The Global Leisure Trend © Copyright GfK NOP

The Global Leisure Trend © Copyright GfK NOP 2006. Proprietary and Confidential

What are Trends and how/why do we measure them? The 3rd Age of Globalisation Global Leisure Trends Trends in CEE and Czech Republic Looking to the Future? Changing Lives – Some WE Examples

What are Trends? How & why do we measure them? 1 © Copyright GfK NOP 2006. Proprietary and Confidential

4 There is a difference between a trend and a fad A fad is short-term, often unpredictable and difficult for marketers to latch onto unless they are in at the beginning: Diets (Atkins, GI) Latest bestseller, hot band, hit movie Fashion trends – skirt lengths, this season’s colours, etc A trend is a genuine, longer-term shift in behaviour patterns, attitudes or underlying values that can be used as the basis for product development and marketing communication: The rise of the individual Cynical consumers relying more on word of mouth At GfK we are concerned with trends not fads

5 Introducing Roper Reports Worldwide: The only truly global consumer lifestyle trends study 25 representative countries across 5 continents per wave (30 prior to 2006) 30,000+ respondents per wave Consumers 13+ years of age 1,000 - 1500 in-home, face-to-face, 1-hour interviews per country Representative sampling, projectable to 1 billion consumers covering a majority of global consumer expenditure. 9 waves since 1997 with over 275,000 respondents in database Consumer Mood Personal Values Leisure & Lifestyles Social Trends Global brands Influence Food, Eating & Health Finance Media Automotive Technology Demographics

6 Understanding Trends is a foundation for offering the right products and services

The 3rd Age of Globalisation 2 © Copyright GfK NOP 2006. Proprietary and Confidential

8 Globalization Has Had Three Stages Western Monologue Stage One: Go Global Stage Two: Think Global, Act Local Stage Three: Individual consumers “Translated” Western Monologue Evolving Dialogue Starting point: 1980s In this era, the philosophy of global businesses was: Get your products in front of the world’s consumers and they will buy them Starting point: 2000s In this era, the philosophy of global businesses should be: Beware of stronger local competition AND watch for them coming to play in your backyard! Starting point: 1990s In this era, the philosophy of global businesses was: Adapt your products to local markets and they will buy them

9 What does this mean for Europe? MAP SOURCE: BBC Online Rising mobility around Europe: Physical mobility as workers migrate in search of (better-paid) jobs Cultural mobility (or openness to new ideas and habits) CEE as tourist venues Clearly this means that some citizens of CEE countries will look to WE countries for ideas on new lifestyles and products BUT: This will begin to be a 2-way process

Global Leisure Trends 3 © Copyright GfK NOP 2006. Proprietary and Confidential

11 Global Values Map: Four quadrants Fun People Tradition Power Leisure Pleasure Enjoying life

12 Up 10+ points Up 6-9 points Up by 5 points or less Stable or Down Global Convergence in Values Valuing Leisure Up Almost Everywhere % who say value is extremely important/very important Total Global 27%, + 3 points since 1999 Leisure: Putting emphasis on free time Trend: 13-65 year-olds

13 Global Media, Technology & Leisure Trends Spending Time with Significant Other on the Rise Mean hours per week spend at various activities *trend based on 13-65 year olds

14 Global Media, Technology & Leisure Trends Watching Television on Decline Mean hours per week spent at various activities *trend based on 13-65 year olds PICTURE SOURCE: www.americanroyalarts.com

15 Global Media, Technology & Leisure Trends Blurring the Lines - Home is Where You Are Consumers use technology everywhere And most technology is portable It’s not necessarily about one device for all things… …But being able to do the things I want in multiple places, across devices Playing Games Listening to Music Watching TV Home Console Portable Gaming System Cell Phone PC In The Car Online Cell Phone By Satellite Home Stereo TV Portable Device In The Car Home TV Cell Phone Online In The Car Portable TV Video iPod/PSP

16 Global Media, Technology & Leisure Trends Blurring the Lines for Music From fixed (home)

17 Global Media, Technology & Leisure Trends TV = Convergence in the Home?

18 Penetration of Cell Phones and Internet More than Double in 6 Years SOURCE: RRW05

19 Global Media, Technology & Leisure Trends Majority Now Use Broadband! Broadband has exceeded narrowband Broadband = DSL/ISDN, T1,LAN, Cable or Satellite modem in 2003-2004, (2001-2002 does not include T1 or LAN) Base: used Internet at home in past 30 days *2005, based on consumers 13-65 only % of home Internet users who use… BB users spend almost 2 hours more (10.2 vs. 8.4) using the Internet/PC each week (non-work related) ….BUT SPEND LESS TIME with traditional media And, as a result, do more and spend more time on the Internet

20 However, the predominant attitude to technology is pragmatic rather than excited SOURCE: RRW05

How does CEE (& Czech Republic) compare? 4 © Copyright GfK NOP 2006. Proprietary and Confidential

22 France Valuescope: Countries and Personal Values U.K. Sweden Spain Italy Germany Fun People Tradition Power Different markets have their values centred around different characteristics Barock, Prague,

23 How To Read ValueScans Japan - 2005 Keep in mind which values are represented in which quadrants (values don’t appear on actual scans). Color spectrum goes from low/cool (blue) to average/neutral (white) to high/hot (red). If values were equally distributed among all respondents, the entire chart would be white. General interpretation of this example: Japanese consumers focus more on social and creative values, with a notable fun leaning.

24 Valuescope: Values around Central & Eastern Europe Fun Power Tradition People Fun Power Tradition People Fun Power Tradition People Fun Power Tradition People Fun Power Tradition People Czech Rep Hungary Poland Russia Turkey

25 It is clear that Czechs are placing more and more value on Fun 1999 2002 2005 ZanziBar, Prague,

26 Happiness Is Not the Same All Over Disappointed/unhappy Satisfied Very happy Source; RRW05

27 Free Time/Leisure Time is a key part of the good life for Czechs (and Hungarians) When you think of the good life - the life you'd like to have, which of these things are part of that good life as far as you personally are concerned? Source; RRW05

28 Central & Eastern Europeans work average hours Mean number of hours per week spend working on a paid job (based on those who are employed) Source; RRW06

29 Beer and wine consumption higher in CEE countries than globally and rising. % Consumed alcohol type in the past week Source; RRW99, RRW05

30 Czechs, Russians enjoy socialising with friends Hours per week spent socialising with friends

31 Fusion in Tastes Most Enjoy Experimenting with New Foods – including CEE Global Average: 64%, +13 points since 1997 % who enjoy experimenting with new foods

32 Hedonism on the Rise Developing Asia & Central Europe Lead Rise in Less Willingness to Give up Taste for Fewer Calories % not willing to give up taste for fewer calories +8 +2 +9 +3 +2 +4 Russia +11

33 Europeans Least Excited About Technology and Central/Eastern Europeans in Particular Tech Excited Tech Pragmatic Tech Uncertain Tech Scared

34 Czechs lag WE in terms of owning entertainment-related tech items (but not mobile phones) % owning

Looking to the future? 5 © Copyright GfK NOP 2006. Proprietary and Confidential

36 CEE Consumers Are Becoming More and More Similar to Those in WE In terms of personal values, life goals and basic attitudes to life, consumers in CEE are becoming more and more like their counterparts in WE. In addition, the CEE consumer experience is becoming more and more indistinguishable. The basic differentiator between WE and CEE remains economic conditions and standards of living. Zlote Tarasy, due to open 2006 McDonalds, Prague We expect this lifestyle convergence to continue and (economic conditions permitting) to accelerate

37 Changing Lives Some WE Examples 6 © Copyright GfK NOP 2006.

38 Technology Enables Documentation of Your Life: Life Caching e.g. Nokia Lifeblog Consumers are collecting, storing and displaying their entire lives, for personal use, or for friends and family, even the entire world to peruse. Human beings (fuelled by a need for self-worth, validation, control, vanity, even immortality) love to collect and store possessions, memories, experiences, in order to create personal histories, mementoes of their lives, or just to keep track for practical reasons Sources: 1. http://www.trendwatching.com/trends/LIFE_CACHING.htm 2. http://europe.nokia.com/nokia/0,1522,,00.html?orig=/lifeblog/ 3. http://research.microsoft.com/sendev/project_sensecam.aspx 4. http://research.microsoft.com/barc/MediaPresence/MyLifeBits.aspx SenseCam is a badge-sized wearable camera that captures up to 2000 VGA images per day into 128Mbyte FLASH memory. MyLifeBits is a lifetime store of everything – photos, SMS, emails, etc

39 Foodphones Where online trainers meet life caching and diet Step 1 Register with diet service and enter your biometric information Step 2 Take photos of everything you eat with your cameraphone and upload them to your account Once a week, get personalised feedback from dietician who advises on how to modify eating habits http://www.myfoodphone.com http://www.nutrax.com

40 Teledildonics You and your partner don’t need to be together to have a good time! Teledildonics = sexual encounters via a web interface with a virtual partner http://www.sinulator.com