HerendRetail Partnership Program

The Product

• Dinnerware• Ornamental items• Figurines• Masterpieces• Contemporary

design

Herend’s History• 1826: Vince Stingl established his small

workshop at Herend• Production of stoneware, and making

experiments with porcelain• 1839: new owner in the person of Mór

Fischer• Manufacturing replacements, reproducing

classical shapes and patterns• From 1840: Mór Fischer’s creations won the support of Hungarian and

International aristocracy• 1851: London World Exhibition, 1st Prize Winner and Queen Victoria

ordered a complete set for Windsor Castle• 2009: by today Herend has achieved a worldwide brand name –

appreciated by Prominent Customers –, sold in luxury stores of over 50 countries of the World.

• 2011: Herend is a member of the French association of luxury brands – Comitté Colbert

Prominent Herend CustomersWhy do we treat our Customers like Royality?

Because many of Them Are!

• Royal Family of Great Britain• Royal Family of Belgium• Habsburg Family• Emperor of Japan• Sultan of Brunei• King of Thailand• Sultan of Oman

References

• White House

• European Parliament

• Hotel Adlon, Berlin

• Residence of the President of Hungary

• Corinthia Grand Hotel, Budapest

Targeting our Consumers

• Herend customers appreciate traditional craftsmanship & the Arts and demand quality. They are conscious of their home decoration, especially the well laid table. They value social and family functions. They care about nature, animals and wild-life preservation. They typically belong to the higher-middle to upper income groups.

Worldwide Presence

• 12 Company owned Flagship Stores

• Over 900 Retail-Partners in more than 50 countries

Paris – London – New York – Tokyo – Shanghai - Berlin

Our Partners

• The retail environment and location of potential partners need to be of the highest standards.

• Herend’s corporate design needs to be reflected in the interior of the Shop / Corner.

• There is a minimum space required for a Herend Shop / Corner.

• Annual sales targets are set based on the market possibilities and the size of the Shop.

Delivery lead time

• For suggested international Best-Sellers:

4 – 8 weeks

• For special service (one of a kind Master Pieces and Bespoke Sets:

3 – 8 months

Marketing support(what we provide you ?)

• Catalogues / Price lists (R.R.P. & trade pr.)

• Brochures, Consumer leaflets, Posters,

• Herend signs, Show-stands

• Herend Film (DVD, CD, VHS)

• Guarantee Card (Certificate of Authenticity)

• Herend Gift Boxes, Shopping Bags (packaging materials)

Marketing support(How we help You?)

• Display suggestions for shop and window• Suggested Ad. formats (ready to print)• Writing PR articles• Suggested inventory (bronze, silver, gold)• Helping in organizing Herend Events (Artist

Show)• Factory visit to VIP customers

Sales support

• To support your sales team, we organize sales trainings at the Manufactory in Hungary, and also in Your country.

• To be up-to-date on latest developments of the porcelain market, we regularly send You info mails with research conducted by our Marketing Research and Development Team.

• Based on reports sent by our Partners we provide sales analysis and suggest fill-in orders.

Activity of HerendRetail Partner

• Maintain active sales by well trained professional sales staff

• Ensure active PR for the Herend brand with support from the manufactory

• Organize regular Herend events and other forms of promotion

Activity of HerendRetail Partner

• Provide Herend with regular market information (competitors, regulations, market-trends, etc.)

• Provide Herend with monthly activity & sales report.

Pricing

• Recommended Retail Price is set for every market

• Based on sales target fulfillment, we offer additional Retail Discount

• 4 % of retailer’s Herend turnover is to be allocated to marketing – according to a Yearly Marketing Plan, to be approved by Herend

Pricing - Retail Arrangement

• R.R.P. (net) 100,- USD(Recommended Retail Price, excl. VAT.)

• ExW.P. 50,- USD (- 50 %)(ExWorks Price)

Pricing - Retail Arrangement

Additional Retail Discount based on target fulfillment:

% of target applicable fulfillment retail discount

under 100 % - 50 %

above 100 % - 51 %above 110 % - 52 %above 120 % - 53 %above 130 % - 54 %above 140 % - 55 %

Pricing - Retail Arrangement

Your orders Discount Discounted Price at R.R.P. % (what you pay) (EURO) (EURO)

under 100 000 50 % 50 000 100 000 - 110 000 51 % 49 000 – 53 900 110 000 - 120 000 52 % 52 800 – 57 600 120 000 - 130 000 53 % 56 400 – 61 100 130 000 - 140 000 54 % 59 800 – 64 400 above 140 000 55 % 63 000

Advantages of being a Herend Partner

• You will join a network of retailers, selling an internationally recognized brand

• You will work with a „clean” product, which is not discounted and be able to keep the standard mark-up

• You will receive information and support throughout your sales and marketing activity

• Due to our unique product and selective sales you will be acquainted with Herend partners world-wide and develop a strong relationship with customers

Thank You for Your Interest

hope to welcome you among our Partners soon