1. Challenges and Differences in Czech and Slovak E-CommerceJan Penkala, CEO www.acomware.eu

2. AgendaPeopleTurnover and market growthBiggest e-shopsMajor portals for e-commerceInteresting segmentsStudy of retailer attitudes to the internetEntering the Czech market specificitiesOnline marketingCommon characteristics/blending of CZ and SK market 3. PeopleCZSKPopulation10.5 mio5.4 mioPopulation with internet access6.5-7 mio3.5-4 mioSmartphone users2.2 mio1 mioHave shopped online98 %96 %Shop online at least 1 per month40 %25 %Largest group35-44 years olds, 25-34 years olds15-24 years old, 25-34 years oldData source: TNS Digital Life, Netmonitor 4. Turnover and market growthCZSKTotal online turnover2.5 bil 350 mio Annual increase15 %20-30 %Share in retail revenue8 %2 %Number of e-shops35 0008 000Number of e-shops that really mean it6 0001 000Data source: APEK, Pricemania.sk, Heureka.cz 5. Biggest e-shopsBiggest CZ e-shopsRevenueSKAlza.cz400 mio E-shops from CZ: Alza, Mall, Hej.sk, Okay, ParfumsMall.cz (Netretail Holding)285 mio Shoppie.sk (NAY)HP Tronic (Euronics, eProton, Kasa.cz)125 mio Interesting local brands: Martinus.sk, Muziker.sk, Shark.sk, TPD.sk, Parfems.skParfums.cz90 mio 6. Major portals for e-commercePrice comparatorsMonthly attendancePrice comparatorsMonthly attendanceHeureka.cz2.7 mioHeureka.sk1.3 mioZbozi.cz1.7 mioNajnakup.sk0.3 mioHyperinzerce.cz0.8 mioPricemania.sk0.2 mioAukro.cz1.5 mioAttendance in 8/2014 real users est., data source: Netmonitor.cz, aimmonitor.skComparator of discount offersSkrz.cz0.9 mioOdpadnes.sk0.3 mioComparator of retail discount offersKupi.cz0.6 mioAkcniceny.cz0.5 mio 7. Verticals with most significant online presenceCZSKElectronic goods, photography, mobilesElectronic goods, photographyBooks, toysTyresSports equipmentPerfumes, cosmeticsFurniture, gardenBooksPerfumes, cosmeticsTyres 8. Highest growth potential by verticalsCZSKGrocery, drugstoreFashionApparel, footwearGrocery, DrugstoreDIY, hobbyHobbyFurniture 9. Study of retailer attitudes to the internet 10. Entering the Czech market - specifitesHigh competitionPrice warBrand is importantMargins in retail and onlineStronger biggest players and the smallest oneMultichannel in logistics, customer service and communication with customers - also in web accesses2014: grocery started to be sold online 11. Online marketing Czech marketPPC works very wellCPT display campaigns at Seznam.cz work quite wellRTB relatively developedSEO is more complicatedFacebook narrow target groups, Twitter, LinkedIn small penetrationEmailing still efficient despite of mass emailsAffiliate strong position of CJ, total turnover is rather smallAukro (Allegro) maintains its position transition from C2C to B2C and brand shops, Ebay + Amazon in minorityGoogle Analytics, about 20 e-shops may have Omniture/WebtrekkTV campaigns work relatively well for the biggest players 12. Social and RTBData source: advertising tools, Adform report 8/2014CZSKTwitter190 00080 000Facebook4 mio2.2 mioLinkedin440 00085 000RTB inventoryCZSKFacebook4198 mio5350 mioDouble Click (Google)2595 mio1146 mioOther networks (Admeta, Rubicon)5333 mio1155 mio 13. Common characteristics/blending of CZ and SK marketMany e-shops expand from CZ to SK, only several shops in reverse10-30% level of CZ turnovers in SKRatio of personal pick-ups is rather high company branches, showrooms, outsourced branches, distribution points at newsagents, sellers depotsPayment method: pay on deliveryMobile payments, credit cards, PayPalCertificate Certified by customers at Heureka.cz/skAdWords is slightly more efficient in SlovakiaRTB more developed in CZ, media are relatively more expensive in SKResponsive web/mobile app is convenient but not necessary 14. Thank you for your attention!More information www.acomware.cz and www.acomware.eu Lets follow @acomware and my personal @inteligentemail Your Q and my A: jan.penkala@acomware.cz