The document discusses updates on the macro retail environment. It provides data on consumer confidence indexes remaining steady in 2013 with some softening in the last quarter of 2012. Hong Kong consumers' biggest concerns for 2013 are a cooling of the stock and property markets as well as China's economic growth slowing down. Smartphone penetration in Hong Kong reached 64% in 2013, ranking 8th globally. Most Hong Kong people use their smartphones everyday and rely on them, though some feel overwhelmed by the amount of communication from brands. The rapid development of innovative payment products is transforming people's shopping experiences, though consumers want greater control over their digital lifestyles and information overload.

1. Updates on the Macro Retail Environment

2. The Confidence Index remains steady
in 2013 – with some softening since
Q4 last year
J.P. Morgan Investor
Confidence Index
200
180
160
140
120
118
110 105
123
118
103
109
117
116
116
100
80
60
40
20
Year 2011
Year 2012
Year 2013
0
Q2
Q3
Q4
Source: Cimigo JP Morgan Survey 2013
Q1
Q2
Q3
Q4
Q1
Q2
Q3

3. Concerns of HK consumers…
Perceived biggest risks in 2013
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
4

4. HK – Smartphone penetration at 64% in 2013, ranked 8th
globally, with a steady uplift
2011: 35%
2012: 49%
74
73
%
Source: Google Mobile Survey 2013
73
72
68
65
63
63
62
59

5. 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%
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)
Source:
Google Mobile Survey 2013
Cimigo Digital in Asia 2012
at store

6. 62% HK people
search information on smartphone daily

7. 66%
56%
40%
36%
Restaurants,
bars, pubs
food
Travels,
flights
play
Job hunting,
opportunities
work
Property
information
investment
Source: Google Mobile Survey 2013

8. 64% of investors are
bank app users
general account transaction,
credit card application, investment product
acquirement, non life insurance,
stock / FX market information
Even banking services are migrating to
mobile …
Source: Cimigo HKIB Survey 2013

9. Well, even dating
20 top dating apps combined
17 million active users
Meet Moi
Source: Flurry Survey 2013

10. … as well as raising our children!

11. … going beyond just searching, the
mobile device has enabled real
actions in life
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
Source: Google Mobile Survey 2013

12. … mobile is also transforming people’s buying experience &
shopping journey
While shoppers are wandering the store …
43%
use mobile to
read reviews
while in store
$$$
31%
use mobile to
compare price
38%
Source: Campaign 2013
interested in
redeeming mobile
coupons
31%
would like a mobile
app to help them
navigate around
30%
want to receive
mobile coupon when
passing a product
36%
interested in
scanning bar
code for
information

13. Rapid development of innovative retail payment products and
services
Card payment
Mobile payment
Internet payment

14. 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

15. … 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

16. But wait, is this all what our
consumers want?

17. How many apps are on your smartphone?
Hong Kong people says,
• 39 on average
• in which 10 are paid apps (!)
Second most after Korea
(40 apps)
Source: Google Mobile Survey 2013

18. Yet honestly ...
how many are active – you say?
How long the
recent heat of
Bitstrips may
sustain – you bet?

19. 38% of HK consumers feel overwhelmed
by the sheer volume of communication they
received from a brand
STOP
48%
IGNORE
41%
Frustrated
23%
Source: Experian Survey 2012
stopped engaging with four
or more brands as a result of
poorly targeted
communication
Ignore emails or social media
messages send by brands
Considered not being able to
unsubscribe / being
bombarded by online
materials as No.1 Frustration

20. 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)

21. Emerging
frustrations
and resentment
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)

22. 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.

23. It’s an art
Balance。
。 Relevancy
。 Creativity