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Table of content 1. A Market Study Like no Other page 2 The WorldWatchReport in a Nutshell Benefits and Enhancements of the 5 th Edition Brands & Categories Methodology 2. Market Shares page 9 Global Internet Penetration Global Geographic Search Origin Category Searches by Region Global Brands Market Shares by Category 3. Consumer Behaviors page 21 Search Intentions by Market Search Intentions by Brand 4. Model-specific Demand page 27 Top 30 Most Searched Models 5. Brand Ambassadors page 33 Global Top 30 Most Searched Ambassadors Share of Ambassador Searches by Brand Breakdown by Activity of the most Searched Ambassadors DECIPHERING THE GLOBAL DEMAND 6. Distribution Channels page 41 Genuine products Share of Distribution Searches by Region Regional Distribution Search Breakdown Replica Share of Replica Searches by Country Regional Replica Search Breakdown 7. Social Media Impact page 53 Facebook Introducing Facebook Ranking of Brand Fan Pages Youtube Introducing Youtube The Most Popular Brands on Youtube The Origin of Watch Brands Videos Content The Subject of Watch Brands Videos Content

1. A Market Study Like no Other page 2

The WorldWatchReport in a Nutshell

Benefits and Enhancements of the 5 th Edition

Brands & Categories

Methodology

2. Market Shares page 9

Global Internet Penetration

Global Geographic Search Origin

Category Searches by Region

Global Brands Market Shares by Category

3. Consumer Behaviors page 21

Search Intentions by Market

Search Intentions by Brand

4. Model-specific Demand page 27

Top 30 Most Searched Models

5. Brand Ambassadors page 33

Global Top 30 Most Searched Ambassadors

Share of Ambassador Searches by Brand

Breakdown by Activity of the most Searched Ambassadors

6. Distribution Channels page 41

Genuine products

Share of Distribution Searches by Region

Regional Distribution Search Breakdown

Replica

Share of Replica Searches by Country

Regional Replica Search Breakdown

7. Social Media Impact page 53

Facebook

Introducing Facebook

Ranking of Brand Fan Pages

Youtube

Introducing Youtube

The Most Popular Brands on Youtube

The Origin of Watch Brands Videos Content

The Subject of Watch Brands Videos Content

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 300 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.

In the Press

Benefits and Enhancements of the 5 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 Chinese and Japanese markets are now included 25 luxury watch brands are monitored, compared to 12 in the past editions Social Media impact is measured (Facebook & Youtube)

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

Chinese and Japanese markets are now included

25 luxury watch brands are monitored, compared to 12 in the past editions

Social Media impact is measured (Facebook & Youtube)

Brands and Categories 7 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

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, Japanese, English, German, French and Italian. Search Engines Based on Google, Yahoo! and MSN, the WorldWatchReport covers more than 90% of overall Internet searches in Japan, U.S.A, U.K, Germany, France and Italy. In China only, these majors search engines have a penetration rate of 25%. (Comscore, January 2009) 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.

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

GROUPING 25 BRANDS IN 4 CATEGORIES Thanks to the contribution and feedbacks from several watchmaking industry experts from media, brands and retailers, the following criteria have been taken into consideration to define 4 coherent watch brands categories: Brand positioning (market and target audience) Offer (average price) Volume (similar volume of demand) Competitive environment GROUPING 7 MARKETS IN 3 REGIONS OF THE WORLD To facilitate the analysis and determine trends from an international point of view, the 7 markets are regrouped into “Regions”, as followed: “ Europe” is represented by the United Kingdom, Germany, France and Italy “ Asia” is represented by Japan and China United States, with the biggest demand, is the only stand-alone country Methodology

GROUPING 25 BRANDS IN 4 CATEGORIES

Thanks to the contribution and feedbacks from several watchmaking industry experts from media, brands and retailers, the following criteria have been taken into consideration to define 4 coherent watch brands categories:

Brand positioning (market and target audience)

Offer (average price)

Volume (similar volume of demand)

Competitive environment

GROUPING 7 MARKETS IN 3 REGIONS OF THE WORLD

To facilitate the analysis and determine trends from an international point of view, the 7 markets are regrouped into “Regions”, as followed:

“ Europe” is represented by the United Kingdom, Germany, France and Italy

“ Asia” is represented by Japan and China

United States, with the biggest demand, is the only stand-alone country

2. MARKET SHARES WHAT DO WE TALK ABOUT ? Internet Penetration Percentage of the total population of a given country or region that uses the Internet . ( Internet World Statistics 2009) Search Origin Weight of each country within overall 300 million of search queries analyzed globally Category Searches Summed search volumes of all brands within each category WHAT DO WE LEARN ? Where does the demand for luxury watches come from? In each region of the world, what brand categories benefit the most from consumer interest? How should the findings of the WWR be taken in perspective with each country’s Internet penetration rate? DECIPHERING THE GLOBAL DEMAND

WHAT DO WE LEARN ?

Where does the demand for luxury watches come from?

In each region of the world, what brand categories benefit the most from consumer interest?

How should the findings of the WWR be taken in perspective with each country’s Internet penetration rate?

Global Internet Penetration

Global Internet Penetration In 2006, we were celebrating the fact that the countries selected were finally all above the 50% mark in penetration In 2007, we see one that surpassed the 70% mark In 2008, the US stands out with 71.4% of its population online, representing more than half of the total internet penetration The fastest growing market, China, exceeded US Internet penetration by 35% with nearly 300 million Internet users Japan records the best Internet penetration level (73%) China differs drastically from the other markets with low internet penetration, at 22%. Within this population, its fast-growing wealthy class is using search engines to access luxury watch information INSIGHTS

In 2006, we were celebrating the fact that the countries selected were finally all above the 50% mark in penetration

In 2007, we see one that surpassed the 70% mark

In 2008, the US stands out with 71.4% of its population online, representing more than half of the total internet penetration

The fastest growing market, China, exceeded US Internet penetration by 35% with nearly 300 million Internet users

Japan records the best Internet penetration level (73%)

China differs drastically from the other markets with low internet penetration, at 22%. Within this population, its fast-growing wealthy class is using search engines to access luxury watch information

Global Geographic Search Origin

Global Geographic Search Origin United States is still the most important market generating searches The United Kingdom remains the European leader in search volume Germany is now the second online European market this year, ahead of Italy Globally, there are more searches for luxury watches in China than in Japan INSIGHTS

United States is still the most important market generating searches

The United Kingdom remains the European leader in search volume

Germany is now the second online European market this year, ahead of Italy

Globally, there are more searches for luxury watches in China than in Japan

Category Searches by Region 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

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

Category Searches by Region “ Prestige” watches largely dominates thanks to the weight of major leading brands such as Rolex, Tag Heuer, Breitling and Omega “ Haute Horlogerie” watches perform well in Japan (19%) “ High Range” brands maintain a larger share in China (19%) “ Women’s / Jewelry ” brands seem to capture a relatively similar share of demand within all regions of the world (13% - 16%) INSIGHTS

“ Prestige” watches largely dominates thanks to the weight of major leading brands such as Rolex, Tag Heuer, Breitling and Omega

“ Haute Horlogerie” watches perform well in Japan (19%)

“ High Range” brands maintain a larger share in China (19%)

“ Women’s / Jewelry ” brands seem to capture a relatively similar share of demand within all regions of the world (13% - 16%)

Global Brands Market Shares for « Haute Horlogerie »

Global Brands Market Shares for « Prestige »

Global Brands Market Shares for « Women’s / Jewelry »

Global Brands Market Shares for « High Range »

Global Brands Market Shares “ Haute Horlogerie” watches receive strong demand from Europe with more than a third of global searches coming from the Old Continent, especially for Franck Muller and Jaeger-LeCoultre (+60%) United States is definitely the leading market for “Prestige” watches (30% - 61%) Germany shows strong interest for Breitling (+30%) : which may be due to the « Breitling for Bentley » special edition impact Bulgari shows strong brand awareness throughout Europe (+70%) Piaget ’s demand in China equals that of Europe (28%) United States generates half of Baume & Mercier and Raymond Weil ’s demand Germany is the biggest challenger to the United States for “High Range” watches’ demand INSIGHTS

“ Haute Horlogerie” watches receive strong demand from Europe with more than a third of global searches coming from the Old Continent, especially for Franck Muller and Jaeger-LeCoultre (+60%)

United States is definitely the leading market for “Prestige” watches (30% - 61%)

Germany shows strong interest for Breitling (+30%) : which may be due to the « Breitling for Bentley » special edition impact

Bulgari shows strong brand awareness throughout Europe (+70%)

Piaget ’s demand in China equals that of Europe (28%)

United States generates half of Baume & Mercier and Raymond Weil ’s demand

Germany is the biggest challenger to the United States for “High Range” watches’ demand

What are the difference between the EXTRACTS and FULL Versions? More information on www.worldwatchreport.com EXTRACTS VERSION FULL VERSION 70 p. (40 charts) w/ brief analysis One chapter only included : 1. DECIPHERING GLOBAL DEMAND 180 p. (250 charts) w/ editorial analysis All chapters included : DECIPHERING GLOBAL DEMAND MARKETS PERSPECTIVES CATEGORIES BENCHMARKS BRANDS FACTSHEETS Downloadable PDF Format Downloadable PDF Format Paper Copy Tailor-made presentation for the Top Management EUR 350.- EUR 9’500.-

180 p. (250 charts) w/ editorial analysis

All chapters included :

DECIPHERING GLOBAL DEMAND

MARKETS PERSPECTIVES

CATEGORIES BENCHMARKS

BRANDS FACTSHEETS

Downloadable PDF Format

Downloadable PDF Format

Paper Copy

Tailor-made presentation for the Top Management

What makes the WorldWatchReport unique? Traditional Market Studies Online Market Studies from IC-Agency Elements measured aren’t always representative of the exact preoccupations of those surveyed Focuses on real consumer intentions Responses are influenced through the method of questionning Spontaneous responses Ego biases are unavoidable Anonymity removes ego biases The panel is predefinied. Its composition may not be representative The panel is naturally defined and focuses on the intentions displayed by those surveyed Relatively high costs for varying results Limited costs for real-time responses

Elements measured aren’t always representative of the exact preoccupations of those surveyed

Focuses on real consumer intentions

Responses are influenced through the method of questionning

Spontaneous responses

Ego biases are unavoidable

Anonymity removes ego biases

The panel is predefinied. Its composition may not be representative

The panel is naturally defined and focuses on the intentions displayed by those surveyed

Relatively high costs for varying results

Limited costs for real-time responses

About IC-Agency: luxury digital marketing Created in 2000, IC-Agency is a leader in luxury digital marketing. Based in Europe (Switzerland) and in North America (Canada), IC-Agency provides its clients with services such as analysis, promotion, optimization and protection for their brands, products and services. Among IC-Agency's clients are many independent luxury brands, as well as brands belonging to groups such as Swatch, Richemont, LVMH, and PPR/Gucci. The company was recently awarded the Strategis/HEC Lausanne prize for its excellence in Management. Contact www.worldwatchreport.com [email_address] IC-Agency (Geneva) 7 Ave Krieg CH-1208 Geneva + 41 22 702 07 60 http://www.ic-agency.com