myEnso | Overview

myEnso is the first online supermarket in which the customer participates in determining the product range. By consistently implementing customer wishes, myEnso decisively changes the market and creates the best possible assortment and shopping experience.

The largest of all single markets - Fast Moving Consumer Goods - which comprises all products of daily life (full range of supermarkets), is larger than all other retail markets combined and is now embarking upon digitalization.

PricewaterhouseCoopers (PwC) forecasts that FMCG eCommerce will account for 3.6% of the total German FMCG market by 2022. This corresponds to a market volume of EUR 10.8 billion in FMCG eCommerce.

In February 2018, the industry journal e-commerce Magazin reported on how myEnso wants to revolutionize the industry.

myEnso is developing faster than the competition, already delivers to 25 cities nationwide, and is already the market leader in terms of product range boasting around 24,000 products.

The reasons for this include the following:

• myEnso serves the desire for maximum diversity (by the end of 2019: 100,000 products)
• myEnso serves people's desire for co-determination and participation
• Logistics in the central warehouse is 100% food oriented
• The shopping experience in stationary grocery stores will be replicated at myEnso online - for example through the myEnso navigation wheel which provides surprising shopping inspirations
• myEnso already serves the desire for reliability in delivery better than other suppliers

The unique and distinguishing feature, however, is the consistent focus on the individual. 12,000 people have already joined this idea and are constantly shaping myEnso through their wishes, suggestions, votes, and in the ongoing shop live test: the assortment, the functions, the shopping experience, the service, and the logistics.

All pioneers, as customers at myEnso are currently called, can already shop at myEnso.

The business model was developed in 2017; in 2018, myEnso created the systemic basis for the entire infrastructure comprising product range, IT and logistics, launched the shop, and tripled sales from EUR 340,000 to EUR 1.1 million. Scaling of the entire system is planned for 2019: A shop in which 100,000 products can be purchased for all the relevant needs of everyday life.

By building up our own warehouse and increasing the automation rate using innovative IT robotics, we will be able to supply around 100,000 customers by the end of 2019.

The founders and founding partners, such as the team neusta GmbH (Germany's largest eCommerce agency), have already invested EUR 2.65 million in myEnso's business development.

The financing round with the Companists will continue the consistent realization of myEnso's strategy and involve more people in the company's development.

The Companists' investments flow primarily into the development of mobile 24/7 supermarkets and regional logistics hubs. Their aim is to ensure a solution for the undersupply of small towns in rural areas and the inclusion of regional producers.

At present, nobody is delivering on the Internet’s promise for a comprehensive and complete supermarket assortment: to make a greater variety available online and conveniently anytime, anywhere.

Exactly this is myEnso's goal: To be the first online supermarket that serves every relevant need from a single source and delivers to every location at any time. Preferably with regional and new products, without waste, with high data protection and above all: Users decide what is on the shelf.

The best online supermarket for people, their needs and expectations - because they co-developed it right from the start: myEnso invested EUR 1.5 million to find out what the best online supermarket should look like. Today's myEnso online supermarket is the result of almost 350 ideas.

The shop assortment already includes 500 products and 50 manufacturers selected by the pioneers. myEnso asks its pioneers what can be improved every month.

You can read more about our customer orientation in our code of values.

The myEnso business model offers solutions for the central challenges of profitable online food retailing, with a decisive economic foundation and a clear, long-term distinction from competitors.

myEnso makes profits from selling supermarket products, logistics, delivery and brand services, knowledge management, media services, and from its own business model for the B2B market.

This makes myEnso the only online supermarket with four strong business and earnings pillars and thus makes us independent of operating solely on narrow food retail margins.

People-centricity: The consistent focus on the individual is already unique and automatically demands that everything else be done differently during implementation:

Every month, myEnso sends test boxes to its pioneers to try out and evaluate new products. This way, votes are collected on various products in order to improve them together with the manufacturers and to determine which products will be included in the range.

Competition

While the five largest food retail groups have a market share of almost 75% in the stationary sector, the online food retail market is still highly fragmented and largely undistributed. The largest market participant (REWE) has an online turnover of around EUR 100 million and a market share of 4%.

Online food retailing thus offers new competitors particularly good opportunities to generate significant sales and to participate in market growth at a disproportionately high rate. Examples from the non-food retail segments (fashion, electronics, etc.) show that new market participants with innovative business models can gain market shares over proportionately.

The following charts illustrate the market positioning of the competition today and in the future:

As of: November 2018

Projected Market in Late 2019

myEnso will increase its product range from 24,000 today to around 100,000 by the end of 2019. This concept works: Ocado in Great Britain is an online supermarket model comparable to myEnso. It has a great variety of products and an attractive service and, according to its own statement, is already making profits with this business model.

Amazon Fresh is expected to be the only competitor that will also offer a full range of more than 50,000 products in the future. However, it lacks myEnso's customer focus and cooperation with the manufacturers.

Today, 12,000 pioneers - i.e. customers - have already registered to help develop myEnso. By the end of 2018, this figure should be around 16,000.

At present, more than 50 large and small manufacturers are utilizing the new relationship with customers as an advantage for optimizing products and services. Companies such as Diagio, Iglo, Unilever and Erlenbacher are among the big ones. Two manufacturers are already using myEnso’s fulfillment services.

With regard to the B2B business model, 10 senior citizens' homes in and around Bremen / Hamburg are now affiliated as are five rural towns. We will integrate the first locations in rural Schleswig-Holstein in the first quarter of 2019.

In terms of infrastructure system partners, myEnso's partner for knowledge management is Kantar, the second largest market research company in the world. Other important partners include team neusta (Germany's leading company for IT and eCommerce development) and Grenzebach (one of the world's leading developers of automation logistics).

In theory, myEnso has 100% market relevance as an online supermarket with an assortment for all the relevant needs of everyday life (everyone needs FMCGs). However, taking into account the particularities of the individual providers, everyone has their own preferences and therefore prefers one provider over the other.

A Germany-wide representative customer survey on myEnso's business model, conducted by the market research company Kantar, showed that 7.7 million German households prefer myEnso compared to other online supermarkets.

With its business model and some unique solutions, myEnso also addresses commercial target groups. myEnso's fulfillment and marketing services are relevant to all FMCG manufacturers, large and small. This also applies to the approximately 13,000 German homes for the elderly and outpatient services, every location in rural areas with up to 5,000 inhabitants (15% of the total German population) and every office with a number of employees of 25+ that is not located in the immediate vicinity of a supermarket.

Currently, the online share of the German food retail trade is around 1.4%. According to market analyses, this corresponds to a market volume of EUR 2.6 billion and is expected to grow by over EUR 2 billion to EUR 4.7 billion by 2022.

myEnso is not an adventure; it is a perfectly planned and validated business model.

Founded at the end of 2016 and launched in May 2018 with the first version of the shop, myEnso has not only achieved a great deal to date, but can also prove the essential success factors for the business model with what it has achieved:

The market is ready and myEnso is not only able to acquire customers in the tough competition for customers. It can also reliably supply the majority of them nationwide with the currently largest online supermarket assortment from a central warehouse. The same applies to the functional and demand proofs provided for the other earnings areas. Moreover, the cooperative is well-accepted.

The myEnso business model is modular and can be adapted to changing market conditions very flexibly. All the relevant components of the myEnso system (logistics, product range strategy, winning pioneers, delivery, etc.) are in place and have been fully tested in the live application with 12,000 pioneers, over 50 manufacturers, and B2B business partners.

The two founders wanted to prove this before external money was raised for the subsequent scaling of the system.

The myEnso system will gradually ramp up as of 2019. Starting with 24,000 products today, the system will grow to comprise 100,000. It will increase from 12,000 pioneers to 100,000 customers. From manual warehouse logistics to approx. 45% degree of automation. From three delivery times per week today toward freely selectable delivery times and much more.

myEnso’s Concrete Goals for 2019

At present, myEnso is acquiring funds at various levels through various channels (banks, private investors, venture capital) in order to realize the growth path described above.

With the Companisto funds, myEnso intends to specifically advance the following area, for which there is great demand: The supply of rural areas. Here, the number of participating locations is to grow from 5 today to 50 by the end of 2019.

Today, 12,500 people in rural areas in the five affiliated towns already have the opportunity to make use of myEnso's complete supermarket assortment. The myEnso team needs the capital collected for system optimization and market rollout:

Level 1: Development of the prototype of the flexible Tante Enso shop (mobile 24/7 supermarket)

Investment Threshold of EUR 100,000

• Pilot project in the first location
• Connecting 2,500 people in the country with a supermarket

Level 2: Start market rollout of Tante Enso shop

Investment Threshold of EUR 400,000

• Production of 7 more mobile Tante Enso shops
• Total coverage: 20,000 people in eight rural locations

Level 3: Market rollout Tante Enso shop + prototype development of Tante Enso logistics hub

Investment Threshold of EUR 600,000

• Production of 4 more mobile Aunt Enso shops
• Total coverage: 30,000 people in 12 rural locations
• Test of the first logistics hub as a local starting point for the myEnso vehicles to increase the efficiency of the logistics processes

Level 4: Market rollout of the Tante Enso shop + market rollout of the Tante Enso logistics hub

Investment Limit of EUR 800,000

• Production of 4 more mobile Aunt Enso shops
• Total coverage: 40,000 people in 16 rural locations
• Market rollout of the Tante Enso logistics hub in 3 locations, each strategically supplying at least 6 locations and 6 homes for the elderly in the immediate vicinity in the first step

Target for 2019: At least 50,000 people in around 20 towns and villages and around 1,000 people in around 20 retirement homes will initially be served and supplied via three logistics hubs.

Norbert Hegmann and Thorsten Bausch founded the company at the end of 2016.

In the first round of financing, myEnso raised approx. EUR 1 million in capital. Some of the investors in this amount are also business partners. These include the Vollers Group and team neusta, each of which acquired 5%, on the basis of an implied company valuation of EUR 8.8 million at the time:

• team neusta GmbH (Germany's largest eCommerce agency)
• Vollers Group GmbH (third generation European logistics company)
• Tino Hammer (former Financial Director of the Ardenne Engineering Company)
• Ralph Sandstedt (former Managing Director of REWE Wholesale)
• Private individuals (Jochen Volkers, Detlev Siebold, Oliver Janssen)

myEnso is grateful for any support and would be delighted if the Companists also become pioneers and shop at myEnso, help to shape myEnso, participate in myEnso - and thus create Germany's largest online supermarket together with us.

myEnsos summer party 2018, which was attended by over 500 pioneers and 26 manufacturers. Here you can see a large part of the myEnso core team, which currently consists of 25 employees. On the right the two founders Thorsten and Norbert - a total of around 80 people from IT, logistics, market research, communication, and design are currently working for myEnso.

Enso eCommerce GmbH
An der Reeperbahn 6
28217 Bremen
Germany

Telephone: +49 (0)421 – 989 673 0
Email: teilhaber@myenso.de
Website www.myenso.de
Social https://www.facebook.com/groups/141574116469976/