UNDER ARMOUR MONGOLIA BUSINESS PLAN
Empower more athletes Macroeconomics and Demographics Sporting goods market Geographical expansion Channel expansion P&L total Retail P&L strategy Ecommerce P&L strategy
Own consumers hearth Marketing Consumer engagement / Brand strategy Lead with culture Organization Win at the shelf Supply chain Regulatory
M ACROECONOMICS AND DEMOGRAPHICS Country profile Vast quantities of untapped mineral wealth have made it a target for foreign investors, transforming the country’s tiny but fast-growing economy. Almost half of the population lives in the capital, while around 30% of the country’s workforce is nomadic, herding livestock in the extensive pasturelands.
Facts Capital: Ulan Bator Population: 3,1 million (2016) Area: 1.56 million sq km (603,909 sq miles) Major language: Mongolian Major religion: Buddhism Life expectancy: 68 years (men), 74 years (women) Currency: Togrog (MNT) Bordering countries: Russia and China GDP official: 11,8 billion USD GDP (purchasing power parity) 36 billion USD
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M ACROECONOMICS AND DEMOGRAPHICS Economic outlook 2016-2020 Overview
Actual
Q3/16
Q4/16
Q1/17
Q2/17
2020
GDP growth rate
1.4
0.5
-0.1
0.3
0.5
5.9
Unemployment rate
10.4
10.2
11.4
11.2
11
9.5
Inflation rate
-0.2
1
3.8
4.5
5.1
4
Interest rate
15
15
15
15
15
8
Balance of trade $mln
110
89.5
88.4
87.3
87.5
87.5
Gov’t debt to GDF
77.4
76.4
82.2
80.9
79.7
84.6
Economic growth in Mongolia slowed further to 1.4% in the first half of 2016. On the supply side, mining and agriculture lifted the gross domestic product by 2.5 percentage points, while industry and services pulled it down by 1.1 points. On the demand side, a drop in household consumption by 10.9% wiped out positive contributions from government consumption, gross capital formation, and net exports. Household income declined by 10.4% year on year in the second quarter, and unemployment edged up to 10.4% at the end of July from 8.3% at the end of 2015.
M ACROECONOMICS AND DEMOGRAPHICS General market segmentation Based on average purchase size, lifetime value and acquisition cost we defined Under Armour customers in Mongolia’s general segmentation as geographically, demographically and behaviorally. Geographic segmentation Ulaanbaatar
Ulaanbaatar is Mongolia’s capital and largest city. A municipality the city is not part of any province and its population as of 2015 1.4 million almost half of the country’s total population
Darkhan and Erdenet (e-Commerce)
Second and third largest cities which has over 300 thousand population combined as of 2015
City
Demographic segmentation Age
12-17, 18-34, 35-46
Sex
Male and female
Income
Under $5000, $5001-$20000, $20001+
Education
High school graduate, college, postgraduate
Occupation
Sportsman, blue-collar, white-collar
Behavioral segmentation Sport fans (NBA fans, Premier league fans etc)
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M ACROECONOMICS AND DEMOGRAPHICS Targeted UA market segmentation in Mongolia
Sporty
Budget conscious
Elite sports
UA market segmentation
Fashion Sports
Everyday wearers
M ACROECONOMICS AND DEMOGRAPHICS
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Targeted UA market segmentation in Mongolia Sporty. Traditional segment of the sports apparel, shoes and accessories market. These consumers are actively involved in fitness or sports on a regular basis. They are usually looking for a good quality sports apparel that has the performance required to support them in their chosen field of activity. Many of these consumers would go to the gym or some form of fitness class (Very popular in Ulaanbaatar) on a regular basis or participate in some form of organized sport. They are most interested in well-known brands that offer higher quality apparel. They are willing to pay a higher price (within reason) for a suitable product. Elite Sports. Consumers in this particular market segment are highly committed to a particular sport, and probably train more than 10 hours per week. Some may be professional
athletes, but the majority are serious competitors in their chosen sport. They are particularly interested in sport shoes that are designed for a particular function (such as running, cycling, basketball, and so on) and typically seek out more modern innovations and technologicallyadvanced products. This will be a high involvement purchase decision for these consumers and will tend to be relatively brand loyal as a result. Everyday Wearers. It is a very mainstream market. It consists of a wide variety of people who are looking to purchase sports apparel to wear on day to day lifestyle basis. Because they do not wear the apparel for any specific sporting purpose, they are less concerned with the actual quality and performance specifications. They are most interested in comfortable
apparel that represent good value for money. They tend to be quite attracted to very well-known brands because they consider that to be a safe, low risk choice. Fashion Sports. This is an emerging segment that is looking for sporty looking fashion apparel. They do NOT buy the product for its sports function, but for its style, look and brand image (for their social/self identity). As this market tends to be teenagers, young adults and young professionals, they want brands that are unique to themselves, not brands that their parents wear. Budget Conscious. Like any market there are a proportion of people who are very budget conscious, or will buy cheaper apparel on occasions. These consumers are after low quality, low priced shoes that have a sporting look about them.
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S PORTING GOODS MARKET Mongolia’s estimated market size of SG market 2016
2017
2018
2019
2020
Apparel market size 83,470,461 90,148,097 97,359,945 105,148,741 113,560,640 Footwear market 25,041,138 27,044,429 29,207,984 31,544,622 34,068,192 size Accessories market 8,347,046 9,014,810 9,735,995 10,514,874 11,356,064 size Total sporting good market size (Retail 108,511,599 117,192,527 126,567,929 136,693,363 147,628,832 value) 71,617,655 78,518,993 86,066,192 94,318,421 103,340,183 Formal market 36,893,944 38,673,534 40,501,737 42,374,943 44,288,650 Informal market
Key end-user sports in Mongolia Those sports are very popular among Mongolian sport fans. • • • • • • • • •
Basketball (Most famously NBA) Soccer (Premier League, La Liga, Bundesliga, Serie A, Ligue 1, UEFA Champions league) Mongolian national wrestling Fighting sports Bodybuilding and fitness Judo Wrestling Boxing Ice hockey
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S PORTING GOODS MARKET Competition in Mongolia’s SG current market (Formal Market)
20%
24%
1% 13%
30% 4%
8%
adidas Nike Puma New Balance Reebok Under Armour Other
S PORTING GOODS MARKET
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Mongolia’s global retail index According to A.T. Kearney’s Global retail index 2015, Mongolia reemerges in 5th place behind rapid growth and low market saturation. Mongolia’s country risk is among the highest in the GRDI, but it also has the highest market potential (see figure 3). GDP has grown at a CAGR of 11 percent since 2010, driven mainly by copper and coal mining, while its retail sales growth rate is among the highest of any developing market in Asia.
Mongolia is one of the Emerging luxury markets (up to five brands) along with Angola, Botswana, Chile, Nigeria, Oman, Peru, Sri Lanka, and Uruguay
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S PORTING GOODS MARKET Mongolian retailing industry
Foreign investment in retail business
Mongolia has been transferring into market economy since 1990, as the privatization process was carried out in the trade sectors since the state owned retail organizations transferred into private ownership and their structure and the reform process speeded up entirely. Today one of three business entities engaged in commerce business and over 30000 business branches conducting retail business activities.
This year Korean retail giant eMart opened 9000 sqm first hypermarket in Ulaanbaatar and planning to open 29 more branches nationwide in next 5 years. Also Dutch retailer Spar signed contract with Mongolian partners to open their stores through the Mongolia in coming years. Also this year Shangri-La finished its construction 500 mln USD invested Shopping mall (We planning to open UA Mono brand store here), hotel and apartment complex in Ulaanbaatar.
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S PORTING GOODS MARKET Current distribution channels for SG in Mongolia (Formal market)
2% 3%3%
Wholesale (Multibrand)
19%
Footwear Specialy Stores Mono Branded Specialty Stores 45%
28%
Ecommerce (Multibrand) Ecommerce (Mono Branded)
G EOGRAPHICAL EXPANSION
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Mongolia divided into 21 provinces and Capital city Ulaanbaatar. Ulaanbaatar is the biggest city and its population as of 2015 over 1,4 million and is the our only market. UA Mongolia team will run 4 Mono branded store in the Ulaanbaatar downtown area and will sell products to second and third largest cities are Darkhan and Erdenet (400’000 population combined) through the mono branded eCommerce. In the provinces people are living nomadic ways, we won’t focus there.
G EOGRAPHICAL EXPANSION
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Key malls in Ulaanbaatar - Shangri-La Mall The Shangri-La Mall is located at the heart of Ulaanbaatar, a prime location for a wide range of shopping, dining and entertainment. It delivers a relaxed yet world-class shopping experience that will satisfy all your shopping aspirations. On top of that, the mall offers a variety of fine dining establishments as well as a food court with international cuisines. Featuring an IMAX cinema and children’s playground, it is a place where each member of family can enjoy amidst a perfect mix of highend labels, fast fashion brands and diverse entertainment options all under one roof.
G EOGRAPHICAL EXPANSION Key malls in Ulaanbaatar - Hunnu Mall
Largest shopping mall in the country variety of brand stores, outlets, cinema, entertainment and food courts.
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G EOGRAPHICAL EXPANSION Nomin department store The Nomin Department Store is the oldest shopping mall in Mongolia. Mongolian cashmere and leather stores and Nike and Puma mono branded stores located there.
Ulaanbaatar department store One of the largest shopping mall in the country.
Zaisan area Luxury residential area of the city which has some brand stores through the area.
C HANNEL EXPANSION UA Brand Sales Channel Plan • • • • •
In 2017, Mono brand store will be open inside the Shangri-La mall, which was built by estimated cost of $500 million. Within the year, UA brand mono store will open inside the Hunnu Mall, one of the biggest mall in Ulaanbaatar. In 2018, Mono brand store will open in Zaisan area of Ulaanbaatar, where high-income residents live. Mono brand store will open in Ulaanbaatar Mall, Downtown Ulaanbaatar In 2017, UA brand will launch www.underarmour.mn website to start online sales across the country.
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C HANNEL EXPANSION Channel expansion 5 years milestone
UA 2nd Mono Brand Store UA 1st Mono Brand Store
Biggest seller in Mongolian SG market
To launch UA UA 3rd Mono eCommerce Brand Store
UA 4th Mono brand store
2017 Store1 Store2 eCommerce Store3 Store4 Winner
2021 Jan 2017 Jun 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2021
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C HANNEL EXPANSION Channel expansion plan Channel Expansion
2016
2017
2018
2019
2020
2021
Wholesale (Multibrand)
0%
0%
0%
0%
0%
0%
Footwear Specialy Stores
0%
0%
0%
0%
0%
0%
Mono Branded
0%
80%
77%
74%
71%
68%
Specialty Stores
0%
0%
0%
0%
0%
0%
Department Stores
0%
0%
0%
0%
0%
0%
Ecommerce (Multibrand)
0%
0%
0%
0%
0%
0%
Ecommerce (Mono Branded)
0%
20%
23%
26%
29%
32%
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P &L TOTAL TOTAL P&L
Local Currency 2017
EXCHANGE RATE 2250 Net Sales Cost of Sales Product (Gross) Margin
4,776,398,820
6,454,881,434
1,546,141,943
2,108,404,839
2,725,238,512
3,569,820,731
4,681,284,386
344,319,044
479,729,661
768,743,738
1,206,578,089
1,773,597,048
% of Net Sales
18.2%
18.5%
22.0%
25.3%
27.5%
18.2%
18.5%
22.0%
25.3%
27.5%
189,046,099
207,050,760 10%
-
-
189,046,099 10%
279,518,580 8%
272,678,901 8%
0%
207,050,760
155,272,945
279,518,580 8%
0%
% of Net Sales Operating Profit
2021
3,493,982,250
% of Net Sales OPEX - Total Operating Expenses
2020
2,588,134,500
% of Net Sales Operating Overhead SG&A
2019
1,890,460,988
% of Net Sales
Marketing SG&A
2018
489,225,158 11%
286,583,929 8%
387,292,886 6%
0%
0%
286,583,929 8%
0% 387,292,886
6%
919,994,159 14%
6%
6% 1,386,304,162
19%
21%
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P &L DETAILED 2017 888,889 888,889 26,667 3.0%
2018 1,200,000 1,200,000 36,000 3.0%
2017 2019 888,889 1,620,000 888,889 1,620,000 26,667 48,600 3.0% 3.0%
2018 2020 1,200,000 2,187,000 1,200,000 2,187,000 36,000 43,740 3.0% 2.0%
862,222
1,164,000
862,222 1,571,400
1,164,000 2,143,260
20192021 2020 1,620,000 2,952,450 2,187,000 1,620,000 2,952,450 2,187,000 48,600 59,049 43,740 3.0%2.0% 2.0%
2021 2,9 2,95 59,0
ales d pricing t%
Total Sales Preferred pricing Discount %
ales
Gross sales
urns owances ts / co op wns enue
Sales returns Sales allowances Discounts / co op Markdowns Net Revenue
5,173 3,449 8,622 4,773 840,205
3,492 2,328 5,820 2,078 1,150,282
5,173 4,714 3,449 3,143 8,622 7,857 4,773 2,805 840,205 1,552,881
3,492 4,287 2,328 2,143 5,820 10,716 2,078 3,270 1,150,282 2,122,844
4,7145,787 3,1432,893 7,857 11,574 2,8054,311 1,552,881 2,868,836
4,287 2,143 10,716 3,270 2,122,844
5,7 2,8 11,5 4,3 2,868,8
Product in Country
Cost of Product Freight in Country Duties Air freight Freight to Customer Inventory Returns Inventory adjustments Cost of goods sold
565,122 15,000 84,768 6,000 6,000 565 9,719 687,174
777,591 17,000 116,639 7,000 7,000 778 11,062 937,069
565,122 1,018,690 15,000 16,000 84,768 152,803 6,000 7,000 6,000 7,000 565 1,019 9,719 8,705 687,174 1,211,217
777,591 1,343,760 17,000 16,000 116,639 201,564 7,000 7,000 7,000 7,000 778 1,344 11,062 9,919 937,069 1,586,587
1,018,690 1,774,375 16,000 15,000 152,803 266,156 7,0007,000 7,0007,000 1,0191,774 8,7059,265 1,211,217 2,080,571
1,343,760 16,000 201,564 7,000 7,000 1,344 9,919 1,586,587
1,774,3 15,0 266,1 7,0 7,0 1,7 9,2 2,080,5
Margin
Gross Margin GM %
153,031 18%
213,213 19%
153,031 341,664 18% 22%
213,213 536,257 19% 25%
ary and Burden ployee Expense ing tribution Cost ilities / 4 shops decoration/ rketing motion and Samples porate and Others nsulting al and Risk Management reciation
** ** ** ** ** ** ** ** ** ** **
54,000 5,400 4,201 6,722 150,000 84,020 6,871.74 2,500 1,680 2,500
59,400 5,940 5,751 9,202 150,000 92,023 9,370.69 3,000 1,840 2,500 3,000
54,000 65,340 5,400 6,534 4,201 7,764 6,722 12,423 150,000 2,000 84,020 124,230 6,871.74 12,112.17 2,500 3,500 1,680 2,485 2,500 2,500 6,000
59,400 71,874 5,940 7,187 5,751 10,614 9,202 16,983 150,000 2,500 92,023 127,371 9,370.69 15,865.87 3,000 4,000 1,840 2,547 2,500 2,500 3,000 5,000
65,340 79,061 6,5347,906 7,764 14,344 12,423 22,951 2,0003,000 124,230 172,130 12,112.17 20,805.71 3,5004,500 2,4853,443 2,5002,500 6,0005,000
71,874 7,187 10,614 16,983 2,500 127,371 15,865.87 4,000 2,547 2,500 5,000
79,0 7,9 14,3 22,9 3,0 172,1 20,805 4,5 3,4 2,5 5,0
G&A
Total SG&A
317,895
342,027
317,895 244,889
342,027 266,442
244,889 335,641
266,442
335,6
ght to Customer y Returns y adjustments goods sold
Salary and Burden Employee Expense Selling Distribution Cost Facilities / 4 shops decoration/ Marketing Promotion and Samples Corporate and Others Consulting Legal and Risk Management Depreciation
EBIT
(164,865)
(128,814)
(164,865) 96,775
(128,814) 269,815
1,571,400 2,893,401
2,143,260
341,664 788,265 536,257 22% 27% 25%
96,775 452,624
269,815
2,8
788,2
45
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P &L RETAIL 2017
2017 2018
4,033 3,216 664,915
4,033 5,314 3,216 2,900 664,915 877,503
5,314 3,447 2,900 2,753 1,142,932 877,503
3,447 3,014 2,753 2,185 1,142,932 1,502,020
3,014 1,951 2,185 1,991 1,502,020 1,946,867
1,951 1,991 1,946,867
f Product t in Country
Cost of Product Freight in Country Duties Air freight Freight to Customer Inventory Returns Inventory adjustments Cost of goods sold
448,818 10,000 67,323 449 4,488 531,077
448,818 595,824 10,000 11,000 67,323 89,374 --449 596 4,488 5,958 531,077 702,752
595,824 748,620 11,000 11,000 89,374 112,293 - - 1,497 596 5,958 7,486 702,752 880,897
748,620 949,276 11,000 13,000 112,293 142,391 - - 1,497 949 7,486 9,493 1,115,110 880,897
1,201,217 949,276 13,000 15,000 142,391 180,183 --1,201 949 9,493 12,012 1,115,110 1,409,613
1,201,217 15,000 180,183 1,201 12,012 1,409,613
Gross Margin GM %
133,838
Rent t
133,838 174,751
84,000
s & Maintenance s Opening Expense Occupancy Occupancy
Base Rent % Rent CAM Repairs & Maintenance Utilities Store Opening Expense Other Occupancy Rent & Occupancy
s n Salaries & Burden
Salary Wages Burden Store Salaries & Burden
30,240 6,480 6,480 43,200
30,240 32,017 6,480 6,861 6,480 6,861 43,200 45,738
Expense & Hangers Expense
Selling Expense Bags & Hangers Selling Expense
2,660 1,995 4,654
Mktg Mktg - NSO Marketing Telephone Consulting Other G&A Training Recruiting & Relo Travel Meals & Entertainment Office Supplies General & Admin
NSO ing
one lting G&A ng ting & Relo
& Entertainment Supplies al & Admin
ciation SG&A
T
1,995 1,330 1,330 3,325 1,330 93,309
13%
156,000 84,000 1,995 2,633 1,330 1,755 1,330 1,755 3,325 3,510 1,330 1,755 167,408 93,309
20% 20% 13% 18%
174,751 262,035 156,000 156,000 2,633 3,429 1,755 2,286 1,755 2,286 3,510 1,755 2,286 167,408 166,287
20% 23% 18% 14%
1,149,132 1,507,219
2021
Sales returns Markdowns Net Revenue
20%
1,149,132 885,717
2020 2021
returns owns evenue
Margin
672,164 885,717
2019 2020
Gross sales
ght t to Customer ory Returns ory adjustments of goods sold
672,164
2018 2019
sales
262,035 386,910 156,000 156,000 3,429 4,506 2,286 3,004 2,286 3,004
23% 26% 14% 10%
1,507,219 1,950,809
386,910 537,254 156,000 156,000 4,506 5,841 3,004 3,894 3,004 3,894
26% 28% 10% 8%
1,95
537,254 156,000 5,841 3,894 3,894
2,286 3,004 166,287 169,518
3,004 3,894 169,518 173,522
3,894 173,522
32,017 33,846 6,861 7,253 6,861 7,253 45,738 48,352
33,846 35,721 7,253 7,655 7,253 7,655 48,352 51,031
35,721 37,633 7,655 8,064 7,655 8,064 51,031 53,762
37,633 8,064 8,064 53,762
2,660 3,510 1,995 2,633 4,654 6,143
3,510 4,572 2,633 3,429 6,143 8,001
4,572 4,506 3,429 3,004 8,001 7,510
4,506 5,841 3,004 3,894 7,510 9,734
5,841 3,894 9,734
40,330 26,887 67,216
40,330 42,514 26,887 28,343 67,216 70,857
42,514 55,158 28,343 36,772 70,857 91,931
55,158 54,260 36,772 36,173 91,931 90,433
54,260 70,229 36,173 46,819 90,433 117,049
70,229 46,819 117,049
3,000 1,500 2,660 1,995 1,995 3,000 1,500 3,000 18,649
3,000 3,000 1,500 1,500 2,660 4,388 1,995 3,510 1,995 2,633 3,000 3,500 1,500 1,500 3,000 3,000 18,649 23,030
3,000 3,000 1,500 1,500 4,388 5,715 3,510 4,572 2,633 3,429 3,500 3,000 1,500 1,500 3,000 3,000 23,030 25,715
3,000 3,000 1,500 1,500 5,715 7,510 4,572 4,506 3,429 6,008 3,000 3,000 1,500 1,500 3,000 3,000 25,715 30,024
3,000 3,000 1,500 1,500 7,510 9,734 4,506 7,787 6,008 5,841 3,000 3,000 1,500 1,500 3,000 3,000 30,024 35,362
3,000 1,500 9,734 7,787 5,841 3,000 1,500 3,000 35,362
Depreciation Total SG&A
227,029
227,029 313,176
313,176 340,284
340,284 348,516
348,516 389,429
389,429
EBIT
(93,191)
(138,425) (93,191)
(138,425) (78,249)
(78,249) 38,393
38,393 147,825
147,825
% EBIT
-14%
-14% -16%
-16% -7%
3% -7%
3% 8%
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P &L eCOMMERCE TOTAL P&L
Local Currency 2017
EXCHANGE RATE 2250 Net Sales Cost of Sales Product (Gross) Margin
% of Net Sales OPEX - Total Operating Expenses % of Net Sales Operating Profit % of Net Sales
2020
2021
908,435,385
1,385,155,658
2,065,562,059
302,473,758 476,216,748
699,495,246
1,025,015,187
1,487,204,682
75,618,440
208,940,139
360,140,471
578,357,377
119,054,187
20.0%
37,809,220
% of Net Sales Operating Overhead SG&A
2019
378,092,198 595,270,935
% of Net Sales
Marketing SG&A
2018
47,621,675
10% -
20.0%
72,674,831 8%
0%
37,809,220
37,809,220
12%
6%
0%
0%
8%
15%
6% -
83,109,339
136,265,308
28.0%
123,933,724
-
72,674,831
71,432,512
10%
8%
0%
8%
26.0%
83,109,339
-
47,621,675
10%
23.0%
0% 123,933,724
6% 277,031,132
6% 454,423,653
20%
22%
M ARKETING PLAN SPS is the biggest sports channel television in Mongolia. Total of 5 channels are broadcasting international and national live sports events, also the most watched channel. Including: • • • • • • • • •
SPS World – Sport news, English Premier League, UEFA Champions League SPS Prime – English premier league, UEFA champions league live matches SPS Action – UFC fighting matches, English premier league, UEFA champions league live matches SPS Plus – Golf, cycling, wrestling, English premier league, UEFA champions league, UEFA Europa league live matches SPS Play – NBA, NHL live matches We will secure 3 years contract with SPS sports channel to broadcast our UA brand advertisements. Including: To become the general sponsor in opening of English Premier League live games. To become the general sponsor in opening of NBA Live games.
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M ARKETING PLAN Social media • • • • • •
Under Armour Mongolia official FACEBOOK page Under Armour Mongolia official TWITTER page Under Armour Mongolia official INSTAGRAM page Continuously displaying and promoting new products Within 2018, we will reach 400.000 followers in social media Operate www.underarmour.mn online shopping website.
Make a personal contract with Mongolian Sport’s stars. Including: • • •
Mongolian National wrestling champion Munkhbat Silver Medalists of Rio Olympic games 2016 Sumiya Mongolian National Basketball league player Sanchir
UA Soccer team •
We will have a UNDER ARMOUR Team in Mongolian National Soccer League
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M ARKETING PLAN Fantasy league challenges • •
• • •
https://basketball.fantasysports. yahoo.com/ https://fantasy.premierleague. com/ Under Armour Fantasy League competition will be organized amongst the amateurs of English Premier League Fantasy and NBA Fantasy players Every round winner Best manager of the month Best of season will be selected and rewarded UA brand gifts
Official sponsored partner to Mongolia national Olympic team •
Starts in 2019, we will make a contract with Mongolian national team in Tokyo 2020 Olympic games for 2 years.
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M ARKETING PLAN
SPS SPORT CHANNEL Activity 2
UA FANTASY LEAGUE CHALLANGE TEAM MONGOLIA PARTNER
SOCIAL MEDIA MARKETING
UA PUBLIG FIGURES
2018 2017
2019
UA SOCCER TEAM
2020
2021
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M ARKETING PLAN
Marketing Investment
2017
2018
2019
2020
2021
Sports Marketing
56,713,830
62,115,228
83,855,574
85,975,179
116,187,866
Brand Marketing - ATL
9,452,305
10,352,538
13,975,929
14,329,196
19,364,644
Brand Marketing - Digital
9,452,305
10,352,538
13,975,929
14,329,196
19,364,644
Brand Marketing - PR
9,452,305
10,352,538
13,975,929
14,329,196
19,364,644
Brand Marketing - Other
9,452,305
10,352,538
13,975,929
14,329,196
19,364,644
Ecommerce MWB Retail MWB (Minimum 5% of Retail Sales)
18,904,610
20,705,076
27,951,858
28,658,393
38,729,289
75,618,440
Total Annual Marketing Investment 189,046,099
82,820,304 207,050,760
111,807,432
279,518,580
114,633,572 286,583,929
154,917,154
387,292,886
C ONSUMER ENGAGEMENT
• • •
UA Mongolia will use social media as an engagement tool and not simply a platform We will engage customers with In-Product messaging using email, mobile and call center Communicate with VIP customers with promotions specifically for them
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O RGANIZATION
CEO CFO
FINANCE/AC COUNTING
HEAD OF ECOMMERCE AND IT
HEAD OF RETAIL
HEAD OF MARKETING
STORE MANAGER 1
STORE MANAGER 2
STORE MANAGER 3
STORE MANAGER 4
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S UPPLY CHAIN
UA SHANGRILA MALL STORE
UA HUB IN HONG KONG
UA HUB IN JORDAN
MONGOLIAN CUSTOMS
UA MONGOLIA WAREHOUSE
UA HUNNU MALL STORE
UA ZAISAN STORE UA HUB IN MIAMI UA ULAANBAAT AR DS STORE
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S UPPLY CHAIN Balance Sheet Metrics
Local Currency 2017
2018
2019
2020
2021
1,890,460,988
2,588,134,500
3,493,982,250
4,776,398,820
6,454,881,434
30
30
30
30
30
1,546,141,943
2,108,404,839
2,725,238,512
3,569,820,731
4,681,284,386
4
4
4
4
4
90
90
90
90
90
1,512,368,790
1,992,863,565
2,585,546,865
3,391,243,162
4,389,319,375
-
-
-
-
-
378,092,198
595,270,935
908,435,385
1,385,155,658
2,065,562,059
1,890,460,988
2,588,134,500
3,493,982,250
4,776,398,820
6,454,881,434
1,546,141,943
2,108,404,839
2,725,238,512
3,569,820,731
4,681,284,386
60
60
60
60
60
@ Dec 31 each year Accounts Receivable (in LC Value) Days Sales Outstanding (# Days) Inventory (in LC value) inventory Turns (pe year) Days in Inventory Capital Expenditure (in LC Value) - Retail - Wholesale - Ecom Total Capital Expenditure Accounts Payable (in LC Value) Average Days Payable (# Days)
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R EGULATORY Cooperate with the following government agencies to reject and push out false and non-authorized UA brand products
Authority of Specialized Inspection
The Authority for Fair Competition and Consumer Protection Agency
THANK YOU FOR YOUR ATTENTION
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