1. Tabletop Market Report 2006 ICF Technical Exchange Conference Weiden, Germany Copyright – Unity Marketing, 2006 Copyright – Unity Marketing, 2006

2. Focus on the Consumer Purchase Behavior Purchase Behavior Psychological & Emotional Needs Psychological & Emotional Needs How Tabletop Products Are Used How Tabletop Products Are Used Special Study – Bridal Market For Tabletop Special Study – Bridal Market For Tabletop Continuing Study – Luxury Tabletop Market Continuing Study – Luxury Tabletop Market

3. Consumer Insights on the Market for Casual & Formal Tabletop Tabletop Size & Growth Tabletop Size & Growth Demographics of the Tabletop Market Demographics of the Tabletop Market Tabletop Buying Behavior Tabletop Buying Behavior

4. Research Methodology Consumer Survey – Quantitative Research Consumer Survey – Quantitative Research Representative Sample Tabletop Purchases over 12 Months: Feb., 2005 – Mar.,2006 2410 respondents – 54% (1303) purchased tabletop Focus Groups – Qualitative Research Focus Groups – Qualitative Research Bridal – Columbus, OH Bridal – Columbus, OH Casual – Atlanta, GA Casual – Atlanta, GA - Chicago, IL - Chicago, IL Formal – Atlanta, GA Formal – Atlanta, GA - Chicago, IL - Chicago, IL

5. Total Tabletop Purchase Incidence

6. Tabletop Buyer Demographics Male – 36% Male – 36% Female – 64% Female – 64% Average Age – 39.5 years old Average Age – 39.5 years old Married - 66% Married - 66% Ave. Household Income - $69,300 Ave. Household Income - $69,300 College Graduates – 35% College Graduates – 35% White – 87% White – 87%

7. Tabletop Market – Sales & Growth 2000 – 2005 (Millions of $) 200020012002200320042005 D/W$2584$2601$2661$2737$2891$2987 G/W$1595$1639$1714$1813$2031$2110 F/W$1215$1215$1243$1279$1279$1247 S/W$2386$2450$2563$2539$2586$2714 Total$7780$7905$8180$8368$8786$9058

8. Tabletop vs. Housewares 2000 – 2005 (Billions of $) 2000200120022003200420055YR T/T$7.8$7.9$8.2$8.4$8.8$9.116% H/W$31.0$31.0$32.3$33.2$35.3$36.919% T/T%H/W25.1%25.5%25.3%25.2%24.9%24.6%

9. 2005 Dinnerware Sales: Style & Type Dinnerware Styles Dinnerware Styles Everyday 54% Casual Lifestyle 34% Formal Style 12% Type of Item Type of Item Boxed Sets 46% Open Stock 35% 5pc. Place Stgs. 13% Other 6% Total: $2.99B

10. 2005 Glassware Sales: Material & Type Glass Sales by Item Glass Sales by Item Tumblers 52% Tumblers 52% Stemware 28% Stemware 28% Barware 20% Barware 20% Total: $1.58B Total: $1.58B Crystal Sales by Item Crystal Sales by Item Stemware 76% Stemware 76% Barware 24% Barware 24% Total: $0.52B Total: $0.52B

11. 2005 Flatware Sales: Material & Type Stainless Steel Stainless Steel Boxed Set 49% 5pc. Place Stg. 25% Serving Pieces 16% Other Pieces 10% Total:$1.01B Sterling Silver Sterling Silver 5pc. Place Stg. 44% Boxed Set 34% Serving Pieces 22% Total:$0.24B

12. “Consumers’ growing penchant for casual lifestyles and more casual dining experiences is negatively impacting sales of all traditional formal tabletop, including formal china, crystal, and sterling flatware” Formal Dinnerware Formal Dinnerware Crystal Crystal Sterling Silver Sterling Silver Casual Dinnerware Casual Dinnerware Glassware Glassware Stainless Steel Stainless Steel Total Tabletop* Total Tabletop* *Excluding Serveware 2001 2005 4 yr.% 2001 2005 4 yr.% $1122 $ 345 - 69% $1122 $ 345 - 69% $ 623 $ 515 - 17% $ 623 $ 515 - 17% $ 286 $ 240 - 16% $ 286 $ 240 - 16% $2031 $1100 - 46% $2031 $1100 - 46% $1488 $2641 + 77% $1488 $2641 + 77% $1016 $1579 + 55% $1016 $1579 + 55% $ 928 $1007 + 9% $ 928 $1007 + 9% $3432 $5227 +52% $3432 $5227 +52% $5463 $6327 + 16% $5463 $6327 + 16%

13. Serveware and Decorative Accessories by Material Glassware $693 M 26% Glassware $693 M 26% Ceramic $671 M 25% Ceramic $671 M 25% Crystal $424 M 16% Crystal $424 M 16% Fine China $185 M 7% Fine China $185 M 7% Stainless $139 M 5% Stainless $139 M 5% Sterling $139 M 5% Sterling $139 M 5% Other $465 M 17% Other $465 M 17% TOTAL: $2714 M 56% Serveware

14. Future Growth of Tabletop 80% of Tabletop Consumers – 80% of Tabletop Consumers – “My lifestyle is more casual, so I prefer to set my table with casual, less formal tableware.” “My lifestyle is more casual, so I prefer to set my table with casual, less formal tableware.” 65% of Tabletop Consumers agreed- 65% of Tabletop Consumers agreed- “When I entertain, I prefer to set my table with upscale but casual dinnerware that is easy to care for and that I can put in the dishwasher.” “When I entertain, I prefer to set my table with upscale but casual dinnerware that is easy to care for and that I can put in the dishwasher.” Only 15% of Tabletop Consumers agreed, “Formal china fits my lifestyle today so I like to shop for more formal tableware.” Only 15% of Tabletop Consumers agreed, “Formal china fits my lifestyle today so I like to shop for more formal tableware.”

15. Conclusion Consumers want products that can be “dressed up or dressed down” depending on the occasion Consumers want products that can be “dressed up or dressed down” depending on the occasion Tabletop companies must shift their focus from a product-centered business to a consumer-centric business model Tabletop companies must shift their focus from a product-centered business to a consumer-centric business model

16. Tabletop Market is Heavily Weighted Toward Self Purchasers, Rather Than Gift Givers DinnerwareGlasswareFlatwareServeware/DecorativeTOTAL 2005 Self Gift Both 36% 22% 9% 5% 36% 22% 9% 5% 35% 20% 10% 5% 35% 20% 10% 5% 29% 21% 6% 3% 29% 21% 6% 3% 38% 20% 9% 8% 38% 20% 9% 8% 54% 40% 9% 5% Tabletop Purchases

17. 2005 Key Demographic Findings (Among Tabletop Purchasers) Everyday Dinnerware 88% Stainless Flatware 81% Crystal Stemware 60% Casual Lifestyle Dinnerware 56% Formal Dinnerware 51% A majority of tabletop buyers own one or more matching sets of:

18. 2005 Key Demographic Findings Although tableware ownership is high, tableware buyers continue making purchases throughout their lives. Although tableware ownership is high, tableware buyers continue making purchases throughout their lives. Therefore, many tableware purchases are driven more by desire than by need. Therefore, many tableware purchases are driven more by desire than by need. Lower income and younger consumers are less likely to own any formal tableware. Lower income and younger consumers are less likely to own any formal tableware. Higher income consumers ($75,000 +) were far more likely to own formal tableware (including crystal). Higher income consumers ($75,000 +) were far more likely to own formal tableware (including crystal). Male tabletop purchasers actively buy functional items and are less involved with decorative items than women. Male tabletop purchasers actively buy functional items and are less involved with decorative items than women.

19. Buyers Discuss Their Tabletop Collections “ Emphasis today is changing toward a focus on the food and company rather than the way the table is set” Formal tableware is infrequently used. Formal tableware is infrequently used. China and crystal last longer if you use it. China and crystal last longer if you use it. Holiday dishes bring a festive mood. Holiday dishes bring a festive mood. Many complain their formal patterns have been discontinued. Many complain their formal patterns have been discontinued. Formal tabletop is passed down from generation to generation. Formal tabletop is passed down from generation to generation. Formal china not bought at marriage but 10 years later. Formal china not bought at marriage but 10 years later.

20. Buyers Discuss Their Tabletop Collections “New Casual” is something between formal and everyday and is emerging as the key growth category in the tabletop market” Suited to informal entertaining or more formal engagements, depending on how it is accessorized. Suited to informal entertaining or more formal engagements, depending on how it is accessorized. Easy to clean up after entertaining. Easy to clean up after entertaining. Sold in a way the consumer likes (open stock). Sold in a way the consumer likes (open stock). Infinitely more usable and functional than formal tableware. Infinitely more usable and functional than formal tableware. May be more expensive than formal tabletop but offers the right “price/value” relationship. May be more expensive than formal tabletop but offers the right “price/value” relationship.

21. Words That Describe “New Casual” vs. Formal Tabletop “New Casual” “New Casual” Everyday Everyday Ceramic, Glass, Stainless Ceramic, Glass, Stainless Available Anywhere Available Anywhere Sold “Open Stock” Sold “Open Stock” More Durable More Durable Cheaper Cheaper More Functional, Useable More Functional, Useable Formal Formal Special Occasions Special Occasions China, Crystal, Sterling China, Crystal, Sterling Sold in Department Stores Sold in Department Stores Sold in Sets Sold in Sets Needs Careful Handling Needs Careful Handling More Expensive More Expensive Not Used Often Not Used Often

22. What Tabletop Buyers Collect ( 43% of Tabletop Buyers Collect Tabletop Items and Older Women Are The Most Avid Collectors ) Figurines 21% Figurines 21% Vases 16% Vases 16% Salt & Pepper Sets 13% Salt & Pepper Sets 13% Candlesticks 13% Candlesticks 13% Plates 12% Plates 12% Cups & Saucers 10% Cups & Saucers 10% Bowls 10% Bowls 10%

23. Where Tabletop Buyers Shop Discount Stores 50% Discount Stores 50% Home Specialty Stores 33% Home Specialty Stores 33% Traditional Department Stores 25% Traditional Department Stores 25% Internet/Catalog 8% Internet/Catalog 8% Kitchen/Tabletop Stores 7% Kitchen/Tabletop Stores 7% Factory Outlet Stores 7% Factory Outlet Stores 7% Direct “In Home” Retailers 6% Direct “In Home” Retailers 6% Gift Stores 6% Gift Stores 6% Other 10% Other 10%

24. Favorite Stores For Tabletop Shopping Wal-Mart 45% Wal-Mart 45% Target 37% Target 37% Bed Bath & Beyond 34% Bed Bath & Beyond 34% J.C. Penney 22% J.C. Penney 22% Linens & Things 19% Linens & Things 19% Kohl’s 16% Kohl’s 16% Pier 1 16% Pier 1 16% Kmart 15% Kmart 15% Macy’s 13% Macy’s 13% IKEA 12% IKEA 12% Crate & Barrel 10% Crate & Barrel 10% Sam’s Club 10% Sam’s Club 10% TJ Maxx 9% TJ Maxx 9% Dillards 9% Dillards 9% Amazon.com 9% Amazon.com 9% Costco 9% Costco 9% Pottery Barn 8% Pottery Barn 8% Mikasa Outlet 8% Mikasa Outlet 8% Marshalls 7% Marshalls 7% Williams Sonoma 6% Williams Sonoma 6%

25. Factors Influencing Where Tabletop Consumers Shop Good Prices 74% Good Prices 74% Quality of Merchandise 62% Quality of Merchandise 62% Wide Selection of Merchandise 53% Wide Selection of Merchandise 53% Special Sale 47% Special Sale 47% Good Return Policy 43% Good Return Policy 43% Convenience of Store Location 43% Convenience of Store Location 43% Trust in Store 38% Trust in Store 38% Pleasant Shopping Environment 37% Pleasant Shopping Environment 37% Brands Carried 26% Brands Carried 26%

26. Gift Market For Tabletop Most shoppers (61%) purchase tabletop for their personal use. Most shoppers (61%) purchase tabletop for their personal use. However, “gift giving” inspires 35% of tabletop purchases. However, “gift giving” inspires 35% of tabletop purchases. Gift registries have little influence on tabletop shoppers (less than 25% think this is important). Gift registries have little influence on tabletop shoppers (less than 25% think this is important). Holidays (62%) and Special Occasions (38%) are the reasons for all “gift giving” purchases. Holidays (62%) and Special Occasions (38%) are the reasons for all “gift giving” purchases.

27. Top 10 Gift Giving Occasions, Spending, and Purchase Incidence Holiday/Occasion $ Spent %Buying Holiday/Occasion $ Spent %Buying Christmas $870 97% Christmas $870 97% Birthdays $431 82% Birthdays $431 82% Anniversary $325 32% Anniversary $325 32% Romance $347 18% Romance $347 18% Wedding/Showers $265 20% Wedding/Showers $265 20% Graduation $224 20% Graduation $224 20% Mother’s Day $ 63 67% Mother’s Day $ 63 67% Valentine’s Day $ 73 57% Valentine’s Day $ 73 57% Baby/Showers $179 22% Baby/Showers $179 22% Father’s Day $ 82 48% Father’s Day $ 82 48%

28. Types of Products Purchased as Gifts “Giftables” (flowers, candles, etc.) 47% “Giftables” (flowers, candles, etc.) 47% Entertainment/Recreation 43% Entertainment/Recreation 43% Gift Certificates 43% Gift Certificates 43% Clothing & Fashion Accessories 39% Clothing & Fashion Accessories 39% Food, Candy, Wine 34% Food, Candy, Wine 34% Personal Care/Beauty 27% Personal Care/Beauty 27% Jewelry/Watches 22% Jewelry/Watches 22% Home Furnishings 21% Home Furnishings 21%

29. Most Popular Home Furnishings Gifts Kitchenware/Housewares 32% Kitchenware/Housewares 32% Small Appliances 29% Small Appliances 29% Decorative Tabletop 23% Decorative Tabletop 23% Other Home Furnishings 18% Other Home Furnishings 18% Framed Pictures/Art 17% Framed Pictures/Art 17% Home Textiles 14% Home Textiles 14% Wall Décor/Accents 13% Wall Décor/Accents 13% Dinnerware Serving Pieces 9% Dinnerware Serving Pieces 9% Glassware/Crystal 8% Glassware/Crystal 8% Outdoor Garden Décor 8% Outdoor Garden Décor 8%

30. Key Results From Bridal Focus Groups Most Brides do not think brands are an important factor in tabletop selection. Most Brides do not think brands are an important factor in tabletop selection. Brides believe casual is “everyday” while formal is “expensive and fragile”. Brides believe casual is “everyday” while formal is “expensive and fragile”. Brides often inherit most or all of their tabletop products. Brides often inherit most or all of their tabletop products. Bridal registries are an opportunity to select items they cannot afford to buy themselves. Bridal registries are an opportunity to select items they cannot afford to buy themselves. Brides need education on the selection, use, and maintenance of tabletop products. Brides need education on the selection, use, and maintenance of tabletop products. Brides select tabletop as they imagine themselves entertaining. Brides select tabletop as they imagine themselves entertaining. Grooms generally not interested in the bridal registry process – with the exception of barware. Grooms generally not interested in the bridal registry process – with the exception of barware.

31. Brand Awareness vs. Brand Purchases Brand Awareness Waterford 59% Waterford 59% Lenox 52% Lenox 52% Wedgwood 50% Wedgwood 50% Oneida 47% Oneida 47% Mikasa 47% Mikasa 47% Pfaltzgraff 46% Pfaltzgraff 46% Dansk 46% Dansk 46% Corelle 45% Corelle 45% Swarovski 38% Swarovski 38% Noritake 36% Noritake 36% Brand Purchased Oneida 33% Oneida 33% Corelle 30% Corelle 30% Lenox 26% Lenox 26% Mikasa 25% Mikasa 25% Pfaltzgraff 21% Pfaltzgraff 21% Waterford 17% Waterford 17% Wedgwood 12% Wedgwood 12% Swarovski 11% Swarovski 11% Dansk 10% Dansk 10% Noritake 10% Noritake 10%

32. The Luxury Tabletop Market – 2005 Quarterly Survey of $75,000+ Households Luxury households, as defined in this survey, represent the top 25% of U.S. households. Luxury households, as defined in this survey, represent the top 25% of U.S. households. The average income for households in the 2005 luxury survey was $140,000. The average income for households in the 2005 luxury survey was $140,000. The average luxury household owns two complete sets of fine china, however 16% of these households own none. The average luxury household owns two complete sets of fine china, however 16% of these households own none. Only 13% of all luxury consumers purchased any luxury tabletop products in 2005. Only 13% of all luxury consumers purchased any luxury tabletop products in 2005. Luxury consumers are spending less on luxury products and more on luxury experiences, such as travel and fine dining. Luxury consumers are spending less on luxury products and more on luxury experiences, such as travel and fine dining.

33. Incidence of Home Luxury Purchases 2005 2004 2003 2005 2004 2003 Any Home Luxury 68% 74% 82% Any Home Luxury 68% 74% 82% Electronics 34% 40% 56% Electronics 34% 40% 56% Linens & Bedding 25% 28% 35% Linens & Bedding 25% 28% 35% Kitchenware/Cookware 21% 21% 31% Kitchenware/Cookware 21% 21% 31% Furniture/Floor Coverings 18% 22% 27% Furniture/Floor Coverings 18% 22% 27% Garden 16% 16% 23% Garden 16% 16% 23% Kitchen Appliances 15% 16% 29% Kitchen Appliances 15% 16% 29% Tabletop 13% 16% 19% Tabletop 13% 16% 19% Home Décor Fabrics 13% 14% 19% Home Décor Fabrics 13% 14% 19% Art & Antiques 13% 12% 22% Art & Antiques 13% 12% 22%

34. Trends In The Luxury Tabletop Market Luxury consumers are spending substantially less on luxury decorative products, including tabletop. Luxury consumers are spending substantially less on luxury decorative products, including tabletop. Luxury household income strongly influences the purchase of luxury tabletop. Luxury household income strongly influences the purchase of luxury tabletop. 40-50 year olds spend twice as much as older “baby boomers” on luxury tabletop. 40-50 year olds spend twice as much as older “baby boomers” on luxury tabletop. Women spend 23% more than men among luxury consumers. Women spend 23% more than men among luxury consumers. Luxury tabletop consumers shop first at traditional department stores, then home furnishing stores and 25% of them use the internet or catalogs. Luxury tabletop consumers shop first at traditional department stores, then home furnishing stores and 25% of them use the internet or catalogs.

35. Type of Luxury Tabletop Purchased Any Dinnerware Any Dinnerware Any Crystal /Glassware Any Crystal /Glassware Any Silverware Any Silverware 2005 2004 2005 2004 63% 56% 63% 56% 66% 67% 66% 67% 48% 42% 48% 42%

36. Type of Crystal Purchased by Luxury Tabletop Consumers Any Crystal/Glassware Any Crystal/Glassware Crystal Décor Crystal Décor Crystal Stemware Crystal Stemware Crystal Serving Pieces Crystal Serving Pieces Other Glassware Other Glassware Crystal Barware Crystal Barware Other Crystal Other Crystal 2005 2004 2005 2004 66% 67% 66% 67% 35% 31% 35% 31% 27% 28% 27% 28% 21% 26% 21% 26% 17% 20% 17% 20% 12% 17% 12% 17% 8% 10% 8% 10%

37. Favored Luxury Tabletop Brands BRAND AWARENESS Lenox 36% Waterford 35% Swarovski 27% Wedgwood 26% Baccarat 17% Lladro 15% Lalique 11% Haviland 8% Christofle 6% Riedel 6% 2005 Buyers 2004 Buyers 32% 34% 32% 34% 30% 35% 30% 35% 17% 26% 17% 26% 14% 23% 14% 23% 7% 16% 7% 16% 3% 10% 3% 10% 6% 7% 6% 7% 5% 5% 5% 5% 7% 5% 7% 5%

38. Luxury Consumer’s Purchase Motivation Only 13-19% of luxury consumers buy tabletop products each year, 66% of these consumers buy crystal/glassware Only 13-19% of luxury consumers buy tabletop products each year, 66% of these consumers buy crystal/glassware (more than any other tableware category). Crystal décor, stemware, and serving pieces are the most popular crystal products. Crystal décor, stemware, and serving pieces are the most popular crystal products. Brands are very important among luxury consumers. Brands are very important among luxury consumers. Luxury tabletop inspires considerable enthusiasm among a small segment of consumers. Luxury tabletop inspires considerable enthusiasm among a small segment of consumers. Tabletop is linked to weddings, holidays, and special occasions and has a strong emotional bond with some luxury consumers. Tabletop is linked to weddings, holidays, and special occasions and has a strong emotional bond with some luxury consumers. While tabletop inspires passion for some, for many others it is viewed as only a daily necessity and nothing more. Converting this group is the key to the future. While tabletop inspires passion for some, for many others it is viewed as only a daily necessity and nothing more. Converting this group is the key to the future.

39. USA Tabletop Market Report To be continued…..