1. HK Watch & Clock Fair 2010 On-site Survey Christine Kwok Managing Consultant Actrium Solutions 10 Sept 2010

2. 2 Methodology Date of Fieldwork:September 6 - 8, 2010 (*Day 1 to Day 3) Target Groups:405 exhibitors; 700 buyers Method:Face-to-face interview at the Exhibition Venue

3. 3 Key Findings Exhibitors

4. 4 Respondents’ Profile

5. 5

6. 6 Exhibitors’ Major Export Markets

7. 7 Exhibitors’ Core Businesses

8. 8 Exhibitors’ Outlook for 2011 Is Positive

9. 9 Biggest Growth Regions Are Chinese Mainland, US & India

10. 10 Over 60% of Exhibitors Are Currently Selling/ Planning to Sell to Chinese Mainland

11. 11 Nearly 40% of Exhibitors Selling to Chinese Mainland Have Appointed Sales Agents

12. 12 66% of Exhibitors Selling to Chinese Mainland Anticipate Larger Sales Volume

13. 13 Strategies to Develop Chinese Mainland Market

14. 14 Strategies to Cope with Rising Costs

15. 15 Over 80% of Exhibitors Use HK Trade Fairs to Find New Buyers

16. 16 Nearly 80% of Exhibitors Use Trade Fairs to Launch New Products

17. 17 Over 80% of Exhibitors Have Received/ Are Negotiating Orders at the Fair Base: Valid Respondents (N=400)

18. 18 Key Findings Exhibitors Key Findings Buyers

19. 19 Respondents’ Profile

20. 20 Major Markets Served by Buyers

21. 21 Buyers’ Core Businesses

22. 22 Over 70% of Buyers Mainly Source/ Trade Complete Products

23. 23 Over 60% of Buyers Source for Items Above US$15 (FOB)

24. 24 Buyers’ Major Sales Channels Are Watch Specialty Outlets/ Wholesalers

25. 25 Buyers’ Market Outlook for 2011 Is Positive

26. 26 Biggest Growth Regions Are Chinese Mainland, South East Asia & India Base: All Respondents (N=700)

27. Most Popular Product Segment Is Fashion Watches 27

28. Most Popular Colours Watch Dial Watch Band Black (48%) White (33%) Metallic (24%) Most Popular Top 3 28 Watch Case Black (46%) White (27%) Metallic (25%) Black (35%) Metallic (31%) Silver (31%) Black (46%) Black (35%) Metallic (31%) Black (46%) Black (35%) Silver (31%) Metallic (31%) Black (46%) Black (35%) Metallic (25%) Silver (31%) Metallic (31%) Black (46%) Black (35%) White (27%) Metallic (25%) Silver (31%) Metallic (31%) Black (46%) Black (35%) Black (48%) White (33%) Metallic (25%) Black (48%) White (33%) Metallic (24%) Metallic (25%) Black (48%) White (33%) Silver (31%) Metallic (24%) Metallic (25%) Black (48%) White (33%) Metallic (31%) Silver (31%) Metallic (24%) Metallic (25%) Black (48%) White (33%) Black (35%) Metallic (31%) Silver (31%) Metallic (24%) Metallic (25%) Black (48%) White (33%) Black (46%) Black (35%) Metallic (31%) Silver (31%) Metallic (24%) Metallic (25%) Black (48%) White (33%)

29. 29 Nearly 50% of Buyers Have Increased No. of Orders, Order Size & Unit Price

30. 30 18% of Buyers Expect Delivery within 1 Month

31. 31 Nearly 80% of Buyers Use HK Trade Fairs to Contact New Suppliers

32. 32 26% of Buyers Have Sourced Branded Timepieces

33. 33 Among Those Who Have Sourced Branded Timepieces, 71% Are Currently Sourcing / Considering Sourcing HK Brands

34. 34 The Biggest Edges of HK's Watch & Clock Industry

35. 35 60% of Buyers Have Placed/ Are Negotiating Orders at the Fair

36. 36 Conclusion

37. 37 Conclusion Market Outlook in 2011 Both exhibitors and buyers have positive market outlook in 2011. About 60% of them expected the market in 2011 to be better or much better then 2010. For exhibitors, the biggest growth regions are expected to be the Chinese mainland (50%), US (20%) and India (18%). For Buyers, the biggest growth regions are expected to be the Chinese mainland (62%), South East Asia (15%) and India (13%). Nearly 70% of exhibitors expect increase in sales volume to Chinese mainland. Nearly 50% of buyers have increased number of orders, order size and unit price in 2010. In order to cope with the rising costs, nearly 50% of exhibitors who have manufacturing plants in Chinese mainland indicated that they will increase price. So far this has not affected their sales volume.

38. 38 Conclusion Competitive Edge of HK 83% of exhibitors mainly use HK trade fairs to find new buyers. Nearly 80% of buyers mainly use HK trade fairs to contact new suppliers. 82% of exhibitors have either received or are negotiating orders at this Fair. Buyers consider competitive edge of HK’s watch & clock industry includes high product quality and innovative product design. Among those buyers who are sourcing branded timepieces, over 70% are currently sourcing/ considering sourcing for HK brands.

39. 39 Key Findings Exhibitors End Thank You