Sunglasses master

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Where the Top 1 % Live, Shop & Vacation

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The world's top 40 cities

Changing fortunes across our rankings over the past 12 months have seen Hong Kong and Singapore
continue to slug it out for pole position in Asia. This year Hong Kong edges ahead, moving from fourth to
third position in our global top 10. With Shanghai maintaining its steady rise, Asia holds four of the top
10 slots in our list. Although Geneva loses ground this year, Zurich’s strengthening helps maintain
European representation. Focusing purely on the population of wealthy residents, our data confirms
that London remains the single biggest centre for global UHNWIs, followed by Tokyo, Singapore and
New York.

Ten years hence and the expectation is that London will retain its top spot, but Singapore will have
closed the gap with a 54% growth in its population of UHNWIs over that period. With the exception of
London, European cities will see a relative decline in their rankings based on the size of their UHNWI
populations over the next decade, despite an average 27% growth in wealthy residents. Europe’s
relative, if not absolute, decline is reflected in North America, Australasia and even the Middle East, with
one standout reason – the dramatic growth of wealth in Asia. On average, cities across that region will
see a 91% growth in their UHNWI populations over the next decade. The most rapid growth in wealth
will be seen in the likes of Ho Chi Minh City, Jakarta, Mumbai and Delhi. One-fifth of the cities assessed
are expected to see greater than 100% growth over the next decade, all of which are in Asia or Africa.
Geographic concentration of wealth remains a key facet with 10% of all additional growth in UHNWIs
taking place in just five cities – Singapore, Hong Kong, New York, London and Mumbai – over the next
decade.

When we focus on the broader measure of dollar millionaires, or HNWIs, rather than UHNWIs, we see
some resilience in the performance of cities in the developed world. Tokyo contains the biggest single
cluster of HNWIs today. At 466,000 the HNWI population is nearly a fifth larger than the number two
city, New York, with a little under 400,000. In 10 years we will see a reversal, with New York expected to
be home to the biggest global total, with over 520,000 HNWIs, and Tokyo slipping to second place with
508,000.

By this point Beijing will sit in third position, with 350,000 dollar millionaires, a rise of 55% over the
decade. Despite the US and Japan hanging on with the two biggest city counts, growth even at this
wealth level will be dominated by Asian centres, with six of the 10 biggest growth cities in absolute
terms being in Asia. Collectively they are expected to add 600,000 new HNWIs to their populations over
the period to 2024. In Mumbai alone forecast growth is a phenomenal 125,000 – a 128%.

Our Attitudes Survey points to the cities that UHNWIs believe will yield the best investment
opportunities in 2015 – led by New York, London, Berlin and Los Angeles. Looking to the future, one
constant remains: the rise of the Asian powerhouse cities, the relative decline of the European centres
and the tussle between the two global behemoths – New York and London, with New York expected to
be the most important city for global UHNWIs in 2025.

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Cities of the Future

The cities featured on this spread are not those about to be listed among the world’s top 10 or even top
20 most important cities. Indeed, none of them yet boasts any billionaire residents, according to data
from Wealth Insight, but their HNWI (millionaire) and UHNWI populations are rising, and they are
locations whose influence we believe is growing strongly at a regional level.

Belgrade, Serbia As with all our featured cities, rising wealth is a key illustration of the growing
strength of Belgrade’s economic fortunes. While seeing only a steady 12% rise in the number of HNWI
residents in the years from 2007 to 2014, the expectation is that this figure will jump markedly by 2024,
with a forecast of 72% growth over the decade. Accounting for 40% of Serbia’s economic activity, the
city acts as south-eastern Europe’s financial and business centre and is witnessing rising levels of foreign
direct investment. Inward investment has been aided by tax incentives and grants and an increasingly
competitive tax environment, which has attracted the likes of Fiat and Siemens to invest in plants in the
city. Lifestyle improvements over the past decade have been supercharged by a growing reputation as a
tourist centre – Lonely Planet describes Belgrade as “one of the most happening cities in Europe” –
luring young visitors in particular, who are staying in increasing numbers, attracted by low-cost and
relatively high-quality office accommodation to develop internet and app start-ups, including leading
online gaming firms.

Panama City The unique geography that has blessed Panama with its canal has also aided economic
growth and wealth creation in its capital, Panama City, by bridging the divide between Latin and North
America. With a near doubling in the number of HNWIs since 2007 to hit 4,700 in 2014 and nearly 7,000
by 2024, The Economist’s decision to label the Investors are attracted by the strongest economic growth
offered in the region and also a very competitive tax environment – all of which have contributed to
foreign direct investment levels hitting 9% of GDP in recent years. Tourism and retirement
developments have added to the attractions of the city. High-quality transport and health care and a
growing presence of global hotel brands have drawn investment from entrepreneurs looking to expand
on a strong food and lifestyle scene.

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Addis Ababa, Ethiopia Africa’s fastest-growing economy, Ethiopia, benefits from not only the
political importance of Addis Ababa but also the 3.8% annual growth rate of the population within the
capital. In addition to natural growth, there is vast rural-urban migration, which planners predict
combined could lead to the size of the city surging by 2040 to over 8.1 million. Wealth creation has seen
a near doubling of the population of HNWIs since 2007 to a little over 1,300, with one of the strongest
forecast growth rates for the coming decade – with an expected expansion to 2,600 by 2024. The city is
understandably witnessing severe growing pains, with public investment in transport including an
overhead rail network, and construction dominating GDP growth.

Yangon, Myanmar With its number of HNWI residents set to more than double over the coming
decade, hitting in excess of 3,500 US dollar millionaires by 2024, Myanmar’s former capital and largest
city, Yangon, is a classic example of emerging market wealth creation. Benefiting from the gradual
opening up of its economy, following the introduction of democratic reforms in recent years, the city
has seen strong employment growth and inward investment, with annual GDP growth at a national level
predicted to eclipse that seen in India and even China in 2015 and 2016.Accounting for a fifth of overall
economic output, Yangon is set to be the lead beneficiary of this process. Controls over non-resident
property ownership have slowed private international investments, but private equity investment in
business, especially those in the construction and development sectors, have been one method for non-
residents to gain exposure to rising property values.

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Global Retail Distribution

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Karl Lagerfeld Label Returns Stateside

Posted on June 9, 2015 by Kim Ross

Karl Lagerfeld Group BV, the parent company of the Karl Lagerfeld formed an American joint
venture with G-III Apparel Group Ltd. (fashion licenses under brands including Calvin Klein,
Kenneth Cole, Cole Haan, Guess?, and Tommy Hilfiger) to bring Lagerfeld’s namesake brand
back stateside, after the contemporary label was discontinued in 2006.

Under the agreement, all positioned in the burgeoning “affordable luxury” category and tailor-
made for the North American market, G-III will hold marks for apparel and accessory goods
(except eye-wear, fragrance, cosmetics, watches, jewelry, and hospitality services, all of which
remain exclusively with Karl Lagerfeld Group BV) in the United States and Canada and an
exclusive license to use the Karl Lagerfeld brand in Mexico with respect to the same products.
G-III acquired 49% interest in the joint venture, received a five-year license for women’s
apparel, women’s handbags, and men’s outerwear.

“Karl Lagerfeld has a rich history and has truly captured and captivated the imagination of
women and men around the world,” said Morris Goldfarb— chairman, president and CEO of G-
III. “We are looking forward to shipping product for the spring 2016 season and believe we can
build and grow a meaningful business for Karl Lagerfeld product.”

“We continue to execute ambitious plans and a global growth strategy for the Karl Lagerfeld
business. The North American market forms an important part of these plans, said Pier Paolo
Righi, president and chief executive officer of Karl Lagerfeld Group BV. “We believe that these
first categories will quickly form the cornerstone of our North American business.”

WWD reports, that plans also call for a New York flagship to open as early as next year and “we
definitely see the potential for several flagship stores,” Righi said.

The brand has experienced rapid expansion recently. Just last month, it was announced that
it partnered with Yoox Group to launch Karl.com in 96 countries, including Asia, scheduled to go
live in late 2015, which will offer the complete women’s fashion experience along with novelty
items and limited editions, but bags will be the focus of the brand’s distribution.

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Global Sunglasses Brands

31 PHILIP LIM ERMENEGILDO ZEGNA LANCASTER Randolph Engineering since 1972
A SUITABLE WARDROBE ESCADA LANVIN RAYBAN WAYFARER since 1956
ACNE Studios ETRO Laura Biagiotti Raymond Boucheron
Adidas EXTE LeatherProjects RED OR DEAD eyewear
ALAIN MIKLI Eyevan 7285 Les Deux Replay
ALEXANDER MCQUEEN FAÇONNABLE LINDA FARROW ROBERTO CAVALLI
ALEXANDER WANG FENDI Lindberg ROCK REPUBLIC
ALVIERO MARTINI FERRAGAMO LOEWE since 1846 ROGER VIVIER
AM EYEWEAR FERRARI SUNGLASSES LORO PIANA ROMEO GIGLI eyewear
AMI FLEYE eyewear sunglasses LOTUS ART DE VIVRE Safilo by Marc Newson
AMorir FOLLI FOLLIE LOUIS VUITTON Salvatore FERRAGAMO
AQS FORZIERI men Luxottica Shuron
BADGLEY MISCHKA FORZIERI women Madison Mulholland SIMPLY SUNGLASSES
BALENCIAGA FOSSIL Maison Bonnet SKAGEN DENMARK
Balmain FranÇois Pinton Paris Maison Bonnet celebrity customers Starck Eyes
Band of Outsiders FRED MAISON KITSUNÉ STEFANO RICCI
BARTON PERREIRA FROGSKINS COLLECTORS EDITIONS Makr eyewear cases sleeves STELLA MCCARTNEY
Bausch + Lomb BCBGMAXAZRIA GADAFFI'S SUNGLASSES MARC BY MARC JACOBS STETSON
BEN SHERMAN GANT MARC JACOBS STONE ISLAND
Bentley Garrett Leight California MARNI Suitsupply
BeYu "Passion For Make Up" Garrett Leight California Maryam Nassir Zadeh Sunglass Hut
BMW SUNGLASSES GEOFFREY BEENE sunglasses Matsuda Eyewear SUNSPEL since 1860
BONO U2 SUNGLASSES GIORGIO ARMANI MATTHEW WILLIAMSON SURFACE TO AIR
BORIS BECKER 4804C GUCCI Max Mara SWAROVSKI
BOTTEGA VENETA HACKETT eyewear MICHAEL KORS TAG HEUER
BOUCHERON Haspel "New Orleans, MIKLI TD TOM DAVIES
BREIL HENRI BENDEL NEW YORK Miu TED BAKER
Browns HOGAN MOMO DESIGN THE ROW
BURBERRY Holland Sherry MONTBLANC THIERRY LASRY
BVLGARI HOUSE OF HARLOW 1960 MOSCHINO THIERRY MUGLER
CALVIN KLEIN HUGO BOSS MY SUNGLASSES THOM BROWNE
Carl Zeiss Hyde's Spectables Mykita handmade TIFFANY CO
Carolina Herrera Illesteva NICOLE FARHI TIMBERLAND
CARRERA JACK Spade NICOLE MILLER Todd Snyder
CARTIER JACK WILLS NORMA KAMALI TOD'S
CÉline JACOB JENSEN OAKLEY TOM FORD
CESARE PACIOTTI JASON WU OGI EYEWEAR sunglasses TOM FORD 108
CHANEL JASPER CONRAN OLIVER GOLDSMITH | OG TOMMY HILFIGER
CHARRIOL Jeremy Scott OLIVER PEOPLES West TONINO LAMBORGHINI
CHLOÉ JHANE BARNES OLIVER Spencer TORY BURCH
CHOPARD JILL SANDER ONASSIS SUNGLASSES Triwa
Christian Roth JIMMY CHOO ORLA KIELY TRUSSARDI 1911
COLE HAAN JOHN RICHMOND Orlebar Brown TUMI
CROSS reading glasses JOHN VARVATOS OSCAR DE LA RENTA UGO CACCIATORI
CUTLER AND GROSS JOHNSTON MURPHY OTTICANET VALENTINO
Damir Doma JUDITH LEIBER Our Legacy Veronique Branquinho
DAVID EDEN " JUICY COUTURE Our Legacy VERSACE
DAVID YURMAN KAREN MILLEN PACO RABANNE VESTAL
DAVIDOFF Karen Walker PAUL SMITH VICOMTE A
Derek Lam Karl Lagerfeld PERRY ELLIS VICTORIA BECKHAM
DIESEL Kate Spade PERSOL Vilebrequin
DIOR KENNETH COLE PHILIPP PLEIN Vince Camuto
DITA " KENZO Philippe Starck VINTAGE DESIGNER SUNGLASSES
DOLCE GABBANA KERIN ROSE POLAROID VIVIENNE WESTWOOD
DRAKE'S LONDON KieselsteinCord POLICE eyewear WARBY PARKER Warby Parker
DRIES VAN NOTEN KIM JONG IL STYLE SUNGLASSES POLICE Warby Parker
DSQUARED2 KITON PORSCHE DESIGN Wayfarer by RayBan
DUNHILL KLOKKERENT PRADA XEZO
E MARINELLA since 1914 KURT STEIGER Prego YESLAM
EB MEYROWITZ OPTICIAN LAEyeworks " PROENZA SCHOULER YOHJI YAMAMOTO
Eley Kishimoto LGR Corviglia Ski Club RAF SIMONS YVES SAINT LAURENT

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Financial Projections

Forward-Looking Statement: Investments in the Luxury market and eyewear industries are
subject to a high degree of risk and are suitable only for sophisticated investors that fully
understand that risk and are prepared to bear that risk for an indefinite period of time and are
able to withstand a total loss of their investment. The investment considerations and risk
factors described below summarize some of the material risks inherent in the offering These
Investment Considerations and Risk Factors are not presented in any particular order of
significance. Prospective investors should carefully consider the following factors, among
others, in making their investment decision.
The documents and materials provided by the Company in connection with the sale and
issuance of the offering, including, but not limited to, the Company’s business plan and
projections, contain certain forward-looking statements that involve risks and uncertainties.
These statements relate to the Company’s future plans, objectives, expectations, forecasts
and inventions, and the assumptions underlying or relating to any of these statements. These
statements may be identified by the use of the words such as “expects,” “anticipates,” “intends,”
“estimates,” “believes,” “projects” and “plans” and similar expressions. The Company’s actual
results could differ materially from those discussed in these statements. Factors that could
contribute to such differences include, but are not limited to, those discussed in these
Investment Considerations and Risk Factors.

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TMT Limited Edition UHNWI Financial Projections

DEFINITION of 'Ultra High Net Worth Individual (UHNWI)' A person with investable assets of
at least US$30 million, excluding personal assets and property such as one’s primary residence,
collectibles and consumer durables. Ultra-High Net worth Individuals (UHNWIs) comprise the
richest people in the world and control a disproportionate amount of global wealth. Ultra-high
net worth is generally quoted in terms of liquid assets UBS World Ultra Wealth Report, there
are 211,275 UHNW individuals globally http://www.wealthx.com/wealthxubswealthreport/#contac

TMT Limited Edition

Retail Price Points
Low: $100,000
Medium: $150,000
High: $200,000

Methodology
Financial Projections based on
1% of market base (211,274)
Market Base 211,275 UHNWI 1
% of Market Base 2,113 units
9.45% of 1 % or market base
Penetration: 200 units

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TMT Global Mass Market Financial Projections

Grandview Research: The global eyewear market was estimated to be 2,750.3 million units in
2012, which is expected to reach 3,507.7 million units by 2020, growing at a CAGR of 3.2% from
2014 to 2020. . Exane BNP Paribas estimated that frames and sunglasses represented 40 percent of the
eyewear market. Within that segment it estimates that premium frames and sunglasses, the sort
produced by fashion labels, represent 35 percent

http://www.grandviewresearch.com/press-release/global-eyewear-market
http://www.businessoffashion.com/articles/intelligence/a-closer-look-at-the-13-billion-premium-eyewear-market

TMT Mass Market

Retail Price Points
Low: $450.00
Medium: 550.00
High: $650.00

Methodology
Financial Projections based on 1 % of 35% of market base 2.7 billion unit shipments
35% = 94,500,000
1% of 35% = 945.000
Penetration: 945,000 units

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Validation & Research links

http://www.bain.com/bainweb/PDFs/Bain_Worldwide_Luxury_Goods_Report_2014.pdf
http://www.wealthx.com/wp-content/uploads/2014/04/Wealth-X-Luxury-Sentiment-Survey-Vol-21.pdf
http://www.luxurydaily.com/6pc-of-luxury-insiders-expect-market-share-to-drop-in-q2-report/
https://www.marketingsherpa.com/article/how-to/how-to-market-to-super
http://legionsmedia.com/wp-content/uploads/2011/06/Boxing-Demographics.pdf
http://www.ibtimes.com/sports-tv-ratings-how-many-people-watched-mayweather-vs-pacquiao-kentucky-derby-nfl-1907833
http://www.mediaite.com/tv/mayweather-pacquiao-fight-breaks-record-for-ppv-buys-and-boredom-heres-one-writers-regret/
http://www.wsj.com/articles/SB10001424052748704518904575365362932852610
https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83
https://www.credit-suisse.com/ch/en/news-and-expertise/research/credit-suisse-research-institute/publications.html
http://www.scribd.com/doc/13858325/Pogo-Eyewear-Business-Plan#scribd
http://money.cnn.com/2014/03/14/news/economy/us-millionaires-households/
http://www.zerohedge.com/news/2013-11-29/there-are-199235-ultra-high-net-worth-people-world-over-30-million-assets
https://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires
http://blogs.wtmlondon.com/blog/luxury/how-the-big-spenders-of-the-world-splurge/
http://www.therichest.com/expensive-lifestyle/endorsements-how-influential-are-celebrities/
http://epubl.ltu.se/1404-5508/2005/113/LTU-SHU-EX-05113-SE.pdf
http://www.brandingmagazine.com/2014/11/11/celebrity-endorsements-have-the-potential-to-transform-a-brand/
http://www.therichest.com/expensive-lifestyle/endorsements-how-influential-are-celebrities/
http://epubl.ltu.se/1404-5508/2005/113/LTU-SHU-EX-05113-SE.pdf
http://www.ranker.com/list/most-successful-celebrity-endorsements-v1/celebrity-lists?page=5
http://rollingout.com/2014/11/07/celebrities-drink-jay-zs-ace-of-spades/#20
https://lockerdome.com/6272859261640513/7129534512371220
http://rollingout.com/2014/11/07/celebrities-drink-jay-zs-ace-of-spades/#20
http://www.telegraph.co.uk/news/celebritynews/11238852/Big-spenders-celebrity-bar-bills.html
http://www.knightfrank.com/resources/wealthreport2015/wealthpdf/07-wealth-report-luxury-spending-chapter.pdf
http://www.knightfrank.com/wealthreport
https://www.marketingsherpa.com/article/how-to/how-to-market-to-super
http://luxurysociety.com/articles/2015/06/7-key-takeouts-from-the-2015-world-wealth-report
http://www.businessoffashion.com/articles/intelligence/a-closer-look-at-the-13-billion-premium-eyewear-market
http://www.roaringthundermedia.com/content/consumer-profile/
consumer-profile.html
Source: Wealth-X and UBS World Ultra Wealth Report 2014
http://www.felixandiris.com/glasses-parts-diagram.html
http://www.wealthx.com/wp-content/uploads/2014/04/Wealth-X-Luxury-Sentiment-Survey-Vol-21.pdf
http://www.apa.org/monitor/2012/07-08/money.aspx

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