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Lunch & Learn

• Fung Global Retail & Technology advises retailers, real estate developers, tech companies, and others on
projects situated at the intersection of retail, tech and/or fashion.
• Our team offers a robust knowledge bank and deep-rooted experience across the retail, fashion, and tech
industries. We are involved in many areas of the business, which allows us to offer a unique perspective on
the future and where the sector is heading.

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The Future of Digital Retail

• Anticipating future trends and developments
• Plan for future value and avoid obsolescence
– What problem are you trying to solve?
– How will the solution be used?
– How robust does it need to be?
• Ensure flexibility to manage changing formats and deployment patterns

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2015 Holiday Recap

Consumer & Retailer Behavior – Holiday 2015
• Shoppers began their holiday shopping early this year – nearly half
started shopping before the Black Friday weekend
• Online has become a major channel for holiday shopping, with 6 in
10 of those surveyed saying they will shop mainly online
• 4 in 10 shoppers surveyed planned to spend more than $500 and
33% of young shoppers planned will increase their spending
compared with last year

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2015 Holiday Homestretch

Cyber Monday leads the weekend as the biggest day for sales with
$3.1 billion in sales
2. Black Friday performance suggests consumer is in good shape;
Apparel category remains under pressure while deals focused
around electronics
3. Retailers generally pleased with their Black Friday performances
despite weak traffic
4. Black Friday metrics favor e-commerce as estimates suggest store
sales to be flat to down slightly with online sales up ~10%

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Doing Business in China

$1.63 billion in sales are made in the first 38 minutes
• 42.6% of sales are made via mobile devices
• The first domestic order is delivered in 15 minutes
• The first cross-border order is delivered in 2 hours
• In 2014, Alibaba offered an 11.11 shopping festival to global shoppers

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2015 Back-to-School Outlook

Consumer purchase mentality—What do we need now? A Just in Time Shopper
Macy’s reacts to this shopping behavior by rolling out same-day delivery to additional stores
Look for traditional shopping seasons to continue to blur
Black Friday style sales in July
Harder for retailers to post sales and earnings gains.
Continued IT investments—Mobile, Click & Collect, Personalization, Omnichannel—all mandatory to maintain share
Most categories hovering in deflationary territory

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