Seller Business Review

Noah Solutions
Q3 2021

Photo by Meo Fernando 1

INDUSTRY INSIGHTS
BEAUTY Q3 PERFORMANCE
Beauty recovery is on the way, ending Q3 at +14%
High base LY due to lockdowns in the metro
800,000 350%

700,000
297% 300%
Growth 2021
Q2 YoY 24%
600,000
Q1 YoY 110% 250%
Q2 QoQ 2% 2020
500,000
200%

400,000

148% 150%
300,000

100%
200,000

54% 52% 50%

100,000

21% 18%
0 0% 4% 3% 0%
January February March April May June July August September
Beauty is still driven Beauty Essentials
Personal Care increasing its share by +4pt vs LY
800,000 100%

41%
700,000
79% 80%

600,000 37%

28% 60%
500,000
28%

400,000 40%

300,000 26% 18%

14% 20%
15%
200,000 11% 9%

6% -1% 0%
100,000
-7% 4%
2% 2%
-13%
0 -20%
Personal Care Skincare Makeup Beauty Tools Fragrances Men's Care
Share of business
Personal Care: Bath & Body increasing share by +5pp
vs LY, driven by Body Moisturizers & Bar Soaps
(Twin Packs, B1T1)
12000000 45%

41% 40%
10000000 44% 37%
35%

8000000 30%
32%
39%
37% 25%
6000000 22%
20% 20%

4000000 15%
13%

10% 12% 10%

2000000
5% 5% 5%
3% 3%

0 0%
Bath & Body Hair Care Oral Care Deodorants Feminine Care

Q3 '2020 Q3 '2021 Growth

 Men’s Care: Skin Care increasing share by +8pp vs LY,
also the biggest subcategory at 25%
00,000.00 40%

41%
30%
50,000.00
22%
20%
00,000.00 16%

50,000.00 5%
0%
00,000.00 25%
24% 25%

50,000.00 -20%
19%
18% 18%
00,000.00
15%
-40%
50,000.00

00,000.00 8% 8%
-60%
50,000.00 -69%

- -80%
Bath & Body Deodorants Hair Care Shaving & Grooming Skin Care

Q3 '2020 Q3 '2021 Growth

With the help of FS Max, Free Shipping has the
highest order share for Beauty in Q3
22% of total beauty orders are utilizing FS Max

41%

32%

22%
12%
FS Max
10%

Free Shipping Flexi Combo Vouchers Overall

Q3 Beauty Top Search Terms
Top Sellers in Beauty Q3 2021

01 Watsons Personal Care Stores 06 Kiehl’s

02 P&G Beauty 07 Colgate
03 Unilever Beauty and Personal Care 08 Cetaphil
04 Nivea 09 Johnson&Johnson
05 Olay 10 MAC Cosmetics
Strictly Confidential 33
Top Accounts in Men’s Care for Q3 2021
Rank Seller Name
1 Lazada Retail Nivea
2 Titan Business Solutions
3 Noah Solutions
4 P&G Beauty
5 Unilever Beauty and Personal Care
6 Watsons Personal Care Stores
7 Hokage Essentials For Men
8 Shop Easy Superstore
9 S&R Membership Shopping
10 Fashion Mall.
11 Mavens Collection
12 Kiehl's
13 Gaffer Manila
14 Mandom
15 Kiss Toys Strictly Confidential 34
Lazada Beauty buyers are mainly female aged 19-34
yo

73% 27%
BRAND Q3 PERFORMANCE
PERFORMANCE - SUMMARY

Positive growth +116% vs last quarter. Steady sales from July to $86,371.48 +116%
September with a slight dip in August.
Q3 GMV GMV QoQ

Monthly Sales July-September 2021

• Healthy baseline sales. Push to join

monthly campaigns as well as flash
sales.
• Continue to offer BAU tools such as Free
Shipping and Flexi Combo.
PERFORMANCE - SUMMARY

Men’s Care category has the biggest share to sales at 84% followed by Skin Care at
14%.
• Focus on categories
that will have long
term assortment
• Sustain growth of
Men’s Care category
by:
• Always joining FS
• Offering tools
• CEM
• Marketing
Solutions
• Campaigns
• Offering new
assortment
PERFORMANCE - SUMMARY

Goal: Increase GMV, Items Sold, AOV and Buyers

Period GMV Items Sold Orders ARPU ($) ASP (₱) AOV (₱)
Gross Marginal Value Ave. Revenue per User Ave. Selling Price / Item Ave. Order Value

July $ 30,038 4,044 2,223 $15.62 PHP 376.47 Php 684.86

$86,371.48
August $25,397 2,788 2,090 $13.89 PHP 449.63 Php 599.8

September $30,936 3,405 2,707 $13.31 PHP 434.04 Php 545.96

Q3 GMV Total Q3 $ 86,371.48 10,237 7,020 $14.27 PHP 420.05 Php 610.21

• GMV and orders biggest in the month of September.

• Highest item sold and ARPU in the month of July.
• Overall, healthy performance for Q3 2021.

Strictly Confidential 39
PERFORMANCE - ASSORTMENT

Improve content score of SKUs by including photos, long description and additional SKU
information and Attribute Fill Rate by filling up necessary SKU details (goal: >95%)

Selling Assortment Quality

Period
Score Key Attribute Fill
Rate Content Score
July 100% 79.17% 85.19%
August 100% 81.08% 27.59%
September 100% 93.42% 71.43%
Q3 Total 100% 84.56% 61.40%

• Selling score ended strong in Q3 at 100%, which means that Noah Solutions has sales everyday!
• LazU training on how to improve content score: https://university.lazada.com.ph/course/search?q=content%20score&spm=lzd-university-ph-pc.lzd-
university-ph-pc-home.navibar_search.content%20score.0

Strictly Confidential 40
PERFORMANCE - ASSORTMENT

Items to reprice

SAMPLE ONLY

Highlights and Recommendation

• Lowest Price Guaranteed Program: lowest price in Lazada among other online platforms
• LPG items can get free FSMax participation fee
• This will save more money for you because majority of your orders are from FSMax
• We can put the participation fee somewhere else: 11.11 Lazada Bonus and Cashback
PERFORMANCE – TOOLS & CONSUMER ENGAGEMENT

Seller Free Shipping is the most effective tool in terms of order share followed by Free Shipping Max
and Flexi Combo respectively.

Tools Consumer Engagement

Period Overall Seller Free Free Shipping Campaigns Campaign SKUs

Flexi Combo Voucher FS Participated FS SKUs Participated
Tools Shipping Max Participated Participated

July 78% 44% 34% 38% 11% 4 11 0 0

August 74% 34% 38% 9% 8% 3 7 0 0
September 64% 32% 9% 15% 25% 6 8 3 2
Q3 72% 37% 27% 21% 15% 13 26 3 2

• Offer more enticing Flexi Combo deals such as free gifts and/or samples
• Encourage voucher use by using store follower voucher
• Continue to join campaigns and flash sale for more visibility in the platform
• Maximize Free Shipping Max over Seller Free Shipping
Strictly Confidential 42
FREE SHIPPING MAX

Daily New
FSMax Order FSMax to Store
Total Orders Share Order Uplift GMV Share GMV Uplift Buyers ROI Lazada Subsidy Commission
2,992 34.69% 131.26% 23.02% 192.85% 7 39.10 $ 1,217 $ 477

• A positive increase in orders and GMV with the use of Free Shipping Max: 131% order uplift and 192% GMV uplift
• 35% of orders use Free Shipping Max
• An average of 7 new buyers discover the store because of Free Shipping Max
• ROI is at Php 39.10

Strictly Confidential 43
BUYER ANALYSIS – NEW BUYERS & REPEAT BUYERS

Trend is the same as GMV growth; July & September have the highest 10,066 10,066 100%
buyers, while May had the least.
New Buyers
Buyers YTD New Buyer %
YTD

• Reward repeat buyers by offering free gifts/ sample

• Use CEM to encourage repurchase MoM
• Continue to join flash sale, coins discount, crazy deals to increase new buyers even further
BUYER ANALYSIS - DEMOGRAPHICS

Buyers are from Metro Manila and Metro-Luzon Areas, ages 19-30 years old
(Female buyers at 23% while male buyers is at 76%)
BUYER ANALYSIS – ORDER FREQUENCY

Most buyers only repurchase 1x in a month, but also good to know that there is a good % of
buyers buying 2-5x a month as well.
 Q3 Top Selling SKUs – GMV and Items Sold
Product Name GMV Item Sold
Noah Skin Starter Pack (35% off +FREE SHIPPING) [Cleanser Toner and Serum] with Niacinamide - lessens oil brightens face helps
heal acne and pimples prevents breakouts adds extra glow firms face by time zero peeling 26,090.74 1349
Noah Niacinamide Face Bar/Noah Soap 100g [Facial Wash] For All Skin Types/Oily Skin - removes pimple marks treats acne.
whitening reduces oil brightens face hydrates helps make skin glow 21,046.27 4061
Noah Skin Starter Pack (31% off +FREE SHIPPING) [Cleanser Toner and Serum] with Niacinamide - lessens oil brightens face helps
heal acne and pimples prevents breakouts adds extra glow firms face by time zero peeling 17,009.02 885
[ ANTI-ACNE FACIAL WASH ] Noah Niacinamide Face Bar 100g [Facial Wash] For All Skin Types/Oily Skin - Noah Face Soap |
Noah Noah niacinamide bar | removes pimple marks treats acne. whitening reduces oil brightens face hydrates helps make skin
glow 4,210.32 785

Noah Skin Starter Pack with Flexi Combo [FREE SHIPPING] 3,633.14 179
Noah Oil Regulator Toner with Witch Hazel 100mL (Mild Low PH Perfect for Normal to Oily Skin) - tightens pores helps on acne
and pimples. cleanses excess oil soothes skin clarifies face even better makes face look fresher 2,862.42 564
[FREE SHIPPING] Noah Glow Boost Niacinamide Bundle (2 Noah Niacinamide Face Bar + 1 Glow Boost Serum Noah with
Niacinamide + Bearberry) For All Skin Types 2,363.03 119
[FREE SHIPPING] 2 Noah Glow Boost Face Serum 15 mL [2 BOTTLES] Niacinamide + Vitamin E + Bearberry | brightens skin helps
heal pimple & acne reduces appearance of pores lessens spots & hyperpigmentation adds healthy glow 2,205.40 107
Noah Glow Boost Serum 15ml with Niacinamide + Bearberry + Vitamin E- brightens face daily makes skin glowwhitening helps
lessen oil and pimples helps reduce spots & hyper pigmentation helps lessen pore visibility zero purging fast-absorption 1,027.56 73
[ ANTI-ACNE TONER ] Noah Oil Regulator Toner with Witch Hazel 100mL (Mild Low PH Perfect for Normal to Oily Skin) - tightens
pores helps on acne and pimples. cleanses excess oil soothes skin clarifies face even better makes face look fresher 801.91 148

Strictly Confidential 47
9.9 POST MORTEM
 Opportunity to increase mega campaign sales through
participation in MPD and adopt new tools such as Bonus and
Cashback

DAILY AVE TOTAL TOTAL FLASH SALE MPD/BMO

MEGA TOTAL GMV
BUYERS ITEM SOLD ORDERS GMV GMV
9.9 8,019 249 952 789 - -
vs 6.6 49% 56% 57% 57% - -
▪ Positive growth across the board for 9.9 performance vs 6.6

Tool-Guided GMV

Flexi Free Ship FS Max Voucher

23% 31% - 17%

9.9 Top Selling SKUs - GMV
Product Name GMV $ Items Sold
Noah Skin Starter Pack (35% off +FREE SHIPPING) [Cleanser Toner and Serum] with Niacinamide - lessens oil brightens face helps heal acne
and pimples prevents breakouts adds extra glow firms face by time zero peeling 4032.10 220
Noah Niacinamide Face Bar/Noah Soap 100g [Facial Wash] For All Skin Types/Oily Skin - removes pimple marks treats acne. whitening
reduces oil brightens face hydrates helps make skin glow 2310.70 507
[ ANTI-ACNE FACIAL WASH ] Noah Niacinamide Face Bar 100g [Facial Wash] For All Skin Types/Oily Skin - Noah Face Soap | Noah Noah
niacinamide bar | removes pimple marks treats acne. whitening reduces oil brightens face hydrates helps make skin glow 345.96 74
Noah Oil Regulator Toner with Witch Hazel 100mL (Mild Low PH Perfect for Normal to Oily Skin) - tightens pores helps on acne and pimples.
cleanses excess oil soothes skin clarifies face even better makes face look fresher 330.45 74

Noah Skin Starter Pack with Flexi Combo [FREE SHIPPING] 196.92 10

Noah Glow Boost Serum 15ml with Niacinamide + Bearberry + Vitamin E- brightens face daily makes skin glowwhitening helps lessen oil
and pimples helps reduce spots & hyper pigmentation helps lessen pore visibility zero purging fast-absorption 188.18 15
[FREE SHIPPING] Noah Glow Boost Niacinamide Bundle (2 Noah Niacinamide Face Bar + 1 Glow Boost Serum Noah with Niacinamide +
Bearberry) For All Skin Types 116.32 6
[FREE SHIPPING] 2 Noah Glow Boost Face Serum 15 mL [2 BOTTLES] Niacinamide + Vitamin E + Bearberry | brightens skin helps heal pimple
& acne reduces appearance of pores lessens spots & hyperpigmentation adds healthy glow 101.17 5

[FREE SHIPPING] Noah Niacinamide Glow Boost Pack + High-Def Superior Hold Pomade at P1599 95.54 3
[ ANTI-ACNE TONER ] Noah Oil Regulator Toner with Witch Hazel 100mL (Mild Low PH Perfect for Normal to Oily Skin) - tightens pores helps
on acne and pimples. cleanses excess oil soothes skin clarifies face even better makes face look fresher 63.50 15

Strictly Confidential 50
9.9 Top Accounts Overall Men’s Care
Rank Seller Name
1 Lazada Retail Nivea
2 P&G Beauty
3 Noah Solutions
4 Titan Business Solutions
5 Unilever Beauty
6 Watsons Personal Care Stores
7 Fashion Mall.
8 Kiehl's
9 Lazada Retail Colgate
10 Mavens Collection
11 Gaffer Manila
12 Mandom
13 S&R Membership Shopping
14 Shave Manila
15 WELLNESSROW Strictly Confidential 51
SUMMARY & RECOMMENDATIONS
WINNING TOGETHER
CONSUMER
SUPPLY INVESTMENT
ENGAGEMENT

To improve assortment,
To better engage our
availability, relevance, and To further improve our ways of working
consumers
quality

▪ Reprice for
competitive pricing and
enjoy LPG rewards
▪ Enjoy 0%
participation fee for
FSMax
▪ Improve assortment
quality
▪ Higher ATP (restock
best selling skus)
▪ Increase store traffic
through Flash Sale
▪ Offer the bestselling
SKUs at the best price
▪ Offer store follower
vouchers for BAU
▪ Utilize Livestream to
engage buyers and gain
followers
▪ Use CEM
▪ Join campaigns (at least 1 non mega campaign
monthly)
▪ Upsell through bundles, exclusive skus
▪ Offer always on Tools
▪ Adopt Cashback and Lazada Bonus (11.11 &
12.12) – cheaper than vouchers
SELLER INVESTMENT GUIDE

LAZADA CO-FUNDED SELLER PROMO TOOLS

LAZBONUS CASHBACK SFS VOUCHER FLEXI COMBO

FSMAX
Controlled cost
Encourage Encourage Encourage Encourage
OBJECTIVE Convert traffic to sales
basket building buyer repurchase
through partial
basket building basket building
subsidies

11.11 Campaign SKUs

SCOPE Storewide assortment only; doesn’t apply for Storewide assortment Selected SKUs Selected SKUs Selected SKUs
Flash Sale items

Free Shipping voucher Lazada Bonus voucher

partially subsidized by partially subsidized by 10% Buyer Cashback
MAIN Lazada Lazada
Ability to set a budget Ability to set discount Ability to set discount
partially subsidized by
REWARDS *No minimum spend get P50 off *Get P50 off for every P500 spend and cap and min spend and tier
Lazada
SF* (stackable)*
*Spend P199 get P50 off SF*

Flexi Combo
Program opt-in Free Shipping Voucher Campaigns
Program opt-in Program opt-in Campaigns
HOW TO JOIN via Seller Center
via Main Campaign
via Seller Center
Campaigns Regular Voucher
Regular Flexi Combo
Deals Regular Free Shipping

Approx. 3% Cost to
COST OF 3% participation fee Sales 1% participation fee Depending on partial Depending on Depending on
for successfully delivered for successfully
JOINING
Enjoy P50 off for every P500 spend on all
subsidy set discount set discount set
*

items 11.11 deals and promos (except Flash

Sale)
delivered items
50/50 subsidy funding c/o Lazada and seller
D11 TOOL GUIDE
BEAUTY FREE SHIPPING VOUCHER FLEXI COMBO

Convert traffic to sales Encourage Encourage

OBJECTIVE Controlled cost through partial subsidies basket building basket building

FS Max - Storewide
SCOPE SFS - Selected SKUs
Selected SKUs Selected SKUs

1.76x Free Shipping GMV Uplift vs Non-

UPLIFT Free Shipping
2.19x AOV Uplift 1.7x Basket Size Uplift

FS Max - https://bit.ly/FSMax-JoinPage
HOW TO JOIN SFS -https://bit.ly/D112021_FreeShipping
https://tinyurl.com/D11Voucher2021 https://tinyurl.com/D11Flexi2021

FS Max - 3% participation fee

Buy 2 get 3%
COST OF JOINING SFS - Min Spend Php 500; Php50 free Min Spend 700 get 5% off
Buy 3 get 5%
shipping
• Free Shipping includes FS Max
• Free Shipping uplift – 9.9 GMV uplift of FSH vs Non-FSH
• Voucher and FC Uplift based on D9 vs Aug Daily Ave
2021 November Campaign Calendar
2021 Campaign Calendar
Strictly Confidential 60