THG Ingenuity

x
Beet It
for
James White Drinks
Commercial Proposal
26 March 2021

STRICTLY CONFIDENTIAL - NOT TO BE SHARED WITHOUT PERMISSION OF THE HUT GROUP

Contents

Proposal Overview

Commercial Overview

Build – Technology & Infrastructure

Fulfil – Logistics & Services

Manage – Digital Services

Commercial Framework

Onboarding Process

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THG Ingenuity + Beet It
The Proposal

This proposal outlines THG Ingenuity’s commercial model to build, fulfil and manage, fully transactional Beet It direct-
to-consumer website(s) to grow the US Market share and increase sales and brand awareness.

THG Ingenuity will harness it’s end-to-end platform and deep expertise to:

• Build – Host, build, integrate and continuously develop a best in class direct-to-consumer digital presence on THG Ingenuity’s
eCommerce platform
• Fulfil – Fulfil orders with warehouse management systems, integrated payments, fraud prevention, distribution, logistics and
customer services that are relevant and competitive to each local market
• Manage – Drive immediate growth through THG Ingenuity’s fully management and dedicated structure of trading managers and
performance marketing and media experts with proven in-house expertise.

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THG Ingenuity + Beet It
Executive Summary

MARKETS DISCUSSED THG SERVICES COMMERCIALS TIMELINES

Global Platform – designed for Core Platform – end-to-end, global Launch CAPEX: Minimum Term:
internationalising brands – select any eCommerce platform with THG: For website design, build, operations set 3 Years for Core Platform
markets globally: • Website & Features up. 12 months for Digital Services
• Hosting & Info-Sec - £95k for the master (1st site)
Phase 1: Initial master sites for the US • Data Management - £45k per subsequent market Go Live Date:
• Payments & Fraud • Av. master site launch time: 12- 16
market
• Logistics: Pick & Pack + Postage Platform Fee: weeks
• Customer Services (CS) • For use of platform, hosting, security, • Subsequent markets: 4-6 weeks
Phase 2: Expansion markets and
maintenance: • Launch work starts when PO received
territories to drive global DTC growth Digital Services – all optional – can use - 8% + min. £ guarantee for launch CAPEX
THG for some/ all, can manage in-house or - Alternative license fee model available • Signed contract required when site
Final country selection can be made later – use another agency: goes to be built.
i.e. you can name some markets and • Website Trading & Merchandising Operations Costs: • THG will provide a draft contract which
confirm others over time. • Performance Marketing Benefit from the negotiating scale of total can then be edited
• Influencer Marketing THG: 125m+ parcels, $2bn+ transactions
• THG Brand Partnerships - Logistics, Transaction fees, Customer Next Steps:
• Content Production Services – see detail in deck • THG can provide:
• Translation - P&L template & case studies: for you to
Optional Digital Services: build your business case if needed
We recommend that Beet Its sequence: • Rate card – pick and mix as suits your - Due Diligence pack: IT, Info-Sec, Data
• Stage 1: select markets & confirm Core needs – see details in deck Management
Platform – get started
• Stage 2: Digital Services as you finalise
the consumer proposition

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This Executive Summary is indicative, all details are subject to further scoping and costing.
 THG Ingenuity + Beet It

Strategic Challenge:

Beet It wish to grow their DTC in the USA as currently they are mainly utilising Amazon and
selling to the Elite Sporting World. Currently shipping around 1x 40ft container per month from
the UK and there competitor is achieving 10x the volume, so have a real ambition to grow their
market share and wish to implement a wining Digital strategy for their DTC to dominate the US
market.

Strategic Point of View:

THG will build a best-in-class DTC Master Website for Beet It, launching into the US market,
incorporating the full end-to-end solution from THG Ingenuity’s expert teams, across customer
service, fulfilment, payments, fraud, digital, trading and more. To assist Beet-it with their
ambitious growth plans to increase their US market share.

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THG Ingenuity + Beet It Core Commerce
Fraud & Payments
The End-to-End Solution Analytics

Technology &
Trading &
THG Ingenuity offers a ‘one stop solution’, helping partners build, Infrastructure
Merchandising Hosting
fulfil and manage their DTC eCommerce capability

Global in nature – logistics into 169 countries to scale Digital Operations

Invested in your growth – a revenue share partnership Services Global Fulfilment
Digital Marketing
Simplicity – one partner for end to end D2C eCommerce
Credibility – DTC is all and everything we do
Modular services – or platform and logistics only
Brand & Creative Delivery
Management

Translation Production

Customer Service

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THG Ingenuity – Managed Services Core Commerce
Fraud & Payments
The Commerce Model Analytics

Technology &
Trading &
Merchandising Infrastructure
Hosting
§ Platform and Global Fulfilment
§ Strategic Integration Program + Performance Planning
§ Full Trading Resource Digital Operations
Services Global Fulfilment
§ Full Performance Marketing Digital Marketing

§ Optional Ongoing Strategic + Data Resource

§ Supply Chain + Merchandising Resource
Brand & Creative Delivery
Management

Translation Production

Customer Service

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THG Ingenuity – Platform & Operations only Core Commerce
Fraud & Payments
The Commerce Model Analytics

Technology &
Trading &
Merchandising Infrastructure
Hosting
§ Platform and Global Fulfilment
§ Functional, Fast GTM Approach (6 Weeks)
§ Merchandising Only Digital Operations
Services Global Fulfilment
§ Feed Management Digital Marketing

§ Automated Data Reporting

§ Supply Chain + Merchandising Resource
Brand & Creative Delivery
Management

Translation Production

Customer Service

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// 9
 “THG had clear expertise in digital and the infrastructure to deliver our business
goals. Alongside this, they were able to move at pace, to deliver an end product “THG Ingenuity will help Nestle Health Science reach more customers
that would ensure we were confident in having a customer facing store. THG are around the world with science based nutrition solutions. We are confident
also able to offer us clear eCommerce expertise as an extension to our internal that THG will help fast-track our brands’ global expansion” – NHSc Head of
team, with expertise in trading, data science, analytics, supply chain and Strategy & Business Acceleration
marketing” – Nintendo, Head of eCommerce

“This partnership will significantly fast-forward our digital plans and create an
incredible new shopping experience for customers. We have a unique opportunity “A game changer in speed and cost efficiency to market, service to
to move with the rapidly changing retail landscape and leapfrog ahead to an end customers, and delivering the dream of ELEMIS.com in a box
experience that exceeds customers’ demands for online shopping that’s both easy globally, profitably and successfully. For once, a technology
and inspirations. We’ll combine the best of bricks-and-mortar with The Hut business partner who delivers what they promise.” – ELEMIS,
Group’s world-class expertise, to advise, excite and inspire our customers with Head of eCommerce
new ways of shopping we know they’ll love.” – Homebase, CEO

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 A COST EFFICIENT PLATFORM

THG Acquisition Showcase Cost-Savings and Decreased Complexity

eCommerce 13.7%
Hosting & Development Core Commerce Technology & Plug-ins Logistics Tech Actual total
Platform
tech cost of
Case Study: Online beauty brand, technology 3.2% net revenue
costs as % of net revenue pre THG acquisition
-42%
2.4% Tech costs
Cost as % of net revenue

post re-
1.6% platforming
1.2% 0.2% • No hidden costs
2.8% • One single partner
• Easy to scale
2.3% • Low risk

Platform Licence Hosting & Ongoing IT Testing, Conversion Marketing Tech Check-out Integrations, Warehouse & Actual Total Tech Costs
& Website Info-Security Consulting & Optimisation (e.g. content Anti-Fraud & Logistics Software Tech Costs Post Re-
Development Maintenance (e.g. A/B testing, etc) management, etc) Other Integral Apps Platforming

No. of
vendors: 6 3 7 11 6 7 4 44 1

Tech costs on previous platform

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 A COST EFFICIENT PLATFORM

As Well As Swift Expansion By Leveraging an End-to-End Solution

In order to succeed DTC, other functionalities are required in addition to the core eCommerce All functions delivered as a single service resulting in
low cost, low risk, simple management, and efficient
TECH & GLOBAL internationalisation
DIGITAL SERVICES
INFRASTRUCTURE OPERATIONS

Hosting & Development Fulfilment & Logistics Traffic Generation

• Global hosting • Warehouses on relevant markets • Marketing experts within the
• App development • Order handling industry
• Ongoing consultancy • Couriers • Channel experts for optimal
• Ongoing IT services budget allocation

Core Commerce Add-ons & Plug- Content Creation and

Customer Services Management
ins
• Personalisation • Content creation for SKUs,
• Customer services for brand and
order related queries campaigns etc.
• Navigation aid
• Local language speaking CS • Trading & Merchandising
• Real-time messaging
• Visual merchandising
• Content distribution
• Payment method integrations
Localisation
• Anti-Fraud Engine • Translation
• Local content creation

Fragmented outsourcing with 30+ suppliers means: Acquired brand launched + 6 websites
High tech costs that Elevated execution Challenging to in 16 weeks post-acquisition
Time consuming
skyrocket with scale risk internationalise

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// THE END-TO-END SOLUTION

THG Ingenuity - Technology

Core Commerce
Fraud & Payments
Analytics

& Infrastructure
Technology &
The End-to-End Solution Trading &
Merchandising Infrastructure
Hosting

Digital Operations
Services Global Fulfilment
Digital Marketing

Brand & Creative Delivery

Management

Translation Production

Customer Service

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THG Ingenuity – Core Commerce
eCommerce technology, strategy, build and support to deliver
a world class website

§ 16 years of continuous development § Multiple templates with 60+ fully § Order history, order status, order
§ Feature and integration rich platform responsive widgets tracking and reordering, account
§ Built for international scale § Social logins including Facebook, management and marketing
§ Real-time data and analytics Twitter, Weibo and weChat preferences
§ Machine learning based product § Special offer suite including; gift with
recommendations purchase, product sampling, multi-buys
and standard discounts

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THG Ingenuity – Payments
Payment options that enable a relevant checkout
experience, anywhere in the world

Benefit from our comprehensive ecosystem of payment

partners to align with the way your customers want to
purchase anywhere in the world. Ensuring:
ü Optimised conversion rates
ü Regionally relevant customer experience
ü Reduced time to market

§
§
§
15 payment integrations
200,000 subscription payments per month
2000 orders per minute
41 43
Payment options Currencies available

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 THG // PAYMENT INTEGRATIONS

40+ Payment Methods To Maximise Conversion Rates: Europe Example Markets

UK Germany France Italy Spain Ireland Netherlands Sweden Denmark Portugal Austria Belgium Norway Finland Switzerland Poland Russia

Card PayPal Card Card Card Card Ideal Klarna Card Multibanco Card Card Card Card Card Card Card

PayPal Klarna PayPal PayPal PayPal PayPal Card Card PayPal Card Klarna BCMC Klarna Klarna PayPal DotPay Paypal

AliPay Card AliPay ApplePay ApplePay ApplePay PayPal PayPal Klarna PayPal PayPal PayPal PayPal eBanking FI ApplePay PayPal ApplePay

ApplePay AliPay ApplePay AliPay Google Pay AliPay Klarna Trustly ApplePay AliPay AliPay AliPay Google Pay PayPal Google Pay Google Pay GooglePay

Clearpay GiroPay Google Pay Google Pay AliPay Visa Checkout AliPay AliPay Google Pay Google Pay Google Pay WeChatPay None/Credit AliPay AliPay AliPay Yandex

Klarna SEPA Visa Checkout SEPA WeChatPay Google Pay WeChatPay None/Credit AliPay WeChatPay SEPA Google Pay UnionPay Trustly Sofort Visa Checkout Qiwiwallet

WeChatPay Google Pay None/Credit None/Credit Trustly WeChatPay Google Pay ApplePay Trustly None/Credit Sofort Ideal AliPay Google Pay WeChatPay WeChatPay AliPay

Google Pay None/Credit WeChatPay WeChatPay None/Credit None/Credit BCMC Google Pay WeChatPay ApplePay None/Credit Sofort WeChatPay None/Credit Ideal None/Credit Credit

Visa Checkout WeChatPay SEPA Visa Checkout Visa Checkout UnionPay None/Credit WeChatPay None/Credit WeChatPay SEPA ApplePay ApplePay None/Credit ApplePay

None/Credit Sofort UnionPay SEPA Ideal Multibanco ApplePay None/Credit WeChatPay SEPA

UnionPay UnionPay BCMC KCPCreditCard Visa Checkout ApplePay Ideal

KCPCreditCard ApplePay Multibanco Multibanco DotPay Visa Checkout

Ideal KCPCreditCard Ideal

Multibanco Visa Checkout

Ideal

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THG // PAYMENT INTEGRATIONS

40+ Payment Methods To Maximise Conversion Rates: APAC Example Markets

China Hong Kong Taiwan Korea Thailand Japan Singapore Indonesia Australia
AliPay Card Card Card Card Card Card Card Card

Card PayPal PayPal PayPal Paypal PayPal PayPal Paypal PayPal

WeChatPay AliPay ApplePay KCP_CreditCard AliPay AliPay Afterpay

UnionPay ApplePay AliPay AliPay ApplePay ApplePay AliPay

PayPal UnionPay Google Pay UnionPay Google Pay Google Pay ApplePay

KCP_BankTransf
Visa Checkout WeChatPay UnionPay WeChatPay None/Credit WeChatPay
er
None/Credit Google Pay WeChatPay Google Pay None/Credit WeChatPay Google Pay

ApplePay Visa Checkout None/Credit None/Credit UnionPay UnionPay None/Credit

KCP_BankTransf
Google Pay None/Credit Visa Checkout WeChatPay Visa Checkout Poli
er
Visa Checkout Visa Checkout

UnionPay

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 THG Ingenuity – Fraud Management Platform
Scalable fraud prevention- made for retail, by retailers

Increase your acceptance rates, whilst minimising fraud

ü Tailored to your business requirements
ü Powered by Machine Learning and Data
ü Human intervention for high risk orders
ü Extensive API capability
ü Device fingerprinting

99.59
Uses adaptative behavioural analytics, flexible engines and identity verification tools

0.04
§
§ Manual reviews prompted by FMS when high risk orders identified
§ Unified UI provides al information on orders and data entities
§ Chargeback team can challenge all defendable chargebacks
%
§ Customisable rules engine can mix templated and customer built rules Chargeback rate vs. approval rate vs. 90% industry
§ Order is enriched with additional data, card identified, IP address, device identifier 0.7 industry average average

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THG Ingenuity – Hosting
High performance network for lower latency, increased uptime
and maximum control

Unlike other eCommerce companies, THG owns it’s own

enterprise grade, high speed global infrastructure

Agile, personal and

92 24/7
Partner ecosystem
deliver world class of world leading IT
solutions quicker vendors and
than our distributors
competitors
countries served 365 support across
30+ Data Centres Globally 5 continents

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 THG Ingenuity – Analytics
Insights and actionable data from automated reporting

§ Top level sender performance

§ Campaign level performance
§ Engagement tracking
§ Domain level performance and monitoring
§ RFM
§ Retention reporting
§ Customer activation
§ Lifetime Value (+Predicted)
§ Feedback/Survey Tools

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// THE END-TO-END SOLUTION

THG Ingenuity - Operations

Core Commerce
Fraud & Payments
Analytics
The End-to-End Solution
Technology &
Trading &
Merchandising Infrastructure
Hosting

Digital Operations
Services Global Fulfilment
Digital Marketing

Brand & Creative Delivery

Management

Translation Production

Customer Service

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THG Ingenuity – Global Fulfilment
Global platform. logistics, payments, customer services

32
Data Centres
Manchester, UK
Warrington, UK
16
Global Warehouse And
Guernsey, UK Wroclaw, Poland Fulfilment Sites
Nevada, USA New Jersey, USA

44
California, USA Kentucky, USA

43
Delhi, India Ningbo, China
Texas, USA

Dubai, UAE Hong Kong

Global
Payment Integrators Singapore 1
Currencies
Singapore 2

195 200+
Active Courier Services
Shipping Countries Melbourne, Australia

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THG Ingenuity – Global Fulfilment
Cross borders with our global network of 200+ active couriers

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GLOBAL OPERATIONS

Best-In-Class Service Levels Offered to Global Consumers

UK USA Germany Poland Russia UAE

Avg.5 Day –
STANDARD Capitals
Avg. 2 Days Avg. 2-3 Days Avg. 2 Days Avg. 2-3 Days Avg. 1-2 Days
Avg.11 Day -
Nationwide
Hermes DHL DHL DHL SkyNet Naqel Express
Royal Mail Fedex Paket DPD Boxberry PUDO Aramex

PREMIUM Same / Next Day 1 Day 1 Day 1 Day 3 Days 1 Day

Hermes Fedex DHL DPD DHL Fetchr
DPD InPost
Collection Point
& Locker Service
 FULFILMENT STRATEGY

Market Leading UK Fulfilment Strategy for

20% CTR back to DTC site from branded
tracking communication emails –
driving more sales

Beet It Consumers
Standard avg. 2-3 Day
Collection Point & Locker Services
Next Day Service
Next Day Evening Service
Same Day Service (average 0.5 days order-to-delivery)

25% of customers in the UK choose a premium service comprised of Same Day, Next Day and
Nominated Day Delivery

Extended Same Day Delivery Offering: 30% of UK THG customers now offered Same day
Delivery due to extended coverage. The site cut-off for this is 12pm.

Next Day Delivery Available to all of UK & EU

• All Postcodes across the UK can access next day, with the only restrictions on Sunday for
5% of the population.
• 95% of Postcodes across EU have access to next day.
THG Ingenuity – Delivery Management
Simplified and optimised global carrier service management

THG’s delivery management provides a quality brand experience from checkout

to doorstep, and our expansive global courier network offers the local delivery
solutions needed to scale your business globally.

Delivery Options Carrier Management End To End Tracking

Multiple delivery services Back-end shipment Fully branded on-site

presented at checkout creation, allocation, tracking and email
manifesting, and label communications
service throughout the delivery
journey

Reporting Genius Professional Services

Live AI-assisted business

intelligence and analytics
reporting
Consultancy services for all
global logistics solutions
20 %
CTR back to DTC site from branded
tracking communication emails –
driving more sales
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 Supply Chain: Regulatory Compliance:
ü Stock Management & Reconciliation ü CBEC Compliance Information & Support
Demand Planning: ü Physical Stock Checks q Regulatory Consultation Packaging:
ü PO Raising, Booking & Receipting q Product Registration
ü Forecasting Accuracy Analysis ü Packaging Consultation
ü Discrepancy Investigation and Resolution q Regulatory Translation
ü Competitor Research and Analysis ü Finance Settlement q Nutritional Review & Sign Off ü Unbranded Packaging Sourcing, Negotiation
ü SKU Placement & Procurement
ü Supplier Quality Assurance q Nutritional Testing Governance
ü New Customer Acquisition Analysis ü Expiry Reporting & Management q Third Party & Governing Body Accreditation ü Damages Reporting, Management
ü Click-through & Conversion Rate Analysis and Troubleshooting
ü Cover Optimisation q Labelling & Online Content Reviews
ü Customer Lifetime Value Analysis ü Supplier Compliance q Prop 65 Set Up and Management ü Damage Mitigation Testing
q Macro Analysis ü Inventory Reporting q Product Level Stability Testing ü Process Implementation & Training
q Search Engine & Marketplace Trend Analysis ü Dead Stock Reporting q CBEC Registration q Packaging Solution Design
v Demand Forecasting AI q SKU Rationalisation Analysis q Brexit Support q Bespoke Packaging
v Warehouse Optimisation AI q Batch Control & Traceability q Segregated Pack Station Set Up
v Inventory Replenishment Modelling & q Premium Packaging / Gifting
Machine Learning q Personalisation
q Temperature Control Packaging
q Optimisation Assessments

THG Ingenuity
ü Standard Offering
q Additional Charges Apply
v Next Level Capability
Operational Services // 27
 THG Ingenuity
ü Standard Offering
q Additional Charges Apply

Operational Services

Storage & Fulfilment: Data & Insight:

ü Inbound Processing ü Invalid Discount Alerting
ü Decant & Sortation ü Suspicious Order Alerting
ü Storage ü Bulk Buyer & Fraud Checks
ü Co-located Stock ü SKU Availability & Out of Stock Reporting
ü Voyager WMS Usage Day to Day Operations: Logistics & Freight: ü Overstock Reporting
ü Aged Stock Management ü Inventory Reporting
ü SKU Set Up ü COO Classification
ü Outbound (Pick & Pack) ü Risk Identification & Mitigation
ü Cancelling Customer Orders ü Management of Freight Issues
q Inter Warehouse Transfers ü AOV, AUV, UPO, CPU Analysis
ü Inbound Discrepancy Management ü Courier Integration, Management &
ü Next Day / Same Day Delivery Reporting
q Kitting / Re-labelling / Re-work Optimisation
ü Allocation Reporting & Monitoring ü Efficiency & SLA Reporting
q Inserts; Leaflets & Samples ü Rate Negotiation
ü Lost Orders (lost in post) Resolution ü Aged Stock Reporting
q Hazmat Handling & Storage ü Volume Consolidation and Cost Optimisation
ü Returns & Refund Processing
q Dangerous Goods Delivery ü Courier Damage Rates q Split Shipment Reporting
ü Fast Moving Line Reporting
q Product Volumetric Dimension Scanning q Health Certificates q Complaint Analysis
ü Customer Return Co-ordination
q Back Orders q Veterinarian Certificates q Customer Review Analysis
ü QC Checks
q Warehouse Capability Reporting q Hazmat Review
q Operational Consultation
q MSDS Form Creation
q Bespoke Personalisation Projects
q Imports / Export Document Creation
q Allocation Optimisation Mechanics
q HS Code Classification
q Attempted Order Reporting
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THG Ingenuity – Warehouse Management
End-to-end WMS solution, designed to continuously scale
with your business

§ Built to maximise uptime

§ Designed to record dispatch volumes at peak times
§ Tried and tested – powering THG’s own global growth
§ 16 THG fulfilment centers across 4 continents

Provides a simple, single point of integration to your system via

our Application Programming Interface (API).

§ Inbound
§ Fulfilment
§ Inventory control
§ Kitting
§ Performance management
§ Flow management
§ Packaging groups
§ Automated replenishment
§ Integration with conveyors
§ Automation
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THG Ingenuity – Production
Best-in-class product innovation and manufacturing
facilities

Transform your time to market and supply chain strategy with

our unique end-to-end product service for beauty and nutrition
brands

Manufacturing in our state-of-the-art facility. Our 120,000 sqft.

manufacturing facility incorporates warehousing, production, laboratories
and manufacturing support.

Our dedicated innovation team work closely with our trusted suppliers and
in-house chemists to ensure we’re at the forefront of science and consumer
trends.

We continue to make significant investment in our R&D facilities, with our

world-class team of cosmetic scientists. Our broad range of technical
capabilities allow us to create bespoke products, including beauty
formulations, sports nutrition products and pills.

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THG Ingenuity – Production
Production on Demand Personalisation

With an investment of £28m, our production facility in Manchester,

UK features market leading machinery across:
§ Cut and sew fabric printing
§ Embroidery
§ Direct to garment printing
§ UV printing
§ Laser engraving
§ 2D and 3D sublimation
§ Garment screen printing
§ Large format and cut sheet printing
§ Ability to print on textiles, plastic, paper, glass, metals and garments
- with various options & techniques in place

All products are currently produced and fulfilled from our 150k sqft. UK
facility, servicing customers globally.

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A P P E N D I X C – S U S TA I N A B I L I T Y
 A Certified CarbonNeutral® End-to-End Solution
A MORE SUSTAINABLE WAY TO DO BUSINESS
BE SMARTER. LESS WASTEFUL. DRIVE POSITIVE IMPACT

End-to-end specialist sustainability capabilities across business functions

Ingenuity is a Plastic neutral through in-house “Hard to recycle”
Reforestation
CarbonNeutral® platform plastic recycling sites consumer plastics
solutions
solutions
• THG owns and operates multiple recycling • recycle:me makes it easy for brands to • Offset all or part of your corporate
• Ingenuity is a certified CarbonNeutral® facilities, which can process over 20,000 tonnes offer a free-for-consumer recycling carbon footprint annually
platform in accordance with the of plastic a year, more than offsetting our scheme
annual plastic production • Enable customers to plant trees
CarbonNeutral protocol – the leading • recycle:me isn’t limited by in-store drop during their shopping experience
global framework for carbon neutrality • We recycle a wide range of plastic types, off points; all customers need to do is automatically through THG’s API
including PET, PP, and HDPE, through our in- take their recycling to a local courier
house facilities point – we take care of the rest

Decarbonising: Sustainable products, packaging "Closed loop" industrial SEDEX

Solar roll out program & deliveries waste management services accredited
(2021)
• In 2021, we are rolling out solar farms • Our packaging materials are made from FSC • THG offers bespoke recycling services • THG is a proud member of SEDEX,
at our production and recycling sites, as certified and recyclable materials, reducing to support brands in dealing with one of the world’s leading
a major step in the decarbonisation of weight and carbon footprint of deliveries industrial plastic waste responsibly, and collaborative platforms with focus
our operations • THG transport products using bulk line-haul creating closed loop systems for your on ethical trade
where possible, which reduces carbon products and packaging
emissions by 30%

THG (eco) powered by Ingenuity

ENABLING SUSTAINABLE E-COMMERCE
SUSTAINABILITY

THG Ingenuity – Sustainability Solutions Examples

R E F O R E S TAT I O N CLOSED LOOP RECYCLING
Plant a tree above a certain order value to drive both positive Manage hard to recycle plastic with recycle:me
revenue and carbon impact making it simple for consumers to reduce waste

Green Check-out Options

Eco Delivery
Usually delivered within 7 working days
FREE + plant a tree in your name
THG Ingenuity – Customer Service
Continued investment, end-to-end efficiencies and economies of scale

Offering an integrated approach between our

proprietary customer service platform and
dedicated customer service team across
Europe North America Asia Pacific
30 languages.
350 in UK 52 in UK
§ THG Ingenuity’s customer services handle Staff 350 in UK 42 in Salt Lake City 28 in Shanghai
order-related queries 24/7 (to be 8 Sydney

confirmed upon discussion) Phone, Email, Live Chat,

Phone, Email, Live Chat, Phone, Email, Live Chat,
§ Brand related queries directed to the Channels Weibo, WhatsApp, ABC,
Product Review Trusted Shop
partner’s CS team Revoo

§ Return, refund and replacement 85% of calls answered in 20 seconds

management SLAs 95% emails answered in 24 hours

§ Bespoke weekly/monthly reporting 30 second av. live chat response

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// THE END-TO-END SOLUTION

THG Ingenuity - Digital Services

Core Commerce
Fraud & Payments
Analytics
The End-to-End solution
Technology &
Trading &
Merchandising Infrastructure
Hosting

Digital Operations
Services Global Fulfilment
Digital Marketing

Brand & Creative Delivery

Management

Translation Production

Customer Service

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THG Ingenuity – Trading & Merchandising
Dedicated service to maximise site performance, audience
engagement & influence transactions

Maximise conversion opportunities and drive transactions at scale.

A data driven approach

§ Decisions fuelled by real time data

§ Wealth of internal experience

§ Reporting delivered for maximum visibility

A localised approach

§ Native talent manage their territories

§
Trading strategies reflect local nuances, competition and calendars

Differentiate proposition in the market

Sarah Adams
ELEMIS Dedicated Trading Manager

// 37
 THG Ingenuity – Trading & Merchandising
Case Study – MyProtein UK: Using data during the BBC series ‘how to stay young’
Thursday 7 April 2016 Fri 8 April 2016

21:00 21:30 21:31 21:35 21:35 08:00 12:00 14:00+

Program airs on Traffic to Inulin Fast Seller report Merch team Marketing & Meeting to New landing Series of trading
BBC One product increases flags Inulin & notified, supplier trading teams maximise sales page built with & marketing activity
6000% low stock QTY contacted for begin actions and target educational to prolong spike
stock existing base content & offers

£8,034.58 Product Revenue - Inulin

£5,600.00
£1,244.30

1008%
£2,606.27 £3,267.00
£2,534.25 £1,679.00
£978.63
£1,416.54
£966.39
£121.32
Increase in product revenue
April 7th April 7th April 7th April 7th April 8th April 8th April 8th April 8th April 8th April 8th April 8th during 48hr period
16:00 21:00 21:00 22:00 09:00 10:00 12:00 14:00 17:00 20:00 22:00

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 THG Ingenuity – Trading & Merchandising
How we deliver “value add” with more than just discounts?

Brand Gift With Mix &

Bundles Subscriptions Community
Experience Purchase Match

Engagement with Brand Value Value Value Brand Engagement

Enhanced brand experience
Additional discounts via
Free gift with purchase
Customer Experience Buy multiple products
User generated content,
Customer Impact: through greater use of content
multiple product purchase;
(From own brand or
Automatic ordering renewal from merchandise or
social feeds; editorial
mixed product or same within fixed parameters. grooming range
to educate customers. other partnership brands). articles.
product. with a fixed price.

Product Exclusives/Limited
Exclusive Content Personalisation Loyalty Gifting
Selector Editions

Customer Experience
Engagement with Brand Value Value Customer Experience Value Product exclusives and
Keyword-driven landing pages Or, personalised (member Site interface to match limited editions that are
Customer Impact: to drive traffic around brand name) via site use as a
Registered customers
products to pre-defined
Product bundles in gift
available to buy only
accrue points via purchase. boxes as part of range.
or product. logged in member. customer requirements. through the D2C site for
a limited time.

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THG Ingenuity – Performance Marketing
Execute & optimise the multi-channel marketing strategy

Data Strategy Paid Search/Shopping Email/CRM Influencer

SEO Paid Social Event Sampling/Inserts

Analytics Display / VOD / DOOH Content/Social Affiliate

3 billion 60% +600m 4,000+ 187m 11m 100m 30,000 3.8 billion
Emails Sent Per Non-paid site Visits in last Videos Managed PPC Social Media Influencer Affiliate Paid Social
Annum traffic 12 Month Produced/Yr Visits/Yr Followers Reach Partners Impressions/Yr

Provides the optimum strategy for budget allocation & activates the
program in each digital channel

// 40
THG Ingenuity – Influencer Platform
Data driven global influencer network

THG's methodologies for influencer marketing, in conjunction with

our award-winning proprietary tool that uses predictive modelling,
has resulted in +100% increase in sales volumes driven by influencers.
Influencer network spanning 35 languages and 173 territories.

20,000 + verified, tested and trusted creators across beauty, fitness and wellbeing
exclusive to THG brands and Ingenuity Beet Its.

360 degree influencer programme management, from campaigns, to events, to

performance insights and analytics.

We spent £6M on influencer marketing in 2020, exemplifying deep internal

35 173 14%
investment.

In 2019, influencer marketing generated 14% of THG sales.

Languages Territories of THG Sales

// 41
THG Ingenuity - eCRM
Email marketing designed for DTC

A bespoke and personalised eCRM strategy to deliver a personalised buying

experience at every touchpoint.

Designing an engagement strategy that drives repeat purchase with Beet It’s
most engaged customers

§ Mobile optimised templates

§ Advanced segmentation

§ List management

§ Intelligent trigger campaigns

§ Bespoke journey orchestration

20%
§ A/B testing

total THG group sales driven by CRM

// 42
THG Ingenuity – THG Media
Connecting brands with their target audiences, across a variety
of media

§ Gift with purchase § Social

§ Reward portals § Competitions
§ Sampling and inserts § Editorial content
§ Outdoor media

Our internal network spans more than 30 brands across a range of sectors, across
beauty, nutrition, luxury, lifestyle, consumer and marketplace.

We provide brands with market-leading consultancy lead by channel-specific

experience across online and offline media.

804m 13m
Site Visitors Per Year Total Groupwide Social Media Followers

// 43
THG Ingenuity – THG Digital 330,000 sq. ft of £135m THG Dedicated beauty studios,
dedicated content investment based at influencer zone, video editing
Unique digital first in-house creative studio
production space Manchester Airport suites, Beet It viewing rooms
and event spaces

// 44
THG Ingenuity – Brand & Creative
Build your digital brand

// 45
 THG Ingenuity – Translations
Unrivalled expertise & global coverage

The localisation engine of THG’s £1.5bn DTC eCommerce business

§ Translation & localisation: 6000+ native speaking subject matter
specialists in more than 160 languages
§ Content origination: Creating unique multilingual content
§ Performance linguistics: Multilingual SEO and PPC optimisation
§ Marketplace content: Copywriting, translation and optimisation solutions
for global marketplaces
§ AI driven translation: Scalable machine translation solutions with human
optimisation
§ 24/7 project management
Lookfantastic saw a 94% uplift in site visits and a 76%
increase in gross revenue after the first month

// 46
 THG Ingenuity – Strategic Consultancy
Research based strategic analysis to maximise the D2C opportunity
Insights
§ Audiences & Customers - the browsing & transactional behavioural analysis of unknown,
known & engaged customers

§ Markets – category & competitors; user journey & heuristic analysis.

§ Brand – 4 Ps; product, place, price & promotion “THG are also able to offer us clear
eCommerce expertise as an extension
Outputs & Recommendations to our internal team, with expertise in
§ Trading - trade plan inclusive of customer moments, key calendar events trading, data science, analytics, supply
& market relevancies, KPI expectations, investment needed
chain and marketing.”
§ Brand Marketing - Campaign & marketing recommendations, forecasts, revenue and Head of eCommerce
spend KPIs
Nintendo
§ UX – user journey amends
§ Product – data based NPD

// 47
COMMERCIAL
FRAMEWORK

// 48
// COMMERCIAL FRAMEWORK

One Off Fee

Mutually Incentivised Commercial Model That Provides Flexibility And Scale Ongoing Fee

Build Fulfil Manage

1. Launch Fees 2. Demand Fulfilment 3. Platform Fee 4. Demand Creation

Website Build, UX Mapping, Payments, Logistics, Customer Technology, Hosting, Security, Marketing, Trading, Data,
Operational Setup Services Development Content

§ One off cost for design and § Payment transaction fees § Options available for Beet Its § Marketing and trading
build of master website § Pick & Pack costs § For Tech costs covering: resources, charged per FTE
§ Reduced cost for all § Postage costs § Platform usage & § Production of creative
subsequent international § Customer Services costs per maintenance assets, charged per
sites customer contact § Annual THG development campaign
§ Low CAPEX to launch § Benefit from THG’s § Hosting & info-security § Dedicated, fully-managed
§ Efficient to scale to multiple economies of scale: average § Out of the box marketing & team
countries 20% saving using THG’s conversion apps § Pick your package tailored to
§ No 3rd party or integration purchasing scale § End – to – end software budget and industry
costs § No individual contracts integrations – payments, § Competitive rate card
required with payment and fraud, logistics, couriers, § Leverage THG experts from
third-party logistics customer services 108+ nationalities
providers § All options include a § Benefit from lessons learned
revenue share component = on Premium THG brands
win-win aligned objectives

// 49
/ / C O M M E R C I A L MODEL – BUILD

Cost What it Covers Payment

UX Design
Out-of-the-box Proven Theme, Create Site Map,
Content Gap Analysis
Master Website
Site Build
Website Build
1st site a brand launches
SKU Provisioning
on the THG platform £95,000
Integrate Payment Methods 50% invoiced when
UAT Tests & Fixes project starts
Standard launch time:
12 weeks Operations Fixed
1. Launch Fees

Logistics Setup 50% invoiced when site

Customer Services Setup goes to build
Payments Setup – e.g. THG as MOR
Reporting Setup – e.g. ERP Data
Master Website
Optional Add On Strategic Insight And Proposition Development
+ £30,000 To Design A Customized Solution
Strategic Consultancy & Creating A Bespoke Brand Experience
Bespoke Design
Subsequent Country Website Build
Websites SKU Provisioning
Per Additional Country 100% invoiced when
Localisation – e.g. Payment Methods Fixed
£45,000 site goes to build
(re-using the master and UAT Tests & Fixes
localising) Translations not included

// 50
/ / C O M M E R C I A L MODEL – FULFIL Costs What it Covers Payment

£2.75 per contact received Phone, email, SMS, social, live-chat (per thread) Fixed
Customer Service
from £260 per month, per set-up
Trustpilot account setup/ management Fixed
+ CPC in line with email for management

Payment transactions of 41+ providers integrated

% charge per transaction:
Payments Subject to order volume, AOV, market mix and mix Variable
Approx. 2.52%
of payment methods used

Fraud Management THG’s Fraud Management Platform

Fixed charge per transaction: 10p Fixed
System Varies by type of fraud & volume

Operational Handling £2 Per Parcel

Receipt and Management of Returned
2. Demand Fulfilment

Returns Subsequent Units £0.30 Per Unit Fixed

Shipments and Units as Appropriate
Stock Disposal £0.50 Per Unit
1. Warehouse Operations Monthly from Launch
Inbounding
Varies by Beet It profile – see slide below
Storage Variable
for indicative costs.
Warehouse & Stock Management
Final costs to be scoped.
Logistics
2. Pick & Pack
Labour
3 x Areas to Consider Varies by THG DC – see slide below for
Address labelling Variable
indicative costs.
Standard Packaging Materials
Indicative costs provided Final costs to be scoped.
on following slides
3. Postage Varies by:
Varies by shipment – see slide below for Courier used and standard & express services
Variable
indicative costs. Weights & distance
Final costs to be scoped. Special products – eg glass, hazardous
Demand Planning
£500/mo for up to 100k yearly shipments Supply Chain
Operational Services £1k/mo for 100k - 500k yearly shipments Regulatory Compliance Fixed
£2k/mo for 500k+ yearly shipments Day to Day Operations
Data, Reporting & Insight

// 51
/ / C O M M E R C I A L MODEL - MANAGE

Cost What it Covers Payment

THG has benchmarked these ongoing tech costs

vs the equivalents for a “self-create” platform

1. Platform Usage & THG’s

Platform Development
Fixed monthly licence fee: 2. Hosting & Info-security
£2k per month for master site 3. Conversion Optimisation Apps
3. Platform Fee

£1.5k per month per additional site 4. Payments, Fraud, Other Integral Apps
*subject to annual review (Includes Software Provision) Fixed
Platform Fee
+ 5. Ongoing IT Maintenance % Revenue Net of Monthly from Launch
Tiered % net revenue share: 6. Warehouse & Logistics Software VAT
When sales are £0 - £1m: 5% Integration. (Includes Software Provision)
When sales are £1 - £4m: 3.5%
When sales are £4m+: 2.5% All of the above tech costs are required to
provide a fully functioning, secure, integrated
platform.

THG’s platform uses one codebase end-to-end

which ensures a seamless integration.

// 52
/ / COMMERCIAL MODEL - MANAGE Costs What it Covers Payment

Management & optimisation of Beet It media budget

Classic channels (THG Precision)
Quote and statement of work provided
Paid: search & social, SEO, E-CRM, Affiliates Fixed Monthly from launch
Beet It can select some/ all channels with THG
Price to be scoped
Beet It can decide resource allocation per channel

Influencers (THG Society) Fully managed influencer channel programmes,

Large campaign (eg launch), sampling campaign, influencer selection, recruitment, briefing Per campaign or
Performance Marketing Fixed
always-on monthly campaign Management of sampling, content support monthly from launch
Price to be scoped Campaign analytics & optimisation

Media partnerships (THG Media)

Sampling, parcel inserts, banners, competitions, Use the reach of THG brands across markets by partnering
Fixed Per campaign
email blasts with THG brands – e.g. Lookfantastic, Glossybox, Myprotein
CPM rate card

Platform licence fee

Access to THG’s CRM platform Fixed Monthly
£1500 per month
4. Demand Creation

Email - CPM
50p per 1000 emails
eCRM Marketing campaigns Pay as you go Monthly
SMS
Avg. 5p/send based on market and volume

Audience Management (optional) Facebook, Google account integration

Fixed Monthly
£800 per month Ongoing segment creation

Fully dedicated THG Trading Manager

Option 1
Local language, local native
Trading Service:
Website Management Leads the development of Trading Plan strategy
From £65,000 per year per FTE
Execution & optimisation Fixed Monthly from Launch
2 x Options Available Option 2 Shared THG Trading Manager
Merchandising Service: Implements the Trading Plan provided by the Beet It
From £45,000 per year per market Execution & optimisation

Quote provided per brief or monthly retainer THG Studios digital content production as required Assets
Per Brief or Monthly
Digital Content Content for website launch produced belong to Beet Its. Fixed
(Retainer)
Content for trading & marketing campaigns Re-use across markets and channels

£12,500 based on a standard build

Localisation of content and optimisation for search by
Translations with 50 SKUs, 5 landing pages, 5 hygiene pages, 5 Fixed Per Brief
professional native speaking subject matter experts
blogs. Final cost subject to scoping.

// 53
// LOGISTICS WAREHOUSE OPERATIONS & PICK PACK COST STRUCTURE

Indicative Fulfilment Rates For Select THG Global Distribution Centres

Primary DC for the
following markets/ UK DC Poland DC USA DCs Dubai DC Singapore DC Australia DC USA DCs China DC
region

Inbounding (Per
Unit)
£0.06 £0.05 £0.08 £0.07 £0.06 £0.08 £0.05 ~ 20%
Pallet Storage (Per
£6.00 £6.00 £6.00 £12.00 £10.00 £6.00 £10.00
Pallet Per Month)

Pickface Storage
(Per Pickface Per £0.50 £0.50 £0.50 TBC £1.20 £1.00 £0.50 £1.00 Average saving using THG’s
Month)
warehousing solutions
Pick & Pack (Per
£0.55 £0.45 £0.65 £0.60 £0.55 £0.65 £0.45 ü Experienced teams and complete
Unit)
capabilities
Standard
Packaging (Per £0.35 £0.35 £0.35 £0.80 £0.45 £0.35 £0.80
ü Global DC network
Shipment)
ü Millions invested into improving
and expanding DC capabilities
Pick & Pack annually
Pick & Pack Standard Pack
standard service Address Labelling
Labour Materials ü Cutting-edge, flexible WMS
includes:
Examples of Specialist
Bundle Samples, Leaflets, Product Labelling, Branded Custom Packaging Additional Stock ü Continuous monitoring of service
Additional Print on Demand Packaging (e.g.
Manipulation Inserts Stickering Packaging / Packing Counts
Services: glass) levels

// 54
// LOGISTICS POSTAGE COST STRUCTURE

Indicative Postage Rates For Select Global Markets

UK USA
THG Postage – Example Markets
Address Address

USA DC – Kentucky, New Jersey, Texas,

~ 30%
Primary THG DC Used UK DC – Warrington
California

Average saving using THG’s

Standard delivery to 0.5kg
purchasing scale

ü Benefit from THG’s economies of

Bespoke quote provided using the coverage
£2.49 up to 15kgs of THG’s network of USA DCs to lower costs
scale
Standard delivery to 2kg
and increase speed
ü Best-in-class SLAs and
uncompromised service across 5
continents
Standard delivery to 5kg
ü Direct carrier integrations

ü Tracked services as standard

• Postage costs can be provided from (a) 16 x THG DCs to (b) 195 x countries, using (c) 200 x couriers, for (d)
Standard and Express delivery times. ü Real-time global performance
monitoring

// 55
// PERFORMANCE MARKETING FEE STRUCTURE

Indicative Costs for Marketing Resources to Manage the Media Budget

Beet It Media Spend £250k £500k £1m £2.5m £5m £5m+

SEO Resource ü ü ü ü ü Bespoke

Paid Search ü ü ü ü ü Bespoke

Paid Social ü ü ü ü ü Bespoke

Organic Social ü ü ü ü ü Bespoke

Email ü ü ü ü ü Bespoke

Content ü ü ü ü ü Bespoke

Affiliates ü ü ü ü ü Bespoke

Beet It Marketing ü ü ü Bespoke

Total cost £65k (1) £130k (2) £292.5k (4.5) £445k (7) £715k (11) Bespoke

• 1.0 Marketing FTE = £65,000

• Flexibility to select channels & flex resources
• Final Statement of Work provided during the performance planning phase – Beet It to then sign off.

// 56
// DIGITAL CONTENT FEE STRUCTURE

Indicative Annual DTC Website Example - Ongoing Digital Content Menu

Assets CPA Cost

SKU Photography 80 £ 8.26 £ 660

11 Tactical Trade Campaigns 330 £ 164.65 £ 54,334

1 Hero Campaign 70 £ 257.30 £ 18,011

Evergreen Assets 70 £ 379.68 £ 26,577

£ 99,583

// 57
ONBOARDING
PROCESS

// 58
 // ONBOARDING PROCESS

Indicative Timelines - From Discussion To Launch

TIMELINE (12-16 WEEKS)

Project Scoping Strategic Planning Solution Design Performance Planning

Brand Immersion Market Landscape User Journey Trading Strategy

Scope and Define Competitor Analysis Site Map Marketing Strategy
Timelines and Schedule Audience Personas Brand Experience Influencer Marketing Strategy
Brand Digital Strategy Wireframe Data Analytics and Dashboards
Roadmap and KPIs Content Gap Analysis
Website Page Design
Brand Configurations
User Testing
Site Iterations
Digital Brand Design Site Build &
Launch
Guidelines Testing

Governance Content Production

Contract & SLAs Evergreen Toolkit
Campaign Toolkit
Operations
Logistics & Finance

This process starts once the PO for the launch cost is raised

// 59
Standardised Integration Approach + Strategic Consultancy Module

STANDARDISED INTEGRATION APPROACH

STRATEGIC CONSULTANCY & BESPOKE DESIGN
Ingenuity’s out of the box offering delivers a templated website design and
A customised solution, tailoring THG’s templated website design and UX to execute a best-
UX solution. Use of THG’s page templates proven to aid conversion. Full
in-class brand experience. All founded on strategic insight and proposition development to
eCommerce performance plan and operational plan. Offered to all of our
ensure a differentiated and standout experience from launch.
client’s as standard.
Benefits: Data-driven strategic recommendations and proposition development deliver an
Benefits: quick go-to-market approach using THG’s tested and optimised
executional strategic plan for D2C. Customised website design and user experience
best-practice eCommerce website templates
OR CHOOSE TO tailored to your brand and audience needs.
WHAT YOU GET: UPGRADE
WHAT YOU GET:
Research & Recommendations - Lite
All Of The Services Within The Standardised Integration Approach PLUS:
Site Map Creation
Depth Research And Recommendations
Content Gap Analysis
Strategic Appraisal
Performance Marketing Channel Plan
Strategic Proposition Development
Trading And Campaign Plan
Strategic Roadmap
Forecast
Creative Development & Bespoke Website Design
Operation, Finance And Logistics Planning
Bespoke Wireframe Development
Website Build

+£30,000

// 60
// DEDICATED TEAM OF EXPERTS

THG Functional Experts Work With You To Core Commerce

Fraud & Payments
Launch And Scale Your Online Business Analytics

Beet It will be assigned a THG Client Partner to be its Trading &

Merchandising Hosting
account contact, liaison and coordinator for all
requirements.
Client Partner
Additionally, a per-territory THG Trading Manager will be
Digital Marketing Global Fulfilment
assigned to Beet It as well. They are experts dedicated to
managing your website’s day-to-day operations, trading
strategies and governance.

Brand & Creative Delivery

THG Trading managers work within the same team at Management
Ingenuity, enabling a fast and coordinated approach.
Translation Production

Customer Service

// 61
 THANK YOU

Simon La-Band| Head of Enterprise Sales| simon.laband@thg.com

STRICTLY CONFIDENTIAL - NOT TO BE SHARED WITHOUT PERMISSION OF THE HUT GROUP