OCTOBER 27, 2014

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Bain: Global Luxury Market Shows Steady Growth

The luxury category, like many others, faced challenges during the past few years. However, Bain & Company’s “Luxury Goods Worldwide Market Monitor” reports that the global luxury market has entered a period of steady growth. Bain forecasts the worldwide luxury market to reach 865 billion euros (approximately $1.1 trillion in U.S. dollars) in 2014, marking 7% growth over last year. A number of key luxury categories have demonstrated growth over last year, including:

  • The luxury automotive market has grown 10% over last year -- exhibiting the most growth of any of the luxury categories measured. Bain reports that growth is being driven by emerging markets and consumers' ability to further personalize car purchases.
  • Investing in experiences, luxury travel has shown strong growth as high-end hotels have grown by 9% and luxury cruises by 5%.
  • Propping up the luxury category, personal luxury consumer goods will account for 223 billion euros (approximately $283 billion U.S. dollars) this year, good for 2% growth over last year. In the luxury consumer goods sector, shoes will outperform leather goods for the first time in eight years. Men’s shoes and the growing bespoke/personalized shoe trend are driving growth in luxury footwear.
So what?

In this post-recession marketplace, the luxury market is finding its footing again and growing across most categories. This growth can be partly attributed to the emerging markets and the luxury consumers within them who are using luxury items to define their status among peers. Consumers in established markets are using luxury as a way to further personalize their experiences and possessions.

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comScore: Millennials Take to the Internet to Watch TV on Their Own Schedules

comScore has released data from an online survey completed by more than 1,000 respondents measuring video viewing behaviors. The study found that consumers are increasingly curating their own programming schedules, especially younger Americans. 18-34 year olds are more than twice as likely as 35-54 year olds to use the internet only to watch an original TV series. Millennials are also significantly more likely than older internet users to pay for a digital video service -- 61% of millennials subscribe to at least one paid digital video service, compared to 47% of 35-54 year olds and 30% of 55+ year olds. The most popular subscription service is Netflix as nearly one-third of survey respondents reported having a subscription, followed by Amazon Instant Video (19%) and Hulu Plus (9%). Signifying what is surely to be a persistent challenge for cable companies, millennials are 77% more likely than the average consumer to have never subscribed to pay TV and 67% more likely to have subscribed in the past, but have since cut the cord.


So what?

Millennials in many ways are their own content curators. They are willing to pay for content. However, they want it served on their own terms. This comScore report further reinforces the notion that one size fits all offerings might not work well among millennials. Media companies are starting to develop creative way to package content to millennials.

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Digital Ad Revenue Rises to $23 Billion in the First Half of 2014

Internet advertising revenues in the U.S. in the first half of 2014 amounted to $23.1 billion, 15% higher than in the same time period last year, says a new report from the IAB and PwC. Search has accounted for 39% of ad revenue this year to date, slightly lower than last year (43%). Banner ads also now comprise less of the total ad spend (19% to 17%). Mobile continued its share growth, now accounting for 23% - up from 15% just a year ago. Much like it did in 2013, retail has been the biggest driver of ad spending, with 21% of the total spend, followed by financial services (13%) and automotive (12%). The revenues remain concentrated, with the ten leading ad-selling companies amassing 71% of the revenues, and the companies ranked 11th to 25th accounting for another 11%, leaving only 18% for everyone else.


So what?

Over the past ten years, second-half revenues have always been higher than first-half revenues. The healthy growth of ad spend in 1H 2014 is therefore welcome news that sets high hopes for what is left of 2014.

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Quick Takes
IDC Projects Tablet Sales Growth to Flatten; Significant Growth Expected for Phablets

Source: IDC, Statista
Magazine Publishing Executives Say 44% of Last Year's Revenue Came from Print Advertising

FOLIO: and Readex Research mailed survey kits to 2,037 qualified domestic individuals in executive management positions at consumer publishing organizations on July 1, 2014. Percentages based on 232 total respondents.


Source: FOLIO
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

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