Understanding the ConsumerPurchase Process: BeautyFranceHamburg, 26th October 2010TNS InfratestFull Country ReportScalable Research Solution Google Confidential and Proprietary 1

Agenda Summary Methodology Usage and Shopping Building Brands in Media Ecosystem Beauty & Care Products Online Beauty & Care Products Mobile General Information on Audience Google Confidential and Proprietary 2

Summary Google Confidential and Proprietary 3

Summary In the beauty and care category brands have a strong impact on research and purchase decisions. Therefore it is crucial for boosting sales to build up and shape the brand image on the internet. Products out of the categories Fragrance, Face & Body care and Haircare are most frequently used in the Beauty and Care market and the majority of respondents made a purchase within these categories during the past 3 months. Brands determine the majority of beauty and care purchases. Most of the respondents state to either know exactly which product I want to buy or know the brand I want to buy . Online purchases already have a significant proportion in the beauty and care category. However, there is still room for improvement. Frangrances and Face & Body Care are most likely to be bought online in the Beauty and Care category. Especially online catalogue sellers, online boutiques and the brand s websites are the preferred places for purchasing online. Convenience is the key driver for buying online. Especially convenient delivery service, special promotions, availability 24/7 and easy to compare products are important.Source: TNS Infratest Google Confidential and Proprietary 4

Summary Advertising in the beauty and care category needs to be balanced throughout all media channels. Consumers search online for brands and products related to beauty and care when they see advertisements in other media. Brand names only or brand names combined with a specific product or a product line are most often searched for when seen in other media. The interplay of different media together definitely build an ecosystem: Brands seen on the internet have a better brand image than brands seen on TV. Purchase consideration of brand seen on the Internet exceeds those seen on TV. Overall both media combined work best. No brand presence in media is fatal for brand consideration. When researching online most consumers expect to find price information, discounts and free trials as well as beauty tips. Advice of experts provided in online channels is very much appreciated for beauty and care products. Source: TNS Infratest Google Confidential and Proprietary 5

Summary Search Engines are regarded as very helpful while searching beauty and care products. Search Engines belong to the TOP information sources for Face & Body care. Google is definitely the most used search engine for beauty and care products. 63% only use Google for search. About 25% of all searchers for beauty and care products state to click on sponsored links. Interestingly also 12 % of the respondents use YouTube to research beauty and care products presumably for product usage tips. Mobile commerce is already a relevant entity. Comparing prices is the key driver for mobile commerce in the beauty and care category. Source: TNS Infratest Google Confidential and Proprietary 6

Flow of Questionnaire Screening and Internet Usage Deep Dive Beauty Products Brands and Building Opinion Media Ecosystem Product Purchase Beauty and Care Beauty and Care - Online Information Expectations Beauty & Care Online Need for Interaction - Online Search Engines: Usage and Usefulness Attitude towards online shopping and online research Socio Demographics Google Confidential and Proprietary

Methodology Google Confidential and Proprietary 8

Methodology Target group: Internet user in France, 14 years and older Sample: N=1,000 Internet user Methodology: Online Questionnaire Representative weighting by age, gender, education, income, frequency of online access, frequency of online purchase, usage of YouTube Period of analysis: Fieldwork: from September 29th to October 11th, 2010 Final Report: October 29th, 2010 Research company: TNS InfratestSource: TNS Infratest Google Confidential and Proprietary 9

Usage and Shopping Google Confidential and Proprietary 10

Categories of Beauty and Care productsThe following report refers to different Beauty and Care categories Face and Body Care Cosmetics Haircare Fragrances Weight LossSource: TNS Infratest Google Confidential and Proprietary 11

Product Usage - FrequencyFragrance, Face & Body care and Haircare are the most frequentlyused products in the Beauty and Care market Daily Weekly Monthly Less Dont know/No answer Fragrances 62% 21% 8% 6% 3% Face and Body Care 43% 17% 9% 17% 14% Haircare 30% 53% 7% 5% 4% Cosmetics 22% 13% 8% 25% 32% Weight Loss 4% 5% 7% 44% 41%Q201: How often do you use the following products?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 12

Shopping in the past 3 MonthThe majority of respondents bought Haircare, Fragrances and Face &Body Care during the past 3 month Shopping in the past 3 Month Other Products All Respondents Haircare 78% Fragrances 62% Face and Body Care 54% Cosmetics 31% Weight Loss 14%Q104_2: Did you buy or shop any products out of the following categories in the past 3 months?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 13

Place of purchase: Online vs. OfflineAlready significant online purchases in the beauty and care categorywith room for improvement in comparison to offline purchases 17% Fragrances 76% 15% Face and Body Care 70% 13% Cosmetics 51% 11% Haircare 83% 9% Weight Loss 27% Purchased online Purchased offlineQ405: Where do you usually buy beauty and care products from the categories below?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 14

Place of purchase: Online Online catalogue sellers, online boutiques and the brand s websites are the most frequently used places of purchases online Face and Cosmetics Haircare Fragrances Weight Loss Body Care Online from a catalogue seller 31% 35% 27% 31% 19% Online Boutique 27% 25% 19% 26% 16% Dedicated Website of the brand 21% 20% 19% 21% 21% Online Supermarket 14% 14% 27% 15% 15%Online Internet Pharmacy 17% 15% 16% 7% 27% Online Department Stores 11% 12% 10% 14% 7% Online Health food store 3% 4% 1% 6% 24% Online Fashion Store 6% 11% 6% 8% 5% Online Drugstore 6% 6% 4% 7% 10% Q405: Where do you usually buy beauty and care products from the categories below? Basis: Persons who purchase online Body and Care n=183, Cosmetics n=154, Haircare n=133, Fragrances n=182, Weight Loss n=102 Source: TNS Infratest Google Confidential and Proprietary 15

Place of purchase: Offline Offline Face and Body care, Cosmetics and Haircare are bought in the Supermarket most often Fragrances are usually bought in a boutique Face and Cosmetics Haircare Fragrances Weight Loss Body Care Supermarket 54% 50% 74% 28% 46% Boutique 22% 33% 16% 45% 19% Department Stores 15% 21% 13% 25% 10% Pharmacy 28% 7% 8% 2% 26%Offline Dedicated Brand store 8% 11% 4% 12% 5% Catalogue 5% 8% 3% 4% 4% Health food store 2% 3% 1% 2% 17% Drugstore 2% 3% 2% 4% 4% Fashion Store 2% 4% 2% 3% 3% Q405: Where do you usually buy beauty and care products from the categories below? Basis: Persons who purchase offline Body and Care n=726, Cosmetics n=536, Haircare n=850, Fragrances n=790, Weight Loss n=321 Source: TNS Infratest Google Confidential and Proprietary 16

Drivers for buying online OverviewConvenience is the key driver for buying online Drivers for buying online Overview Respondents who purchased Beauty and Care products online Convenience 86% Prices/Payment 85% Assortment/Clarity 73% Advice 67% Lifestyle/Enviroment 63%Q506 Please indicate your reasons for buying beauty and care products online.Base: Respondents who purchased Beauty and Care products online n=308Source: TNS Infratest Google Confidential and Proprietary 17

Drivers for buying onlineOnline purchases are mainly driven by the convenient delivery service,special promotions and the availability at 24 hours / 7 daysPrice / PaymentSpecial promotions online 49%Better prices than offline 38%A free trial 37%Convenient online payment 32%Easier to compare prices 30%Possibility to pay with gift card 13%ConvenienceConvenient delivery service 52%It s available 24 hours and 7 days a week 47%It is fast and a gain of time 38%No long queues like in the store 30%It is easier to find the products I need 28%It is more convenient in general 28%Delivery on time 25%You can shop from anywhere (e.g. from the office, from home..) 20%It is more inspiring 12%No need to carry the products 11%My favourite store is not close to home 8%Q506 Please indicate your reasons for buying beauty and care products online.Base: Respondents who purchased Beauty and Care products online n=308Source: TNS Infratest Google Confidential and Proprietary 18

Drivers for buying onlineThe possibility to easily compare products is a key driver for buyingonline as well Lifestyle/Environment It fits to my lifestyle 38% Trusted supplier 36% Assortment/Clarity Easier to compare products 43% Large and complete assortment 41% Special Products which are hard to get offline 26% Special products which are not available in my country 5% Personal Advice I can use the online product finders for consultancy 29% Lots of additional information provided 28% Can get direct feedback to my questions 19% Can find all relevant contact details 16% I can see what other people bought in addition to my product 12% My friends / family/ colleagues do it 10% It was recommende to me by friends, family, colleagues 4%Q506 Please indicate your reasons for buying beauty and care products online.Base: Respondents who purchased Beauty and Care products online n=308Source: TNS Infratest Google Confidential and Proprietary 19

Building Brands in Media Ecosystem Google Confidential and Proprietary 20

Mindset shoppingBeauty brands drive the majority of beauty and care purchases. Face and Cosmetics Haircare Fragrances Weight Loss Body CareBrand driven shopping 63% 47% 59% 60% 41% I know exactly which product 46% 31% 44% 43% 30% I want to buy I know the brand I want to 16% 16% 15% 16% 11% buyBrand related shopping 31% 45% 35% 31% 38% I know the product category 24% 27% 24% 19% 22% and choose certain brands Without a specific goal, but 7% 17% 11% 12% 16% with a set of relevant brandsI just go shopping without any 6% 9% 6% 10% 21%pre-thoughtsQ404: Please think about your mindset when you buy beauty and care products. Which of the following statements apply best to you?Base: Valid responses - Face and Body Care n=781, Cosmetics n=568, Haircare n=906, Fragrances n=891, Weight Loss n=318Source: TNS Infratest Google Confidential and Proprietary 21

Brand overviewBy far the most brands are recalled from watching TV No. of brands All Respondents Seen on TV 14.8 Considered brands 6.2 Used brands 5.9 Seen on the internet 5.1 Seen on both (Internet & TV) 3.1Q202: Which of the following brands do you use?Q301: Which of the following brands do you consider when buying beauty and care products?Q303a: Please click on the brands you actively remember seeing on the Internet.Q303b: Please click on the brands you actively remember seeing on TVBase: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 22

Brand image Brands seen on the internet have a better image than those on TV. Brands used or considered for buying have a very positive image. Brand image All RespondentsBrands seen on both (Internet & TV) 14% 3% 11% 36% 21% 57% Brands seen on Internet 14% 3% 12% 37% 20% 57% Brands seen on TV 17% 2% 14% 33% 16% 49% Brands considered 5%0%5% 42% 27% 68% Brands used 6% 5% 39% 27% 66% Poor opinion Fair opinion Very good opinion Excellent opinion Q202: Which of the following brands do you use? Q301: Which of the following brands do you consider when buying beauty and care products? Q303a: Please click on the brands you actively remember seeing on the Internet. Q303b: Please click on the brands you actively remember seeing on TV Q304: What is your general opinion about the following brands? Base: Total n=1,000 Source: TNS Infratest Google Confidential and Proprietary 23

Influence of MediaPurchase consideration of brand seen on the Internet exceeds TV.Both media combined work best No brand presence is fatal. Influence of Media All Brands Internet Both TV Not seen Seen on 9% 5% 25% 66% Purchase Yes No Yes No Yes No Yes No Consideration 25% 75% 30% 70% 20% 80% 3% 97%Q301: Which of the following brands do you consider when buying beauty and care products?Q303a: Please click on the brands you actively remember seeing on the Internet.Q303b: Please click on the brands you actively remember seeing on TVBase: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 24

Online Search in Media EcosystemTwo of thee respondents search online for beauty and care products theysaw on other media before Media together definitely build an ecosystem Frequency of Online Search in Media Ecosystem All Respondents very often 2% 6% often 17% occasionally TOP 3 11% 25% infrequently 23 seldom 37% neverQ305_1: When you see beauty and care products on other media like TV or Print, how often do you search online for products in these categories afterwards?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 25

Online Search in Media EcosystemThe brand name is most often requested when searching online forfurther information Online Search in Media Ecosystem All Respondents who search in Media EcosystemBrand name 28%Brand name & specific product 24%or product line combinedBrand name & generic keyword 21%combinedName of the specific product or 20%product lineGeneric Keyword (e.g. lipstick or 11%after shave)Q305_2: When you search online for beauty and care products you saw on other media (e.g. TV/Print) before, what do you search for?Base: Respondents who searched online for products n=662Source: TNS Infratest Google Confidential and Proprietary 26

Beauty & Care - Online Google Confidential and Proprietary 27

Online Research Face and Body Care Search Engines are one of the TOP information sources for Face & Body care Touchpoints used Final decision Websites of the brands 31% 21% Websites of Boutiques 22% 13% Search engines 21% 12%Online Touchpoints Health and care websites 13% 8% Beauty and care forums 13% 6% Consumer reviews on the internet 12% 10% Online Pharmacies 12% 7% Product and price comparison sites 10% 5% Beauty blogs 9% 6% Websites of print magazines 8% 4% Video platforms e.g. YouTube 4% 2% Social Networking Sites (e.g. Facebook) 4% 2% Websites of drugstores 3% 2% E-Mail Marketing 3% 1% Q501: Which of the following websites do you visit for researching beauty and care products? Q502: Which of the following online information sources have the highest impact on your final decision? 28 Base: Respondents who used online touch points in the research process n=490; final decision n=470 Source: TNS Infratest Google Confidential and Proprietary

Online Research Cosmetics Search Engines are one of the TOP information sources for Cosmetics Touchpoints used Final decision Websites of the brands 28% 22% Websites of Boutiques 27% 20% Search engines 20% 11%Online Touchpoints Beauty blogs 13% 7% Product and price comparison sites 11% 6% Consumer reviews on the internet 10% 6% Health and care websites 9% 5% Websites of print magazines 8% 5% E-Mail Marketing 7% 3% Beauty and care forums 6% 3% Online Pharmacies 6% 3% Websites of drugstores 5% 3% Social Networking Sites (e.g. Facebook) 4% 2% Video platforms e.g. YouTube 2% 1% Q501: Which of the following websites do you visit for researching beauty and care products? Q502: Which of the following online information sources have the highest impact on your final decision? 29 Base: Respondents who used online touch points in the research process n=388, final decision n=370 Source: TNS Infratest Google Confidential and Proprietary

Online Research Haircare Search Engines are one of the TOP information sources for Haircare Touchpoints used Final decision Websites of the brands 27% 21% Websites of Boutiques 28% 20% Search engines 22% 13%Online Touchpoints Product and price comparison sites 11% 7% Consumer reviews on the internet 11% 6% Health and care websites 10% 7% Beauty and care forums 10% 6% Beauty blogs 8% 5% Websites of print magazines 7% 3% Online Pharmacies 6% 4% Social Networking Sites (e.g. Facebook) 4% 2% Websites of drugstores 4% 2% E-Mail Marketing 4% 1% Video platforms e.g. YouTube 4% 2% Q501: Which of the following websites do you visit for researching beauty and care products? Q502: Which of the following online information sources have the highest impact on your final decision? 30 Base: Respondents who used online touch points in the research process n=488, n=463 Source: TNS Infratest Google Confidential and Proprietary

Online Research Fragrance Search Engines are one of the TOP information sources for Fragrance Touchpoints used Final decision Websites of the brands 35% 29% Websites of Boutiques 27% 20% Search engines 22% 12%Online Touchpoints Product and price comparison sites 11% 6% Health and care websites 9% 6% Beauty blogs 9% 6% Beauty and care forums 7% 3% Consumer reviews on the internet 7% 4% Websites of print magazines 6% 4% E-Mail Marketing 4% 1% Online Pharmacies 4% 2% Social Networking Sites (e.g. Facebook) 4% 1% Video platforms e.g. YouTube 4% 1% Websites of drugstores 4% 2% Q501: Which of the following websites do you visit for researching beauty and care products? Q502: Which of the following online information sources have the highest impact on your final decision? 31 Base: Respondents who used online touch points in the research process n=504, final decision n=477 Source: TNS Infratest Google Confidential and Proprietary

Online Research Weight Loss Search Engines are one of the TOP information sources for Weight Loss Touchpoints used Final decision Websites of the brands 22% 18% Beauty and care forums 18% 12% Search engines 16% 10%Online Touchpoints Health and care websites 15% 10% Websites of Boutiques 15% 13% Consumer reviews on the internet 13% 9% Online Pharmacies 11% 7% Beauty blogs 8% 4% Product and price comparison sites 7% 4% Websites of print magazines 7% 4% E-Mail Marketing 5% 3% Video platforms e.g. YouTube 4% 3% Social Networking Sites (e.g. Facebook) 4% 1% Websites of drugstores 3% 3% Q501: Which of the following websites do you visit for researching beauty and care products? Q502: Which of the following online information sources have the highest impact on your final decision? 32 Base: Respondents who used online touch points in the research process n=275, final decision n=267 Source: TNS Infratest Google Confidential and Proprietary

Intensity of Online ResearchFace & Body Care, Fragrances and Haircare are searched for mostintensively on the internet Intensity of Online Research All Respondents Daily Weekly Monthly Less Dont know / No answer Face & Body Care 6% 9% 25% 49% 11% Fragrances 6% 9% 24% 53% 8% Haircare 5% 11% 20% 55% 10% Cosmetics 6% 9% 19% 42% 25% Weight Loss 5% 8% 13% 37% 37%Q512: How often do you use the internet for researching for the following categories?Base: Respondents who used online touch points in the research process n=545Source: TNS Infratest Google Confidential and Proprietary 33

Information Expectations Beauty & Care (1/2)Price information, discounts and free trials as well as tips are mostfrequently expected to be found online Information Expectation Beauty & Care Products All Respondents Price information 43% Coupons / Discounts 40% Opportunity to order a Free trial 37% Tips for product usage 33% Beauty tips 32% Shopping opportunity 29% Information about special offers or promotions 26% Advice of Experts 26% Ingredients 24% Information about new products 24% Health information 24% Consumer service, complaints, chat 23% Practical information 22% General product information 22%Q503: Which of the following information do you expect to find on a beauty and care website?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 34

Information Expectations Beauty & Care (2/2)Regular updates are in the middle of expected information. Gamesmight be a benefitial, but they are not expected Information Expectation Beauty & Care Products All Respondents Regular updates 21% Information about brands 20% Ethical information about product and producer 18% Contact information 14% Forums with other consumers 14% Newsletters 10% How to videos from experts 9% Information about the production process 8% Commercials 7% How to videos from other consumers 5% Event information 5% Newsfeed 5% Vision and statement of the producer 4% Online Games 2%Q503: Which of the following information do you expect to find on a beauty and care website?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 35

Need for InteractionOnline advice of experts is highly appreciated for beauty and careproducts Need for Interaction Respondents who researched online Advice from Experts with Feedback 14% 5% 10% 27% 18% 45% Price draws 23% 12% 11% 19% 13% 32% Community of the brand 15% 6% 9% 13% 19% 32% Videos of experts 26% 10% 17% 13% 16% 28% Live chats with consumers 28% 14% 14% 13% 10% 23% 31% Live chats with experts 13% 15% 11% 10% 21% 30% Blog of the brand 15% 15% 10% 10% 20% Videos of consumers 29% 13% 16% 8% 10% 18% 41% 32% Games and Entertainment 18% 14% 10% 7% 17% Brand as facebook profile 28% 13% 6% 5% 12% Much less interaction Less interaction More interaction Much more interactionQ505: Do you want more interaction with the brands for beauty and care products online?Base: Respondents who used online touch points in the research process n=554Source: TNS Infratest Google Confidential and Proprietary 36

Search Engine UsageGoogle is definitely the most used search engine for beauty and careproducts! Also 12 percent of the respondents use YouTube to research Search Engine Usage Used a search engine during research / purchase process 94% 63% used 16% only Google 12% 10% 5%Q508: Which of the following internet sites did you use during your research process or would you consider using?Base: Used a search engine during research / purchase process n=545Source: TNS Infratest Google Confidential and Proprietary 37

Importance of Search EnginesSearch Engines are very helpful for searching beauty and careproducts Helpfulness of Search Engines Face 13% 6% 8% 35% 25% 15% 75% Haircare 21% 8% 14% 39% 21% 12% 71% Fragrances 24% 9% 15% 34% 23% 12% 69% Cosmetics 19% 7% 12% 26% 19% 11% 56% Weight Loss 20% 12% 8% 18% 12% 10% 39% Not at all helpful Not very helpful Helpful Very helpful Extremely helpfulQ510: How helpful would you consider search engines when you inform yourself about?Base: Respondents who used respective search engine during research / purchase process: n=536Source: TNS Infratest Google Confidential and Proprietary 38

Sponsored LinksAbout 25% of all searchers for beauty and care products state havingclicked on sponsored links Sponsored Links Used a search engine during research / purchase process Face and Fragrances Haircare Cosmetics Weight Loss Body Care I clicked on sponsored links 23% 27% 21% 20% 13% at the top of the search engine page I clicked on sponsored links 11% 10% 12% 11% 7% at the right hand sideI clicked on the normal (organic) results 18% 18% 19% 11% 10% I dont know where I clicked-normal or 12% 16% 12% sponsored links 14% 8% none of these 20% 21% 20% 20% 18%Q511: While researching on search engines for the following products, did you do one of the following?Base: Used a search engine during research / purchase process: n=536Source: TNS Infratest Google Confidential and Proprietary 39

Likelihood of buying onlineFragrances as well as Face & Body Care are most likely to be boughtonline in the Beauty and Care category Likelihood of online purchase All Respondents Fragrances 46% 33% 13% 15% 11% 25% Face & Body Care 47% 34% 13% 13% 10% 23% Haircare 49% 34% 14% 11% 9% 20% Cosmetics 48% 38% 10% 11% 7% 18% Weight Loss 56% 48% 8% 7% 4% 10% Very unlikely Somewhat unlikely Somewhat likely Very likelyQ515: How likely is it that you will buy products of the following categories online within the next 12 month?5-point-scale: (1) Very likely (5) Very unlikelyBase: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 40

Beauty and Care - Mobile Google Confidential and Proprietary 41

Mobile Internet UsageMore than 20% of the respondents use the mobile internet Mobile Internet Usage D.K./No answer: 4% Yes: 21% No: 74%Q216: Do you regularly use the mobile internet on your mobile phone for private purposes?Base: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 42

Mobile Commerce Comparing prices is the key driver for mobile commerce in the beauty and care category Beauty & Care Products All Products Check if a product is cheaper in a store near by 16% 16% Scan the barcode and compare prices 11% 15%Mobile Internet Get prices of the product mobile 11% 26% Upload pictures and asking my community 9% 14% Get product information mobile 9% 37% Call someone who knows about the products 8% 20% Q216_1: Which of the following actions did you do on your mobile phone within the last 6 months? Base: All mobile Internet Users n=257 Source: TNS Infratest Google Confidential and Proprietary 43

General Information on Audience Google Confidential and Proprietary

Background information Age 14-34 years 35-54 years 55+ years 39% 37% 25% Gender Male Female 50% 50% Income * Low Medium High D.K./No answer 19% 37% 30% 15% Education ** Low Medium High No answer. 21% 30% 46% 3% Frequency Online Access Daily Weekly Monthly Less 74% 15% 1% 10% Household size 1 2 3 4 or more 19% 38% 18% 25% Annual Value of online Median purchase 150*Low: Did not attend school, Primary level, Secondary level, Vocational short course; Middle: High school or vocational high school, Vocational degree; High: Higher education 1stlevel, Higher education 2nd level, Higher education 3rd level (post grade course)**Low: up to 1 500 per month; Middle: 1 500 to 3 000 per month; High: 3 000 per month and moreBase: Total n=1,000Source: TNS Infratest Google Confidential and Proprietary 45

Thank you for your attention!Beauty & Care France Google Confidential and Proprietary 46