1. Xiaobin Liu 2014 April EMERGING M-COMMERCE IN TIER 2 & 3 CITIES

2. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 SMARTPHONE PENETRATION IN LOWER TIER IS ALSO HIGH The penetration of smartphone is high not only in developed regions, but also in tier 3 and tier 4 cities. Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples Interview Methodology: CATI (computer aid telephone interview) Smartphone Penetration by City Tier (%)

3. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 3 SINCE SMARTPHONE IS NOW AFFORDABLE TO BLUE COLLARS Smartphone Penetration by Group of People (%) Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples Interview Methodology: CATI (computer aid telephone interview)

4. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 ANDROID CONTRIBUTES MORE FOR SMARTPHONE PENETRATION IN TIER 2 & 3 OS Share (%) Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples Interview Methodology: CATI (computer aid telephone interview)

5. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 PENETRATION OF SMART TV IN TIER 2 & 3 IS ON PAR WITH TIER 1 TV Wash Machine Fridge Fixed Phone Air Condition Water Heater Wireless Router Smart TV TV Box Tier 1Tier 2Tier 3Tier 4 Penetration of Household Electronics Data Sources: Nielsens CCI Research in Q1 2014, 3580 samples Interview Methodology: CATI (computer aid telephone interview)

6. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 6 APP USAGE IN TIER 2 & 3 IS RELATIVELY LOWER THAN TIER 1, BUT THE GAP IS NOT BIG IM Wechat News Mobile Video Mobile Reading Search Online Game Offline Game Microblog Shopping Mobile APP Usage Tier 1Tier 2Tier 3Tier 4 Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples Interview Methodology: CATI (computer aid telephone interview)

7. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 7 THOUGH THE PENETRATION IS SLOW, MOBILE SHOPPING AND PAYMENT ARE HAVING FASTEST GROWTH Penetration and Growth Landscape - Mobile APP Penetration Growth Rate Hi Lo IM KIK Surfing & Reading news E-books Video Search engine Online game Mobile shopping Mobile payment Microblog Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples Interview Methodology: CATI (computer aid telephone interview)