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FragranceNet.com: A tech company selling beautyJason Apfel, CEO FragranceNet.com

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FragranceNet.com at a glance

Established in the

USA in 1997216 M turnover

in 2018

> 6 million unique

customers

Over 250 employees

>18,000 SKUs at

discounts up to 80%

> 4 million email

subscriptions

Over 25 million

website visits

annually

Close to 3 million

orders per year

Trusted online

since 1997

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Company overview

2017 201820152003 2010 20131997

Chairman Dennis

Apfel and President

Jason Apfel launch

FragranceNet

FragranceNet

is acquired by

B&S Group

Eric Apfel joins

as Vice

President

Moves Headquarters

(128,000 square

feet) to Deer Park,

NY – 40 miles east

of NYC

Company posts

highest growth

rate among web-

only merchants

Company ranks

#167 on Internet

Retailers Top

500 Guide

Investments in

cutting-edge

warehouse

automation

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A business

model driven

by proprietary

technology

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A technology company selling fragrances

DRIVEN BY

TECHNOLOGY

MARKETING

BUYINGLOGISTICS

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Three key pillars supported by proprietary software

Proprietary

website with

extensive A/B

testing

Targeted email

with

personalised

content

MARKETINGBUYING

Data enables

smart buying

Real time

inventory data

to effectively

bid on key

words

All key order

details

available in

no-time

Handles order

management

cycle

Gauges best

shipping

option

LOGISTICS

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Smart buying engine, developed in-house

Sourcing products by analysing cost data,

supply, monthly moving and forecasting

▪ Vast synergies and increased revenue for partners

▪ Over 1 million matches to vendors

▪ SKU matching process to normalise data from individual

▪ Category expansion sourced from multiple suppliers

▪ Advanced algoritms and filters optimising purchases

Disruptor in

the market

Low cost

provider

Valuable

procurement arm

Platform

category

expansion

Additional big

data leverage

CORE

COMPETENCY

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Over 1 million keywords

analysed

▪ Keyword categorization

▪ Automated rules based bid management

▪ Inventory management with actionable

recommendations

▪ Automated reporting and alerts

▪ Historical performance for all KPIs at account, device,

campaign, ad group & keyword levels

Proprietary CPC bid management

Inventory management

Reporting dashboard

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Enhancing marketing efficiency,

driving sales and growing repeat

customer activity

Distinguishing features:

▪ alerts customers of items left in their shopping cart

▪ target emails based on prior purchases

▪ alerts that an item is back in stock at an attractive price

▪ relays deals and availabilities based on previous

purchases

Proprietary email marketing system

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Our proprietary warehouse systems support logistics process

FOAM

Handles every aspect of the order management cycle, allows to inject and process orders in a fast effective manner that is scalable

Wave, Zone and Quick Pick

Different order types are distinguished and handled in

a specific way of picking, enhancing efficiency and

accuracy

Employee pick and pack monitoring

Real-time transparency into picking and packing

performance allows faster, more efficient operations

Shipping matrix

Real-time information on logistics helps identify best

carrier to deliver products on time and preserve

high margins

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Automated packing to increase efficiency

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Positioned to

deliver

accelerated

growth

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Market leader in an industry with ample growth opportunities

Global fragrance market is large and has grown over the last five years

Plenty of options to fill growth gaps and penetrate new markets

Shifting channel dynamics from brick and mortar to online

Benefiting retailers with strong e-commerce presence

Online channel is fastest growing as department store share falls

Replenishment, ease of use and good prices are main online buying motives

Online channels can offer an endless selection of products

Reaching a broader audience that shops online to try new products and values strong product

selection convenience

Amazon shifting towards working directly with brand owners

Increasing opportunities in discount fragrances market

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Strategic focus captures these trends and anticipates

changing dynamics

Category

growth &

expansion

Market

expansion

within U.S.

Expansion

outside U.S.

geographies

Customer

penetration

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Grow Health & Beauty

with cosmetics, hair

care, make up

Utilising the sourcing

expertise of B&S Group

Penetrating the market

with wider assortment at

attractive prices

CATEGORY GROWTH

AND EXPANSION

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New warehouse in Reno

currently getting into

operation

Provides servicing of

customers in the West

Coast with faster delivery

Penetrating wider audience

by offering shorter lead

times and at lower shipping

costs

SHORTEN LEAD TIMES

WITHIN THE US

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ROLL OUT B2C

MODEL TO EUROPE

Rebranding from

FragranceNet.com to

multilingual EU website

Category managers

readying EU website

assortment

Connected systems are

in place to distribute

inside the EU

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Grow sales volumes per

order with extended

assortment

Enhance customer reach

with intensified social

media strategy

Focus on repeated

purchases by extending

targeting activities

CUSTOMER

PENETRATION

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POSITIONED FOR

ACCELERATED GROWTH

Continuously

enhancing

proprietary

systems

Active in a fast

growing market

with favorable

conditions

Clear roadmap

anticipating

changing industry

dynamics

Further

strengthened by

the backbone of

B&S Group