SEPTEMBER 03, 2013

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Fashion/Beauty
The Global Sportswear Industry Gets Into Fighting Shape Post-Recession
Worth $200 billion globally before the recession, the sportswear category is forecasted to reach $300 billion by 2017, according to Euromonitor International. Currently the sportswear market is valued at $245 billion, with the U.S. comprising about 35% of global sales. Increases in sporting activities, the rise of emerging markets, and the convergence of leisurewear and athletic wear are all contributors to the growing sportswear category. Athletic participation is on the rise, with more consumers starting sports that are outside and easy to pick up, such as running, yoga, tennis and aerobics. Each of those four sports reported about a 10% increase in participation over the previous year. There are also growing sports cultures in emerging markets. China has a fast growing interest in outdoor sports. Brazil, preparing for the Olympics and World Cup, has a booming sportswear industry around those events. And Russians continue to adopt and wear sports-inspired casual wear as fashion statements. Besides growth abroad, the crossover between sportswear and leisurewear continues to be important domestically. In the U.S., sports-inspired sales comprised $85 billion of the $245 billion sales, and grew 8% over last year.
So what? As sportswear becomes more fashion-forward and consumers look to be stylish during and after their workouts, fashionable sportswear is both a cultural trend and a sizeable opportunity for retailers. With a number of brands that are highly regarded for both style and fitness content, Condé Nast is well-suited to serve advertisers hoping to take advantage of the positive momentum around sportswear.
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Mobile/Tablets
News Consumption is Going Mobile
News consumption continues to migrate from print to digital, and especially mobile, according to a research by the University of Missouri’s Reynolds Journalism Institute. The RJI found that 11% of newspaper subscribers have cancelled their subscription in the past 12 months, and another 13% consider doing so in the next year. At the same time, more than half of consumers – and 70% of those ages 18-44 – use mobile devices to keep up with the news, making mobile devices more popular for news consumption than desktop computers. Smartphones are used by 91% of mobile news consumers, while tablets are used by 55% (up from only 25% for tablets in 2012). News apps are becoming a significant channel for accessing news on mobile. 60% of all mobile users reported that they downloaded at least one news app to their mobile device, a significant jump from 30% the year prior. Men were much more likely than women to download a smartphone news app, while tablet news apps were almost equally likely to be downloaded by men and women. Mobile news consumers tend to prefer apps that are produced by a brand they already consume on traditional media, and this preference was especially strong for tablet users.
So what? The changing behavior of news consumers presents an opportunity for Condé Nast. The real-time nature of our digital properties, along with the quality of the current affairs coverage that our brands provide, allows us to capture a larger share of the news market and expose new audiences to our content.
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Business
McKinsey: Global CEOs and Senior Executives Bullish on Digital
Last month, McKinsey released the results of a global survey of opinions of 850 CEOs and other senior executives regarding the digital direction of their companies. What the study found is that C-level executives have come to place a much greater emphasis on digital, even when compared to just one year ago. The majority of those surveyed said digital engagement with customers falls within their company's top-ten priorities. Many organizations have shown a willingness to institute new practices to support these digital priorities. This year, 63% of companies have used advanced customer targeting to advertise, as compared to 43% last year. Nearly half of executives surveyed said their company now runs experiments on their web site to test effectiveness of messages, compared to 37% that did the same last year. And the CEO is leading the charge in many organizations -- 55% of CEOs sponsored or were directly engaged with digital-business initiatives in 2013, up from 46% that were in 2012.
So what? Among other things, this study tells us that senior management now less often has to be sold on why digital is important and is willing to put some weight behind it. Organizations across the board are becoming more digitally savvy and look for partners that are as well. Condé Nast is able to meet the needs of those adding digital focus with a host of advertising solutions and the measurement capabilities to support them.
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Retail/Shopping/Commerce
E-Commerce and M-Commerce Continue to Gain Share of Consumer Spending
E-commerce is growing much faster than overall consumer spending, according to comScore’s US online retail economy second quarter report. Compared to last year, desktop e-commerce sales growth outpaced traditional sales by triple the margin (16% growth on desktop versus 5% offline). In the second quarter, there were 182 million online buyers -- up slightly from Q2 2012 levels (178 million). While the number of buyers increased modestly, the amount spent per buyer increased 13% from 2012 to 2013. Apparel and accessories exhibited the strongest growth with over 15% lift compared to last year. Within the e-commerce pie, mobile-commerce makes up a larger slice. About one-third of the average retailer’s web traffic is now accessed exclusively through mobile. In the second quarter, mobile commerce accounted for 9% of retail e-commerce, totaling $4.7 billion. With 24% growth, m-commerce outpaced the growth for desktop e-commerce and offline purchases.
So what? Consumers continue to grow more comfortable making purchases online and we are now seeing that comfort level extend to mobile. As mobile commerce gains a significant share of spend, mobile-optimized sites will reap the rewards. Condé Nast, which has made great strides to build smartphone and tablet audiences, provide retailers with the ability to promote to consumers that can be just a few clicks away from making a purchase on their sites.
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Advertising
Ads Maintain Their Potency in the September Issue
Editor's note: This item originally ran in the November 12, 2012 edition of CNtelligence. The September issues of women's fashion magazines are getting thicker every year. In September 2011, the magazines in the women's fashion category (Allure, Cosmopolitan, Elle, Glamour, Harper’s Bazaar, In Style, Lucky, Marie Claire, Self, Vanity Fair, Vogue and W) had a total of 1,663 ad units according to Gfk MRI Starch. That was an increase of 4.5% over the previous September. While some wonder if the size of these September issues create clutter that compromises ad effectiveness, Starch recently reported that that theory fails to hold water. Starch reports that between 2009 and 2011 ads in September fashion magazines earned noting scores as strong as those for non-September issues. Furthermore, there was a lift for September issues versus non-September issues among readers that said they read the issues as much for the ads as for the articles and readers that felt the ads in the issue were valuable sources of new information.
So what? September has always been an opportunity to place our fashion magazines in the spotlight, from both an editorial and advertising perspective. This research reaffirms that advertisers are making the right decision when they double down in the September issue.
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Quick Takes
10% of Population Uses Smartphone for Sole Internet Access; Hispanics Significantly More Likely than Average Population to Rely on Smartphone to Gain Broadband Access
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Yahoo! Grabs the Top Spot from Google in July -- Yahoo! Sites Drew More Unique Visitors in the US than Google's; Condé Nast Digital Among the Top 50 Web Properties for Third Straight Month
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One in 10 Households Get Their Television Through Broadcast Only
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12 Countries Have a Higher Smartphone Penetration than the United States
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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 | philip_paparella@condenast.com

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