© Intershop Communications

Gerrit Enthoven | Director Sales EMEA

Impact of e-commerce on perishables industry

Impact of e-commerce on perishables industry

x Introductionx Changing customer behaviorx Disruption x Perishables supply chain x Digital Transformation

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Founded in 1992, eCommerce pioneer

Public Company

German engineering with global footprint (EMEA, US, APAC)

370 employees

€ 34,2m revenue in 2016

17% of revenue invested in R&D

Extensive network of Business Partners

500Customers

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CMSCreate a compelling shopping experience

PIMProvide the

information your customers

look for

ORDER MANAGEMENTJoin the entire customer journey

COMMERCERun commerce

processes with ease

What the analysts sayOne of the leading Enterprise E-Commmerce Platforms for B2C and B2B

B2C B2B

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Source: OECD Development Centre

Income growth and population growth are shifting the PER trade growth from developed to developing countries

Lucas Vos, CEO Royal Flora Holland:

“New players on the market profile themselves as marketplaces for flowers and plants. Don’t know if we're ready, but I'm not afraid of it. We must be afraid of other parties like Amazon or Alibaba. As soon as they have their cool chain in order, they can eat the cheese of our bread. "

New competitors enter the B2B marketAmazon Business to create record 15,000 new full-time jobs across Europe in 2017

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“Your Margin is my opportunity”

The Amazon world

x 100 Petabyte truckx Amazon Go – Checkoutless supermarketsx Amazon Wardrobex Purchase of Wholefoodsx PrimeNow including anticipatory stock managementx Prime Musicx Amazon Pantryx Amazon Freshx Amazon Prime Video (commissioning and producing)x (Almost) bought German Hahn airportx Oh.. and Alexa, Echo & Dot..

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Jeff Bezos flywheel concept

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An American online floral marketplace with about 2,000 florists delivering to nearly 3,000 cities across the country.

The florists upload their own real photos of their floral design as no stock catalog images are allowed.

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"We believe the future of New Retail will be a harmonious integration of online and offline, and Hema is a prime example of this evolution that's taking place,"

“ China's online retail market is still under-penetrated at the rate of 15 percent of total retail market size, and Alibaba has an 11 percent market share of China's retail

sales.”

Supermarket chains will become bigger facilitating the year round supply of fresh produce, thus supporting international PER trade, also by air.

Alibaba – 18 years

By investing directly in or partnering with companies that provide services for his online buying platforms -- from payment systems to delivery companies --Ma and his Alibaba Group Holding Ltd. have minted a network of people whose combined fortunes total more than $52 billion.

According to the Bloomberg Billionaires Index this collective net worth is larger than the economies of 136 countries.

The Food Shopping Experience is being disrupted

Source: Kurt Salmon’s Retail and Consumer Goods Group

Theconsumerexpectsthelargestrelativegrowthtohappenwithinfood,healthandhome&garden

OnlineShares:

Itdoesn’tseemlikeanyoneismakinganymoney

EstimatesintheUKarethat eachdelivery loses £3-5.

Someexceptions:

Ocado,apureonlineUKgrocer,had 2016pretaxprofitofjustover1%.

IntheU.S.,Instacart claimstohaveapositivegrossmarginin 10ofits19U.S.markets,butthatisbeforefactoringin considerablemarketingandITcosts.

Aperishablese-commercesupplychainProducer

Processor Distribution

Brand.comDistribution

Retail.comDistribution

Linehaul

Linehaul

Linehaul

LastMile

LastMile

Pickfromstore

Click&Collect

MarketplacesupplyconceptsProducer

Producer

ProducerDistribution

Marketplace

Brand.comDistribution

Producer

Theriseofsamedaydelivery

Engaging your customers

Empowering employees.

Optimizing your operations

Transforming your products

Digital Transformation

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End-to-end eCommerceTaking care of goods’ motion and e-motion

Managing and Optimizing Logistics and Supply Chain

https://www.youtube.com/watch?v=ONW1kYBhf_M

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The world of commerce is changing.Unlock your potential with the exciting possibilitiesof Intershop omni-channel commerce.

Jena, GermanyHong Kong, ChinaMelbourne, AustraliaSan Francisco, USA

Amsterdam, Netherlands Berlin, Germany Frankfurt, GermanyHamburg, GermanyLondon, UK

Nuremberg, GermanyParis, FranceRio de Janeiro, BrazilSofia, BulgariaStuttgart, Germany

intershop.cominfo@intershop.com

Furthermore Intershop is represented in Austria, Belgium,China, Denmark, Finland, India, Italy, Norway, RussianFederation, Spain, Sweden, Switzerland, and Turkey.

For a full overview, as well as for contact details please consultour website: www.intershop.com/offices-and-subsidiaries

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