Li Jiming Deputy Director General of Yunnan Department of Commerce PRC, June 2011 Yunnan International E-commerce Company

Source: comScore World Metrix, October 2010

Source: comScore e-Commerce Measurement

e-Commerce Sales by Income Segment ($ Billions) Growth vs. YA Source: comScore e-Commerce Measurement

Source: comScore Media Metrix, December 2010

Source:comScore MobiLens, Dec Dec-2010 (3 Month Average)

South Korea is the third largest eCommerce market in the Asia-Pacific region, after Japan and China On the global stage, it has higher online penetration, broadband penetration, and mobile penetration than the United States – and is recognized as a leader in mobile payments and virtual goods

The number of Internet users in South Korea reached 36 million in 2009, accounting for 74% of the total population E-Commerce growth in South Korea is higher than expected - projected to reach approximately USD 17 billion in 2009 Payment cards are the dominant online payment tender in South Korea and are used for approximately two-thirds of online purchases

Revenues from e- commerce in Japan have expanded every year by around 17% since 2005, and are expected to grow at nearly 10% a year for the next five years

Source: comScore Media Metrix, December 2009 to December 2010

Unique Visitors (000) Top 5 Retail Sites per Country

Until the end of 2010, the number of internet users in China has taken up 23.2% of that in the world, and 55.4% of that in Asia

Unlike in the US, the traditional retail market in China is highly fragmented

E-commerce saves online retailers store operating costs, lowers their marketing expenses, and improves their inventory turnover, allowing them to offer competitive prices – Chinese consumers often enjoy 30-40% discounts when shopping online, relative to shopping at the traditional retail stores – Most online retailers offer free door-to-door delivery within days

Internet is dramatically changing the way goods and services are produced, delivered, sold and purchased Internet technologies have the potential to empower SME Potential benefits of e-commerce for developing world are immense - any company can enter global markets where size and location become rather irrelevant * Asavin Chintakananda, Senior Advisor, Asian Development Bank, Page 6 of “Financing E-Commerce While Fighting Poverty” Presentation

Continuous price rise in China as well as the protectionist measures in the US and the EU are motivating Chinese firms to move into neighboring ASEAN region Source: United Nations Commodity Trade Statistics Database and Author ‟ s Calculation.

AMSs may consider to make reference and utilize ASEAN-China FTA B2B Platform – Targeting lower entry costs and barriers for ASEAN enterprises – Access exciting yet fragmented markets B2B for ASEAN Member Countries and China to promote inter-regional trade – More support coming targeting Cross-Border online settlement and e-Port Currently running a trial with Malaysia – lesson learned: government support is critical to success

Accelerate adoption of e-commerce trade Continuous building of infrastructure, legal framework and increase awareness in e-trade on costs and benefits Targeting trade opportunities between ASEAN Member Countries and China as a priority in the early trial – worth consideration Domestic B2C and C2C markets when ready Effective utilization of transportation infrastructure upgraded in recent years

Utilize and make use of an established electronic shopping mall at Newegg and other established channels in the U.S. – Leapfrog bypassing ground zero – Shorten learning curve – Access vast middle class consumer segment Accelerate trading with China through Newegg platform in China Currently running a trial with Malaysia

Consider to utilize Newegg and other available Public e-Commerce Platforms – Consider not to re-invent certain basics – Reduce learning curve – Lower start-up and entry costs – Tailor-made to specific needs Government support from each country is critical – Relevant ASEAN Secretariat involvement and coordination very important – Comprehensive planning but small wins through trials utilizing an established channel is recommended

Global e-commerce spending is projected to increase more than 90% by 2014 Majority of the growth will be in Asia Pacific region especially from China f Leverage on the existing platform for faster and easy entry into the e-commerce market Utilization of FTA B2B platform to increase inter-regional trades

Adequate e-commerce infrastructure in place Policy and regulatory framework Common platform: wheels not made here B2B before B2C in certain countries International and local collaborators

JUNE 2011 Yunnan Department of Commerce PRC