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

® Marque déposée par Yves Rocher YVES ROCHER IN FRANCE AS AN EXAMPLE OF A « CLICK AND MORTAR » STRATEGY

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

3 OUR STRATEGY IN 6 KEY POINTS (DEFINED IN 2011)

4 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’t belong to only one channel of distribution

TO USE SOCIAL NETWORKS TO PROMOTE BUSINESS BOTH ON THE WEB AND IN THE STORES: Internet necessarily includes social networks 4 - TO INCREASE AND ENHANCE OUR AND PHONE NUMBER DATA BASE : Easier said than done 5 - TO DEFINE AND CARRY OUT A COHERENT PROMOTIONAL POLICY Internet is not positioned as the discount channel of the brand

6 6 ACTION PLAN

CHANGE MANAGEMENT - 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 1 st step 2 nd step Main purpose => To show how internet can efficiently help our franchisees in their day to day business % of the stores connected

8 8 2 – MULTI-CHANNEL CUSTOMER POLICY  Two examples : 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 specific function enabling our franchisees to sell to their customers the special offers available on internet (by using a specific « multi-channel key » on the keyboard). Profiter de cette offre en magasin

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 small customer is someone who makes only one purchase per year (Yves Rocher is not her main brand of beauty products ). With only one purchase per year, a customer is not loyal to a channel, and so we have scope to considerably increase our turnover by getting her to discover another Yves Rocher channel. « SMALL » INTERNET CUSTOMERS special contact plan with the objective of converting them to store purchases « SMALL » STORE CUSTOMERS special contact plan with the objective of converting them to internet purchases

10 3 – BRAND LOYALTY HOW CAN WE INTEREST INTERNET CUSTOMERS IN STORE PURCHASES ? Some examples: - s promoting stores when a customer finishes her order on internet or leaves internet without ordering. - s promoting our beauty parlors or providing information about our stores. - s inviting internet customers to attend the opening of a new store located in their town. HOW CAN WE INTEREST INTERNET CUSTOMERS IN STORE PURCHASES ? Some examples: - s promoting stores when a customer finishes her order on internet or leaves internet without ordering. - s promoting our beauty parlors or providing information about our stores. - s inviting internet customers to attend the opening of a new store located in their town.

11 3 – BRAND LOYALTY HOW CAN WE INTEREST AN INTERNET CUSTOMER IN STORE PURCHASES ? Other examples: - Possibility of making appointments on-line in our beauty parlors. - Possibility of buying products on internet and picking them up in our stores. - Exchange in our stores of products bought on internet. HOW CAN WE INTEREST AN INTERNET CUSTOMER IN STORE PURCHASES ? Other examples: - Possibility of making appointments on-line in our beauty parlors. - Possibility of buying products on internet and picking them up in our stores. - Exchange in our stores of products bought on internet.

12 3 – BRAND LOYALTY HOW CAN WE INTEREST STORE CUSTOMERS IN INTERNET PURCHASES ? Two examples : - Providing information in stores about our own website and those of our franchisees. - Several million postcards and s sent to store customers, including information about our website. HOW CAN WE INTEREST STORE CUSTOMERS IN INTERNET PURCHASES ? Two examples : - Providing information in stores about our own website and those of our franchisees. - Several million postcards and s sent to store customers, including information about our website. SHOP WINDOW CHECKOUTS BEAUTY PARLOR WAITING ROOM

13 40% more s in our data base at the end of 2011  Increase of + Increase and enhancement of the customer data base by using the franchisees: 4 – INCREASING AND ENHANCING THE DATA BASE + 92% of s sent in 2011

14 5 – A COHERENT PROMOTIONAL POLICY  PROMOTIONAL POLICY: Simultaneous product launches in stores and on internet. Same products launched at the same prices. For Yves Rocher, internet is not a discount distribution channel for products: no big difference of discount on internet and in stores.

15 6 – USING SOCIAL NETWORKS TO PROMOTE BUSINESS Every Yves Rocher store has its own page for « Friends » on Facebook. With two objectives: 1 - Information about the store. 2 - Use of internet content to promote our products.