C H I N A LUXURY, BEAUTY and FASHION INSIGHTS – Q3 2016 A REPORT ON LUXURY AND FAST FASHION’S MOST VALUABLE INFLUENCERS IMPROVING THE EFFECTIVENESS & EFFICIENCY OF MARKETERS & THEIR AGENCIES 1  his report looks at more than 400 KOL’s in China, for the first time, in a highly quantitative way using deep analysis of Mentions, Likes, Reposts, Sentiment and Engagements. It doesn’t rely on hearsay and rumor – it relies on data. Bomoda and R3 are collaborating in China to give transparency to the world of Social and E-Commerce. While this is a new partnership, our collective management teams have years of history in the Middle Kingdom. Our goal is simple – improved insights will lead to better business decisions and results. To produce this report, we didn’t rely on prior wisdom or a consumer survey – we spent countless hours analyzing several thousand Key Opinion Leaders (“KOLs”) talking about or being discussed in tandem with 25 of China’s leading luxury, fashion and beauty brands. This painstaking analysis looked at mentions, reports, likes, reads, sentiment, purchase intent and total engagement - to form an overall picture of the strongest brands and the strongest opinion leaders. We hope you enjoy the first of our regular reports. IMPROVING THE EFFECTIVENESS & EFFICIENCY OF MARKETERS & THEIR AGENCIES 2  DETAILED APPROACH As keen observers of the Chinese social media marketplace and China’s luxury and fast fashion industries, Bomoda has viewed and participated in the evolving and dynamic interplay between the two. There has been much discussion of late in the market’s more competitive current state regarding the efficacy of KOLs. Naysayers claim that KOLs are overhyped and overpaid, merely attracting eyeballs and not sales. While we agree that there is some validity to this position, we also believe KOLs are, and will continue to be, an integral component to the Chinese consumer journey. Many KOLs are indeed inefficient, but this is more a mat