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"Glocalization:" Why Going Global Means Not Forgetting Local IdentitiesNICOLA FARINETTI, CEO, Eataly USMASSIMO VOLPE, VP, POPAI Global, FIRAE ChairmanJUE WONG, President, Elizabeth ArdenALESSANDRA DA COSTA MORRISON, Dir., Human Resources, Cia. Hering

Massimo Volpe, FIRAE Chairman JuE Wong, President, Elizabeth Arden Nicola Farinetti, CEO, Eataly US

Alessandra da Costa Morrison, Dir., Human Resources, Cia. Hering

Aqui, a gente veste a vida

Video

Transition: industry to retail

Redesigned strategy to resume the path to growth

Former strategy

Re-positioningPremium basics.Wholesale.30% private label.Own production.

Affordable fashion.Own stores.100% own brands.Own + imports.

3rd party

Suppliers

Government

Employees

Multibrand retailers

Representatives

Consumers

Franchisees

Community

Differentiated Business Model present in 03 steps of the value chain

BRAND MANAGEMENTStrong BrandsProduct DevelopmentCasual wear - 'democratic'For all types of public across all agesChildren's wearA/B customersYoung womenA/B customers

75%

25%

5%Of sales

CHANNEL MANAGEMENTMultichannel Distribution

80Owned Stores14%Of Sales

726Franchisees38%Of Sales

17.8kMultibrand46%Of Sales

05Webstores2%Of SalesAs of Sep16. Share of sales from Jan16 through Sep16

SUPPLY CHAINOwn ProductionOutsourced ProductionSourcingProduction75%

Manufacturing processes 50% Hering

50% third-parties25%

OutsorcingPurchase of finished goods

20% Imported

5% Brazilian manufacturers

Internacionalization

BUSINESS EXPANSION80

2000ArgentinaParaguayUruguayBoliviaChile. Specific Collection. Monobrand StoresEuropa. BasicsLebanon (4 5 stores)Saudi ArabiaPanamaVenezuelaEua (T-shirts)

TURNAROUND

Keep only where competitive2003/2006

NEW BUSINESS MODELBrazil & South America

Focus on South America:

Uruguay,

Paraguay,

Bolivia,

Chile

Future

We believe in our busines model, unique and singular.1Keep our brands up-to-date and conected with consumers.2Continuous focus on strategy based on Product - Value for Money and Store consumer experience.3Focus on retail and innovation.4

Aqui, a gente veste a vida

THANK YOU!