MAY 28, 2013

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Bain & Company: Luxury Goods Continue to Show Strong Growth
In the 2013 update to its Luxury Goods Worldwide Market Study, Bain & Company reports that revenues for the luxury goods market will grow between four to five percent in 2013. The firm projects growth to tick up to five to six percent annually through 2015 and for the category to surpass €250 billion in sales by the middle of the decade. Bain's bullish outlook comes on the heels of a 2012 in which luxury revenues grew by 10%. Bain attributes the growth in part to the proliferation of consumers they classify as HENRYs (High Earnings, Not Rich Yet) -- HENRYs outnumber the ultra-affluent by a 10-to-1 margin. Growth also continues to come from emerging markets. Bain forecasts 12% growth in Central and South America (driven by Mexico and Brazil) and 20% growth in South East Asia.
So what? Bain's insight about high earners that are not yet rich (HENRYs) is a useful one for Condé Nast. It is important to forge relationships with individuals in this segment early on and maintain those relationships throughout their consumer life cycle, as they will prove to be very important targets for luxury goods makers.
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Crafting Their Reputations: Teens' Candidness On Social Media
Growing up online, teens actively cultivate and manage their virtual identity with the same care and attention as a marketer controlling his or her brand. According to a new study about teens and social media released by Pew Research, teens shared significantly more personal information on Twitter, Facebook, and other social media sites in 2012 than they did in 2006. Almost all (91%) posted a photo of themselves on social media compared to 79% in 2006. Revealing their contact information, half posted their email address and one in five posted their cell phone number online, compared to 29% and 2% in 2006, respectively. While they share more, they are also more closely managing their online reputations, including managing their networks and actively controlling their privacy settings. Highly confident in their ability to manage their profile’s privacy, 60% of teen Facebook users have private profiles (70% of girls versus 50% of boys) and three in four teens on social media reported deleting people from their network or friends lists. Although they are worried about privacy when thinking about other people, teens are not concerned about company third-party access to their data: only 9% say they are “very” concerned about this type of sharing.
So what? As the privacy debate rages on, teens are an interesting subject to study. They remain very comfortable sharing personal data on social media - data that savvy marketers can use to target them more efficiently. As these teens grow older, their attitudes toward privacy will act as a bellwether on this issue. Will they draw the curtains shut as they mature or have we reached a point where consumers will no longer be as concerned with privacy?
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Steady Growth in Trust in Media Around the World
The 2013 Edelman Trust Barometer is an annual survey of public trust in several economic and political sectors, conducted in 26 countries across the world. The Barometer, which ranges from 0 to 100, reports that there was a broad-based increase in trust during the past year. The composite trust score for all measured sectors went from 51 in 2012 to 57 in 2013. The US was one of the countries with the most profound rise in trust – from 42 in 2011 to 49 in 2012 and 59 in 2013. Technology remains the most trusted industry in all markets, with a trust score of 77, while banks and financial services are the least trusted industries, with a score of 50. Trust in media shows steady growth over time – 62% of countries surveyed have a trust score of 50 and above, compared to only 50% in 2008. One of the countries who joined the “50 and above” club is the US, with trust climbing from 45 in 2012 to 51 in 2013. Trust in media is significantly higher in emerging countries than in developed countries, and those markets also differ in how much trust they place in various types of media. Traditional media is most trusted in developed countries, in contrasts to emerging markets, where online search engines gain the most trust.
So what? While there continues to be room for improvement, the overall growth in trust for sectors in 2013 is encouraging. It should also be taken as a positive sign for Condé Nast that trust in media is on the uptick and that consumers in developed countries like the U.S. continue to hold more trust in traditional media sources more than new ones.
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Generation Y Likes Shopping – In Stores and Online
Generation Y is enthusiastic about all forms of shopping, says a new report from the Urban Land Institute. Surveying 18-35 year olds, the Institute found that 85% of Gen Y love or enjoy shopping, and they shop in both retail stores and online. When going to physical stores, younger Gen-Yers (18-25) - who are most likely to be single - tend to go with friends, while older Gen-Yers (26-35) often go alone or shop with spouses or children tagging along. These shopping trips are complemented with a variety of online activities. Nearly half of Gen-Yers report that they spend at least an hour each day on retail-oriented sites. Certain categories are more online-dominated than others – 43% buy sports accessories online and 38% buy electronics online, but only 23% choose to purchase cosmetics and personal care items on the web.
So what? Gen-Yers’ affinity for shopping is good news for retailers. Condé Nast plays two important roles in bridging between retailers and Gen Y: our magazines and digital properties are a great vehicle for advertising to Gen-Yers, as well as valued resources for inspiration and product research.
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Quick Takes
The Average Woman Will Spend $15K in Her Life on Beauty Products
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Location Still Matters: Sitting in a Window or Aisle Seat Most Important to U.S. Flyers
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4 out of 5 Tablet Owners OK With Ads in Digital Video if it Keeps Content Free
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Google Play Closes the Gap with Apple App Store
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Condé Nast
Feedback, questions, ideas for future issues? Please contact:

Phil Paparella
Condé Nast Research & Insights | Associate Director
1166 6th Avenue, 14th fl. | NY, NY 10036 | office 212.790.6044 |

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights