schutz brand

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Arezzo&Co’s Investor Day

Schutz Brand

David Python BU Officer

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

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G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Schutz brand presented strong growth in the past 2 years, doubling revenues

between 2010 and 2012

Brand overview Update

2

O F MB EX

Fashion Up to date

Bold Provocative

18 to 40 years of age

R$305.00/pair

R$439.1 million

36.5%

1995

28 29 1,509

7% 49% 36%

132

8%

Extremely loyal consumers

High innovation, always bringing the latest fashion trends

Both offline and online integrated marketing and communication

Innovative store design

Multichannel strategy implemented

Brand Profile

Target Woman Public

Sales Volume 3

% of Gross Revenue 4

Price at Point of Sale

Foundation

Dis

trib

uti

on

ch

ann

el POS1

% Gross Rev.2

Notes: 1. Points of sales (2Q13); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports 2. % of each brand gross revenues (FY 2012) 3. 2Q13 (LTM) gross revenues, internal market only: does not include other revenues (not generated by the brand) 4. % total (2Q13 LTM) gross revenues

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Strong growth, consolidating as the second brand of the group

Schutz History: Brand evolution

Owned stores 27 Franchises

Present in multibrand stores >1500

Opening of Flagship Store in NY 1st

29

Owned store 1

1995 - 2000

2001 - 2008

2009 - 2013

Focus on product development and search of

a national best seller

Factory in

Vale dos

Sinos

Beginning:

Male public

Focus on exports and great expansion in the

multibrand channel

Opening of flagship store on Oscar Freire

with innovative architectural design

Pilot project in the US

Entry into franchise

channel and

monobrand stores

roll-out with

continuous focus on

multibrands

3

Launching of web commerce

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Distribution focused on

multibrand channel

Flagship stores for brand

strengthening

2010 2Q13

· Complementarity between multibrand and monobrand channels

· Strong growth and exposure to retail through monobrand stores

· +1500 multibrand points of sale, 27 owned stores and 35 franchises

Multibrand

channel

Owned

stores +MB

Schutz expanded its monobrand stores with 46 openings since 2010

Stores

4

Schutz History: Brand evolution

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Brand update Sell-out actions

5

Attraction

Conversion

Loyalty

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232


6

Actions aligned to the store brand profile to attract the final customer

Social media daily fed with information on product

and fashion

Partnerships with bloggers, artists and opinion

makers in all places

Relationship actions, entertainment and theme

events

Weekly renovation of visual merchandising,

bringing novelty

Presence in main fashion vehicles and country

daily life

Local partnerships

SCHUTZ FOR AMFAR

SCHUTZ SUMMER 2014

@SCHUTZOFICIAL

Attraction

Conversion

Loyalty

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Sales convention to motivate and inform

the sales team

Sales team with individual goals and daily

follow up

Constant training in sale technique and

products

Stores receive magazine with product

trends and information

Occult client with focus on service quality


7

SCHUTZ CONVENTION

SCHUTZ ECOBAG

SCHUTZ MAG

Focus on conversion by training the sales team and impressing clients

Attraction

Conversion

Loyalty

MOTHERS’ DAY ACTION

SCHUTZ PREMIER

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Differentiated treatment for

Schutz Lovers

Activation of clients base in

brand events

Always in touch with clients

through social medias

E-mail marketing and post sales

card

CRM action Christmas 2013

8

Final client loyalty is related to post sales experience

Attraction

Conversion

Loyalty

PARTY NIGHT

655 MADISON ACTION AMFAR INVITATION

NYC LUNCH


CRM ACTION CHRISTMAS 2013

ACTION WITH VIPs

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Web commerce Entry into the channel

Source: Euromonitor

Client profile and adhering to online media boosted Schutz entry into the online

channel

Attractiveness of online

commerce, especially in the

fashion segment

Brand adhesion and profile of

Schutz client

Schutz clients are connected and use

social media to obtain information, to

express themselves and to consume

Biggest fashion brand on Instagram

Brand enjoys high online audience and

engagement

Since 2009, Schutz has a strong

relationship with fashion bloggers

Strong growth in online sales

Highest growth in footwear and clothing

segments

Forecast is maintenance of strong growth

10,387 14,641

20,893 95

312

1,444

2008 2010 2012

Other Online Retail Clothing and Footwear

CAGR 08-12

97.4%

19.1%

17.6%

15.0%

CAGR 12-17E

9

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Web commerce Entry into the channel

Data: September/2013

Brand strength in the online world and alignment with client profile

Attractiveness of online

commerce, especially in the

fashion segment

Brand adhesion and Schutz client

profile

Au

die

nc

e

En

ga

ge

me

nt

exame.com award

Recognized as the most active

brand on Instragram

• Likes: 8999

• Comments: 168

• Date: 18.49 – Sep 23, 2013

• Likes: 8461

• Comments: 115

• Date: 11.15 – Aug 8,

2013

August 2013 average • Pictures: in the month 133 / 4.2 pictures per day

• Likes – TOTAL: 565 thousand/ Per pictures: 4,252

• Comments – TOTAL: ~10 thousand/ Per picture: 75

• Engagement: 56.6

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

11

R$1 million sales

Thesis test

R$10 million sales

Internal strengthening to better serve

our clients

Dedicated management

Estimated sales of R$23 million

Preparation to expand channel

potential

Evolution of technological platform worldwide

Dedicated logistic operator

Improvement of online marketing actions

Sep-Dec 2011 2012 2013

FACEBOOK/INSTAGRAM 2013

WEBCOMMERCE BEGINNING

Web commerce Channel evolution

Structuring of online channel and initial results confirm channel attractiveness

and alignment

CRM Action

Online

Schutzlovers

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

12

Brand update Handbags

5%

9%

2T12 2T13

1

2

3

Note: handbags as percentage of owned stores revenues

Segmentation by product and channel to

meet final client’s needs

Development of products, increasing

their perceived value

Reduction in the number of models,

favoring supply chain and creating

identity for in-store product

Changes in strategy for Schutz brand handbags resulted in a strong growth in

the product segment

Handbags % of Schutz Revenue

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

13


SCHUTZ

PREMIUM

SCHUTZ

POP & FUN

SCHUTZ

✔ R$790 - R$1,100*

R$490 - R$790*

R$350 - R$490*

O / F Difference

between lines

Product technical

standard

Sourcing base

Used materials

Level of exposure of

brand/logo

V.M. in store and

showroom

Depth of purchases in

the grids

Training of commercial

teams

Marketing and

communication actions

✔ ✔

✔

MB SAMPLES

Main channel

Product line segmentation enables reaching different audiences in different

channels, with the proper branding strategy and meeting clients’ desires

Note: POS values O = Owned Stores; F = Domestic Franchises; MB = Multibrand store (domestic market)

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Focus on product development increased perceived quality and desire for the

product

14


Detailed product development

Desire and spontaneous reaction

of opinion makers

Over 2,100 pieces sold

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Optimization of product line provided productive viability, better development

and assertive store exposure

15


*Evolution of indicators in post-strategy change period

Average sale of

models per launch

+ 44%

255

370

2012 2013

A better assertiveness in the

average number of models per

launch

Total increase of sold models per

launch

An assertive mix provides differentiated

exposure in the store and showroom

More depth per model reinforces

identity at the store and less rupture

A better sale per model benefits all the

channel

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

After one year of operation, pilot store in New York enables learning and

continues to be an important laboratory

16

Brand update International operation

Operation Highlights

Store revenue in line with local

benchmarks

Initial interest of US wholesalers

(brick-and-mortar and online)

Positive product feedback due to

quality

Increased knowledge of local

customers

Ongoing product test and

adjustment

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Proper organic marketing strategy to stir desire

17


R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Marketing actions with store in the US leverage branding and desire in Brazil

18


INSTAGRAM MADISON 1 YEAR AVERAGE - @SCHUTZOFICIAL (BR)

• PHOTOS: 51 PHOTOS

• OPINION MAKERS PHOTOS: 63 PHOTOS

• LIKES @SCHUTZOFICIAL: 177,300 / AVERAGE OF 3,476 PER PHOTO

• COMMENTS – TOTAL: 1,637 / AVERAGE OF 32 PER PHOTO

• ENGAGEMENT: 108.30

schutz brand

Business