Redbubble Annual Report 2020

10 11 Redbubble Annual Report 2020 CEO’s Review (continued) Changes in the Retail Landscape (continued) CEO’s Review (continued) Flywheel Dynamics (continued) Marketplaces are especially difficult to create as without buyers there are no sellers and without sellers no buyers. That means once established they have considerable resilience. They typically also have a second inflection point as the offering is accepted by more mainstream consumers with even more rapid uptake by the sellers. The Group is now moving through this point as in the last year: • We had 511,000 selling artists; • They earned a total of $67 million; • They attracted 6.8 million customers; • Who bought $474 million from these artists; and, • With the products created from 41 fulfilment locations all over the world. It is a flywheel because the more artists in the marketplace, the more relevant content and so more reason for customers to come. The more customers the better the fulfilment network becomes, and this in turn brings back more customers. And with more customers more artists are attracted. Given the overall size of the addressable market this flywheel, which has been operating for more than a decade, will continue to drive growth and profitability for many years. On Demand Retail Model The third arm of the marketplace is the fulfilment network. It is this network which enables an artist in Pretoria to sell a facemask to someone in Berlin. The network has taken 13 years to build and is without parallel in any other company. With 41 fulfiller locations at 30 June 2020, 96% of all products sold are fulfilled by a partner local to the same geographic region as the customer who bought them. There are 117 products available in the marketplaces and 16 new products were added last year. Additional products create annuity streams of revenue. Product diversity has provided resilience with year-on-year growth strong in all categories. Areas of expansion for the group extend in all our category areas: apparel, accessories, home and wall art and electronics as well as new categories such as home office, nursery and baby and even pets. Product contribution (% of Marketplace Revenue, FY16 - FY20) Flywheel Dynamics (1) FY16 143 175 231 328 474 FY16 FY17 FY17 FY18 FY18 FY19 FY19 FY20 FY20 LOYAL CUSTOMERS FULFILMENT & OPTIONS ARTISTS & CONTENT Leading Print-On-Demand marketplaces for independent artists 511,000 selling artists on RB marketplace (↑51% YoY) Aggregated, growing demand 6.8 million customers (↑30% YoY) bought from RB marketplaces spending $474 million GTV (↑44% YoY) Scalable on-demand global 3rd party fulfilment 41 fulfilment locations across global networks (↑9% YoY) (1) Source: RB internal data DISCOVERY SERVICE Category FY19-20 YoY Homewares 63% Artwork 68% 7% 7% 13% 12% 10% 51% 93 16 23 39 31 17 25 23 21 10 13 112 142 215 52 37 328 68 49 26 8% 7% 13% 12% 13% 47% 40% 40% 38% 9% 8% 8% 8% 11% 12% 10% 10% 13% 13% 17% 17% 19% 14% 14% Accessories 52% Other Apparel 30% Stationery and 21% Stickers T-shirts 30% Gross Transaction Value by Region (1) (A$m, FY16-FY20) Region % total business FY19-20 YoY 4Q YoY ROW 1% 7% 24% AU/NZ 5% 24% 79% UK 10% 33% 124% EU 14% 30% 61% North America 69% 53% 121%

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