There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

Audience & Viewing Data

Remarks:

1. The sites in the top sites lists are ordered by their 1 month Alexa

traffic rank.

2. The 1 month rank is calculated using a combination of average daily

visitors and page views over the past month. The site with the highest

combination of visitors and page views is ranked #1. The site’s metrics

are estimated and based on traffic patterns across the web as a whole

and using data normalization to correct for any biases.

No. 1 Hong Kong Based Online Shopping Platform

Source : https://www.alexa.com/topsites/countries;0/HK

Methodology:

YouGov BrandIndex first screened all of its 310 brands for

positive Buzz, which asks respondents "Have you heard anything

positive about the brand in the last two weeks, through

advertising, news, or word of mouth?" Brands with low response

volume were eliminated. From those brands, they were then

ranked on Word of Mouth scores, which asks respondents

"Which of the following brands have you talked about with friends

and family in the past two weeks (whether in person, online, or

through social media)?" All respondents for this research were

adults 18 through 34 years old. Data was collected between

September 1, 2016 and August 31, 2018

YouGov Brandindex 2018 Most Positively Talked about Brands among Millennials in Hong Kong

Source: YouGov Brandindex

Commonly Used eCommerce Platform in Hong Kong

Apparel & Fashion

Food & Beverage

Beauty & Wellness

The Uptrend for Online Shopping

Source:

1. GMV and Average Daily Order –

Internal platform and system.

2. Monthly Login User (HKTVmall

only) – Google Analytics

Source:

1. Data on Unique Device is

extracted from our internal

system and rounded to the

nearest thousand. The data is

collected based on the tracking

cookies for web browser and the

device advertising ID for app,

which could be overlapping if (a)

same device is used to browse

the online shopping web-page

through different browsers; (b)

same device is used to open

online shopping app and to

browse online shopping web-

page; and (c) the user amends

the advertising ID of its device.

These data are unaudited and

are not indicative of the

Company’s business

performance, financial condition

or growth prospect. Readers

should not place reliance on

these data.

2. Internal system

3. Android Google Play Console

and Apple iTunes Connect

Sept 2018

No. of Unique Devices landing on PDP or performing search on

HKTVmall (source: 1)

1,427,000

No. of Registered Email Subscriptions (source: 2)

4,687,000

No. of Apps download (source: 3)

4,055,000

Facebook likes (source: Facebook)

916,000

Combined Unique Customers (source: Internal system)

558,000

Our Mission

•To build an Ecosystem to transform Hong Kong business operation, trading, retail, finance and daily life onto a digital online platform

•To maintain Hong Kong as one of the leading cities in Asia

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

One Stop Integrated Platform

eCommerce Platform

Multimedia Production

e.g. Photo and video production for product

promotion

Order processing

system

Merchant Management

System

Payment Gateway

eFulfillment Centre

e.g. warehousing, pick/pack functions

Multi-Temperature

Controlled Trucks operated by

self-run Logistics Team

40 O2O Concept Stores

Customer Services

- AI Platform Chatbot

- CRM - Machine Learning - Big Data Analysis - Predictive Intelligence

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

Starting From Super Market & Grocery Products

Source : Internal systems and

relevant platforms, as at 24 Oct

2018

• About 40,000 product items to fulfill day-to-day food & grocery needs

• Full control on merchandise selection & pricing strategy

• An effective way to maintain recurring orders & to bring consistent upward traffic to merchant

partners

Expanding Product Spectrum

Offer > 204,000

product items -

From own

FMCG

inventory to

merchant

offered

varieties

Supermarket Personal Care

and Health

Fashion Housewares

Mother &

Baby

Sports and

Travel Dining and

Lifestyle

Pets Electrical

Appliances

Toys and

Books

Skincare &

Make up

Upcoming:

Financial

Services Source : Internal systems and

relevant platforms, as at 24 Oct 2018

Our 3,000 Merchant Partners

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics

but not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

Reverted Mode of Warehouse Operations

Traditional Retailing

Man to Goods

New Retailing

Goods to Man

Cost Efficiency by Robotic Picking & Conveying System

• Hong Kong’s largest robotic warehousing system from Germany, phase I launched at Tsing Yi hub in March 2018

• Turning the loss-making “highly manual fulfilment process” into a stable and profitable “highly automated process

Always plan for the fact that no plan ever goes according to the plan

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

The Largest Delivery Team in Residential Area

• Running our own delivery team

• Leverage the cost by increasing volume

Now, ~ 200 in operations

In 1 year’s time ~ 300 in operations

In 2 years’ time ~ 400 in operations

In 3 years’ time ~ 500 in operations

Frozen compartment

at -18⁰C for frozen

and chilled food

Tailor-Made Multi-Compartment Trucks

Room temperature

compartment for

general merchandise

Reverted O2O Model

South Horizons Shop

Central Shop

Causeway Bay Windsor House

•Offline shops as an effective marketing channel for online sales

Tsuen Wan Shop

A New Way of RETAILING Online Display > Offline Pick-up points

2017

June

2018

Now

2019

:15

:24

:38

:160

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

HKTVmall’s Customer Profile

Gender Distribution Age Groups

58% Female

42% Male

0%

5%

10%

15%

20%

25%

30%

35%

40%

18-24 25-34 35-44 45-54 55-64 65+

10%

37%

32%

13%

5% 3%

Expanding Payment Channels to eWallet

Early FinTech Adopter

The first of its kind API partnership

enables Citibank credit cardholders

to use reward points to “PAY”

purchases on HKTVmall

There is no business case, if :

• No visitors, no demand

• Too costly to prepare another set of “DISPLAY”

• Difficult to keep customer coming back

• We handle B2B (warehouse to shop) logistics but

not B2C

• Last mile delivery

• Only teenagers but not high

spending customers

IF we don’t want our next generation only buy from overseas online shopping platforms, IF we still want to keep Hong Kong as a Shoppers’ Paradise, WE have to build at least one HK-based online shopping platform AT WHATEVER COST

Thank You