DISCLAIMER: This is an archived presentation. Please visit http://www.slideshare.net/Digital-Luxury to access DLG official SlideShare account. WorldWatchReport 2010 - Luxury Watches on the Internet - an Exclusive Study : - 6th Edition - 500 million searches - 10 markets – including the BRIC - 25 watch brands - 120 ambassadors - 450 most popular models - A unique “replica” intention filter - 16 International Invited Contributors The report provides a precise overview on a hard to define market, helping you to: - Protect your brand and reputation, - Encourage sales by directing more prospects to your authorized retailers, - Get key performance indicators to measure communication effectiveness, - Optimize your distribution according to the effective demand. In the press : New-York Times, Bloomberg, China Daily, Financial Times, CNBC Europe, etc. More information: http://www.worldwatchreport.com

1. EXTRACTS Preview

3. The WorldWatchReport in a nutshell The WorldWatchReport (WWR) provides the luxury watch industry with exclusive analysis regarding its brands and models. The WWR is based on over 500 million search queries entered into search engines. Ex: Once collected, this data is analyzed and categorized into 9 intentions (ex: brands, models, replicas, etc.) with the help of exclusive IC-Agency technology.

4. In the Press

5. Benefits and Enhancements of the 6 th edition BENEFITS The WorldWatchReport helps you to: • Discover the strong and weak points of the different brands • Better define expectations of prospective buyers by market • Get a reference of brand exposure with respect to all other brands • Have a global overview of competitive positioning: by markets, brand categories, models and ambassadors • Benefit from strategic information, allowing companies to anticipate evolving trends relating to marketing strategies and the economic environment ENHANCEMENTS • BRIC markets are now included (Brazil, Russia, India, China) • Additional contributions from opinion leaders of the industry • Social Media impact is measured through historical data (Facebook and Youtube)

6. Brands and Categories 10 KEY EXPORT MARKETS 25 TOP LUXURY WATCH BRANDS Haute Horlogerie: Audemars Piguet, Blancpain, Breguet, Franck Muller, Girard-Perregaux, IWC, Jaeger-LeCoultre, Patek Philippe, Vacheron Constantin, Zenith Women’s / Jewelry: Bulgari, Cartier, Chopard, Piaget Prestige: Breitling, Hublot, Omega, Rolex, TAG Heuer High Range: Baume & Mercier, Ebel, Longines, Montblanc, Raymond Weil, Rado

7. Methodology COLLECTING DATA Search Queries Entered into search engines, the search queries collected in the WorldWatchReport encompass a large semantic field related to the brands and include synonyms, plurals and misspells. Languages A part of these search queries is in English whereas the other part is translated into each key market language : simplified Chinese, Russian, Portuguese, Hindi, Japanese, English, German, French and Italian. Search Engines Based on Google, Yahoo! and MSN – as well as Yandex in Russia - the WorldWatchReport covers more than 90% of overall Internet searches in the UK, Japan, the US, Italy, France, Germany, India and Russia. In China alone, these major search engines have a penetration rate of 35.6%. (Analysys, January 2010). Data Collection and Analysis Public and professional tools are used to automate search volumes collection, thanks to IC-Agency’s strong partnerships with search engines. Once collected, this data is filtered analyzed and translated into 9 intentions (brands, models, replicas, etc.) with the help of exclusive IC-Agency technology. Harmonization As multi-products brands, such as Cartier, Chopard or Bulgari, generate significantly more search volume than watch-only brands, data is harmonized to identify watch-only demand and excluding demand for other products (for ex. Jewelry, mobile phones, etc.). Similar corrections have been made for brands whose names could be mingled with other products, such as Montblanc and Omega.

8. Methodology TRANSLATING SEARCH QUERIES INTO CONSUMER INTENTIONS For each brand, data collected is automatically translated into search intentions: Example of search queries Translated search Intentions « piaget » Brand « ballon bleu cartier » Model « fake rolex » Replica « chopard retailer » Distribution « breguet bracelet » Accessory « blancpain second hand » Preowned « raymond weil price » Price « hublot replacement » Repair « breitling homepage » Others

11. Global Internet Penetration

13. Global Geographic Search Origin

15. Global Geographic Search Origin “ Italians have always had a love affair with luxury watches. In fact, Italy remains one of the hottest markets for the likes of vintage Rolex watches in the world” Benjamin Clymer, Publisher, Hodinkee, USA “ The US consumer is hungry for information. Over 70% of customers who walk into our store have done online research first. They are approaching the purchase of a watch the same way that a car is purchased, and are gathering all pertinent details prior to stepping up to the counter. The Internet provides such a broad spectrum of information, and the instantaneous nature makes the process stress-free.” Danny Govberg, President and Owner, Govberg Jewelers, USA “ French high-end luxury watch consumers are not numerous, especially if we consider Paris, where 70 to 80 % of the buyers are foreigners.” Laurent Picciotto, Owner of Chronopassion, and FHH Ambassador France OPINIONS

16. Global Geographic Search Origin in the BRIC Markets

21. Global Brand Market Share for Haute Horlogerie

22. Global Brand Market Share for Prestige

23. Global Brand Market Share for Women’s/Jewelry

24. Global Brand Market Share for High Range

25. Global Brand Market Share in the BRIC Markets

27. Global Brand Market Share These results “ are perfectly in line with the market evolution of both established and emerging markets. The new markets are particularly interesting as the level of brand searches are based on their offline visibility, recognition and perceptions.” Uché Okonkwo, Executive Director, LuxeCorp, Author of “Luxury Online” (Palgrave, 2010), France “ These results show special regional associations with particular brands to have a high impact on consumer interest in those countries. Otherwise you would likely see a correlation between product availability and Internet searches.” Ariel Adams, aBlogtoRead.com, USA OPINIONS

28. Ariel Adams aBlogtoRead.com, USA Robert-Jan Broer Editor, Fratello Watches, Netherlands Luana Carcano Lecturer, SDA Bocconi School of Management, Milan Carlo Ceppi FHH Mission Delegate Italy David Chang Writer, Founder of Research Office for Haute Horlogerie and China, Chinese correspondent of FHH Journal Benjamin Clymer Publisher, Hodinkee, USA Richard Courbrant Journalist, FHH Ambassador Latin America Danny Govberg President and Owner, Govberg Jewelers, USA James Gurney Editor in Chief, QP Magazine, United Kingdom Gareth Jones Head of Digital Sales, Financial Times, Switzerland Anita Khatri General Manager, Times of India, FHH Mission Delegate India Christophe Maincourt FHH Mission Delegate Latin America Uché Okonkwo Executive Director, LuxeCorp, France Author of “Luxury Online” (Palgrave, 2010) Laurent Picciotto Owner of Chronopassion, FHH Ambassador France Nicolas de Quatrebarbes FHH Mission Delegate Germany Alexey Tarkhanov Chief of Culture, Kommersant, Russia Cyrille Vigneron FHH Mission Delegate France 2010 Invited Contributors

29. What are the differences between the EXTRACTS and FULL Versions? More information on www.worldwatchreport.com

31. About IC-Agency and Luxury Digital Marketing IC-Agency is the company in which the Luxury Digital Marketing™ concept was founded. This unique approach offers exclusive brands the ability to reinforce their positioning online. Based in Europe (Switzerland) and in North America (Canada), IC-Agency offers services including analysis, promotion, and protection of brands, products and services. A number of independent luxury brands can be found among IC-Agency’s clients, as well a brands belonging to groups such as Swatch, Richemont, LVMH and PPR / Gucci. In 2009, following an invitation from the Financial Times, IC-Agency participated in the worldwide launch of HowToSpendIt.com. Contact www.worldwatchreport.com [email_address] IC-Agency (Geneva) 7 Ave Krieg CH-1208 Geneva T. + 41 22 702 07 60 http://www.ic-agency.com IC- Agency (Bathurst, NB) 216 Main Street, Suite 312 Bathurst, NB, E2A 1A8 Canada T. +1 506 547 8292