1 SMALL APPLIANCES – A WORLD OF OPPORTUNITY Canton Fair, Guangzhou, China Jonathan Wee

2 Emerging middle class According to the OECD Development Center, the size of the middle class 1 worldwide could increase from … 1 OECD, defines middle-class as those with daily expenditures between USD10 and USD100 per person in purchasing power parity terms

3 We will see an explosion of the Middle Class in Asia Global regional distribution of the Middle Class (all regions = 100%) Source: Kharas, Gertz. The New Global Middle Class: A Cross-Over from West to East. Wolfensohn Center for Development at Brookings % 10% 36% 28% 6% 10% 2% 8% 22% 54% 5% 7% 6% 14% 66%

4 Key products for consumer electronics retailers….. what it used to be

5 The new stars for consumer durables

6 World market estimation – including North America. Long-term continuous growth and positive outlook for the SDA market. Sales Bill US $ +5% + 4% +3% +6% Forecast 2015

7 Solid growth for SDA, with several products pushing the SDA market 1 关键产品增长带来整体小家电市场稳定增长 Sales value € growth vs. previous year, world 2 | Jan – Jun 2015 vs Market segments with an impact on total growth of ≥ 0,2 percent points, 2 Comparable Product Groups, without U.S % Kitchen Appliances Juice extractor Liquidiser Rice cookers Personal Care Toothbrush solo Laser/ IPL Men Shavers Home Comfort Handstick vacuum cleaner Aircleaner Robot vacuum cleaner

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10 © GfK All rights reserved /Boom-in-home-cooking-as-more-families-make-from- scratch.html From Scratch Oil Press Bread maker Noodle Maker Dessert Maker Cooking Function On the Go Blender Blending/ Slow Juicing

11 © GfK All rights reserved Culinary Entertainment What shall we eat today?Please take care of my Fridge “All this culinary entertainment may be having an effect. Lotte Mart, a department store, says that sales of salt, sauces and spices have shot up over the past 12 months; it has also sold 72% more woks and 63% more kitchen utensils. Men’s cooking classes have multiplied”

12 WY 6004, UCW Every 20 seconds, one of this blender is sold in Korea!

13 Liquidizer a product group characterized by a wide range – from take-away products to professional

14 © GfK All rights reserved “For personal use” or “on the go” products are becoming a fast favourite for consumers in Taiwan, Australia, Malaysia, Singapore

15 POWER MIXERS AND WHAT PEOPLE TALK ABOUT THEM

16 The top 3 brands mentioned in social media are Vitamix, Bianco and Omniblend Product / Product Comparison 41 % Price 13 % Smoothies Green smoothie Others 76 % 24 % 15 % Recipes / food preparation Ingredients Output / food 42 % 58 % 13 % Power / Performance rpm wattage power 8 % 31 % 19 % 35 %

17 USD402 Some of the best selling Juicers in APAC USD655 USD1599 USD452

18 Juicer or Blender? And which type of Juicer?

19 1H20091H20121H2015 USD58mil USD91mil USD261mil ??? USD25mil USD90mil The market explodes in Australia, Malaysia, Indonesia, South Korea * Market size for Australia, New Zealand, Malaysia, Indonesia, South Korea only

20 Mobile 谢 谢 Thank you.