FABERNOVEL purchases VELVET Group to enter the Chinese market After the opening of its New York offices in September 2016 to answer the needs of its global clients regarding digital performance and digital transformation, FABERNOVEL just purchased VELVET Group, created in 2013 by Patrice Nordey and set in Shanghai.

Key points: • The purchase agreement was signed this week by Stephane Distinguin,

CEO and founder of FABERNOVEL, and Patrice Nordey, CEO of VELVET Group.

• VELVET Group becomes a subsidiary of FABERNOVEL group. • Patrice Nordey becomes CEO of FABERNOVEL ASIA. • After Paris, San Francisco, Lisbon and New York, FABERNOVEL

enters the Chinese market.

China, a market with high growth potential

China is the largest digital market in the world, and one of the most advanced in terms of number of users – 731 million Internet users in 2016, including 695 million on mobile platforms. China is also the first-ranking e-commerce market with $899.09 billion of expected transactions in 2016, namely 47% of global e-commerce. This market should keep growing by more than 20% each year until 2020, according to analysts, and should then reach $2.4 trillion.

Shanghai became an innovation platform in capacity to compete with San Francisco.

Chinese Internet giants – most of whom are listed on the stock exchange – started diversification strategies in every sector: digital health, Internet of Things, big data, artificial intelligence, and even intelligent transportation. In a few years, the FinTech market (banking, finance, and online insurance) became one of the most sophisticated and dynamic markets, totaling up $1.2 trillion in 2015, boosted by mobile payments now used by 469 million of Chinese consumers.

Regarding start-ups, China only hosted 500 incubators in 2005 and has launched over 1,500 since then. This number should reach 5,000 by 2020.

Growth opportunities for major global groups are in China and Asia.

For a few months, FABERNOVEL had been willing to settle in China after its clients – great retail groups from the mass distribution and luxury industries – spoke about their will to enter the Chinese and Asian markets. Beyond FABERNOVEL INSTITUTE’s “Learning Expeditions”, FABERNOVEL INNOVATE’s market studies and trend analyses, and FABERNOVEL DATA & MEDIA’s digital performance, the need to accompany these companies on social media topics, as well as e-commerce and content strategies, became ever more pressing. Indeed, the Chinese market has its own rules, customs and platforms, and its own Internet. Local platforms are leaders – Alibaba, Baidu, WeChat and Weibo are the most famous.

The meeting of FABERNOVEL and VELVET Group

Dominique Piotet, CEO of FABERNOVEL US knew Patrice Nordey from two previous professional missions, including one that lead to their opening of the Atelier BNP Paribas offices in San Francisco and Shanghai respectively.

After a visit from Stephane Distinguin, CEO and founder of FABERNOVEL, in May 2016, they took the first steps towards a merger. The operation ended a few days ago and VELVET Group became a subsidiary of FABERNOVEL group. Patrice Nordey thus became CEO of FABERNOVEL ASIA.

Stephane Distinguin, CEO and founder of FABERNOVEL

Patrice Nordey, CEO of VELVET Group becomes CEO of FABERNOVEL ASIA:

VELVET Group, 20 employees to accompany major groups:

- Innovation strategies and counseling, learning expeditions to discover start-ups and new usage habits (Shanghai, Hong Kong, Tokyo, Seoul, Singapore, Melbourne, to name a few), training programs, watches and studies.

“Stephane and I share the same ambitions and I am glad that from now on we share a future. These past 4 years, VELVET Group has developed a sound expertise of the Chinese market, in terms of social media, digital counseling and accompanying of great groups in the luxury, fashion and beauty industries, among others. We are now starting a new development phase in a group that is renowned in Europe and in the US.”

“I am very proud that Patrice and his team are joining us. FABERNOVEL ought to be on the lead market regarding digital and innovation. With Shanghai, FABERNOVEL levels up and becomes a global group.”

- Digital performance (media planning & buying, search marketing, data tracking). - Social Media Management - Content production and creative campaigns, mainly for luxury brands. Some of its client references: L’OREAL, LVMH, KERING, RICHEMONT, PUIG, MAX MARA FASHION GROUP, MANGO, AXA, UNIBAIL RODAMCO, VISA, GALERIES LAFAYETTE, ACCOR HOTELS, MOET HENNESSY, CHRISTIAN LOUBOUTIN, TIMBERLAND…

About FABERNOVEL:

- 200 employees - a 20-million euros revenues in 2016 (15 million in 2015) - a 50-million euros objective for 2018.

FABERNOVEL was created in 2003 by Stephane Distinguin, at first to help great groups innovate like start-ups. In time, FABERNOVEL broadened its scope of activities to accompany great global groups in all digital fields though strategies, acculturation, digital performance, and also product and service creation: mobile apps (RATP, Canal Plus…) and websites (the Philharmonie de Paris, La Villette…).

Since 2003, the company has developed in three areas:

- Excubation: new activities testing, then creation of a subsidiary as soon as we meet success (ex: Applidium, FABERNOVEL INSTITUTE).

- Purchase: in order to realy on a solid preexisting team. (FABERNOVEL CODE, FABERNOVEL DATA & MEDIA, and now VELVET Group).

- Settling: San Francisco with Parisoma and the new New York offices, for example.

At the same time, FABERNOVEL has been creating startups and has participated in the funding of the new economy through shares.

MEDIA INQUIRIES Zineb Akharraz Torikian

T. +33 6 37 43 93 25 medias@fabernovel.com