Quality & Business Excellence Conference November 2012 CLUB APPAREL

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1 26 27 November 2012 CLUB APPAREL

2 THE APPAREL GROUP - PIONEERS The Apparel Group is one of the fastest growing Retailers in the UAE in the past 10 years. What began as a single store in Dubai is now a global presence operating over 700 stores across 15 countries, 40 brands and 380 stores in the UAE and further expanding its reach. In the UAE the Apparel Group is present in categories like Fashion, Footwear, Make Up, Lingerie, Furniture and Food and Beverage.

3 OUR BRANDS

4 WHY LOYALTY? Apparel Group Vision of 100% Customer Satisfaction. Give all our brands an umbrella Being master franchises all customers did not know all our brands. They may have shopped at several being unaware of the same. Reward and build a relationship Choosing our brands would reward. Know our customers better. Choice for the customer We could encourage them to shop from our brands. Up sell and cross sell. Lead to sustained business We could get fixed business from these customers once they were convinced of the value.

5 UNDERSTANDING THE LOYALTY ARENA All Card based programs All loyalty programs in the Region were with cards. Customers were tired of carrying so many cards and lost out a lot of times on benefits. Lack of transparency Customers had no idea as to what returns they got through their loyalty programs. Lack of transparency.

6 Unknown/low returns Percentages as low/unknown. Different percentages on Sale and non Sale periods and brands also. Some never saw rewards as they are based on vouchers. Waiting period All loyalty cards needed a minimum threshold of collection. Most did not know the redemption patterns and lost out on expiry. Some sent you a voucher / charge for delivery so the control lies with them. Minimum amount All loyalty programs need a minimum amount of collection of points in order for a customer to be able to redeem.

7 CLUB APPAREL The only Cardless Loyalty program in the UAE State of the Art Technology Near Field Communication. Works on any mobile phone. Environmentally Friendly No plastic involved. No long forms to be filled. No Gift vouchers.

8 Instant Registration Instant Registration with your Mobile phone. 42 seconds to Register, works with the Company s philosophy of speed. Everything happens in Real time. Instant Redemptions 5% rewards which is the highest today in any loyalty program. No waiting period, even AED one can be redeemed instantly. You can redeem at ay outlet of CA and the points system remains the same in all brands. Redemptions during Sales and outlet stores also.

9 Secure You have a security pin for all transactions. Your phone is as personal as can be for security. Anyone can become a member Frequent travelers and Tourists can also be members and get benefits.

10 AGGRESSIVE MARKETING The most unique launch at Atlantis Over 1000 guests were invited. Fashion show. 100 points as token. Made a record 50,000 members in the first month. Media/In shop Press/Radio/SMS/Outdoor. In shop presence across all brands. Beat the Bang One of the properties of Club Apparel. Broke all records of participation.

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18 A pre-recorded capsule announcing numbers will play AED 100 AED 500. AED 1500 AED AED 600. BOOM! You bank AED 500 if you shout stop here You bank AED 2500 if you shout stop here The bang has gone off and you win nothing!

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20 NO CARDS ONLY REWARDS Customer Service 800 Apparel. Face book/ . Website SMS updates. Expiry Reminders. Birthday/Special Occasions. Special events Previews. Press Days. Sales and Promotions New Brand Launches. New Locations. New Collections.

21 CUSTOMER PROFITABILITY Tiers for Customers based on spends Launch of Black/Gold/Silver. Understanding brand affinity and spend patterns Understanding the basket of brands. Buying patterns. Nationality. Anniversaries/Birthdays.

22 We have a very good relationship with our members and they value Club Apparel. Close to a Million Customers growing at 40% per year. Club Apparel comprises of 40% of the Company turnover. 45% Redemption rate.

23 Thank You Are you a Member?