MARCH 19, 2012

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Announcement
The International Issue
This special edition of CNtelligence will report on international trends and developments, and highlight opportunities that Condé Nast might have to continue to grow reach abroad.
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Economy
Meet the Chinese Consumer of 2020
The last decade was a breakthrough one for China. Its economy tripled, and in the process became the second largest behind the United States. Research from McKinsey indicates that, barring major world economic shock, China’s GDP will continue to grow at an annual rate of 7.9% over the next decade, outpacing annual projected growth for United States (2.8%) and Germany (1.7%). And while individual GDP per capita will not match that of the United States, the increasing urbanization of China will grow the consumer marketplace. McKinsey reports that the per capita disposable income of these consumers will double between 2010 and 2020. Affluent households are expected to quadruple by 2020. McKinsey reports that while Chinese consumers will remain pragmatic, they will also become more aspirational. They will look more like modern, western shoppers that embrace technology and become more brand loyal and more discerning.
So what? The outlook for China remains optimistic. Because of that, many luxury marketers have reallocated some of their ad spend to promote to the newly affluent within China. It is important for Condé Nast brands to understand the forecast there as it affects business both domestically and internationally. Marketers will continue to look for ways to build a presence and loyalty within China, and CN brands might offer a unique extension of domestic partnerships that do just that.
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Media
Social Media is a Global Phenomenon
Social media have become as ubiquitous globally as they are here in the United States; the majority of adults in the US, Europe, Latin America and urban Asia use social media regularly. However, people from different countries behave quite differently with this medium. A new report by Forrester covers these differences and provides insights into how cultural norms impact use. US: 73% of American social media users are social ‘spectators’ while only 24% are ‘creators’. India: Indian people are the most likely to create and post content (videos, blogs, music) with 80% of social media users engaging in these behaviors. China: 83% of Chinese social media users post reviews of products and services or contribute to online discussions. Japan: Similar to the US, Japanese social users are largely passive spectators (72%). Their preference for anonymity affects the tools that they use as well as the sites they frequent. As a result, Facebook remains a minor player in Japan compared to local sites like Mixi, which allows users to remain anonymous.
So what? This report by Forrester can serve as an excellent resource for Condé Nast’s global teams as they develop and refine social media strategies across the globe.
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Retail/Shopping/Commerce
Online Shopping Grows in Brazil
A recent update from comScore reported that online shopping continues to grow in Brazil. The fourth quarter of 2011 saw web traffic to retail sites grow by double-digits in all key metrics: time spent, page views and visits. The most popular retail site in Brazil during the period was MercadoLivre (eBay’s Latin America partner) -- one in five minutes spent in the retail category was on the site. People between the ages of 25-34 represent the largest share of Brazilian online shoppers, and more than one-third of all visits came from São Paulo.
So what? Brazil represents another emerging market that many businesses have identified as a priority. It will gain more exposure in the coming years, as it is set to host the 2014 World Cup and 2016 Summer Olympics. Now might be the right time for Condé Nast brands to build connections within Brazil, and an online presence might be the first step.
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Technology
Mobile Ads More Effective in Europe
According to a new report from eMarketer that cites Nielsen findings, Tablet and Smart phone owners in Europe respond more favorably to mobile advertising compared to their US counterparts. While only 4% of Americans purchased a product through their smart phone after seeing an ad, 12% of Italians, 8% of Germans and 7% of Brits did the same. This pattern holds true for tablets as well with only 8% of Americans making a direct purchase, compared to 13% of Italians and 10% of Germans and Brits. eMarketer theorizes that the response may be due to the novelty of this form of advertising as marketers in Europe have been slower to invest in mobile.
So what? As Condé Nast continues to develop mobile content globally, these data may help persuade advertisers to invest into our new products.
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Quick Takes
The Combined Population of China and India is Larger than the Next 19 Most Populated Countries
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Christians and Muslims Represent More than Three-Quarters of International Migrants
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Indonesia, India and Mexico are the World’s Happiest Countries
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UK Males Spend Triple the Time of Females with Online Video Content
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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