Dickson Concepts International : Press Release

DICKSON CONCEPTS (INTERNATIONAL) LIMITED ANNOUNCES

HK$1 BILLION NEW RETAIL CHAPTER

Hong Kong, 17 December 2018 - Dickson Concepts (International) Limited ("DCIL") announces a new luxury retail format merging the latest cutting edge technology with a new level of personalized styling service to be launched under the Harvey Nichols brand. The first flagship new format Harvey Nichols store globally will be unveiled at Pacific Place in Autumn 2019.

The Group plans to invest HK$250 million on this first flagship new format store alone and plans to invest up to HK$1 billion in technology and technology-related companies, together with additional stores internationally.

Capitalizing on the strategic partnership with Harvey Nichols Group in the United Kingdom as announced in March 2018, Dickson Concepts have gained access to Harvey Nichols' digital expertise and will combine the leading international brands and top emerging designer talents from both Harvey Nichols UK's digital platform and Harvey Nichols HK in the new retail format. As a result, the new format store will be able to increase the number of products offered to our customers by more than 3 times. This collaboration and new retail strategy will therefore enable Dickson Concepts to combine the best of online and offline into a single store format, allowing Hong Kong consumers to shop the global Harvey Nichols edit within one space and be immersed in retail theatre and a service offering that is completely tailored to them.

As part of the new store format, Harvey Nichols will also become a store with day and night service for the first time, with in-store stylists serving customers during the day and Harvey Nichols' UK stylist network servicing the e-commerce platform during the night. The service will allow customers to shop live and obtain styling advice from Harvey Nichols' stylists in Hong Kong and the UK via instant messaging, photo sharing, and live video streaming, even during late evening in Hong Kong. Products selected can then be shipped directly to the customers' home, office or our Hong Kong store for personal service and immediate alteration by our expert tailors as maybe required, thereby creating a service that is unmatched by pure online operators. The live online shopping functionality is powered by Hero, the global retail technology company, with who Harvey Nichols signed a strategic partnership in June 2018, as Harvey Nichols became the first luxury department store in the UK to offer live online shopping.

Technology is core to Harvey Nichols' new store format and is carefully interwoven into the store to drive the most immersive, enjoyable, and personalized shopping experience possible. In its new retail format, Harvey Nichols' online exclusive offering will be interspersed into the presentation of physical products to provide customers with the full view of the most up to date and exciting products available, while allowing even frequent customers to explore and discover new product stories on every visit. Customers will be able to scan any digital products showcased in the store directly onto their own smartphones, or alternatively be served with an expert team of stylists.

Given the significant increase in product offering available to customers, the ability to provide a highly personalized service offering is central to the new Harvey Nichols store concept. As such, with the new store format Harvey Nichols will be unveiling an online style lounge where dedicated stylists will work to provide each customer with product recommendations that is built around the customer's personal taste, needs and preferences. This will allow each customer to be presented with a selection of co-ordinated outfits that are completely tailored to them, without experiencing the frustrations of surfing through thousands of products available online to find the perfect piece.

The first Harvey Nichols new format store globally will be unveiled at Pacific Place in Autumn 2019 as the flagship of the new format store. The store will be located on the second level of the current Harvey Nichols store at Pacific Place, and will showcase 3 times the offering of the existing store as a result of the new retail format, while reducing the size of the existing store by 50% from 84,000 sq. ft. to 42,000 sq. ft. This will result in a large reduction in fixed cost and substantially increased sales due to the significant increase in products and brands offered. As such, the new format will allow Dickson Concepts to maximize sales densities and profits, compete against pure online operators, while offering customers the most curated product and service offering possible.

Going forward, Dickson Concepts will build on the Harvey Nichols business based on two formats - one being the flagship new format store announced today, and the other being the traditional flagship store format which Harvey Nichols Landmark operates under. Together, the two formats will allow Dickson Concepts to maximize and fully develop the potential of Harvey Nichols in different parts of the world.