2. Multibrand channel accounted for 27% of the Company’s revenues in 2012,
presenting a growth of 28%per year in the last 4 years
Multibrand Channel
Context
2
133.7
188.4
234.0
285.8
2009 2010 2011 2012
Multibrand Sales (R$ mm)
332 franchises +
17 owned stores(i) +
994 multbrand clients
(i) 4 outlets
23 franchises +
28 owned stores(i) +
1.546 multibrand clients
(i)1 outlet
TOTAL
9 owned stores
858 multibrand clients
2 owned stories +
7 multibrand clients
361 Franchises +
56 Owned Stories +
2,425 Multibrand Clients
= 2,842 Points of Sale
Points of Sale (2Q13)
3. Arezzo&Co multibrand strategy design has 4 dimensions
3
Integrated studies to map cross-sell
among brands
Validation of Arezzo brand potential per
city and creation of scenarios
Adjustment to Schutz brand potential
by considering market growth and
knowledge acquired in implementing
brand growth strategy
Refining of Anacapri targets
Union of commercial policies
Unified commercial policies for Key
Accounts and large clients
Commercial intelligence and
centralized support for brands
Definition of shared structure
principles
Coordination and central structure
Support model for Key Accounts
Mapping of sales territories
Definition of variable compensation for
multibrand commercial staff
Multibrand
strategy of
2
3
Development of a specific sell-in calendar for
the multibrand channel
Support model per supply model::
Showroom vs. In field
Made-to-order vs. made-to-stock 1
4
Multibrand Channel
Strategy
4. The mapping of areas to be supported by Multibrand channel involves a
detailed feasibility study
The starting point to map potential clients
was Schutz brand, which has the highest
penetration in the channel
Analysis of lower potential areas, so as to
make them profitable, both in client
attractiveness and logistic costs
Cross-selling opportunities were identified,
increasing the potential of each area
Each region has a structure of
representatives and consultants
Example of mapping of the
South Region
Multibrand Channel
Potential
5. The new support model increases synergy among brands and reduces
dependence on fairs
Antes
Each brand with its own sell-in calendar
Same supply model for all types of products
Greater reliance on fairs
Depois
Greater coordination of sell-in calendar
among brands
Differentiated supply model depending on
footwear fashion content
Client support model reduces dependence
on fairs
Multibrand Channel
Sell-in model
6. New sell-in Multibrand model aims to adjust sales to new types of supply and
to optimize results
6
Fast
Fashion
Collection
Classic
Continuables
Replenishment
of renewed
Fashion
Complement
(Summer II,
Winter II, Resort/
Cruise*)
Showroom
(Summer I and
III, Winter I)
Automatic
replenishment
Life Cycle Scenario Compatibility
Major Launches
New supply models with
purchase of available
inventory
Multibrand Channel
Sell-in model
7. Launches are divided into major launches and new supply models
7
Major lauches
(Winter, Summer, High Summer, Fairs and Cruise/Resort)
New supply models
(Fast-Fashion, Classic/Essentials, Basics/AllDay)
Growth in portfolio coverage
Speed in field sales using electronic
tools
Brands coordinated in the showroom to
increase cross-selling
Fast Fashion will replace minor collections,
keeping the same frequency of purchases
Specific sell-in mechanism for
Classic/Essentials and Basics/ AllDay-
EveryDay lines
Efficiency gain
Focus
Open sale in regional
showrooms
Complementary ready fashion
Closed sale in field + contact
center + web
Multibrand Channel
Sell-in model
8. Fonte: Arezzo&Co. Escala ilustrativa
# Owned Stores
# Franchises
365
3T13 2013
55
420
334
2012
56
390
31
29
394
55
449
58
2014
464
43
507
+8%
+7%
+13%
8
-1
Increase in 2013 guidance for net openings of 59 stores, particularly as a result of the
Anacapri brand expansion project with 10 franchises in 2013
In 2014 the Company will maintain its pace of openings with a total of 58 planned stores
Considering Anacapri roll-out in the franchise channel and following the multichanel
strategy, in 2014 the Company plans to convert12 owned stores into franchises
12 -12
# Conversion
Expansion Plan
Guidance update 2013 and 2014
9. Strong franchise growth plan, with a significant part of the 2014 plan
already identified
9
33
58
10
7
5
Prospecting Initial
negociation
Intermediate
negociation
Advanced
negociation
Contract
signed
Total
3
1 2
Arezzo&Co Stores 2012
Notas:
1. Intermediate negotiation: franchisee or point defined
2. Advanced negotiation: franchisee and point defined
3. Company estimate
Current
Operators
40%
New
Operators
60%
Arezzo&Co owned Store and Franchise Opening
Stage (2014)³
Arezzo&Co Stores Regional Distribution (%)
Operators Profile
Arezzo&Co Stores 20133
GDP: 5%
4% 5%
GDP: 9%
8% 9%
GDP: 17%
14% 14%
GDP: 14%
22% 20%
GDP: 55%
52% 52%
Expansion Plan
Detailed Expansion Plan 2014
10. In 2013, 8 stores are were expanded, adding 338 m², in line with the goal of
expanding sales area by 1,000 m² in sales area in 2013 and 2014, repeating
2011-2012 performance
435m²
564m²
512m²
825m²
3T13
999m²
1,337m²
261m²
77m²
Owned storesFranchises
2011
Area expansion of existing stores since 2011:
10
Expansion
Stores Area Expansion
152m²
268m²
2012
Goal to expand 1,000m² at
every 2 years
412m²
167m²
579m²
11. 24 stores expected under the new Arezzo brand architectural project in 2013
11
Expansion
New store layout roll-out
11
Iguatemi Ribeirão Preto - SP
Ilha Plaza - RJ
Shopping Iguatemi -SP
Diamond Mall - MG
Aldeota - CE
Shopping Goiabeiras - MT
BH Shopping - MG
Shopping Moinho dos Ventos - RS
Shopping Natal - RN
Pátio Batel - PR
Shopping Buriti - GO
Manauara Shopping - AM
Araras - SP
Plaza Niterói - RJ
Ipatinga - MG
Rua Catalão - GO
Salvador Shopping - BA
Shopping Metropolitano - RJ
Ariquemes - RO
Shopping Ibirapuera - SP
Cadima Shopping - RJ
Shopping Morumbi - SP
Shopping Anália Franco - SP
Key
Opened
Project in execution
Praia do Canto - ES
