Yahoo!, in partnership with Nielsen, created a framework around mobile internet shopper and behaviors.

1. Mobile Framework Study Category Analysis: Clothing/Apparel/Fashion Accessories August, 2010 Contact: Devan McCoy devanm@yahoo-inc.com Presented by The Nielsen Company

2. Why We Conducted This Study Yahoo!, in partnership with Nielsen, wanted to create a framework around mobile internet shoppers and behaviors Measurement: Use quantitative means to benchmark and measure mobile behaviors and attitudes in general and by category over time Categories: Better understand the behaviors of mobile Internet shoppers both in general and across a set of 12 product/advertising categories Comparison: How category attitudes and usage differ among those accessing on the mobile platform versus those accessing only a PC Shopping: Current and future lower and upper funnel shopping mobile penetration Mobile Activities: Shopping outcomes tried, successful (or not), and interested in. Actions taken as a result of those shopping outcomes. What sources were used? And, how much time do they spend doing research, etc. Mobile Attitudes and Experience: Attitudes overall and while looking up category level information (i.e. impulsiveness, boredom, active shopping, etc.) Mobile Advertising: Stated category recall and attitudes 2 Yahoo! Confidential

3. Background and Methodology A total of 628 apparel shoppers were interviewed by Nielsen from May 8 through June 7, 2010 370 were mobile internet shoppers and 258 were PC internet shoppers To qualify as a mobile Internet shopper, respondents needed to own a mobile device, use device to access the Internet once a month or more and access category-related information To qualify as a PC Internet shopper, respondents needed to own a desktop/laptop/tablet PC, use PC to access the Internet once a month or more and access category-related information. PC Internet shoppers could not access any category information on a mobile device (non-mobile shoppers) The category was one of twelve included in a larger mobile shopping study. Each respondent answered a series of general Internet and shopping-related questions and then was assigned to a deep-dive battery focused on one product category that they access 3 Yahoo! Confidential

4. 25 million users access apparel information on a mobile device, with the user base balanced by gender and skewing younger. Apparel Category Size and Composition for Apparel/Accessories CurrentComposition Size (Ages 13-64) How often do you use your Internet-enabled mobile device/computer to access any shopping-related information for the following types of products and services (which can include using your device to research products/services, look up information/reviews/ articles, notice or click on advertising, or make a purchase)? “Ever access.” Base=Mobile/PC Internet Apparel/Fashion Accessories Users. 4 Yahoo! Confidential

5. More females and those younger are interested in accessing apparel mobile content in the next 12 months. 5 Yahoo! Confidential Future Interest in Accessing Apparel/Accessories Now let’s think about the next 12 months. Regardless of whether or not you do this now please tell us how interested you are in using an Internet-enabled mobile device to access any shopping-related information for the following types of products and services (which can include using your device to browse, research products/services, look up information/reviews/articles, notice or click on advertising, or make a purchase)? “Extremely/very/somewhat interested.” Base=Mobile/PC Internet Users.

6. Apparel/Accessories Information Accessed Information about women’s footwear and casual wear are most likely to be accessed on the mobile platform. Yahoo! Confidential 6 Mobile PC What kind(s) of products did you get information on clothing/apparel/fashion accessories? Please select all that apply. Base=Mobile/PC Internet Apparel/Fashion Accessories Users.

7. Top Mobile & PC Yahoo! Search Terms – Apparel/Accessories Accessories, apparel and footwear are the top retail apparel searches on Yahoo! mobile. Y! Mobile Y! PC/Laptop Source: Internal Mobile and PC Search Data, June 2,010. Based to total retail apparel searches. Yahoo! Confidential 7

8. Accessories and intimate apparel heavily over-index on Yahoo! Mobile Search. Mobile vs. PC – Indexed Search Terms (to mean) - Apparel/Accessories Source: Internal Mobile and PC Search Data, June 2010, Yahoo! Confidential 8

9. About half find mobile to be very or extremely helpful at most points in the apparel shopping process. Platform Usefulness in Purchase Funnel for Apparel/Accessories 9 Yahoo! Confidential How useful is using your mobile device/PC to help you with each of the following aspects of your browsing or research process for clothing/apparel/fashion accessories? “Extremely/very helpful” summary. Base=Mobile/PC Internet Apparel/Fashion Accessories Users.

10. Future Purchase Funnel Intention for Apparel/Accessories Apparel shoppers expect to use mobile more or about the same as PC for lower-funnel purchase activities. Yahoo! Confidential 10 Over the next 12 months, which will you be using more to do each of the following for clothing/apparel/fashion accessories information/products/ services, a computer or an internet-enabled mobile device? Base=Mobile Internet Apparel/Fashion Accessories Users.

11. Besides search engine and site visitation many got store information, looked at pictures of apparel products and comparison shopped. Yahoo! Confidential 11 Shopping Outcomes – Detailed Activities for Apparel/Accessories Earlier you said you’d accessed clothing/apparel/fashion accessories information. What specifically did you do on your Internet-enabled mobile device, and what are you interested in doing? Base=Mobile Internet Apparel/Fashion Accessories Users.

12. With many trying or interested in apparel mobile offers and promotions. Yahoo! Confidential 12 Shopping Outcomes – Detailed Activities for Apparel/Accessories Earlier you said you’d accessed clothing/apparel/fashion accessories information. What specifically did you do on your Internet-enabled mobile device, and what are you interested in doing? Base=Mobile Internet Apparel/Fashion Accessories Users.

13. Taking a picture is a common occurrence. Click-to-call, barcode scanning, and managing a shopping cart are popular activities (tried and interested in). Yahoo! Confidential 13 Shopping Outcomes – Detailed Activities for Apparel/Accessories Earlier you said you’d accessed clothing/apparel/fashion accessories information. What specifically did you do on your Internet-enabled mobile device, and what are you interested in doing? Base=Mobile Internet Apparel/Fashion Accessories Users.

14. Half have made a purchase after looking up apparel-related information on their phone. Actions Taken After Mobile Research for Apparel/Accessories 14 Yahoo! Confidential 85% took ANY action Made a purchase (NET): 50% Which of these actions have you ever taken as a result of browsing or researching clothing/apparel/fashion accessories information or products or services on your mobile device? Please select all that apply. Base=Mobile Internet Apparel/Fashion Accessories Users.

15. Length of Research for Apparel/Accessories Apparel shoppers spend a similar amount of time researching on their phone and/or computer. Yahoo! Confidential 15 Mobile PC How much time did you spend researching clothing/apparel/fashion accessories information or products or services on your mobile device/computer? Base=Mobile/PC Internet Apparel/Fashion Accessories Users.

16. Apparel mobile shoppers spend a little more time (than average) in a typical mobile session. Length of Typical Mobile Research Session - Apparel/Accessories On average, how much time did you spend on each session related to browsing or researching on your mobile device for researching consumer electronics/technology information or products or services? Base=Mobile Internet Apparel/Fashion Accessories Users. 16 Yahoo! Confidential

17. Using mobile internet at the retailer and in the living room are the top individual locations for accessing apparel content. Yahoo! Confidential 17 Typical Mobile Usage Locations When Accessing Apparel/Accessories Imagine you are browsing the internet or using a mobile application for consumer electronics/technology information or products or services using your mobile device. At which of the following locations does this typically occur? Base= Mobile Internet Apparel/Fashion Accessories Users.

18. Expediency, being goal-oriented, and using trusted sites are the top apparel mobile experience descriptors. Yahoo! Confidential 18 Mobile Experience Descriptors – For Apparel/Accessories Describes Experience Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for consumer electronics/technology information or products or services. Summary (4-5 Describes my experience completely) Base=Mobile Internet Apparel/Fashion Accessories Users.

19. Mobile facilities time-sensitive apparel research when not near a PC and is also good for researching impulsive purchases. 19 Yahoo! Confidential Mobile Researching Opinions for Apparel/Accessories StatementAgreement Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the following statements about researching clothing/apparel/fashion accessories purchases using a mobile device. “Agree.” Base=Mobile Internet Apparel/Fashion Accessories Users.

20. Mobile is useful for making apparel purchases when away from the PC. Also, value of the purchase (whether it’s cheap or cared a lot about) is less important. Yahoo! Confidential 20 Mobile Purchasing Opinions for Apparel/Accessories StatementAgreement Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the following statements about making clothing/apparel/fashion accessories purchases using a mobile device. “Agree.” Base=Mobile Internet Apparel/Fashion Accessories Users.

21. Search engines and apparel specialty stores/retailers are the top online sources used. Yahoo! Confidential 21 Mobile Online Sources Used for Apparel/Accessories And which of the following online sources did you use or access on your mobile device when browsing clothing/apparel/fashion accessories information/products/services? Please tell us if it was via the internet using your browser or an application installed on your mobile device. Base=Mobile Internet Apparel/Fashion Accessories Users.

22. Google is the top portal used, but faces stronger competition on mobile than on PC. Yahoo! Confidential 22 Portals Used for Apparel/Accessories Mobile PC And which of the following online websites or portals did you use or access on your mobile device/PC when browsing clothing/apparel/fashion accessories information/products/services? Base=Mobile/PC Internet Apparel/Fashion Accessories Users.

23. Other Sources Used for Apparel/Accessories Apparel shoppers are much more likely than the norm to use in-store displays, magazines, and salespeople as additional references when shopping. Yahoo! Confidential 23 What other sources besides using your mobile device did you typically use when browsing or researching clothing/apparel/fashion accessories information/products/services? Select all that apply. Base=Mobile Internet Apparel/Fashion Accessories Users.

24. Apparel mobile consumers are slightly more likely to recall looking at advertising as part of their purchase process. 24 Yahoo! Confidential Advertising Recall for Apparel/Accessories Seen category advertising during shopping process Reaction to advertising Mobile Norm When you see clothing/apparel/fashion accessories advertising on your mobile device/computer, which best describes your general reaction? Base=Mobile Internet/PC Internet shoppers who have been exposed to advertising.

25. Mobile Advertising Preferences for Apparel/Accessories Please tell us how important the following types of ad features are to you when it comes to clothing/apparel/fashion accessories advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Apparel/Fashion Accessories Users. And, they are generally more accepting of all types of mobile advertising than are shoppers in other categories. Yahoo! Confidential 25 Attribute importance

26. Mobile Advertising Preferences for Apparel/Accessories Please tell us how important the following types of ad features are to you when it comes to clothing/apparel/fashion accessories advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Apparel/Fashion Accessories Users. Yahoo! Mobile Users prefer more sophisticated mobile advertising features that are informative and relevant to what their looking for or their current location. Yahoo! Confidential 26 Attribute importance

27. Category User Profile 27 Yahoo! Confidential

28. Key Takeaways – Mobile Clothing, Apparel & Fashion Accessories 28 Yahoo! Confidential 25 million users access apparel information on a mobile device, with the user base balanced by gender and skewing younger. This will likely pick-up in the next year with more showing interest, especially female and those younger. 1 About half find mobile to be very or extremely helpful at most points in the apparel shopping process. When it comes to purchasing, it doesn’t matter how important the product is indicating that ads can show-case both small and big-ticket items. 2 There seems to be significant latent demand for mobile apparel offers and promotions, click-to-call ad features, and barcode scanning. 3 More than 8 in 10 have acted on their mobile research with half making a category-related purchase after looking up apparel information on their mobile device. 4 Apparel shoppers are more accepting of mobile ads and show an interest in seeing more. Mobile apparel ads that are informative and relevant to what they’re searching for and their current location are important among the user base. 5