Beirut International Franchise Forum

1. Beirut International Franchise Forum Panel 3: E-commerce & Mobile Shopping; The Future Shopping Reality Mr. Guy Gras Head of Legal Department & Regulatory Affairs Yves Rocher Group

2. YVES ROCHER IN FRANCE AS AN EXAMPLE OF A « CLICK AND MORTAR » STRATEGY

3. CLICK AND MORTAR : EVERYBODY’S THINKING ABOUT IT ! S Bianchi

4. OUR STRATEGY IN 6 KEY POINTS (DEFINED IN 2011)

5. 1 - TO CONDUCT CHANGE MANAGEMENT : Changing the way of thinking in our franchising network 2 - TO DEVELOP A MULTI-CHANNEL CUSTOMER POLICY : Customer at the center of Yves Rocher Brand 3 - TO DEVELOP BRAND LOYALTY : Customer doesn’tbelong to only one channel of distribution

6. 4 - TO INCREASE AND ENHANCE OUR E-MAIL AND PHONE NUMBER DATA BASE : Easiersaidthandone 5 - TO DEFINE AND CARRY OUT A COHERENT PROMOTIONAL POLICY • Internet is not positioned as the discount channel of the brand 6 - TO USE SOCIAL NETWORKS TO PROMOTE BUSINESS BOTH ON THE WEB AND IN THE STORES: Internet necessarilyincludes social networks

7. ACTION PLAN

8. 1- CHANGE MANAGEMENT 1st step 2nd step • Main purpose => To show how internet can efficiently help our franchisees in their day to day business -To install an internet connection in every store. - To explain to our franchisees our vision of, and policy on, internet. To get our partners to use internet in all their activities: - Internet brand portal information for all our stores - Dematerialization of invoices - Products ordered on line - Training by e-learning for our franchisees and their employees

9. 2 – MULTI-CHANNEL CUSTOMER POLICY • Twoexamples : • Example N° 1 : POSSIBILITY FOR CUSTOMERS TO BENEFIT IN STORES FROM SPECIAL OFFERS AVAILABLE ON INTERNET • - Implementation in the IT system used in stores of a specificfunctionenablingourfranchisees to sell to theircustomers the specialoffersavailable on internet (by using a specific « multi-channelkey » on the keyboard). Profiter de cette offre en magasin

10. 2 - MULTI-CHANNEL CUSTOMER POLICY • Example N°2 : TO INCREASE THE NUMBER OF PURCHASES MADE, AND THE LOYALTY TO THE BRAND, OF OUR MANY SMALL INTERNET OR STORE CUSTOMERS, BY GETTING THEM TO USE BOTH CHANNELS. • A smallcustomerissomeonewhomakesonly one purchase per year (Yves Rocher is not her main brand of beauty products ). • Withonly one purchase per year, a customeris not loyal to a channel, and sowe have scope to considerablyincreaseour turnover by gettingher to discoveranother Yves Rocher channel. « SMALL » STORE CUSTOMERS special contact plan with the objective of convertingthem to internet purchases « SMALL » INTERNET CUSTOMERS special contact plan with the objective of convertingthem to store purchases

11. 3 – BRAND LOYALTY • HOW CAN WE INTEREST INTERNET CUSTOMERS IN STORE PURCHASES ? • Someexamples: • E-mails promoting stores when a customerfinishesherorder on internet or leaves internet withoutordering. • E-mails promotingour beauty parlors or providing information about our stores. • E-mails inviting internet customers to attend the opening of a new store located in theirtown.

12. 3 – BRAND LOYALTY • HOW CAN WE INTEREST AN INTERNET CUSTOMER IN STORE PURCHASES ? • Otherexamples: • - Possibility of makingappointments on-line in our beauty parlors. • Possibility of buyingproducts on internet and pickingthem up in our stores. • - Exchange in our stores of productsbought on internet.

13. 3 – BRAND LOYALTY • HOW CAN WE INTEREST STORE CUSTOMERS IN INTERNET PURCHASES ? • Twoexamples : • - Providing information in stores about ourownwebsite and those of ourfranchisees. • - Several million postcards and e-mails sent to store customers, including information about ourwebsite. SHOP WINDOW BEAUTY PARLORWAITING ROOM CHECKOUTS

14. 4 – INCREASING AND ENHANCING THE DATA BASE • Increase of • + Increase and enhancement of the customer data base by using the franchisees: + 92% of e-mails sent in 2011 • 40% more e-mails in our data base at the end of 2011

15. 5 – A COHERENT PROMOTIONAL POLICY • PROMOTIONAL POLICY: • Simultaneousproductlaunches in stores and on internet. • Sameproductslaunchedat the sameprices. • For Yves Rocher, internet is not a discount distribution channel for products: no bigdifference of discount on internet and in stores.

16. 6 – USING SOCIAL NETWORKS TO PROMOTE BUSINESS • Every Yves Rocher store has itsown page for « Friends » on Facebook. • Withtwo objectives: 1 - Information about the store. 2 - Use of internet content to promoteourproducts.