MAY 26, 2015

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Bain & Company: Global Luxury Market Expected to Sustain Steady Growth

The global luxury personal goods market grew by 3% in 2014 to €224 billion and continued growth was observed in the first quarter of this year according to an update from the management consulting firm Bain & Company. For full-year 2015, Bain expects the category to grow by another 2-4%. Below are a number of key points from Bain's analysis:

  • The United States and emerging markets are driving growth in the luxury beauty category (a category responsible for 20% of the total global luxury personal goods market). Within the category, cosmetics are outperforming fragrances.
  • The accessories market comprises nearly 30% of the luxury goods market and shoes are performing best in the category. Within the accessories category, the men's segment is outperforming women's across the board.
  • In the United States, overall growth has slowed somewhat as American luxury retailers are feeling the effects of a decrease in touristic shopping from Chinese visitors.
  • In Europe, Bain has observed positive trends in Italy, Spain and France. Italy had a good start in 2015 thanks in part to an influx of tourists. Spain's rebound has been better than expected and France's positive trend is being driven by Paris.
So what?

The luxury goods market is in a far more comfortable position than it was just a few years ago while in the midst of the financial recovery. The past three years have shown consistent, sustainable growth. However, the market continues to provide fresh challenges and opportunities for luxury brands. Nearly one-third of all luxury spending is done by Chinese consumers, and their spending is largely contingent on tourism. Touristic spending now accounts for about 50% of overall luxury spending, so the pressure is on retailers to maintain inviting locations in key destinations.

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IAB/GfK: Viewing of Original Digital Video on the Rise

The recently released IAB 2015 Original Digital Video Study reports that 59 million (or about one in four) American adults view original digital video programing each month (+13% over last year). The study conducted by GfK also found that original digital video attracts the elusive 18-34 cord-cutter/never-had-cable audience – now at 17 million and growing. This group of young ‘cord cutters/nevers’ is twice as likely to view original digital video as other adults. The majority of them credit the existence of original digital video with being an important factor in their decision to not have pay TV and they’re inclined to find the ads in this programming to be more interesting or fun. This positive sentiment is also true for over one-third of the original digital video viewers of all ages. Devices being used to stream original digital video include desktops (72%), connected TVs (56%), smartphones (56%) and tablets (48%). Discovery of this programing is primarily driven by word of mouth with social media naturally becoming more of a factor. These regular viewers actually prefer original digital video content to TV news, sports and daytime programming and like it almost as much as traditional primetime television.

So what?

It is clear that original digital video, with its year-over-year double-digit gains in viewership, is profoundly changing the media landscape and advertisers are responding in earnest. With its award-winning content, CNÉ is well-positioned to answer increasing consumer and advertiser demand for engaging original digital video.

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Quick Takes
Internet Consumption Not Zero Sum: Desktop Internet Consumption Consistent Despite Mobile Gains

Source: comScore; Wall Street Journal
Android Users Have 1.5 Million Apps to Choose From; 1.4 Million Apps for iPhone Users

Source: Apple; Android; Various sources (; AppBrain; BlackBerry; Statista
Condé Nast
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Phil Paparella
Condé Nast Research & Insights | Associate Director
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Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights