FNAC TAIWAN THE FIRST RESULT DEVELOPMENT Christophe Fond

History • Preparatory Phase Beginning 97 Analysis by PPR of Taiwanese economic situation and

History • Pre-Opening Phase Sep. 98 Recruitment of members of Country Committee (4 persons)

First Result • Media events – More than 350 press articles (one week of

First Result • Comparison Fnac Taiwan/Fnac VELIZY (6 th store of group) 1. Visit

First Result 4. Membership • Fnac Paris: 9000 members represent 38% of T. O.

Difficulties of Taiwanese Market • Very competitive market • Numerous small size competitors Reaction

Development • Fnac stores (multi-products) – 3 supplementary stores in Taipei – 4 stores

• In retailer business, what could be the effect of currencies variation between

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FNAC TAIWAN THE FIRST RESULT & DEVELOPMENT Christophe Fond General Manager - Fnac Taiwan 16 -18 October 2000 1

History • Preparatory Phase Beginning 97 Analysis by PPR of Taiwanese economic situation and recommendation for establishment of distribution stores of the group. Dec. 97 Beginning of studies for Fnac (market & potential development). March 98 1 st Business Plan August 98 Signature of the 1 st Store in Taipei. 2

History • Pre-Opening Phase Sep. 98 Recruitment of members of Country Committee (4 persons) Nov. 98 Plan of the 1 er store Jan. 99 Delivery of site by the owner and beginning of construction April 99 Beginning of recruitment of local team 14 July 99 Opening of the 1 st Fnac in Taipei 3

First Result • Media events – More than 350 press articles (one week of prime time TV news coverage) • Success of Curiosity – More than 10, 000 visitors per day in the store, about 50% more than average Fnac store in France. 4

First Result • Comparison Fnac Taiwan/Fnac VELIZY (6 th store of group) 1. Visit frequency w TAIWAN: w VELIZY: 10000 visitors per day 6500 visitors per day 2. Average ticket w Similar to Fnac in France 3. Analysis of sales in terms of quantity w discs w notebooks w books TAIWAN: VELIZY: 1360 per day 1350 per day 1400 per year (by projection) 850 per year 2 times less of books sold than one Fnac in France. 5

First Result 4. Membership • Fnac Paris: 9000 members represent 38% of T. O. • Fnac Belgium (5 stores): 17000 members • Fnac Taiwan: 65000 members represent 40% du T. O. 6

Difficulties of Taiwanese Market • Very competitive market • Numerous small size competitors Reaction Ä strong communication on the price • Consumers very sensitive to promotional offer. • Low margin Ä development of new products “stationary type” Ä increase of number of import products with Fnac exclusivity 7

Development • Fnac stores (multi-products) – 3 supplementary stores in Taipei – 4 stores in provinces in big cities in Taiwan • Fnac Service – Opening of 2 Fnac Services in July 2000 in Taipei – Opening of 3 stores each year • E-Business (fnac. com. tw) – Present on the web with a site of communication and subscription (please see photo) 8

• In retailer business, what could be the effect of currencies variation between EU & NT$ when mother company work in EU and the subsidiary in NT$? 11

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