This document discusses digital health, wearables, and the consumer. It provides background on the author and organization. Key topics covered include digital health trends like big data and machine learning/AI. It then discusses medication adherence and how various apps, devices, and systems can help monitor medication usage. It also covers specialty pharmacy areas like biosimilars. The document discusses the growth of urgent care clinics and telemedicine, noting services available today and barriers to their adoption like physician shortages.

1. 1
THE COLLISION OF DIGITAL HEALTH,
THE CONSUMER, AND WEARABLES
Deborah Weinswig
Executive Director – Head Global Retail & Technology
Fung Business Intelligence Centre
August 24, 2015

2. 2
DEBORAH
WEINSWIG
• Executive Director and Head of Global Retail & Technology
for the Fung Business Intelligence Centre
• Award-winning global retail analyst and a specialist in retail
innovation and technology
• 12 Years at Citi Research where she served as Head of the
Global Staples & Consumer Discretionary Team
• #1 ranking analyst by Institutional Investor for ten years
• Mentor to Silicon Valley accelerators including Alchemist
Accelerator and Plug & Play
• Certified Public Accountant, with a Masters of Business
Administration degree from the University of Chicago

3. 4
ABOUT FUNG
BUSINESS
INTELLIGENCE
CENTRE (FBIC)
• Established in 2000 and headquartered in
Hong Kong
• FBIC (formerly known as the Li & Fung
Research Centre) has served as the
knowledge bank and think tank for the Fung
Group
• New York–based Global Retail & Technology
research team follows broader retail and
technology trends

4. 6
TODAY’S
TOPICS
1. Digital Health
2. Medication Adherence
3. Specialty Pharmacy—Biosimilars
4. Docs-in-a-box and Telemedicine
5. Silver Generation Spending Trends
6. Technical Beauty
7. Wearable Tech
8. Cool Startups
9. Impact of Chinese Tourists
10. Mobile Commerce

5. 7
1. DIGITAL HEALTH

6. 8
INDUSTRY DRIVERS • Clinical applications
• Compliance requirements
• Future enabling technologies for cloud computing,
Big Data, mobile computing and social media
Source: IDC, EMC Digital Universe Healthcare Brief
153
2,314
2013 2020E
Healthcare Data (Exabytes)
48% CAGR
Healthcare data is
expected to grow at a
48% CAGR through 2020

7. 9
HEALTHCARE BIG
DATA ARCHITECTURE
Future Design
Storage, Processing
and Application
Services
• Ingest—Capture data from a range of sources
• Store—Store everything in a standardized environment
• Analyze—Use Big Data analytics to discover predictive
patterns—clinical/business opportunities
• Surface—Share across the enterprise—clinicians,
executives and patients
• Act—Project future opportunities: accountable care
organization (ACO), patient engagements, growth and
population health preparedness
Source: EMC

8. 10
MACHINE
LEARNING AND
ARTIFICIAL
INTELLIGENCE
• Machine learning its finding its way through
startups into applications like marketing, security,
and operations
• Deep learning includes computer vision, speech
recognition, natural language processing, and
bioinformatics
• Companies today are using neural networks to
identify objects for use in driverless cars

9. 11
HEALTHCARE
PROVIDER
SPENDING IN
FUTURECARE TECH
INCREASING IN
2015
How do you expect your 2015 IT spending to change
for each of the following areas?
Source: FutureCare: Cloud, Big Data, Mobile and Social Optimize the EMR,”

10. 12
2. MEDICATION ADHERENCE

11. 13
MEDICATION
ADHERENCE
“Drugs don’t work in patients who don’t take
them.”
–C. Everett Koop, MD (former U.S. Surgeon General)
• 20%–30% of prescriptions are never filled
• Only 1 in 2 patients take their prescribed
medications correctly and on time
• Nearly 3 out of 4 Americans admit that they do
not always take their medication as directed
• Medication Adherence:
– Timing
– Dosage
– Frequency
The problem:
Only 1 in 2 patients take
their prescribed
medications correctly and
on time

12. 14
MEDICATION
ADHERENCE
Apps can tell patients
when to take their
medicine and how much
to take
Pillboxie RxmindMe Txt4health

13. 15
MEDICATION
ADHERENCE
Smart Wireless Pill Bottles
• Currently being used by patients in
pharmaceutical and research engagements
• Collect and send all adherence data in real time
• Automatically analyzes this information and
populates data on secure dashboard
• If doses are missed, patients can receive
customizable alerts and interventions—using
automated phone calls, text messages, and other
means
Second-Generation Pill Bottle
Wireless pill bottles can
monitor time, usage and
collect other data

14. 16
MEDICATION
ADHERENCE Propeller
• For Asthma and COPD (chronic obstructive
pulmonary disease)
• Sensor is a small device that attaches to the top of
the inhaler
• Tracks medication use, with a record of the time
and place inhaler use
• Wirelessly syncs with smartphone via
Bluetooth
• Mobile app enables view of data plus personalized
feedback/suggestions
The propeller can
monitor inhaler usage

15. 17
MEDICATION
ADHERENCE
Klaptic
• An ambient medication alert system that is
designed to maintain the health and
independence of the target audience
• Used haptic feedback modules (vibrations)
and other indicators to alert a user of when
to take a medical drug and which one to take
• Modules can be fitted onto reading glasses
or existing pieces of clothing
Klaptic is a clever
eyeglass-mounted
wearable for monitoring
the use of medication

16. 18
MEDICATION
ADHERENCE
miWatch
• Smartwatch app for
– Reminding about appointments
– Rx-refill requests
– Lab/test results
• Reminders for:
– Medication adherence
– Appointments with doctors
– Alerts and notifications from a patient portals
Smartwatches can also
provide reminders for taking
medication and deliver
necessary information

17. 19
MEDICATION
ADHERENCE
Proteus Discover system
• Pill—Sensor-enabled pills send a signal to the
patch and measure what medication has been
taken
• Patch—Records time a sensor pill has been taken
as well as rest and activity
• App—The Discover App tracks medications,
steps, activity, rest, heart rate, blood pressure,
and weight
• Portal—Allows health-care professionals to drill
down into an individual patient’s data
The Proteus Discover system
us a patch that monitors
medication use that can
collect other data

18. 20
3. SPECIALTY PHARMACY

19. 21
EXPANDING
OPPORTUNITIES IN
A FAST-GROWING
MARKET
Source: NHE, Artemetrx, CVS Health
Note: Includes infused oncology
$86
$118
$153
2014E 2016E 2018E
Addressable Specialty Market ($ Bil.)
Medical Pharmacy
16% CAGR

20. 22
PREPARING FOR
TOMORROW
• Enterprise vision to create a
“Connected” Health Experience
• First-in-class tools to help
patients seamlessly manage
retail, mail, and specialty
prescriptions
• Enhanced front store
personalization tools drive value
for customers
Integrated
Digital
Offerings

21. 23
SPECIALTY IS
GROWING IN
ABSOLUTE
DOLLARS AND
PERCENT OF TOTAL
SPEND
Source: NHE, CVS/caremark

22. 24
THREE KEY
DRIVERS OF
UTILIZATION
Source: CVS/caremark

23. 25
DRUG PRICES
DRIVEN BY
ANNUAL PRICE
INFLATION AND
HIGHER
LAUNCH PRICES
Source: CVS/caremark
Note: Annual drug costs based on average wholesale price (AWP) accessed summer
2013.

24. 26
COST
MANAGEMENT
OPPORTUNITIES
IN SPECIALTY
PHARMACY:
BIOSIMILARS
Source: CVS/caremark

25. 27
RETAIL INFUSION
AS THE NEXT
INNOVATION
Source: Press Ganey

26. 28
4. DOCS-IN-A-BOX AND TELEMEDICINE

27. 29
URGENT CARE
CLINICS
Overview
• Pressure from lawmakers, employers and insurers on
hospitals to treat patients in less costly outpatient care
settings
• Number of insured expected to grow by 30 million over
next decade
• Open evenings and weekends
• Physician on staff
• Most operated by nonprofit health systems, such as
Aurora Health Care or Intermountain Healthcare
• Insurers such as Humana and WellPoint are also
purchasing chains of clinics
• Private equity firms $2 billion in health and medical
services in 2012
Source: CNBC
The number of urgent
care clinics is growing due
to government policies
and economic necessities

28. 30
Key Statistics
• Approximately 9,000 urgent care centers in the US
– Growing 8–10% annually
– 40% expect to expand or add another site
– 94% have at least one full-time physician on staff
• 75% located in suburban areas, 15% in urban areas, 10%
in rural areas
• About 50% are freestanding. About 50% in shopping
centers
• 85% of clinics are open 7 days a week
• 95% close after 7 p.m.
Source: Companies
There are about 9,000
urgent care clinics in the US,
and the number is growing
by 8% to 10% a year
URGENT CARE
CLINICS

29. 31
URGENT CARE
CLINICS
Source: physiciansimmediatecare.com
Broad Range of Services
Urgent care clinics perform a
wide variety of functions,
including diagnosing
illnesses, taking X-rays,
performing lab tests, and
giving immunizations

30. 32
URGENT
CARE
CLINICS
Source: Companies
970
400
81
CVS/caremark Walgreens Walmart
Number of Clinics
Many drug stores and,
increasingly, retailers
offer urgent care clinics

31. 33
TELEMEDICINE • Why Use Telemedicine?
• Shortage of physicians
• Distribution of expertise
• It works well
• Cost effective
• Patients like it
Source: HEALTHePRACTICES, Lewin Group
Telemedicine is necessary
due to the shortage of
physicians and provides
efficient care

32. 34
TELEMEDICINE
Source: HEALTHePRACTICES, Lewin Group
Physician Shortage
Telemedicine is necessary
due to the shortage of
physicians and provides
efficient care

33. 35
TELEMEDICINE
Source: HEALTHePRACTICES
Solutions Available Today
Today, telemedicine can
provide radiology, neurology,
psychiatry, dermatology,
ophthalmology, and
cardiology

34. 36
TELEMEDICINE 10 Million Patients Served by Telemedicine
• Outsourced specialists
• Teleradiology
• Internet clinical consults
• Cardiac monitoring
• Remote monitoring
• Civilian network consults
Source: HEALTHePRACTICES
Today, 10 million patients
have been served by
various telemedicine
functions

35. 37
SERVICES
AVAILABLE
TODAY
• Online services
• Consumer health apps
• Urgent care
• Patient generated health data (PGHD)
• Wearables
• Scannables (sensors)
Source: HEALTHePRACTICES
Many telemedicine
functions can be
performed online or
through wearables or
scannables

36. 38
SERVICES
AVAILABLE
SOON
Source: HEALTHePRACTICES
There are many
connected healthcare
devices available today or
under development

37. 39
TELEMEDICINE
• Teladoc, founded in 2002, is the first and largest
telehealth provider in the US
• The service provides consults via phone or online
24/7/365
• Doctors are U.S. board-certified family practitioners,
PCPs, pediatricians and internists
• Health providers use electronic health records to
diagnose, treat, and write prescriptions
• Patients control their electronic health records and can
take their records with them
• Members report that Teladoc physicians resolved their
medical issues 92% of the time
Teladoc provides consults
with board-certified
doctors via phone or
online 24/7/365

38. 40
ADVANCED
TECHNOLOGIES
Source: HEALTHePRACTICES
Advanced uses of
telemedicine include robotics,
remote surgery, and live
monitoring via cellphone

39. 41
ADVANCED
TECHNOLOGIES
Source: HEALTHePRACTICES
Other advanced application
include 3D modeling of organs
and tumors

40. 42
5. SILVER GENERATION SPENDING TRENDS

41. 43
SUMMARY • The “silver” generation represents over-50
Americans, who have high incomes and
different spending patterns than millennials
• This demographic category is expected to
expand markedly through 2060
• The silvers also have net worths well above
average
• Silvers tend to spend more on healthcare,
food at home, household furnishings, pet
supplies and personal care …
• … and less on transportation, education and
clothing than millennials
The silver generation is a
growing demographic group
with high net worths,
incomes, and different
purchasing preferences than
the upcoming millennials

42. 44
MEDICARE
POPULATION
GROWING
AND UTILIZING
THREE TIMES AS
MANY SCRIPTS AS
PATIENTS UNDER 65
Source: CVS Health; Medicare Trustees Report, 2014; Avalere Medicaid Model,
Barclays, McKinsey MPACT 6.2, CBO Public Exchange Estimates, Oliver Wyman, 2014.
49
69
2013 2019E
Growth in Medicare Lives (Million Lives)

43. 45
WHO IS THE
“SILVER”
GENERATION? Generation Age Income After Taxes
Gen Z / Millennials <25 $26,559
Gen Y 25–34 53,178
Gen X 35–44 69,152
Younger Boomers 45–54 68,048
Older Boomers 55–64 63,312
Golden Generation 65–74 48,742
Average $56,353
Americans in the age range of
45 to 54 have above-average
after-tax incomes

44. 46
US
DEMOGRAPHICS
2010–2015
321
335
347 359 370 380 389 398 407 417
0
50
100
150
200
250
300
350
400
450
2015
2020
2025
2030
2035
2040
2045
2050
2055
2060
Projected US Population, 2015–2060
Under 18 years 18 to 24 years 25 to 44 years
45 to 64 years 65 years and over
Source: US Census Bureau
The over-45 population is
projected to increase
markedly during
2015-2060

45. 47
ABOVE-AVERAGE
DISPOSABLE
INCOME
Source: US Bureau of Labor and FBIC Global Retail & Technology
Members of the “silver”
generation (55-74) have
above-average disposable
income
US Average Disposable Income

46. 48
WHAT THE “SILVER”
GENERATION
WON’T SPEND
ON…
Members of the “silver”
generation spent below-
average levels on
transportation, education
and clothing
$8,860
$9,183
$9,004
Silvers Millennials
Transportation
All Consumers
$874
$1,019$1,138
Silvers Millennials
Education
All Consumers
$1,423
$1,832
$1,604
Silvers Millennials
Clothing
All Consumers
Source: US Bureau of Labor and FBIC Global Retail & Technology

47. 49
6. TECHNICAL BEAUTY

48. 50
ELEVATE BEAUTY:
BUILD ON OUR
STRONG
FOUNDATION
Source: CVS Health
Enhance the Beauty Shopping
Experience
Bring our Health Expertise
to Beauty

49. 51
FACIAL MAPPING • Virtual Makeovers and Try-Ons
• ModiFace is a Toronto-based company with a
background in building 2-D and 3-D facial
simulations
• L’Oréal Makeup Genius

50. 52
Try-it-on • TryItOn lets customers virtually try on makeup products
while in the store via an app for iOS and Android
smartphones
• The user uploads a photo, scans a barcode for the
product, and can view an image of the makeup on her face
• Brands supported include L’Oréal, Maybelline and Revlon
• The app analyzes the user’s skin pigments to determine
which makeup suits the user’s skin tone
• Users can also share images with friends to solicit their
opinions
TryItOn uses augmented reality
to enable users to try on
makeup suitable for their skin
tone and also solicit their
friends’ opinions

51. 53
MAGIC MIRRORS • Attracting customers with visual suggestions
and options
• Expediting the fitting-room process
• Theft protection
• Data collection

52. 54
MAGIC DISPLAYS
FOR SHOPPER
ENGAGEMENT
• Immersive, interactive experiences
• Affordable price is making large panels and
custom displays more affordable
• 3D motion detection has moved into the
consumer sphere

53. 55
COLOR
MATCHING GOES
HIGH-TECH
• Sephora + Pantone = Color IQ
• IMAN Cosmetics determines one’s “color
signature” after taking a headshot
• The apps offer a wide range of product and
look recommendations

54. 56
SMARTPHONES
DOUBLES AS
PERSONAL BEAUTY
CONSULTANTS
• Smartphone apps are capable of:
– Conducting skin analysis
– Making product recommendations
– Performing virtual cosmetic testing
• Allure + SkinBetter = App that applies
dermatologist-grade scanning technology to
identify skin issues
• The apps offer a wide range of product and
look recommendations

55. 57
SOCIAL SELLING
BEATS ONLINE ADS
FOR BEAUTY
PRODUCTS
• 50% of beauty shoppers rely on beauty videos on
YouTube when making a purchase (source:
Google)
• With YouTube’s help, beauty content creators
provide beauty products to website owners in
exchange for links to their website
• The site generated 40% of traffic from YouTube
links and conversion rates increased to 15%
Michelle Phan’s E-tailers

56. 58
GENETIC TESTING
FOR CUSTOMZIED
TREATMENTS
• Technology has enabled consumers to obtain
tailored anti-aging products based on DNA
analysis
• Information transparency demands
hypercustomization from beauty brands –
products that are adjustable to the daily
changing needs of an individual’s skin and hair
Geneu skincare lab in
London offers
skin profiles based on a
DNA sample
from a simple mouth swab

57. 59
BIOTECH INVADES
BEAUTY
• The line between medical research and
beauty is blurring
• For products and therapies, particularly for
anti-aging remedies:
– Biotech materials
– Genetic profiling
– Stem-cell-based

58. 60
WEARABLE TECH IN
NAIL ART AND
MAKEUP
• Early areas of research include
– Nail decoration
– Tattoos and conductive makeup
– Combining beauty and technology to empower the
disabled

59. 61
3D PRINTING OF
COSMETICS
• Desktop printer with a sub-$200 price tag that
can print makeup such as lipstick, lip gloss,
eye shadow, blush, nail polish and brow
powder

60. 62
ON-DEMAND
BEAUTY SERVICES
• The app Beautified allows users to search
for nearby salons and book last-minute
appointments using geolocation-based
technology

61. 63
7. WEARABLE TECH

62. 64
THE INTERNET OF
THINGS
Cisco forecast: 50 billion
devices by 2020
Source: Cisco
• Cisco has forecasted that there will be 50
billion devices connected to the Internet by
2020
• There are already more connected devices
than people

63. 65
WEARABLES
MARKETS
The wearables market is
estimated at about 60.6
million units and $6.6
billion this year
Source: ABI Research, HIS, MarketsandMarkets, FBIC Global Retail & Technology
35.7
46.5
60.6
79.0
103.0
134.3
$2.8
$5.1
$6.6
$8.8
$12.0
$16.8
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
0
20
40
60
80
100
120
140
160
2013 2014 2015E 2016E 2017E 2018E
MarketValue($Billion)
Units(Million)
Size and Value of Wearables Market
Units Dollars

64. 66
SMARTWATCH
MARKET
The global smartwatch
industry is estimated at
$2.5 billion in 2015—
about 5% the size of the
watch industry
Source: Generator Research
0
50
100
150
200
250
2013 2014 2015 2016 2017 2018
Worldwide Smartwatch Market (Mil. Units)
Apple Other

65. 67
STATE OF THE
WEARABLES
MARKET
• Technology still in its infancy
• Size, battery life, limited features, and lack of
performance are hindering innovation
• Engineering needs to connect with product
design
• Fashion and electronics supply chains need
to come together for products to be
successful
• Gadgets needs to become beautiful garments,
jewelry, watches and accessories
• No need to compromise aesthetics for
functionality
The wearables market is
still in its infancy, and
much remains to be done
to connect aesthetics
with tech
Source: Kloog

66. 68
SMARTWATCHES Functions
• GPS tracking
• Analog/digital faces
• Heart rate monitoring
• Activity tracking
• Sleep quality tracking
• Fall detection
Smartwatches perform
much of the functionality
of fitness bands
Source: Kloog

67. 69
SMART FOOTWEAR Functions
• GPS tracking
• Alerts
• Stride detection
• Balance detection
• Pace detection
Smart footwear offers many
functions developed
specifically for runners
Source: Kloog

68. 70
BIOMETRIC
CLOTHING
Functions
• Pulse Rate
• Heart Rate
• EKG Functions
• Skin Temperature
• Muscle Contraction
• RespirationSensors in biometric
clothing can collect many
types of physiological
data
Source: Kloog
• UV sensors
• Activity tracking
• Fall detection
• Hydration level
• Electrolyte level
• Glucose level

69. 71
FIRST RESPONDERS
AND UNIFORMS
Functions
• GPS Tracking
• Wi-Fi
• BTLE
• Camera
• Gas Sensors
First responders have specific
needs for sensors and
connectivity in order to
monitor their environment and
communicate with the base
Source: Kloog
• Independent Zone
• Flexible
• Waterproof
• Wearable Screens
• Heat Sensors

70. 72
SMART GLASSES Functions
• Voice Command
• Search
• Biometrics
• BTLE
• Screen
Beyond the Google Glass,
smartglasses have many
applications in industry
and medicine
Source: Kloog

71. 73
POSTURE
MANAGEMENT
Functions
• Correction
• Compression
• Tapings
• Harnesses
• Embedded sensors
Wearables can be used to
correct our posture and
to help reduce back pain
Source: Kloog

72. 74
ENERGY
HARVESTING
Functions
• Bags
• Apparel
• Outerwear
• Gloves
• Sports Equipment
Wearables can collect energy
from our physical movement,
avoiding the need for external
power sources such as
batteries
Source: Kloog
• Bicycles
• Skateboards
• Fans
• Household Goods
• Recharging Solutions

73. 75
GLUCOSE
MONITORING
Guardian Real-Time Continuous Glucose Monitoring
(CGM) system
• Offers protection day and night
• Provides continuous glucose readings and
customizable alerts with notification of oncoming
highs and lows
• Enables real-time corrections for better glucose
control
The Guardian is a
combination of a patch
and an external device for
glucose monitoring

74. 76
NANOTECH • Nanoenabled products are a $1 trillion+
market
• What’s special about nano
– Size-dependent properties
– High surface-to-volume ratio
• Types: buckyballs, nanotubes, graphene,
nanoparticles and quantum dots
• Key products: personal care, clothing,
cosmetics, sporting goods, filtration and
sunscreens
• VCs are actively investing in
nanotechstartups, driving further innovation
Nanotech is the next
small thing enabling new
products and wearables
Source: Kloog

75. 77
8. COOL STARTUPS

76. 78
INDOOR
MAPPING
TECHNOLOGY
• In-store shopping companion that provides
content that matters to the customer
• Customer can double-tap to save or swipe to
dismiss
• Double-tap proximity cards to save them
• As customer moves through the store, new
relevant cards pop up augmenting the
shopping experience
inMarket provides
contextual content for
shoppers on their
smartphones

77. 79
INDOOR
MAPPING
TECHNOLOGY
• aisle411, Walgreens and Google’s Project Tango
Have Teamed Up to Change In-Store Shopping
Experience
• Project Tango can determine a shopper’s location
inside the store within centimeters
• Allows shoppers to search and map products inside
stores using tablets and 3D augmented reality
• Shoppers can be rewarded with loyalty points as
they navigate the store
• The platform overlays
– Navigation
– Rewards
– Personalized special offers
Location-based technology
is being combined with
augmented reality to offer
an enhanced in-store
experience

78. 80
HEART
MONITORING Home Diagnosis
• The BioStamp is a temporary tattoo that can
take several measurements, including
– UV exposure
– Temperature
– Perspiration and biochemistry
– Blood pressure
MC10 is developing wearable
technology for consumer, digital
health, medical devices, and
industrial & defense
applications

79. 81
BABY
MONITORING
There are many commercially
available products for
monitoring a baby’s
breathing and activity

80. 82
UV
MONITORING
SunFriend
• Provides alerts based on exposure and skin
sensitivity
• Tracks UVA+UVB levels
• Computes UV index (UVI)
The SunFriend monitors
UV levels and alerts the
wearer when he or she
has had enough sun
based on the skin type

81. 83
BLOOD
GLUCOSE
Glooko Type 1 & 2 Diabetes Monitoring Software
• Challenge—Tracking, recording and monitoring blood
glucose readings can be time-consuming and difficult
• Opportunity—Create a mobile app that minimizes the
possibility of human error from manual tracking.
• Solution—iOS app syncs with 19 meters to
automatically record readings. Users can email reports
to their physician. Other features include automatic
logging, food database integration, email integration,
Facebook integration, and note-taking.

82. 84
9. IMPACT OF CHINESE TOURISTS ON RETAIL

83. 85
SUMMARY • We estimate Chinese overseas spending will
nearly double to $422 billion by 2020
• Chinese travelers primarily stay within Asia,
however smaller numbers visit the US and UK
• Average spending was $1,678 in our survey,
however the greatest frequency was in approx.
$400–1200
• The most commonly purchased products were
apparel and accessories and beauty products
• More middle-income Chinese citizens will travel,
and travelers will travel more independently,
which has certain implications for retailers

84. 86
Social Media
Savvy
• Wechat has 549 million active users, covers 200
countries
• WeChat mobile payment users reached 400 million
80% of Chinese high net-worth people use Wechat

85. 87
A $422 BILLION
MARKET BY 2020
• Total outbound passenger journeys will double
between 2014 and 2020, to approximately 234 million
• Total overseas spending by Chinese tourists is
expected to jump 23% in 2015 to $229 billion
• By 2020, we estimate, total overseas spend will
reach $422 billion—a projected 13% CAGR
$229
$422
2015 2020
Chinese Overseas Spending ($ Bil.)
13% CAGR
Source: FBIC Global Retail & Technology
We estimate Chinese
overseas spending will
nearly double to $422
billion by 2020

86. 88
UNDERSTANDING
THE OVERSEAS
SHOPPER
• FBIC Global Retail & Technology and China Luxury
Advisors survey of 1,019 Chinese Internes users
aged 18+
• Two-thirds of Chinese Internet users traveled
overseas during May 2014-May 2015 period
12.9%
10.3%
9.5%
7.3%
5.7%
3.2%
2.1% 2.0%
Hong
Kong
Thailand South
Korea
Japan Taiwan US Macau UK
Chinese Tourists’ Top Destinations
The top five destinations
for Chinese tourists were
in Asia. The percentage of
trips to the US and UK
was much lower
Source: FBIC Global Retail & Technology

87. 89
HOW MUCH DO
OVERSEAS
SHOPPERS SPEND?
• Average spending was $1,678
• Most popular spending bands were $407–
$815 and $815–$1,222
• 3% spent more than $6,516
13%
20%
17%
13% 13%
8%
6%
3%
8%
Amount Spent on Retail Purchases
Average spending was
$1,678 and the most
common spending was in
the range of $407 to
$1,222
Source: FBIC Global Retail & Technology

88. 90
WHAT DO
OVERSEAS
SHOPPERS BUY?
• Most popular overseas shopping categories:
clothing, footwear and accessories,
fragrances and beauty products, electronics
and other food or beverage
56%
52%
32% 31%
23%
20% 19% 18% 16%
10%
Apparel Beauty Electronics Other food Health
items
Watches Tobacco Jewelry Alcohol Other
products
Categories of Products Purchased
The most commonly
purchased products were
apparel and accessories
and beauty products
Source: FBIC Global Retail & Technology

89. 91
HOW MUCH DO
OVERSEAS SPEND
BY COUNTRY?
• Chinese visitors to the US spend the most on
retail purchases; at $2,555, they spend 52% more
than the $1,678 global average, Followed by
Europe and Japan
$1,678
$2,555 $2,548
$2,270
$1,922
$1,696
$1,290 $1,256
Global
Average
US Europe Japan S. Korea Taiwan Thailand Hong
Kong
Estimated Per Capita Spending by Destination
Chinese visitors to the US
spend the most on retail
purchases; at $2,555,
they spend 52% more
than the $1,678 global
average, Followed by
Europe and Japan
Source: FBIC Global Retail & Technology

90. 92
10. MOBILE COMMERCE

91. 93
CHINA:
THE WORLD’S
LARGEST ONLINE
MARKET
China’s online population has
grown rapidly to 641 million,
including 127 million rural users
iResearch estimates the total
mobile transaction value will
exceed ¥3.2 trillion at the end of
2017, up from ¥274 billion in 2013
China Mobile Commerce Growth (US$ Bil)
$2 $11
$44
$132
$258
$401
$512
2011 2012 2013 2014 E 2015 E 2016 E 2017E
Source: iResearch

92. 94
APPS ARE
DOMINATING
SMARTPHONES
16%
84%
58%
42%
Total Internet BuzzFeed
Share of Time Spent on Mobile
Mobile
Web
App
Source: comScore, March 2014
Apps are much easier to
navigate than mobile
apps and are therefore
more popular with users

93. 95
INCREDIBLE
RETAIL
DIGITAL
OPPORTUNITY
93%
Sales will be Offline
70%
Sales will be digitally
influenced
Source: Google Analytics
In the future, 93% of sales
will be offline and 70%
will be digitally
influenced, according to
Google

94. 94
THANK YOU!
Deborah
Weinswig,
CPA
ExecuHve
Director—
Head
of
Global
Retail
&
Technology
Fung
Business
Intelligence
Centre
New
York:
917.655.6790
Hong
Kong:
+852
6119
1779
deborahweinswig@fung1937.com
Filippo
BaEaini
filippobaKaini@fung1937.com
Sunny
Chan,
CFA
sunnychan@fung1937.com
Marie
Driscoll,
CFA
mariedriscoll@fung1937.com
John
Harmon,
CFA
johnharmon@fung1937.com
Aragorn
Ho
aragornho@fung1937.com
John
Mercer
johnmercer@fung1937.com
Shoshana
Pollack
Shoshanapollack@fung1937.com
Kiril
Popov
kirilpopov@fung1937.com
Jing
Wang
jingwang@fung1937.com
Steven
Winnick
stevenwinnick@fung1937.com