Updates on the Macro Retail Environment

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The Confidence Index remains steady in 2013 – with some softening since Q4 last year

Year 2012 Year 2013 Year 2011

J.P. Morgan Investor Confidence Index

Source: Cimigo JP Morgan Survey 2013

4

Perceived biggest risks in 2013

Concerns of HK consumers…

1. Cool-down of HK stock market 56%

2. Cool-down of HK property market 38%

3. Slowdown of China economic growth 38%

4. Uncertainties of China economic reform 37%

5. Rising commodity prices 30%

6. European debt crisis 30%

…

Source: Cimigo JP Morgan Survey 2013

HK – Smartphone penetration at 64% in 2013, ranked 8th globally, with a steady uplift

Source: Google Mobile Survey 2013

74 73 73 72 68 65 63 63 62 59

2011: 35% 2012: 49%

%

Can’t live … without you

• 82% use everyday in the past week

• 77% don’t leave home without their device (!)

Smartphone is always on - 96% use mobile internet daily

• 95% use at home, 87% on the go, 77% at store

Source: Google Mobile Survey 2013 Cimigo Digital in Asia 2012

Everything is in real time, easily accessible. It just bogs you down. Now with smartphones you can work wherever and whenever. You can access email everywhere and you have to work even more. (Female, 28, Hong Kong)

62% HK people

search information on smartphone daily

40% 36% 56% 66%

Restaurants, bars, pubs

food

Travels, flights play

Job hunting, opportunities

work

Property information investment

Source: Google Mobile Survey 2013

Even banking services are migrating to mobile …

64% of investors are

bank app users

general account transaction, credit card application, investment product

acquirement, non life insurance, stock / FX market information

Source: Cimigo HKIB Survey 2013

Meet Moi

Well, even dating

20 top dating apps combined 17 million active users

Source: Flurry Survey 2013

… as well as raising our children!

Source: Google Mobile Survey 2013

visit shop buy tell

86% take action taken after mobile search …

51% would go for purchase on computer after mobile search

47% would go for visit/ purchase at the store

… going beyond just searching, the mobile device has enabled real actions in life

36%

Source: Campaign 2013

… mobile is also transforming people’s buying experience & shopping journey

$$$ 31%

use mobile to compare price

43%

use mobile to read reviews while in store

31%

would like a mobile app to help them navigate around

interested in scanning bar

code for information

While shoppers are wandering the store …

38%

interested in redeeming mobile

coupons

30%

want to receive mobile coupon when

passing a product

Rapid development of innovative retail payment products and services

Card payment

Internet payment

Mobile payment

Creating Buzz

Results • 6.5 million views on

YouTube • 50,000 requests for

information about the vehicle, primarily from non-Ford drivers

• Some 10,000 cars sold in the first six days

… introducing mobile application for highly accessible information – real time queuing time, descriptions of the haunted houses, event maps, show time, social media plug in, and more

But wait, is this all what our consumers want?

Source: Google Mobile Survey 2013

Hong Kong people says, • 39 on average • in which 10 are paid apps (!)

Second most after Korea (40 apps)

How many apps are on your smartphone?

Yet honestly ... how many are active – you say?

How long the recent heat of Bitstrips may

sustain – you bet?

38% of HK consumers feel overwhelmed by the sheer volume of communication they received from a brand

Source: Experian Survey 2012

STOP 48%

41%

stopped engaging with four or more brands as a result of poorly targeted communication

IGNORE

23%

Frustrated

Ignore emails or social media messages send by brands

Considered not being able to unsubscribe / being bombarded by online materials as No.1 Frustration

From digital fascination to fatigue Everyone is on their phones, doing their own thing. It’s like being physically there but not mentally there. (Male, 35, Singapore)

I have less time for myself nowadays! (Female, 32, Singapore)

I love instant access, convenience, sharing, feeling connected. But I’m lost. I can’t make decisions anymore. I’m getting confused. I feel alone. (Male, 33, Singapore)

Emerging frustrations and resentment

Greater control It’s also a double-edged notion: especially in emerged Asian markets (Singapore, Hong Kong), people try to re-establish control over chaotic digital lifestyles and information overload. They de-clutter. They use fewer apps or social media. They turn off their devices, and wean themselves off Facebook.

It’s an art

Balance。 。 Relevancy 。 Creativity