In order to survive the digital world with diminishing memberships and online ad revenue, online publishers are looking to ecommerce to recapture their brand, becoming a main source of income.
Condé Nast and Style.com
Condé Nast has launched Style.com, an e-commerce business that sells high-end designer goods, investing a reported $93m into the business.
Frank Zayan, president of the ecommerce project said:
“Style.com brings added value by connecting the content with the product offer and providing other suggestions of products and brands when they read pieces on Vogue.co.uk or GQ.co.uk.”
Condé Nast is not holding stock, instead products are bought from individual brands, of which Condé Nast takes a percentage of the transaction.
Online Luxury Market: A $250 Billion Industry
- According to Consultancy.uk, the Global luxury market is worth €224 or $250 billion.
- Accessories remains the largest luxury product segment, while airports and online market places continue to increase market share.
- The Chinese market has been slow to grow, but consumer spending is expected to increase, while Europe and Japan are mainly tourist growth based. LVMH, Richemont and Hermès are globally the largest luxury brands.
- In 2014 growth within the industry remained low at 3%, in line with the previous year’s 3%, taking the total market value up from €218 billion to €224 billion
According to the researchers the period to 2017 will see relatively strong growth of between 4% – 6%, driving the industry to a value between €250 – €265 billion.
The Rise of Digital in a Changing Publishing Landscape
FIPP, the network for global media found that 12 top UK digital editions – well-known brands such as Empire, GQ, BBC Good Food, Wired, National Geographic, Cosmo and Men’s Health were in decline in 2016.
“Empire’s most recent digital edition circulation fell by 12.5 per cent year on year to just under 11,500 a month compared to 133,210 print issues.”
Douglas McCabe, an analyst with Enders said:
“The rise of digital, mobile and social media have had two consequences.”
“On the one hand they have disrupted the funnel as a whole, diluting the role of magazines; and on the other hand they have created opportunities for many organizations – including magazines – to occupy many different parts of the shopping funnel, from discovery through to transaction.”