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Strategy

SEIZING MARKET OPPORTUNITIES

Douglas‘ growth strategy relies mainly on four key pillars: a leading multi-channel offering, an attractive and innovative product portfolio, geographic expansion and operating excellence. Together, these four pillars are Douglas‘ growth and profitability drivers in the selective beauty and cosmetics market – the most attractive and fastest growing segment in the European beauty market.

Multi-Channel

Douglas wants to further build its pioneering role in multi-channel retailing and also exploit opportunities in omni-channel retailing going forward. We will continue to closely integrate our brick and mortar, online and mobile retail offering. For this reason, we make every effort to further enhance and standardise the appearance of our stores. At the same time, we focus on optimising the service experience of our customers across all our points of sale since that is the key differentiator factor versus our competitors. By further extending our e-commerce activities, we want to make the online platform even more attractive and important to our customers and further increase customer activity and retention.

Product portfolio

Douglas wants to remain the innovation driver in the selective beauty market. With a constantly updated offering up to 35,000 products* and related services, we are the biggest specialist for high quality cosmetics. We plan to continue expanding our offering to include exclusive and innovative offers in the perfumery, facial care, decorative cosmetics and accessories. In addition, we will seek to increase revenues by introducing new and complementary subcategories beyond the traditional product ranges across our key segments perfumery, decorative cosmetics and skincare. The “Professional Beauty” category that includes skin cleansing brushes is a prime example. Importantly, we will also expand Douglas’s private label portfolio since it allows us to attract new customer groups and further differentiate ourselves from competitors.

Expansion

Douglas wants to strengthen its market leadership in Europe and further build its international presence through profitable growth by closing gaps in the store network across important existing markets and by expanding in new markets. Where Douglas already has a presence, we seek to reach or further strengthen market leadership. We do so by executing a multi-format expansion strategy that entails continued store roll-out, the implementation of new trade concepts (e.g. shop in shop concept) as well as select small-scale acquisitions. The successful expansion in 19 countries proves our ability to access new markets with suitable models.

Business model

Douglas focuses strongly on operating excellence. The systematic optimisation of international structures has given the company a powerful organisation. As a multi-channel retail pioneer, Douglas has integrated its brick and mortar, online and mobile retail businesses. Measures such as the Europe-wide integration of overhead functions or disciplined product category management with central pricing have been consistently developed over the last years. To further increase performance, Douglas relies on ongoing initiatives to continue systematising and centralising the business model for instance in sales and marketing as well as CRM.

* Based on the German online shop offering as of March 31, 2015.