Mosaic Hong Kong

Mosaic Hong KongThe Consumer Classification for Hong Kong

U p p e r E c h e l o n s

E x p a t s a n d t h e P r i v i l e g e d

M a t u r e d W e a l t h y

E l i t e P r o f e s s i o n a l s

R i s i n g S o p h i s t i c a t e s

W e l l - t o - d o

W e l l - o f f F a m i l i e s

Yo u n g E x e c u t i v e s

E m e r g i n g M i d d l e C l a s s

N e w M o r t g a g e e s

G o v e r n m e n t Q u a r t e r s

M i d d l e - c l a s s P l e a s u r e

M a t u r e H o m e O w n e r s

S u b u r b a n L o c a l s

O l d T o w n E m p t y - n e s t e r s

S e t t l e d W o r k e r s

C o m f y C o u n t r y s i d e

R u r a l H e r i t a g e

C o m p a c t C i t y L i f e

U r b a n P r a c t i c a l s

B a r g a i n S e e k e r s

C o m f y S u b s i d i s e d H o m e s

N e w C o u p l e s a n d K i d s

G r o w i n g F a m i l i e s

M a t u r e S t a b i l i t y

E x t e n d e d F a m i l y L i f e

G r a s s R o o t s L i v i n g

B l u e C o l l a r P a r e n t s

B a s i c L i f e P u r s u i t s

C o m m u n i t y C h a l l e n g e

N u c l e a r R e n t e r s

S t r i v i n g M u l t i - e a r n e r s

A g i n g G e n e r a t i o n s

G r e y P e r s p e c t i v e s

E l d e r s C o m m u n i t y

R e t i r e e F a m i l i e s

S u n s e t S i m p l i c i t y

C o m m u n a l H o m e s


Welcome to the newgeneration of consumerclassifications for Hong Kong.

Over the last 20 years, Experian hasestablished itself as a leading globalprovider of consumer segmentation.

Our objective is to provide decisionmakers with the tools and servicesthey need to successfully implementdirect marketing and micromarketingstrategies within their business.Whether you wish to target, acquire,manage or develop profitablecustomer relationships, we aim toprovide the best segmentationsolutions to help your business grow.

Mosaic Hong Kong takes its placeamongst a global network of Mosaicsegmentation that classifies a billionpeople worldwide, covering a third ofthe earth's surface.

Mosaic Hong Kong

Mosaic Hong Kong is the second generation of

the Mosaic consumer segmentation system

that describes Hong Kong consumers.

It is a geo-demographic segmentation system

that classifies all Hong Kong households and

neighbourhoods into 29 unique Mosaic types

and 10 groupings that share similar

demographic and socio-economic

characteristics.

Mosaic was developed based on more than 20

years of segmentation development expertise

from one of the global leaders in segmentation

systems. Experian has built more than 40

consumer segmentation systems around the

globe, and the Mosaic classification is available

in more than 25 countries.

The result is a classification that paints a rich

picture of Hong Kong consumers in terms of

their socio-demographics, lifestyles, culture

and behaviours to provide you with an

accurate and comprehensive view of your

customers, prospects and markets.

How is Mosaic built?

Over the last 20 years, Experian has built more

than 40 segmentation solutions worldwide.

This gives us valuable insight into the best

sources of data and methodologies to build

truly innovative segmentation.

To build Mosaic, the following approaches were

taken:

Identification of the most appropriate data

sources as inputs

A sophisticated proprietary approach to

clustering, unique to Experian

Extensive analysis to assist in validation and

interpretation of the segmentation.

Data ComponentsQuantitative data

Data used to build Mosaic Hong Kong is

sourced from the 2001 Population Census - this

will be updated once the results of the 2006

Population By-census become available.

This set of data includes most of the

demographic variables such as age, gender,

educational level, household size and

composition, household income, personal

income, marital status, usual language,

occupation, industry, economic activity status,

tenure of accommodation, and type of

housing.

The information is updated regularly and used

to replenish our view of the classification each

year. As of end 2006, the projected coverage is

2.3 million households and 7 million

individuals.

Clustering

Mosaic is designed to identify groupings of

consumer behaviour for households and

neighbourhoods. The methodology we use is

unique to Experian, and has been refined

during many years of creating classifications

using data from different sources and different

levels of geography.

The first step is to combine information from

other higher levels of geography and

statistically project to each building. All the

input variables go through a selection process,

where they are tested for discrimination,

robustness and their correlation to other

variables.

Once the final list of variables is selected, a set

of input weights is applied as part of the

clustering process. The result is a list of

variables that have differing importance to the

clustering methodology, depending on how

well they discriminate at differing levels of

geography.

This "bottom-up" approach enables us to

maximise the effectiveness of each input

variable depending on its relative importance to

the classification and its ability to discriminate.

It allows for the optimisation of data and

creates a classification that is truly best of

breed.

Mosaic Factors

Mosaic Factors is a distillation of the underlying

data used to build Mosaic Hong Kong,

summarised into five continuous variables that

are ideal for statistical modelling. The variables

are:

Wealth - Poverty

Homeowner - Renter

Professional - Non Professional

Elderly - Youth

Traditionalist - Individualist






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Mosaic applications

Available for each building, Mosaic optimises

customer management, market planning, site

analysis, acquisition tactics and targeting

strategies. This unique connection between

household and geography enables marketers

to effortlessly utilise targeted segments across

all stages of analysis, planning and execution.

Marketing and planning applications for

Mosaic include the following:

Customer and prospect profiling

Direct/Target marketing

Customer acquisition modelling

Campaign analysis

Communication messaging and creative

design

Choosing store locations, branch/service

areas

Geographic/Market analysis and mapping

Selecting and buying advertising media

New product development

Strategic planning

Target marketing

Enhancing your customer data with Mosaic

identifies key market segments and untapped

opportunities.

Market analysis

Mosaic is a powerful tool for identifying,

analysing and evaluating customer

opportunities and market potential at national,

regional and local market areas.

Site selection

Mosaic can help pinpoint the best sites and

trade areas for maximising sales potential.

Penetration of Mosaic Group F - Comfy Subsidised Homes

Site analysis for Mosaic target group

Customer profiling by Mosaic Group

The Mosaic Hong Kong Family TreeThe Mosaic Family Tree illustrates the major demographic and lifestyle polarities between

the types and groups and shows how the Mosaic types relate to each other.






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Mosaic Hong Kong Groups and TypesMosaic classifies households in Hong Kong by allocating them

to one of 29 types and 10 groups.

Note: Type C11 - University Residences has been regrouped under J30 - Communal Homes

Mosaic Hong Kong Groups and Types

Group B: Well-to-do Group A: Upper Echelons

Upper Echelons ()Wealthy families with an upscale andprivileged lifestyle.

8.59% of Hong Kong households (Types A01 - A04)

The Upper Echelons represent the wealthiest

households in Hong Kong. They live in the richest

areas in luxury mansions, new upscale apartments or

low density houses.

They outrank all other Groups in terms of household

income, property value and career achievements.

Most of them are successful business executives in

professional and top managerial positions in the

finance, services and public sectors.

Members of this group are predominantly college/

tertiary educated. They are confident in their life and

career. They are active in the investment market, and

plan well for retirement and their children's

education. They tend to read English newspapers.

They own more cars and high-end AV equipment,

and travel abroad more frequently than other Groups.

The Upper Echelons are segmented into four Mosaic

Types:

A01 - Expats and the Privileged ()The most affluent local and expatriate families in

luxury homes. They are the top 1% of Hong Kong

households and live in areas like Shouson Hill (), Repulse Bay () and the Peak ().

A02 - Matured Wealthy ()Mature successful families in large desirable homes

on Mount Davis Road (), Braemar HillMansion (), and part of Oxford Road ().

A03 - Elite Professionals ()Single and double income professionals living in

upscale residences like Beacon Heights ()and Palm Spring ().

A04 - Rising Sophisticates ()Trendy and wealthy managers and associates living in

modern apartments such as South Horizons () and Island Harbourview ().

Well-to-do ()Well-off couples and families enjoyinga comfortable lifestyle.

6.56% of Hong Kong households (Types B05 - B06)

The Well-to-do's represent the second wealthiest

households in Hong Kong. They live in urban private

apartments with a comfortable living environment

and convenient transportation. Some residences are

well-equipped with modern clubhouse facilities.

The Well-to-do's are college/ tertiary educated and

well-qualified. They work as executives, managers

and white-collar professionals. Their income and

affluence level are well above average, and this gives

them an upper-middle class lifestyle. They work hard

and play hard. They are also active in the investment

market.

The Well-to-do's are segmented into two Mosaic

Types:

B05 - Well-off families ()Middle-aged parents living with dependent children

in better quality homes, like Bedford Gardens (), Mei Foo Sun Chuen (), and somebuildings on Caine Road () and Bonham Road().

B06 - Young Executives ()Young upwardly mobile singles and couples living in

comfy urban homes like Fortress Metro Tower () on King's Road (), Whampoa GardenBlock 1-12 (1-12), and Nob Hill ()in Lai King ().






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Group C: Emerging Middle Class Group D: Suburban Locals Group E: Compact City Life

Emerging Middle Class ()Stable and educated families ofmoderate affluence.

15.46% of Hong Kong households (Types C07 - C10)

Members of the Emerging Middle Class are better off

than the average families. Many of them are

managers, white collar workers, mid-ranking civil

servants or disciplined service officers. They are well

educated and earn an income that is above average.

They live in near-urban private developments or

government quarters. Half of them have an

outstanding mortgage, which may explain why they

tend to work hard and keep non-essential spending

to a minimum.

People in the Emerging Middle Class are segmented

into four Mosaic Types:

C07 - New Mortgagees ()Young families with mortgages in new near-urban

apartments such as Sea Crest Villa (), andTung Chung Crescent ().

C08 - Government Quarters ()Civil servant families living in government quarters.

Most of them are mid-ranking disciplined service

officers. They live in quarters owned by the

government like Western Police Married Quarters () in Western District and Castle PeakGovernment Quarters () in Tuen Mun().

C09 - Middle-class Pleasure ()Typical mid-income families and homeowners, and

most of them live in apartments like New Jade

Garden () in Chai Wan (), and TelfordGardens () in Kowloon Bay ().

C10 - Mature Home Owners ()Long-term homeowners and empty nesters in urban

or near-urban establishments like Healthy Gardens

() in North Point (), Wyler Garden () in Tokwawan (), and Luk Yeung SunChuen () in Tsuen Wan ().

* The former type C11 - University Residences hasbeen regrouped under J30 - Communal Homes.

Suburban Locals ()Diverse income households in oldtowns and suburban outskirts.

11.45% of Hong Kong households (Types D12 - D15)

The Suburban Locals live in old towns near the city or

in the suburban and countryside areas. Most of them

are secondary school educated and work as blue

collars or elementary-level white collars.

They tend to earn an income that is slightly below

average, and are more cautious in spending money

than others.

The Suburban Locals are segmented into four Mosaic

Types:

D12 - Old Town Empty-nesters ()Mature small households owning or renting homes in

older parts of Kennedy Town () and Tai Wai().

D13 - Settled Workers ()Working homeowners and sharers in old urban

communities such as Kwan Yick Building ()in Sai Wan (), Tung Fat Building () inNorth Point (), Yuen Fat House () in YuenLong ().

D14 - Comfy Countryside ()Mid income families in better suburban homes like

Pak Tin Pa Tsuen () in Tsuen Wan (),and also Fanling Wai ().

D15 - Rural Heritage ()Traditional extended families in long-standing rural

developments such as Cheung Chau () and PengChau ().

Compact City Life ()Families focused on budget in highdensity city areas.

9.86% of Hong Kong households (Types E16 - E17)

Compact City Life neighbourhoods are high density

city areas in Hong Kong amidst bustling retail and

trade activities. Typical properties are relatively small

single blocks, situated on main streets with high

traffic flow, which provide convenient access to

various transportation, restaurants, shops and

entertainment locations. This Group has the highest

concentration of people speaking Putonghua and

Chinese dialects other than Cantonese.

Residents are mostly mature small families or young

singles having moved out of their parents' home to

live independently.

Households in Compact City Life are segmented into

two Mosaic Types:

E16 - Urban Practicals ()Mid-income city dwellers living in busy retail districts

such as Lockhart Road () area in Wan Chai () and Peel Street () in Central ().

E17 - Bargain Seekers ()Low income co-tenants and small families in crowded

city areas such as Shanghai Street () inMongkok (), and parts of Sham Shui Po ().

Group F: Comfy Subsidised Homes Group G: Grass Roots Living

Comfy Subsidised Homes ()Mid-to-low income families living inurban and suburban subsidisedhomes.

16.22% of Hong Kong households (Types F18 - F21)

Comfy Subsidised Homes are inhabited by lower-

middle class families residing in better quality public

apartments subsidised by the government. They

either live in subsidised apartments, mostly in the

new town areas, or in high-end public rental estates.

Many of them are young and growing families with

school-age or grown-up children, and often living

with their elderly parents.

Most of them have completed secondary school

education, earning average income. They work in a

variety of occupations, as white collar workers, shop

sales and service workers.

The Comfy Subsidised Homes are segmented into

four Mosaic Types:

F18 - New Couples and Kids ()Young couples and families with a mortgage in better

quality subsidised homes like Aldrich Garden ()in Shaukeiwan (), Charming Garden () in Yaumatei ().

F19 - Growing Families ()Families with school age children and owners of

subsidised homes in New Towns such as Siu Hei

Court () in Tuen Mun () and Yan MingCourt () in Tseung Kwan O ().

F20 - Mature Stability ()Mature families and owners of older subsidised

apartments through "Tenants Purchase Scheme" like

Chuk Yuen North Estate () and Fung TakEstate () in Wong Tai Sin ().

F21 - Extended Family Life ()Extended families renting subsidised apartments in

urban outskirts such as Siu Sai Wan Estate (), and also Wang Tau Hom Estate () in LokFu ().

Grass Roots Living ()Average families in affordable publicblocks.

10.62% of Hong Kong households (Types G22 - G23)

Grass Roots Living symbolise the average households

living in large public housing complexes in urban or

new town areas. In many cases, parents, children and

elderlies live together.

There is a high proportion of young and teenage

children within this group. The adults tend to have

relatively low education. Most of them work in

manufacturing, wholesale or construction. The

younger ones work as shop sales or elementary office

workers. They earn an income that is below average.

Their apartments are managed and owned by the

government. The rent of those apartments is

relatively low among public apartments. Some of the

public blocks have a small shopping centre with

supermarkets, wet markets, kindergartens and bus

stations nearby.

People in Grass Roots Living are segmented into two

Mosaic Types:

G22 - Blue Collar Parents ()Worker families with teenage children living in public

blocks near transportation hubs such as Fu Cheong

Estate () in Sham Shui Po (), and HinKeng Estate () in Shatin ().

G23 - Basic Life Pursuits ()Worker families with young children located in new

town public blocks like Leung King Estate () inTuen Mun () and Tin Shui Estate () in TinShui Wai ().






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Group H: Community Challenge Group I: Grey Perspectives Group J: Communal Homes

Community Challenge ()Unskilled older families living inurban public housing complexes.

9.74% of Hong Kong households (Types H24 - H26)

Community Challenge represents the economically

disadvantaged households. These households tend to

be less educated and earn a low income.

Most adults have completed primary school

education only. They take up elementary jobs such as

service and shop workers, craft workers, manual and

construction workers. There is a high proportion of

students and home-makers.

Without much disposable income, these households

tend to conduct their daily activities around the

estates in which they live. The need for community

activities for youngsters and retired seniors is high in

these areas. The estates are government-owned and

the rent is low. However, the living environment is

rather crowded. Some of these households are

receiving social security assistance.

Households belonging to Community Challenge are

segmented into three Mosaic Types:

H24 - Nuclear Renters ()Low income nuclear families in new town public

blocks such as Yau Oi Estate () in Tuen Mun(), and Long Ping Estate () in Yuen Long().

H25 - Striving Multi-earners ()Older blue collar families in new town and suburban

public estates like Lok Wah North Estate ()and Cho Yiu Estate ().

H26 - Aging Generations ()Borderline extended families and elderlies in old

remote public blocks such as Ap Lei Chau Estate (), and Choi Wan Estate ().

Grey Perspectives ()Modest seniors and retirees in veryold public blocks and communities.

10.96% of Hong Kong households (Types I27 - I29)

The Grey Perspectives are comprised of a significant

proportion of retirees and elderly people. They are

mostly uneducated and unskilled. Almost all of them

are living in the most primitive public housing owned

by the government.

They used to work as manual workers, craftsmen,

and manufacturing or construction workers. Elderlies

in these areas have limited activities, and most are

under social security and family welfare schemes.

The living condition in these public rental blocks is

poor and crowded. The housing was built mostly

before 1970s or 1980s.

The Grey Perspectives are segmented into three

Mosaic Types:

I27 - Elders Community ()Primitive older families and seniors located in public

estate like So Uk Estate () in Lai Chi Kok ().

I28 - Retiree Families ()Extended families of very low income living in public

estate such as Lai Kok Estate () in Cheung ShaWan ().

I29 - Sunset Simplicity ()Old single people retired from unskilled manual work.

More than 90% of them live in public rental estates

such as Tai Hang Tung Estate () in Shek KipMei ().

Communal Homes ()Non income earning communitiesincluding elderly homes, monasteries,prisons and university residences.

0.55% of Hong Kong households (Types J30)

The Communal Homes are comprised of people not

in the workforce. They typically live in a communal

environment.

This group includes:

senior citizens who have retired and are living in

old people's homes managed by commercial or

non-profit-distributing organisations

monks and nuns living in monasteries

prisoners and juvenile delinquents living in

correctional institutions and rehabilitation centres

students living in university or college campus

residences






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Mosaic Global

Mosaic Hong Kong is part of the Mosaic Global

network of consumer segmentation systems.

The Mosaic classification is available in more

than 25 countries, including most of Western

Europe, the United States, Australia and Asia

Pacific. Mosaic Global is a consistent

segmentation system that links each of these

classifications and covers a billion of the

world's consumers. It is based on a simple

proposition that the world's cities share

common patterns of residential segregation.

Using highly localised statistics, Experian has

identified 10 distinct types of residential

neighbourhood, each with a distinctive set of

values, motivations and consumer preferences.

To describe Mosaic Global, Experian decided

upon a set of groups that are consistent across

the countries and that could be used as

classifications. The Mosaic Global groups are:

A Sophisticated Singles

B Bourgeois Prosperity

C Career and Family

D Comfortable Retirement

E Routine Service Workers

F Hard Working Blue Collar

G Metropolitan Strugglers

H Low Income Elders

I Post Industrial Survivors

J Rural Inheritance

The Mosaic Global groups are mapped against two dimensions:affluence and geographic location.

Visualisation

To help illustrate the classification and make

Mosaic easy to interpret, we have created a set

of comprehensive support materials.

Mosaic eHandbook a detailed electronic

guide to Mosaic that provides a background to

the typology and lists the variables used to

build the classification, a key to the structure of

the Groups and Types, and illustrations of the

demographic and lifestyle characteristics of

each household Type and neighbourhood.

Data, Services and Solutions

Data directories

Mosaic Directory License is a lookup file

containing residential buildings and their

assigned Mosaic code. Customer files can be

enriched with a Mosaic code by simply

matching the building from a customer or

prospect record to the Mosaic directory.

Mosaic Distribution License provides

geographic counts for each Mosaic Type for

various Census, market and postal geographies.

Files can be used for market analysis and

planning and can be easily integrated into

geographical information systems (GIS) and

mapping applications.

Delivery services

Enhancement Mosaic Type and Group codes

are available at the building and

neighbourhood levels for customer file

enhancement. Coding your customer, prospect

and survey files is your first step in

understanding who your customers really are.

Enhancement is available on a license or ad hoc

basis.

List Selection Once you know who your

customers are, your can use Mosaic in your

acquisition campaigns to target your best

prospects by selecting lists from Experian's

partners based on the key and top performing

Mosaic segments.

Modelling and Analytics Mosaic can be

used as an element in customer and

acquisition modelling development, as an

added selection criteria when pulling modelled

lists, or on the front-end and back-end of

customer profiling and campaign analysis. Our

consulting teams can undertake more detailed

predictive modelling and consumer analysis

using Mosaic and other data assets.

Solutions

Micromarketer Generation3 is an integrated

geographical analysis tool that provides

customer profiling, catchment (trade area)

definition, sales territory analysis, data

modelling, mapping and visualisation in an

easy-to-use software application. Available for

use on your desktop PC, or using data

available across a network, Micromarketer

Generation3 provides you with access to the

very latest in geographical analysis technology.

Mosaic Coder is an intelligent tool that

interprets free-format Hong Kong addresses, in

English and Chinese, and assigns a Mosaic

Code to each customer address. Mosaic Coder

is part of Experian's Smart-Address software

that performs address cleansing, matching and

coding.

About Experian Ltd

Experian is a global leader in providing

analytical and information services to

organisations and consumers to help manage

the risk and reward of commercial and

financial decisions.

Combining its unique information tools and

deep understanding of individuals, markets

and economies, Experian partners with

organisations around the world to establish

and strengthen customer relationships and

provide their businesses with competitive

advantage.

For consumers, Experian delivers critical

information that enables them to make

financial and purchasing decisions with greater

control and confidence.

Clients include organisations from financial

services, retail and catalogue,

telecommunications, utilities, media, insurance,

automotive, leisure, e-commerce,

manufacturing, property and government

sectors.

Experian Group Limited is listed on the London

Stock Exchange (EXPN) and is a constituent of

the FTSE-100 index. It has corporate

headquarters in Dublin, Ireland, and

operational headquarters in Costa Mesa,

California and Nottingham, UK. Experian

employs more than 12,500 people in 34

countries worldwide, supporting clients in

more than 60 countries. Annual sales are 1.7

billion.

For more information, visit the company's

website on www.experiangroup.com

About Business Strategies

Experian's Business Strategies Division provides

an understanding of consumers, markets and

economies in the UK and around the world,

past, present and future. Our focus is

consumer profiling and market segmentation,

retail property analysis, economic forecasting

and public policy research, supporting

businesses, policy makers and investors in

making tactical and strategic decisions.

As part of the Experian group, it has access to

a wealth of research data and innovative

software solutions. The division's economic

research team is devoted to analysing national,

regional and local economies for a range of

public and private sector clients. Its

statisticians, econometricians, sociologists,

geographers, market researchers and

economists carry out extensive research into

the underlying drivers of social, economic and

market change.






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2007 Experian LtdAll rights reserved

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Experian Hong Kong Ltd43/F The Lee Gardens33 Hysan AvenueCauseway BayHong Kong

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Mosaic Hong Kong

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