Main trends in Retail Concept around the world

1. The information contained in this document belongs to Value Partners S.p.A and to the recipient of the document. The information is strictly linked to the oral comments which were made at its presentation, and may only be used by attendees of that presentation. Unauthorized copying, disclosure or distribution of the material in this document is strictly forbidden and may be unlawful. Main trends in Retail Concept around the world Mumbai, 9th September 2006

2. Contents of the document • • The key elements of a Retail Concept and main trends Some examples of innovative Retail Concepts

3. The key elements for the definition of a Retail Concept Brand Strategy Target Market Atmosphere Complete “Retail Concept” Assortment/ range Shopping experience Pricing Promotional tools POS Location/dimension Customer Service

4. Main trends in Retailer POS Area Trend - - “Surreal” effect creation Development of initiative of traffic building Atmosphere - Interaction encouraged more and more . Demo/product test . Simulation of functioning atmosphere of the product Shopping experience - - - - Widening offer portfolio with non-core products/services (“one stop shop”)/differentiation of the offer Development of cross selling Assortment fast renewal (i.e. fast fashion retailers) Development of assortment with a specific focused target Assortment/ range - - - Superior sales force training Sales people empowerment Policies of compensation based on level of customer satisfaction/ sales Customer service

5. Contents of the document • • The key elements of a Retail Concept and main trends Some examples of innovative Retail Concepts

6. Atmosphere: Niketown- “surreal” effect creation LONDON - The store reproduces a virtual city of the sport, constituting: .. Central public square with video-wall columnPavilions/quarters dedicated to the sport disciplines (e.g. soccer quarter, …) Store layout - Inside some of the pavilions, the characteristic atmosphere of the sport, to which the pavilion is dedicated, is reproduced; as an example: Pavilion layout .. Basket playground Reproduction of the soccer stage cover

7. Atmosphere: FNAC-traffic building levers PARIS Concert in the forum Cafe FNAC Demo game PS2 - The forum area in the middle of the POS is entirely dedicated totraffic building activity not directly related to the sale of products: . . . . Caffé FNAC: food/cafè bar Temporary exhibits on specific topics (current exhibit on the work of Stanley Kubrick) Concerts for new CD launch and cultural events: books inauguration, reading sessions Workshop on new technologies - Presence of interactive elements: . . . “Image Box” counter for modifying and printing digital photos Touch screen with information on products on sale and events organized in the store CD listening counters - Many plasma screens with images of exhibited products (e.g. concerts in the music area, demos in the software area, …)

8. Atmosphere: Atelier Renault- traffic building levers PARIS Thematic exhibits “Relax” Area Restaurant/Bar - - Inside the atelier thematic exhibitions on automobiles are periodically organized The exposures use multimedia instruments integrated with the exhibit objects - The atelier provides visitors an area to relax, where it is possible to: - The atelier has a Restaurant/Bar area (approximately 5,400 ft2 ) suspended over the exhibits area . . . Read newspapers and magazines at their disposal Rest on the sofa and massage seat Listen to music and see films on F1 Renault

9. Atmosphere: American Girl Place NEW YORK A narrow retail format turned into a destination event Concept -- Sell high-end dolls and related accessories to girls from 5 years of age to pre-teens and ...... Sell matching apparel, related books and magazines to them Key Features ----- 3 POS, each ~ 40,000 ft2Theatre shows on related themesElegant restaurant with a setting for the dollA doll make overA doll hospital

10. Atmosphere: House of Dreams COPENHAGEN,DENMARK An experimental place focused on creating a visual and multisensorial experience to promote beds and mattresses “Comfort Zones” Sensory Room Other features - - - Concept: to demonstrate a bedroom in a privileged area filled with comfort and a multi-sensual experience to exploit fully the appeal of the products Has 4 rooms of different styles: Italian, Colonial, Penthouse, Romantic A part of store dedicated to a “Show your room” contest with images of actual rooms of customers - - In this room customers can avail a polysensorial experience of two different atmospheres in a simulated environment There is also a mobile sensory room for shops to organise promotional events - - - - A room with Robbie William’s bed – where you can lie down and also click photos A chiropractor for consultancy services Sophisticated coffee shop Store open for public only on Thursdays from 15 – 20 or on appointment to create an exclusivity feature

11. Shopping experience: Niketown–interactive features LONDON Personalization of the product Interaction with the Web - Inside the store, there are internet counters , where the customers can surf and personalize the Nike products and directly buy them - The high technological content of the store contribute to increasing the POS traffic: POS technolog-ical content .... LCD containing videos of sportsCentral Video-wallAutomated product delivery

12. Shopping experience: O2 Mobile, interactive features in the Flagship (demo areas) MONACO Demo O2 Music Demo phones counter Inside the Flagship store of O2 there are demo phones counters (6) in which customers can try newly released products (functioning and equipped with a SIM)by sending sms/ mms, navigating through the telephone menu or the O2 wap portal Inside the O2 Music demo area, there are two touch screens which allow the customers to navigate through the catalogue of the music shop and to listen to on-line songs, free of charge

13. Shopping experience: Apple Store-interactive features NEW YORK - - Inside the Apple Store all the released products can be used by the customers The exhibit spaces are divided into thematic areas: Home, Photo, Music, Pro, ... and in each area, there is a PC and Apple accessories along with complementary products, (e.g. Musical instruments in the Music area, cameras in the Photo area,…)

14. Shopping experience: Maytag–demo stores USA “Interaction” with Various Appliances Game area for kids - - Inside the Maytag store, people can test the various house-hold electrical appliances by actually using them (i.e washing clothes, making biscuits ...) The store is divided into various areas based on categories such as washing clothes, washing utensils, kitchenware etc. with Maytag products and limited products from other brands - - The store also has a game area for children Overall it has a very conducive atmosphere for the key customers to try out the products

15. Shopping experience: Michel Guillon-aholistic approach to eye-care LONDON Focus on all aspects of eyesight care Innovative Display and Trial - - The store has niches with innovative mobile displays, where the glasses holders project out of the wall and recede back (like a fashion parade) and … … also a touch-screen station that allows customers to try various glasses and take photographs to aid making a choice - - The store is dedicated to eyesight care with a concept based on a high-level mix of products and services, combining sophisticated skills, highly personalized approach and cutting edge equipment Services include optical surgery (performed in a separate clinic), and personalized advice on diet integrators that stimulate visual capabilities through a careful mix of vitamins, minerals and other elements

16. Assortment/range:Virgin Megastore-cross-selling levers LONDON - The POS utilizes the opportunity of cross-selling by: . . Widening the range of products to non-core (e.g. selling clothing goods, activities like sale of tickets for events and performances) Selling products of other Virgin companies, through “shop in shop” stores (e.g. Virgin mobile, Virgin cosmetics)

17. Assortment/range: concept dedicated to a specific target KOREA KTF: “Good time stores”, target high spenders LG Telecom: “Phone&Fun”, target ” young” - KTF has developed with some dealers in strategic locations, a concept dedicated to the high-spendingcustomers; the POS while mainly focusing on selling, presents: - LG Telecom has developed a concept dedicated to young customers characterized by: .... Assortment focussed on interactive phonesSpecific promotions for the young segmentPhotos areaInstruments for phones customization .. Entertainment areas (attended area, reading area, food arrangement for customers, navigation emplacements)High level of service

18. Assortment/range: EQ Life – focussed to women needs USA Concept: Solutions for well-balanced living Wide range of products and services -- A store targeted on feminine needs, focussed on health, well-being and technology with an opportunity for one-stop shopping and relaxation with a peculiar cross merchandising strategy“EQ” has its roots in “Equilibrium” and general objective of the store is to enable customers search new shapes of equilibrium with personalized store services - Store is divided into 3 areas: Health, well-being and technology: ... Health: Medicines and products for body care, and non-traditional medicines like HomoeopathyWell being: natural food, books, reviews, physical exercise space and electronic products for monitoring healthTechnology: Products from iPods to personal computers displayed in a more friendly way

19. Customer Service: Villa Daslu SAO PAOLO, BRAZIL A huge 182,000 ft2 area store – Symbol of glamour and luxury - A luxury department store with exclusive shopping areas for men and women and: . . . . . A wide range of products: apparel, footwear, intimate wear, accessories … … also champagne, cigars, luxury cars, boats and pieces of real estate Relaxation facilities, clubs for events, Spa, bar, restaurant, tape conveyor for delivery of purchases, facility for helicopter landing, personal shoppers The female shopping area has a strong domestic atmosphere where apparel can be tried on in the rooms itself instead of small trial rooms The male shopping area has all assortments in the sale area

20. To summarize, this are the areas retailers should work on Area Trend - - “Surreal” effect creation Development of initiative of traffic building Atmosphere - Interaction encouraged more and more . Demo/product test . Simulation of functioning atmosphere of the product Shopping experience - - - - Widening offer portfolio with non-core products/services (“one stop shop”)/differentiation of the offer Development of cross selling Assortment fast renewal (i.e. fast fashion retailers) Development of assortment with a specific focused target Assortment/ range - - - Superior sales force training Sales people empowerment Policies of compensation based on level of customer satisfaction/ sales Customer service

21. Our offices Value Partners valuepartners.com MilanVia G. Leopardi 3220123 MilanTel. +39 02 485 481Fax +39 02 480 090 10 RomeVia di Porta Pinciana 100187 RomeTel. +39 06 697 6481Fax +39 06 697 648 51 São Paulo Rua Padre João Manuel 7551° e 2° andares - cj. 11, 12 e 21Cerqueria CesarSão Paulo - BrazilCEP 01411 - 001Tel. +55 11 306 809 99Fax +55 11 308 141 38 Buenos AiresAlicia Moreau de Justo 550 - 4 PisoC1107AAL Buenos Aires - ArgentinaTel. +54 11 4314 4222Fax +54 11 4314 6111 IstanbulDemet sok. 7/9 34800 YesilyurtIstanbulTel. +90 212 663 76 36 AthensKolokotroni street 8 15235 Athens - GreeceTel. +30 6939 659877 Contacts ShanghaiFortune Gate office building, Unit 02, 25/F1701 Beijing Rd (W)200040 ShanghaiPeople’s Republic of ChinaTel. +86 21 6132 2430Fax +86 21 6132 4238 Mumbai8th floor, C Block Devchand House, Shiv Sagar EstateDr. Annie Besant RoadWorli, Mumbai - 400 018Tel. +91 22 66119700Fax +91 22 66119988 -- Giacomo Santucci, Senior Partnergiacomo.santucci@valuepartners.comLuca Ferro, Head Value Partners Indialuca.ferro@valuepartners.com