TABLET & MOBILE SHOPPERS HOLIDAY PLANS. Capturing the Maximum Value and Lift From Tablet and Mobile Shoppers.

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1 TABLET & MOBILE SHOPPERS HOLIDAY PLANS Capturing the Maximum Value and Lift From Tablet and Mobile Shoppers.

2 ONLINE SHOPPING WILL DOMINATE HOLIDAY PURCHASING THIS SEASON 94 PERCENT 44 PERCENT WILL SHOP THE SAME OR MORE FROM THEIR COMPUTERS THIS YEAR VS LAST PLAN TO SHOP ON A TABLET THIS HOLIDAY SEASON 17 WILL SHOP LESS IN STORES PERCENT THAN LAST YEAR 2 Confidential and Proprietary

3 WEBSITES REMAIN THE MOST POPULAR ONLINE SHOPPING DESTINATION Percent of Online Holiday Shoppers Retailer websites 88% Online catalogs 63% Daily deal websites 56% Apps 42% Facebook 38% Pinterest 35% 3 Confidential and Proprietary Note: Across desktop/laptop computers, tablets, and mobile / smartphones..

4 ONLINE CATALOGS ARE 2 ND MOST POPULAR, CATCHING ON VIA TABLET AND MOBILE 4 Confidential and Proprietary

5 AND, MEN SHOPPING THESE SHOPPERS ONLINE PLAN CATALOGS TO LOOK WILL AT MULTIPLE RELY ON THEM CATALOGS MORE THIS YEAR 100% 75% Holiday # of Brands Shoppers' Online Use Catalogs of Online Plan Catalogs to Shop this Holiday Season 25% 10 or more 14% 19% 1 brand 5% 34% 50% 25% 0% 71% % 76% % 65% Total Women Men Less than last year The same amount More than last year 5 Confidential and Proprietary

6 MORE PLANS MEN TO HOLIDAY THAN SHOP WOMEN TABLETS PLAN AND TO SHOP VIA MOBILE TABLETS CORRELATED AND MOBILE WITH AGE FOR HOLIDAY 2012 Online Online Holiday Holiday Shopping Shopping Plans Plans by Gender by Age Group a 58% 38% % 53% 55% 49% 48% 40% 32% 23% 28% 21% From From a tablet a tablet From From a mobile a mobile phone phone / smartphone / smartphone 6 Confidential and Proprietary

7 DADS ARE MORE PRONE TO TAKE MOBILE COMMERCE ACTION THAN MOMS Desktops / Laptops Tablets Smartphones 1% 5% 5% 6% 28% 35% I want to see toys 49% for 45% 1% different 56% 60% 57% 64% 68% age groups in a catalog 29% so 2% 2% 2% 30% broken down by 3, 4 year olds 28% 4% 23% 27% 49% 24% rather than a general 42% group 29% 27% 29% 19% 20% 13% 14% 6% Total Shoppers Moms Dads Total Shoppers Moms Dads Total Shoppers Moms Dads Not shopping this way Less than last year The same amount More than last year 7 Confidential and Proprietary

8 SOCIAL SHOPPING WITH TABLET & MOBILE DEVICES WILL COME INTO THEIR OWN THIS HOLIDAY SEASON The Best Prices & Deals Gift Ideas & Inspiration Tablet / mobile shoppers Desktop / laptop only Tablet / mobile shoppers Desktop / laptop only Daily deal websites 37% 33% Daily deal websites 22% 34% Facebook 5% 21% Facebook 11% 27% Pinterest 1% 10% Pinterest 11% 18% Blogs 4% 13% Blogs 7% 15% Twitter 1% 9% Twitter 1% 12% 8 Confidential and Proprietary

9 TABLET AND MOBILE SHOPPERS PLAN TO SHOP SIMILAR GIFT CATEGORIES Tablets Mobile phones/smartphones Consumer electronics 51% Toys and media (music, movies, etc.) 33% Toys and media (music, movies, etc.) 49% Consumer electronics 32% Apparel, shoes and accessories 49% Travel or entertainment events 27% Home goods / housewares 46% Apparel, shoes and accessories 27% Travel or entertainment events 34% Home goods / housewares 24% Luxury goods 33% Luxury goods 17% 9 Confidential and Proprietary Note: Rebased among those planning to shop from each respective channel.

10 BIGGEST CONSUMER FRUSTRATIONS 39 PERCENT NOT ENOUGH INFORMATION PROVIDED 34 SLOW LOADING PERCENT WEBSITES 29 PRODUCT IMAGES PERCENT ARE TOO SMALL 10 Confidential and Proprietary

11 RICH CONTENT OVERCOMES FRUSTRATIONS AND DRIVES PURCHASING 48 DETAILED PRODUCT DESCRIPTIONS PERCENT 42 PERCENT Consumers I want to get Want the great price Ability Suggested to shop (and using realistic) my computer suggestions or iphone; for from age a and ability desirable gender to view gifts. the product I have items a with big and family... clear pictures; with have several them guaranteed opinions, have returned needs, a lot likes of if dissatisfied; and Free wants. shipping regardless of the amount. DETAILED PRODUCT REVIEWS quantity 31 PERCENT PRODUCT RATINGS 11 Confidential and Proprietary

12 FOR EXAMPLE: SPANX: Large, high resolution images deliver maximum visual impact Alternative views tell the product story 12 Confidential and Proprietary

13 Fit Tips. Provide detailed product information from seam to sleeve. Size Chart Educates buyers on how and where to measure, for easy and consistent fashion sizing. 13 Confidential and Proprietary

14 14 Confidential and Proprietary Read More Provides in-depth information including suggestions and tips for accessorizing and complimentary products

15 KEY FINDINGS Websites remain the most popular online shopping destinations across all touchpoints 15 Confidential and Proprietary

16 KEY FINDINGS Online catalogs rising in preference Nearly two-thirds of online shoppers plan to use online catalogs this holiday Men shopping catalogs plan to use them more often this season 16 Confidential and Proprietary

17 KEY FINDINGS Tablet and Mobile devices will dominate social shopping More Dads plan to shop online more than last year, from all devices 44% of all shoppers plan to shop on a tablet this holiday season 17 Confidential and Proprietary

18 KEY FINDINGS Holiday Shoppers biggest frustrations Not enough product info Slow loading websites Too small product images 18 Confidential and Proprietary

19 KEY FINDINGS Holiday Shoppers demand a rich shopping experience, which digital platforms deliver: Detailed product descriptions Peer reviews Product ratings Video important to men and younger buyers 19 Confidential and Proprietary

20 SHOPPERS HOLIDAY WISH LIST My ideal way to holiday shop, with I would fly to New no limitations, would be a helicopter York, Japan, ride to nearest Vietnam, IKEA store. Spend the day shopping the whole etc. store. buy gifts for my family and Arrange for assembly and delivery. Fly home. friends. 20 Confidential and Proprietary

21 APPENDIX: Survey methodology & Respondent demographics

22 SURVEY METHODOLOGY Zmags conducted a survey of N=553 American consumers about their shopping plans this holiday season. Screening criteria: Tablet and/or smartphone owners Must plan to shop online this holiday season $20K+ household income Age 18 or above Interview time period: September 18-24, 2012 Source: Respondents were recruited from the Zoom Panel (now part of Survey Monkey) via and provided standard incentives of the panel (point system) Sample balancing: Invitations were sent to a nationally-representative pool of panelists (age, gender, income, geography, etc.) Results are reported unweighted Result statistically tested at 90% confidence level 22 Confidential and Proprietary

23 RESPONDENT DEMOGRAPHICS N=553 total respondents Age Group Household Income Less than $25,000 3% % % $25,000 to less than $50,000 $50,000 to less than $75,000 19% 27% % % $75,000 to less than $100,000 $100,000 to less than $200,000 21% 26% $200,000 or more 5% Gender Census Region Residence Area MIDWEST 21% Male 40% WEST 20% Urban 24% Rural 18% Female 60% SOUTH 38% NORTHEAS T 22% Suburban 59% 23 Confidential and Proprietary

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