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Luxury brands are grappling with downturns in the US and China, the largest markets for personal luxury goods, and will have to seize opportunities for growth from new markets and product innovation.

The news: Gen Z and young millennials are aggressively saving to retire by 40鈥攃hallenging stereotypes of overspending on luxury and leisure鈥攆ollowing the advice of TikTok influencer Mia McGrath, per Yahoo Finance. The details: McGrath is an advocate for the FIRE (financial independence, retire early) movement, which has gained popularity across social media.

We could see similar features integrated into established social media platforms like Instagram or TikTok. Source: seven39.

On today鈥檚 podcast episode, we discuss how to increase basket size, how to break out of category while staying true to brand identity, and how to respond to TikTok trends without seeming like a brand responding to a TikTok trend. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Vice President and Principal Analyst Suzy Davidkhanian and the CMO of True Religion Brand Jeans Kristen D鈥橝rcy.

Social commerce is gaining momentum in the UK鈥攚ith sales set to double by 2028鈥攁s major brands join TikTok and as more people shop on social platforms.

Nearly three-quarters (72%) of US Gen Zers find new media content on social media platforms like TikTok or Instagram, per Toluna鈥檚 Gen Z Decoded survey, and 71% turn to YouTube. While interest in online activities fluctuates by the hour, social media use is constant: At least 74% are using it at any given time of day, peaking at 81% in the afternoon and evening.

Pinterest鈥檚 ad revenues are growing steadily, expected to reach $3.86 billion in the US by 2027. Pinterest is benefiting from uncertainty surrounding a potential TikTok ban in the US. As TikTok鈥檚 CPMs have sharply declined, Pinterest鈥檚 have skyrocketed, growing 120% YoY, per an AdRoll report.

After experiencing downturns in recent years, social CPMs are on the rise again in the US, per our forecasts. That鈥檚 a sign that brands could invest more in social media ads amid optimism about the economy.

TikTok is still booming. Despite the threat of a US ban, TikTok contributed significant revenues to parent ByteDance, a sign that marketers and users aren鈥檛 going away. President-elect Donald Trump may also nix the ban, concluding its period of uncertainty. LinkedIn flexes B2B advertising鈥檚 strength.

US eCPMs for digital video, display, and audio formats fell in Q2 2024鈥攖he average decrease was slight on a QoQ basis but more pronounced on a YoY basis.

High-income consumers are more likely to discover new brands or products in-store, but they typically make the final purchase online.

Advertisers are stepping back from TikTok: CPMs fell significantly YoY, but advertisers should focus on diversification, not total abandonment, for the best results.

Companies large and small will net hundreds of billions in US incremental ecommerce and digital ad dollars in the next two years. Who will be the big winners?

Instagram Reels users can now play videos at 2x speed, a feature that鈥檚 currently available on TikTok. Facebook revamped the Friends tab to show friends鈥� stories, reels, posts, birthdays, and friend requests. A similar tab is already established on X, Reels, and TikTok. Updating algorithms: Reels is already a near clone of TikTok and was released in 2020 in response to the latter鈥檚 popularity.

These are branching out to cover more online channels, including social marketplace platforms such as TikTok Shop. New partnerships are drawing marketplaces and social commerce closer together. Over the past year, Amazon has launched programs with Meta, Pinterest, Snap, and TikTok to integrate shoppable Amazon ads onto the social platforms.

TikTok鈥檚 role: Another factor could be the fast-approaching deadline for a TikTok sale. Despite senators urging Trump to extend the deadline鈥攁nd despite nearly 70% of US adults opposing a ban, per Pew Research鈥擳ikTok鈥檚 future in the US is far from certain.