000 200000
0

Query associated with outerwear, characterized by a pronounced seasonality. The demi-season clothes reach interest peaks at October and March, winter clothes at October-November.

29

Types of clothing query dynamics

Spring-summer seasonality

Spring seasonality

t-shirts

skirts

suits

jeans

800000 700000 600000 500000 400000 300000 200000 100000
0
500000 400000 300000 200000 100000
0

There are several models of seasonality: •ꢀ Types of clothes, popular in spring and autumn (peaks in October, March);
•ꢀ Types of clothes, popular in winter (October-
November);
•ꢀ Clothes with growing interest in the springsummer;
•ꢀ Clothes with growing interest in the spring only (the peak in March-April);

Holiday seasonality

men's shirts
120000 100000
80000 60000 40000 20000
0

•ꢀ Queries with clear «festive» seasonality
(growth before the New year and the

February 23d ho_Wli_od_rda_sty_ats_.ya)_n;_{dex.ru statistics, Oct ‘2011 – Sep ‘2013}

30