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© 2016 Magento, Inc. Page | 1 Trailblazing a New Path to Digital Engagement Sept 27 th , 2016 David Wise - Head of Strategic Partnerships

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PowerPoint Presentation

Trailblazing a New Path to Digital EngagementSept 27th, 2016

David Wise - Head of Strategic Partnerships

2016 Magento, Inc.Page | #

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(n) person who makes a new track through wild countrytrailblazer

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Trailblazer.

That one word captures the spirit of the journey we are all on.

Defined literally, a trailblazer is a person who makes a new track through wild country.

I think wild country is the perfect way to characterize the commerce landscape

Whats being a Trailblazer have to do with managing an online store - Think about it:

Youre in wild country. You want to make it to the very top. But you know you must be prepared for anything. You anticipate that environment will be rapidly changing, that obstacles will appear in your path that you must overcome. You need to be committed to your journey, and you need to be prepared.Isnt that exactly what todays commerce environment requires of you?

You want win for your customers and grow your business. You want to get to the top. You need to stand out. You encounter ups and downs along the way.competition, consumer expectations, changing technology. Youll fight internal battleslegacy, timeline, budget

But youre a trailblazer, and you are ready for this.

In any organization, A Trailblazer carries the torch for innovation, for change

You know what it takes. A clear vision, a great team behind youand the best possible tools at your disposal...

And.thats what we are here for.

Get you to the top of the mountain.

Lets take a look at the some of the industry trends that are impacting online retail

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OC&C Strategy Consultants on behalf of the Fashion Retail Academy.

OC&C found that one of the key drivers of the change is the adoption of social media channels to buy and engage with fashion, with the report showing that 58% of 18- to 24-year-olds purchase clothing based on seeing peers wearing an item on social media and 72% report an appetite for shopping directly from social platforms.

UK retailers are reportedly expecting to spend 22% of their overall marketing budget on social media in the next five years, compared to an average 9% now. In addition, over a quarter of retailers in the UK believing social media will significantly change their business model by 2020.

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Brands are the New RetailApple has redefined where and how Millennials shop Big box retail was long ago commoditized by Amazon. Millennials prefer to buy direct from the brand

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Millennial spending power will overtake Gen X

Source: KPCB Internet Trends Report 2016

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There are as many millenials in the US today as Gen X buyers and more than baby boomers

The purchasing power and disposable income of the millenials is on the rise, through the end of this decade Millenials will become the most influential buyers onlines, surpassing the baby boomers and rapidly catching the purchasing power of the gen x5

Agenda

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Retail is not doomed, but there will be more casualties like Sports Authority as millenials migrate away from big box retail.

Todays millenials are brand obsessed. They know exactly the product they want and they wont accept compromise. Assortment across a wide range of product categories is no longer the game Amazon has the ultimate category assortment and has comoditozed big box retailers like Best Buy and Sports Authority. Amazon is now the 2nd largest retailer of eelectronics, second only to Bestbuy havng overtaken Walmart.

The problem with Best Buy is they dont have the deep product assortmentApple store in a best buy has only a segment of the accessories and product knowledge of an apple store itself

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9 of the 10 leading US retailers by SPSF are brands U.S. malls with an Apple or Telsa store generate 10% more in sales-per-square foot than those without one.Source: Fortune Magazine

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Its no co-incidence that the top performing retail locations as measured by sales per sq ft are all brands. Only costco with its high average cart size is in the top 10.

The apple effect is spreading. Leading brands like Telsa, Microsoft have copies the brand fomula and its working. Malls with an Apple Store or Telsa store generate more visitors and have a higher sales per sq ft than malls without. These brands are the prize tenants they bring the millenials to the mall.7

Traditional wholesale brands are going direct

Canada Goose

$300m luxury outerwear brandPrivate equity owned

Opening first corporate retail stores in 2016

New YorkToronto

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Its not just Tesla and Microsoft, this is a story that trancends all of retail. Iconic brands like Canadian Goose who previously relived on a wholesale strategy, selling exclusively in high end department stores and through specialty outdoor retailers are now going direct both online with eCommerce and offline with their own corporate branded stores. They are trailblazing.

Michael Kors recently annouced they are cutting back the assortment they offer through depart stores in an effort to better control pricing and control the brand. Its no co-incidnece they are also launching new corporately owned stores at an aggressive rate.8

Product depth drives loyalty to brand sites

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The millenial gravitates to the brand they want the direct model. They want to buy their Tesla direct from Tesla, not from a car dealer the middle man is being disintermediated.

Only the brand offers the full assortment of products, stlyes, sizes, colors with all the accessories, discontinued products. Etc

The problem with big box retail is they only offer what the buyer thinks the consumer will want.

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Consumers crave personalized experiences

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Product personalization is the other killer feature that brands control. By investing in aglile supply chain technologies, brnads like head are not able to offer the ultimate in personalized product expereinces.

Its all sporting equipment, shoes, bikes, luggage etc.

Its offline and in-store. New Balance 3D printed sneakers the manufcturing will move local making personalized products quicker to market.

Supply chain visibility is key when can I have it. Controlling the experience from the factory to the door. Showing the customer the product being made. Picking up your Tesla from the factory. Being part of the jorune.

Its not about buying for millenials the product is an extension of their own brand.

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Omni Channel (I want it my way, now)Millennials are the Instant gratification generation they know exactly what they want. The retailer that wins is the one who can fulfill quickly, conveniently and economically while simultaneous providing a slick experience

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29% of consumers agree they are less likely to visit a store if its in-store inventory is not available onlineSource: Forrester Research, North American Consumer Technographics Retail Online Benchmark Recontact Survey, 2015

2015 Forrester Research, Inc. Reproduction Prohibited#

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Available / Not Available doesnt cut it

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Transparency is good for customer experience

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The supply chain is being consumerized too

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Which of the following describe why you did not complete the online purchase transaction?Source: Forrester Research, North American Consumer Technographics Retail Online Benchmark Recontact Survey, 2015Base: 3439 US online adults 18+ (online weekly or more) who purchased products/services online in the past 3 months12% of abandoned carts are due to out of stock

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Ship-from-store enables fulfillment profitability

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New levels of fulfillment convenience emerge

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Distributed Order Management

Order state & event managementOrder orchestration & routing,Partial shipments, order splitting Presales, backorders, returns

Global Inventory

Track inventory at any nodeStores, vendors, DCsIn-transit inventoryIntelligent sourcing and allocation

Omnichannel Fulfillment

Ship-from-storeStore pickup, click & collectShip-to-store Pick-and-packCarrier integration

Customer Service

Order details/ status lookupOrder modification & cancellationAppeasements/ refunds/ creditsOrder escalation workflow

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MCOM CASE STUDY

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Speaker: Paul

Now lets talk a bit about support for Magento 1 and some of the resources and tools available to help with migration.

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Omnichannel BenefitsTypical value add of omnichannel services

Leverages fixed store overhead to increase salesMinimizes out-of-stocks to save salesOptimizes store inventory and improves marginsPreserves existing technology investments

SHIP-FROM-STOREPICK-UP- IN-STORESHIP-TO-STOREASSOCIATE ORDERINGAverage increase in incremental ecommerce revenueAverage percent of items shipped are inactiveMargin increase on items nearing markdownAdditional store revenueProvides in-store cross sell and upsell opportunitiesImproves customer loyaltyReduces or eliminates shipping feesIncreases foot traffic in-storeRaises potential for upsell opportunities in-store+20%+33%+30%-20%+5%

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42% of US consumers have used BOPIS or Reserve and Collect in the past 3 monthsSource: Forrester Research North American Consumer Technographics Retail Online Benchmark Recontact Survey, 2015

2015 Forrester Research, Inc. Reproduction Prohibited#

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Why do you use "buy online, pick up in store" options?Source: Forrester Research, North American Consumer Technographics Retail Online Benchmark Recontact Survey, 2015Base: 1192 US online adults 18+ (online weekly or more) who use 'buy online, pick up in store' optionBOPIS = Save on Shipping

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Brands are competing with Prime 2 day shipping

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Shop Runner allows brands to offer 2 day shipping for customers and compete with Amazon. Walmart now offers 2 days shipping for ShippingPass for $49 a year.23

Walmart is testing faster delivery services

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Rural pizza delivery will become a reality

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Autonomous droids may serve the last mile

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Dominos Pizza in New Zealand Starship is a new driod delviery service.

The cost of delivery is all in the last mile. Automation can drastically reduce the cost Milleniuals want predicitive delivery times.They want notified when the delivery is 5 minutes away from their house.UK is ahead you can reschedule devliery cahnge where its going to arrange to have it left with a neihbour or a collect+ location

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Replenishment services need fast delivery

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everything as a service

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Mobile (the web kind)In the constant game of cat and mouse between mobile apps and the mobile web, the mobile web is about to strike back

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Global internet users @3b, smartphone @2.5b

Source: KPCB Internet Trends Report 2016

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RWD matures. Progressive Web Apps beckon

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Touch first" ensures that touchable controls are enabled with descriptive icons rather than HTML controls and are large enough to be easily selected by a mouse, stylus, or finger for the consumer.Ubiquitous touch first experiences are near

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Apple Pay in Mobile Safari is due in iOS 10

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Voice search and navigation become reality

20 percent of queries on Googles mobile app and on Android devices are now voice searches

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Consumers are increasingly migrating to voice

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Hooking up voice to eCommerce is rather easy

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No update36

Experience DifferentiationThe established paradigm of how an eCommerce site should function is rapidly changing. Content [and knowledge] is king.

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Shoppers seek to relieve purchase anxiety

Source: Forrester Research, North American Technographics Retail Online Benchmark Recontact Survey, 2014

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2015 Forrester Research, Inc. Reproduction Prohibited#

The of the value of the store assoicate (grab data from Adam) re-create the unique value prop of the product expert online.39

2015 Forrester Research, Inc. Reproduction Prohibited#

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Product content is king

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Shoppable content initiatives mature

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IoT meets eCommerce

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The Marketing DeveloperFront-end developers are marketings new secret weapon in the fight against experience mediocracy

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"Ten years ago, front-end developers were people who hadn't succeeded at being real developers now they are the most in demand."

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Our very own Magento Masters (dev Ninjas)

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Dev & UX make up 28% of eComm headcount

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Retailers Struggle to Prioritize Online Merchandising Initiatives

No front-end devs = no merchandizing optimization

Source: Forrester Research: The State of Retailing Online 2015, a Shop.org study conducted by Forrester ResearchNo front-end devs = no merchandizing optimization

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Rapid DigitalizationBoth B2B & B2C increasingly moving onlineMarket trends. Whats Magento doing about it?Omnichannel Fulfillment The new norm for fulfillment profitabilityPublic Cloud Integration The new standard for performance & scalabilityGlobal Sales ExpansionBiggest driver of GMV growthChannel GrowthInvestments in social, mobile & other emerging channelsBig Data Making actionable use out of the data

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Magentos is Equipped to Solve Commerce Trends

Analytics

Payments

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$50B Enabled Commerce VolumeGrowing at 10% CAGR (US), 12% (EU), 18.5% (APAC) $

3,200+Enterprise Clients240,000+Community Edition Sites

1000+Solution Implementers300+Top-Tier Solution, Hosting, and Technology Partners

#1 PlatformAlexa Top 100K / Top 1 MillionInternet Retailer Top 1000, EU 500, LATAM 500, B2B 300

70,000+Developers5300+Certified Magento Developers

7000+3rd Party Marketplace Extensions

3000+Customer & Partners at Annual Imagine Conference in Las Vegas

Open source allows us to build an ecosystem than no competitor can replicateThe Scale of Our Ecosystem is Unprecedented

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Magentos is Equipped to Solve Commerce Trends

Analytics

Payments

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Magento 2 Is Our Next Gen Open Core PlatformEnterprise Scale and Performance

Modern Platform Architecture

Enhanced Business Agility

Engaging Shopper Experiences

2016 Magento, Inc.Page | #

First Magento 2 delivers enhanced flexibility that continues to make Magento the most popular platform in the world, with a commitment to open source, a thriving ecosystem to extend your capabilities, and an unlimited ability to customize your site.

Magento Enterprise Edition delivers a new level of performance and scalability.

Magento 2s new technology and modular architecture delivers enterprise-level performance and scale to meet any demand. Magento Enterprise Edition delivers 39% more orders per hour than Magento 1. You can have the confidence that your platform will scale when you need it.Magento Enterprise Edition gives you the ability to offer personalized and unique shopper experiences to drive better conversion with your shoppers. Built-in responsive themes ensure your mobile site is consistent with your branded experience and designed to capture and convert every potential shopping opportunity Optimized checkout is now much more customizable, and has been streamlined to 2 steps. And existing customers are automatically recognized by their email addressProduct pages can now be updated with rich media and video, from YouTube or Vimeo, to better merchandise products in your catalogNew payment gateways have been integrated making it easier to manage payments and provide improved PCI complianceWe have ushered in a new era of business agility with Magento. This means less reliance on IT for your day-to-day management tasks.A new intuitive and easy to use interface and experience significantly reduces the complexity and amount of time it takes to accomplishing everyday tasks This is a game changer for business users who will no longer be constrained by their platform to manage and schedule promotions, launch of new products, and more

Magento Enterprise Edition enables significantly more people to work concurrently in the admin at the same time to improve overall productivity. Additionally, you can now upload and manage changes to your product catalog easier than before with support for upload of cross sell, related products and moreAnd with the availability of out-of-the-box extensions in the Magento Marketplace, merchants have more flexibility now to manage their business the way they want.

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Magento 2.x Roadmap By ThemeThis represents our current view of the roadmap. Features and timing may changeAll information regarding future Magento product development is confidential and proprietary and does not constitute a promise or guarantee of future product functionality. Unauthorized use, disclosure or dissemination of this information is expressly prohibited.

B2B:Magento for B2B

Business Productivity:Multi-warehouse inventory

Business Productivity/ Customer experience:Enriched Content Management System (visual editing, better WYSIWYG, blog) Search merchandisingAdmin UX improvements

Business Productivity:Enhanced and analyticsLearning searchAdmin UX improvements

Customer Experience / Sales:Advanced promotionsMore powerful personalization and segmentation

Business Productivity:Staging and previewBraintree settlement reportM1 > M2 Code migration tools

Customer Experience:New Elasticsearch supportPayPal In-context checkoutPayPal Pro stored credit cards

Performance / Scalability / Security

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Proven Ability to Scale With Large EnterpriseSample of Clients Over $100M GMV

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Concurrent shoppers: 100K(1)Transactions/minute: 2,800(2)Transactions/day: 102,000(3)Highest unique visits/day: 3.5M(3)15M+: highest number of SKUs(4)

Source: Monkey Sports, 2015Two If By Tea 2015Saraiva, Black Friday, 2015Doug Russell Marine

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Kurt Geiger Launches on Magento 2ProfileBritish fashion footwear & accessories retailerMulti-channel focus Top retailer in Europe based on sales

Magento 2 ExperienceFast, flexible developmentMobile optimization was automaticScalability built-in

2016 Magento, Inc.Page | #

Speaker: Craig

Kurt Geiger is aBritishfootwearandaccessoriesretailer for women, men and children who was founded as a design house back in the 1960s. Today, Kurt Geiger has over 80 stores around the globe and over 240 concession across prestigious department stores, likeHarrodsandSelfridges. The company is regularly listed in the Internet Retailer Europe 500 guide, which ranks the 500 largest e-retailers in the Eurozone, and they are a significant player in the global retail market. Kurt Geiger manages multiple fashion brands across multiple channels globally, including popular online shops KurtGeiger.com, Shoeaholics.com and Ninewest.co.uk.

For their first Magento 2 site, Kurt Geiger chose to migrate Ninewest.co.uk site on to the new platform first.

Their business is changing by the minute and they were looking to be able to customize as they wanted. Thats why they have an in house team. And Magento enabled this better than other platforms they had reviewed.

The Kurt Geiger team has been pleased with the new platform and what it has delivered.

Increased speed of development allows them to go further, faster as they have full control over their development cyclesThey can confidently grow their sites because it gives them greater flexibility to chose over how they scale. If they want to scale parts rather than the whole, now they can. For example, they can easily add servers to the order management system as needed to adjust for spikes in traffic. Using a modular platform has made it trivial to customize and use 3rd party technologies like Akeneo PIM.Magentos out-of-box responsive design saved Kurt Geiger development time and provided a solid foundation for building a custom responsive theme for their site especially when most of their shopping traffic is not coming from instore but rather from a mobile phone

Based on their initial experience, Kurt Geiger plans to migrate their other sites to Magento 2.60

Magentos is Equipped to Solve Commerce Trends

Analytics

Payments

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24/7 P1 Application & Infrastructure SupportMonitoring & Environment ScalingApplication Security Patching

Magento Enterprise Cloud Edition defines the post-SaaS era of commerce technology.

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Our Cloud Edition brings together Industry leading technologies at all levels of the stack.

Cloud Infrastructure AWSHost in one of 11 global AWS locationsElastic scalability of EC2 compute Triple redundancy across multiple AWS availability regions99.99% availability SLAs

Platform-as-a-Service (using technology from Platform.sh, a leading next generation PaaS provider with strong PhP support and deep eCommerce experience)Continuous cloud integrationHigh automation, low touch supportContainerized grid technology for non-production environmentsRapid environment instantiation and cloningConsistent, repeatable release management processes

Magento Enterprise EditionMagento EE 2 codebaseSingle tenancy architectureWorks with all M2 Marketplace extensionsAccess to source codeNo limitations on customizabilityQuarterly release schedule

New Relic (Application Performance Monitoring solution)Before & after performance monitoringRoute cause transaction tracing Real time performance issue alerting

Blackfire.io Performance profiling tools for developersCan be run in production

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Oliver Sweeney Launches On Cloud EditionProfileUK-based luxury lifestyle brand for men Needed to be able to scale up and be customized

Magento Cloud Edition SelectionFast time to marketIt is a full, end to end solutionTime to focus more on front end customer experiences

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From Magento Live UK general Session:

Only one piece of paper to sign

All back office taken care of which meant they could focus on customer experience

Focus on delivering the right design and right service at right time to their customers

In the plan, had time allocated to back end and time allocated to front endOnce they made decision to go with Cloud edition, had more time in schedule to focus on front end and customers

More time spent on front end means more sales

Key benefit speed to market it is key

From Press Release:

The way our website runs is just as important as in-store customer service, said Alex Barbier, digital marketing director at Oliver Sweeney, a UK-based luxury lifestyle brand for men. We needed a platform that we could not only easily scale up if required, but could also be customized to our brand. The website is our virtual shop front and we felt that Magentos offering best suited all of those needs.

Jonty Sutton, founder & CEO of systems integrator Redbox Digital added, We are seeing an overwhelming demand for commerce software like this in the market. Cloud-based systems are the perfect solution for brands trying to not only survive, but thrive, in the online marketplace. The differentiated flexibility and personalization Magento offers allows organizations to create the best digital commerce experience to engage shoppers and drive sales.

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Magentos is Equipped to Solve Commerce Trends

Analytics

Payments

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Magentos is Equipped to Solve Commerce Trends

Analytics

Payments

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State-of-the-art visualization interface allows each user to take control of their data and learn from it.

Create custom metrics without formal analytical training

Perform advanced analyses like customer lifetime value and cohort analysis with ease

Magento Analytics

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Out-of-the-box, dashboards include:Marketing ROICustomer Lifetime ValueCustomer SegmentationExecutive and Investor KPIsCohort AnalysisMerchandising Analysis

Types of analysis

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Change is coming

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Magento is ready

Analytics

Payments

Modern PlatformB2BCommerce Order ManagementMarketplaceAnalytics

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Be ready

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Questions?

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Magento Omnichannel Commerce Platform

Magento SolutionDigital CommerceRetail Associate PlatformCommerceOrder ManagementMarketplace

Magento ResourcesMagento PartnersConsultingSupportSolutionTechnologyHostingMagento U

The Magento Ecosystem and Community

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Magento 2 Interest, Engagement & Adoption

Downloads of Community & Enterprise Edition340K

Active Sites2400+

New Enterprise Sales in 2016200+

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First, were seeing incredible engagement and adoption with over 267,000 downloads and 800 active sites which is more than many of our competitors see in five years.

And, in our first full quarter of Magento 2 sales, we closed over 100 deals. This means that there are 100 new clients ready to work with you to implement their Magento 2 site. This number is only going to grow with our focus on selling Magento 2 in new engagements.74

Magento 2 Is Our Next Gen Open Core PlatformEnterprise Scale and Performance

Modern Platform Architecture

Enhanced Business Agility

Engaging Shopper Experiences

2016 Magento, Inc.Page | #

First Magento 2 delivers enhanced flexibility that continues to make Magento the most popular platform in the world, with a commitment to open source, a thriving ecosystem to extend your capabilities, and an unlimited ability to customize your site.

Magento Enterprise Edition delivers a new level of performance and scalability.

Magento 2s new technology and modular architecture delivers enterprise-level performance and scale to meet any demand. Magento Enterprise Edition delivers 39% more orders per hour than Magento 1. You can have the confidence that your platform will scale when you need it.Magento Enterprise Edition gives you the ability to offer personalized and unique shopper experiences to drive better conversion with your shoppers. Built-in responsive themes ensure your mobile site is consistent with your branded experience and designed to capture and convert every potential shopping opportunity Optimized checkout is now much more customizable, and has been streamlined to 2 steps. And existing customers are automatically recognized by their email addressProduct pages can now be updated with rich media and video, from YouTube or Vimeo, to better merchandise products in your catalogNew payment gateways have been integrated making it easier to manage payments and provide improved PCI complianceWe have ushered in a new era of business agility with Magento. This means less reliance on IT for your day-to-day management tasks.A new intuitive and easy to use interface and experience significantly reduces the complexity and amount of time it takes to accomplishing everyday tasks This is a game changer for business users who will no longer be constrained by their platform to manage and schedule promotions, launch of new products, and more

Magento Enterprise Edition enables significantly more people to work concurrently in the admin at the same time to improve overall productivity. Additionally, you can now upload and manage changes to your product catalog easier than before with support for upload of cross sell, related products and moreAnd with the availability of out-of-the-box extensions in the Magento Marketplace, merchants have more flexibility now to manage their business the way they want.

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ContentManagementLayered Navigation & SearchOrder & InventoryManagementResponsive Design Reference ThemesMerchandising & SegmentationSearch Engine OptimizationGlobal Currency, Language &Tax SupportPromotions & CouponsDetailed ReportingModern Business User ToolsIntegrated Shipping & Payment OptionsFast 2-step Checkout

Robust Out-of-Box Platform Capabilities

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Here are just a few of those features

Fast 2-step CheckoutSearch Engine OptimizationContent ManagementSearch & NavigationInventory ManagementMerchandisingPromotions& CouponsSegmentation & Personalization PaymentsOrder ManagementShippingReturns

and much more

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Advanced Content ManagementStaging & PreviewPrivate SalesGift Registry & Multiple Wish ListsRule-based Related ProductsAdditional Payment GatewaysFlexible Pricing Rules, Coupons and Promotions 24x7 Support & Account ManagementAdvanced Segmentation & Targeting ToolsAutomated Email RemindersVirtual & Physical Gift Cards & Store CreditReturn Management (RMA) Reward PointsDrag-and-drop Visual Merchandising Tools Scheduled Import/ExportAdvanced Regular Feature ReleasesCustomer Attribute ManagementDetailed Permissions & LoggingAdd to Cart by SKUCatalog Access ControlsElasticsearchMySQL Cluster SupportSeparate Checkout, Order Management & Product DatabasesStrong Data EncryptionB2B Module (coming in Q3)Advanced Capabilities and Support in Enterprise Edition

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Magento Professional Technical Support and Diagnostic Tools Dedicated Account Management and Access to Fee-based Expert Consulting Services

Magento Enterprise Edition comes pre-loaded with features that empower you to create and manage a full-featured commerce experience.

Content ManagementSearch & NavigationInventory ManagementMobile Apps & WebMerchandisingPromotions& CouponsSegmentation & Personalization PaymentsOrder TrackingShippingReturnsand much more

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Engaging Shopper ExperiencesStreamlined checkout boosts customer registrations, conversion rates, and sales Streamlined Checkout - 2 Steps Versus 5

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ENGAGING CUSTOMER EXPERIENCES: Magento Enterprise Edition 2.0 delivers several new capabilities that enhance the shopping experience to improve engagement, conversion rates, and sales.

It starts with a new streamlined checkout flow that follows industry best practices and is a product of extensive user testing. The new checkout improves conversion by cutting the number of steps from 5 to 2 and reducing the information shoppers are required to enter. It also boosts new customer registrations by allowing shoppers to conveniently create an account with one click from the order confirmation page.78

Engaging Shopper ExperiencesNew responsive designs speed mobile-friendly site creation Built in Responsive Design

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In 2015, Forrester reported that 35% of all ecommerce, or $85 billion, came from a mobile device. With this kind of growth, having a fast and affordable way to create sites that work on any device is critical.

Magento Enterprise Edition 2.0 does just that by including two all-new responsive design reference themes. These themes can be completely customized by merchants and allows them to create mobile and SEO friendly sites in half the time. These themes are also fully optimized for performance and receive A ratings across all categories when you run a Web Page Performance Test.79

Enhanced Business AgilityBusiness Teams No Longer have to Rely on IT to Manage Day-to-Day Customizable Admin Views

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This means less reliance on IT for your day-to-day management tasks.

The intuitive and easy to use interface and experience significantly reduces the complexity and amount of time it takes to accomplishing everyday tasks

This is a game changer for business users who will no longer be constrained by their platform to manage and schedule promotions, launch of new products, and more

Magento 2 enables significantly more people to work concurrently in the admin at the same time to improve overall productivity.

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Enhanced Business AgilityNew business tools make product creation faster and easier 4x Faster Product Import-Export

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Additionally, you can now upload and manage changes to your product catalog easier than before with support for upload of cross sell, related products and more

And with the availability of out-of-the-box extensions in the Magento Marketplace, merchants have more flexibility now to manage their business the way they want.

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Enterprise Scale & Performance

Out-of-the-box enterprise-level performance and scale support large and rapidly growing businesses with ease

Significantly More Orders per Hour on the Same HardwareNear-Instant Server Response Times for Catalog BrowsingBetter Handle Peak Order Volume and Large Catalogs Faster Admin PerformanceSupport for More Concurrent Admin Updates

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ENTERPRISE SCALE AND PERFORMANCE:Another area of focus for Magento Enterprise Edition 2.0 is increasing performance and scalability so you can expand and grow your business with confidence.

Magento 2 delivers a new level of performance and scalability.

With Magento Enterprise Edition 2, performance and scalability come out of the box so you can manage your business with confidence.

We have made significant improvements that deliver performance across the shopper and business user experience. For example:

Integrating Varnish caching to enabling faster performance, a proven technology on Magento 1 but one that required extensive knowledge and effort to implement correctlySignificantly more orders per hour on the same hardwareNew standalone databases for key subsystems like order management, product management and checkout to meet traffic and load requirements And finally we increased user concurrency empowering larger teams to make product updates or manage orders without diminished performance

There are several scalability improvements that are only available in Magento Enterprise Edition:It supports standalone databases for key subsystems like order management, product management and checkout so they can be scaled independently to meet varying load requirementsIt is compatible with MySQL Cluster and supports multiple slave databases, and Comprehensive backend improvements enable larger teams to make product updates without diminished performance.

Site performance is also better with Magento Enterprise Edition 2.0:Varnish caching is pre-integrated into the product enabling faster performance with minimal tuningAdditional client-side optimizations, such as minifying and bundling JavaScript and compressing images, also decrease page load times82

Enterprise Scale & Performance Server Response Times (ms)

Catalog Browsing

Magento 2 provides faster response times in Browsing and CheckoutCheckout (All Steps)Server Response Times (ms)

Method: represents a large merchant deployment with five 4-core web nodes and a single database node, 100 JMeter threads.Magento 2.0

Magento 1.14.2

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We have consistently tested the performance and scalability of the platform across small, medium, and large profiles, since we first launched Magento 2.

We know how important performance is. Thats why we made it core to the platforms DNA, and have invested in testing of our performance and scalability across a variety of merchant profiles.

The left chart illustrates the phenomenal improvement in server response times while browsing when using Varnish

The right chart highlights the dramatic reduction in checkout time: 36% faster for returning customers, 51% faster checkout for guests.

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Enterprise Scale & Performance Magento 2 provides faster response times in Browsing and CheckoutOrders Per HourMethod: represents a large merchant deployment with five 4-core web nodes and a single database node, 100 JMeter threads.Magento 2.0

Magento 1.14.2

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These changes have made measurable improvements to scalability. Magento Enterprise Edition 2.0 with PHP7 supported delivers 39% more orders per hour than Magento 1.14.2.84

Modern Platform ArchitectureTheming framework simplifies frontend customization and reduces code duplicationMulti-level theme inheritance:Create a new theme by specifying changes to an inherited base themeAccelerate frontend development of multi-brand businesses, international sites, and seasonal campaigns

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In addition to multiple responsive themes out of the box, weve also simplified the front-end customization process with a new multi-level theme inheritance framework.

Multi-level theme inheritance lets you create a new theme by specifying changes to an inherited base theme, which simplifies customization and reduces the amount of code duplication.

And from a business perspective, this means that it is much faster to create theme variations for multiple brands, international expansion, and seasonal campaigns. Here is an example of how the Luma site was easily customized for the German market and for a new brand, Venia.

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Modern Platform ArchitectureUnmatched flexibility to quickly bring to market innovative shopping experiencesFaster Time to Market

EasierCustomizationEasierMaintenance

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We listened to CIOs and CMOs who told us that they loved the flexibility of Magento but wanted the platform to be easier to work with.

Magento 2 takes the core technology to the next level to deliver a highly performant platform that makes site management and customization easier.

With Magento 2: You can leverage the latest technologies whether its PHP7, Varnish, Elastic Search and othersYou are provided with best practices around modularity and superior scalingYou can test in an automated fashion allowing you to get to market fasterAnd, where you can upgrade from one version to the next without heartache

For merchants, these improvements translate to faster time to market for the lifecycle of your site through

easier ongoing maintenance that better leverages you and your teams timegreater flexibility to create engaging and unique shopping experiences, to customize your site as you needeasier upgrades to the latest version so you can take advantage of the latest new features and security improvements

Were paving the way for you to get to market faster and to drive a higher return on your investment sooner than ever before.

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Modern Platform Architecture

Industry leading performance & scalabilityModern open source tech stackStreamline customizations via extension framework

Magento 2High code quality and testing frameworkEasier installations and upgrades Simplified external / back office integrations Platform enhancements enable fast, affordable customization and integrations

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MAGENTO 2.1Available Now!

Im especially excited to share with you the details of our first full-featured release on our next-generation digital platform: Magento 2.1 which will be generally released later this week.

Magento Enterprise Edition 2.1 is all about empowering business users to drive growth, while at the same time improving team productivity and reducing ongoing management costs

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Elasticsearch PayPal In-context CheckoutPayPal Saved Credit Cards

Global SynonymsBraintree Hosted FieldsRefined Management Interfaces

Content Staging and Preview | Enterprise Cloud Edition SupportEngaging Shopper ExperiencesEnhanced Business Agility

Enterprise Edition 2.1: Key Features and Benefits

Enterprise Edition 2.1 drives these growth and productivity gains with many new features that center on on creating more engaging shopper experiences and increasing business agility.

Key new features that enhance merchants business agility include:Staging and Preview New Global synonyms toolBraintree Hosted FieldsFurther refining our management interfaces as part of our ongoing Admin UX work

We also have several new features that empower merchants to deliver more engaging shopper experiences. These features include:Adoption of ElasticsearchPayPal in-context Checkout And PayPal Saved Credit Cards

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Staging & Preview Drives Sales, Productivity GainsEasily create, schedule, and preview site updates Ensure customers have a flawless shopping experience by previewing all changesOptimize the timing and impact of updates by managing changes through a timeline dashboardAutomatically deploy updates at scheduled times for greater efficiency Manage updates without impacting your production site or involving your IT team

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Stage & Preview a Wide Range of ContentCreate, edit, and delete updates to:Products prices, page designs, descriptions, images, and moreCategories menu and display options, which categories are enabledCMS Content page content and layoutsPromotions catalog and shopping cart price rulesAdditional entities with customizationGroup individual updates into campaigns for easier managementSchedule an unlimited number of updates

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Lets take a closer look at what the new Staging and Preview feature includes. First of all, it allows merchants to create, edit, and delete updates to a wide range of site content, including:Products prices, page designs, descriptions, images, etc.Categories category menu and design options, setting which categories are enabledCMS content page content and layoutsPromotions catalog and shopping cart price rulesAnd additional entities can be edited and staged with customization by Solution Partners

These changes can be grouped together into campaigns for easier management and merchants can schedule an unlimited number of updates.

On the right side of the screen, you can see an example of what the new interface looks like on a Product Page. At the top of the page, you can see a list of all the scheduled changes to the Product. You can easily preview or make edits to those changes, or schedule a new one. If you select Schedule a New Update an overlay window will appear where you can make updates to the product information.

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Use Preview to Guarantee Flawless ExperiencesCalendarStore view

Preview and verify updates by date, store viewScreen the user experience through checkout without placing ordersShare links with others to preview pages Preview existing storefront extensions

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Staging and Preview also allows merchants to preview upcoming changes to ensure that they are delivering exactly the right experience to their shoppers. Merchants can preview changes by date or by store view.

As part of the preview process, they can view all checkout pages without placing an order to ensure that promotions and price changes are being handled appropriately. They can also share links to previews so other team members can easily review and approve changes.

And extensions that are already part of the storefront / site experience are also viewable in the Preview. So, for example, if you are using a 3rd party extension for swatches, those swatches will be visible as part of the preview.

On the slide, you can see the two different ways to preview site changes.

In the screenshot on the left, merchants can choose to preview changes by store view. They can select the store view from the pull down menu and see that version displayed below. This is a great way for a merchant to see how a campaign will be implemented across different language sites, for example.

In the screenshot on the right, merchants can choose to preview updates scheduled to run at a specific date and time. 92

Efficient Management ToolsFind information faster with improved Admin searchEfficiently set up synonym groups at a store view, website or global level with a new Admin interfaceEasily create and edit Product, Category, and CMS pages with a new, clean designConveniently access Braintree settlement reports from the Admin

Enhanced Admin search

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Conveniently access Braintree settlement reports from the AdminEasily add search synonyms and product, category, and CMS content with new Admin interfaces Find information faster with improved Admin search

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New Site SearchDeliver high quality search results with support for stop words and search synonyms Supports large catalogs and effortlessly scale as search volume growsFlexible Technology that can be Used for Real-Time Reporting, Personalization, and Performance OptimizationGet started faster with simple configuration and supports 33 languages out-of-the-box

Benefit from enhanced search scalability, management and innovation

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Elasticsearch, DB engines is showing they eclipsed Solr usage (http://db-engines.com/en/blog_post/55Enhance site search with the next-generation, #1 open-source Elasticsearch technology*

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Payment Enhancements Boost ConversionIn-Context Checkout & PCI Compliance

Enable Checkout without Shopper Leaving Your Site (PayPal)Enable Faster Repeat Purchases by Using PayPal to Securely Store Credit CardsSimplify PCI Compliance Quickly and Conveniently Access Settlement Reports (Braintree)

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Another new feature that improves the shopping experience and conversion rates - is PayPal In-Context Checkout.

PayPal In-context Checkout enables buyers using PayPal to complete checkout without leaving the merchants site. Instead, payment information needed by PayPal is gathered in a quick two-step process that appears as an overlay window over the merchants site.

PayPal has designed this 2-step process to be consistent across devices to help create a faster and more familiar experience that improves conversion rates with a shopper experience especially suited to mobile.

This new design delivers roughly a 27% conversion rate increase for purchases.

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PayPal In-Context CheckoutBoost conversion rates by 69 bps for PayPal purchasesPayPals One Touch feature lets shoppers skip entering their login and payment information

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PayPals One Touch feature further optimizes mobile checkouts by letting shoppers skip entering their login and payment information. 96

Our Roadmap for Magento Enterprise Edition* Indicates feature for Magento Enterprise Edition Only

B2B:Magento for B2B*

Business Productivity:Multi-warehouse inventory*

Business Productivity/ Customer Experience:Enriched Content Management System (visual editing, better WYSIWYG, blog) Admin UX improvements

Business Productivity:Enhanced reporting and analyticsSearch merchandisingAdmin UX improvements

Customer Experience / Sales:Advanced promotions

Business Productivity:Staging and preview*Braintree settlement reportM1M2 Code migration tools

Customer Experience:New Elasticsearch support*PayPal In-context checkoutPayPal Pro stored credit cardsPerformance / Scalability / Security

This represents our current view of the roadmap. Features and timing may change

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2.1 Feature Descriptions:Staging and preview provides merchants with tools to efficiently create, schedule, and preview site changes to ensure high-quality, engaging shopping experiences. Merchants can make updates to products, categories, CMS content, promotions, and pricing and can preview these changes based on specific dates and times or store views. Scheduled changes are automatically applied. Enterprise Edition only.

Code migration tools provide scripts that ease the process of migrating custom Magento 1.x code,layouts and configurations to Magento 2.0 by automating some of the most time-consuming conversion tasks.

Elasticsearch is a next-generation search technology that provides merchants with a solution that is easier to set up, easier to scale horizontally, and offers high availability. It supports 33 languages out-of-the-box and merchants can configure stop words and synonyms to ensure high quality search results. Enterprise Edition only.

Braintree enhancements include support for Braintree Hosted Fields, which gives merchants complete control over their checkout UX while also using an iframe solution to collect cardholder information so they are eligible for the lightest PCI compliance level, SAQ-A. Merchants can also access Braintree settlement reports from within the Magento Admin.

PayPal enhancements include PayPal in-context checkout which helps to improve conversion rates by allowing shoppers pay with PayPal without leaving the merchants site. Were also implementing vault and reference transactions to allow merchants to securely store and access credit cards with PayPal so shoppers can benefit from faster repeat purchases.

2.2 Feature Descriptions:Magento for B2B is a new product that provides merchants with core features needed to create and manage a B2B commerce site, including the ability to create super-user accounts and set roles and permissions for sub-accounts, show custom pricing and catalogs for customers, support the quote request and negotiation process, and enable faster bulk orders and re-orders. Enterprise Edition only.

Multi-warehouse Inventory gives merchants the ability to create and manage multiple inventory locations in Magento to provide better inventory visibility and optimize how orders are fulfilled. Enterprise Edition only.

2.3 Feature Descriptions:Enriched Content Management System consists of multiple updates that make it easier to add and update content on Magento sites. Those updates include an new WYSIWYG editor, the ability for a non-technical person to create and edit content visually for CMS, Product and Catalog pages, and a new integrated blog feature.

Admin UX improvements include applying our new interface improvements to the Products view in the Admin.

2.4 Feature Descriptions:Enhanced Reporting and Analytics lets merchants better manage their business with a new customizable KPI dashboard, a report builder for creating custom reports, and an expanded set of pre-defined reports. Enterprise Edition only.

Search Merchandising helps to improve search conversions by showing enriched information in the search box, such as the top 3 products with their pictures and prices along with suggested related search terms. Enterprise Edition only.

Admin UX improvements include applying our new interface improvements to other parts of the Admin.

Advanced Promotions enable merchants to create new promotion types out-of-the-box, such as buy-one-get-one, gift with purchase, purchase with purchase and other popular promotions. Merchants will also have the ability to build more complex promotions and will have more control over the promotion conditions. Enterprise Edition only.97

Magento is #1 Platform to the IR Europe 500The number of Top European merchants using Magento grew 104% year-over-yearSource: Internet Retailer, Top 500 largest merchants in Europe, June 2016.

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The Value We Bring to Our ClientsOpen & Flexible, designed to deliver custom experiencesVibrant Global EcosystemLeading Time to MarketLeading Cost of OwnershipLow Risk, Future Ready

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When we looked to our future platform,

We built on what got us here

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Magento Marketplace

Thousands ofpre-built extensionsare available forMagento Enterprise Edition. Magento Extensionscan be installed bya non-technicaluser via theMagento Admin.Flexibility of theplatform ensures that nearly any servicecan be augmented or substituted with third party solutions. Pre-built integrationsto popular ERP,CRM, OMS and CMS solutions. Integrations to other key commerce technology players such as PayPal, Braintree, Dotmailer, etc..

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Magento Marketplace is About Quality

Quality Checks:Auto-Check automatic scan of all extensions for plagiarism, code review, security, interoperability & quality testsBusiness Operations team marketing & manual business review Enhanced ratings & reviews engine tied to customer account to eliminates fake reviewsCode Audit gold standard verification, a new process only for Technology Partners

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Hosting & Performance PartnersTrack record of successful Magento implementationsRequired to have Magento Certified Developers on staffHelp ensure fast, high quality deployments Deliver tailored expertise and support Solution PartnersCost-effectively extend Magento functionality and get to market fasterThousands of Magento Enterprise Edition-compatible extensions Solution Partners can guide you in your selection and develop custom extensions tailored to your business Technology Partners & ExtensionsPremier providers who deliverMagento-optimized environmentsOffer dedicated or cloud environments Solution Partners can advise you on a hosting solutionSelect Solution Partners offer their own managed hosting solutions

Magento Partners

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ECG Preferred Service

PREFERRED SERVICEMake your site the very best it can be, with expert evaluation and analysis to improve readiness, stability, and security.

Business Analysis and Requirements ReviewApplication Architecture ReviewInfrastructure Design ReviewCode AuditPerformance Review Technical Advisor

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