Black Friday Marketing – Decline in Online Sales; 8 things to know
Black Friday marketing has been on the minds of marketers for many months. Retailers had US $ 8.9 billion in online sales last Friday (Black Friday), according to data from Adobe Analytics. This is the first time that growth has been reversed compared to the previous year. The Portada editorial team analyzed the data and reports and came up with 8 key points to consider.
“For the first time ever, Black Friday saw a reversal of the growth trend of years past,” Vivek Pandya, senior analyst at Adobe Digital Insights, said in a report on e-commerce trends in the United States. Last year, online spending for Black Friday totaled US $ 9 billion, up from US $ 8.9 billion this year.
Black Friday marketing strategies have been on the minds of brand marketers for many months. The 4-day 5-day holiday shopping event known as “Cyber 5” or “Turkey 5” has come to an end and the Portada editorial team has analyzed the data and read numerous reports and have Suggested the following 8 points / trends that brand marketers should consider:
1. Black Friday Marketing: Holiday shopping has been extended because of …
New shopping figures released over the weekend suggest more Americans have extended their holiday shopping this year amid concerns over COVID-19 and supply chain disruptions. Retailers also flaunted their promotional offers, giving another reason to start shopping earlier. An investigation of the National Retail Federation found that 61% of consumers started buying Christmas gifts before Thanksgiving and 28% of their Christmas shopping was done in early November.
2.… Supply chain shocks and inflation
“There is no doubt that supply chain shocks and inflation fears have disrupted typical holiday shopping habits of consumers,” Laura Wronski, senior director of scientific research at Momentary wrote in an email to CNBC. “A lot of consumers intentionally started their holiday shopping early because they don’t want to sit empty-handed over the holidays!”. “It’s one thing to wait a few months for the delivery of a new sofa; it’s another to try to explain to your kids why Santa Claus doesn’t come before January, ”Wronski added.
3.… Lower discounts also explain the drop in Black Friday sales
The relatively low Black Friday sales figures can also be explained by a reduction in discounts by retailers. According to an analysis of Refinitive, the average promotional discount for major retailers before Black Friday was 33.4%, compared to an average 37% discount offered in October and early November.
4.… Visits to brick and mortar stores were considerably lower than in 2019
Visits to stores and malls increased 48% from a year ago while trailing 2019 traffic by 28%, retail consulting firm Sensormatic said in a report. Retailers like Best Buy, Dick’s Sporting Goods, Kohl’s, Macy’s, Target and Walmart have decided to close their doors on Thanksgiving Day this year. Retail store traffic also dropped significantly on Black Friday (28.3% from 2019 levels).
During the holiday season as a whole this year, in-store visits are expected to be only 10-15% behind 2019 levels, Sensormatic said. Despite Covid-19 concerns, research indicates consumers are prioritizing in-store purchases to avoid potential shipping delays amid well-publicized traffic jams in the global supply chain.
During the holiday season as a whole this year, in-store visits are expected to be only 10-15% behind 2019 levels.
5. Electronics and Video Games, Best Selling Items Online
According to Adobe, electronics and video games dominated the list of top selling products purchased online. Items included TVs made by Samsung and Vizio, Oculus Quest 2 – Meta’s virtual reality headset – and video game titles such as Electronic Arts’ FIFA 22 and Ubisoft Entertainment’s Far Cry 6.. Most Popular Toys Included Lego and Rainbocorns.
6. Black Friday Marketing: Buyers are increasingly using Buy Now and Pay Later options
Consumers are increasingly financing their holiday purchases with late payment options and installment plans for their purchases. For Thanksgiving, shopping in the United States using Klarna, a application offering installment payments, increased 124% compared to a year ago. Based on data from Selling power, buyers have used buy now options on 8% of all purchases in the past two days – up 31% from the previous year.
7. Retail applications are clearly on the rise
This year, retail apps are already approaching peak usage for the holiday season 2020. According to application flyer, e-commerce app installs grew 55% on Android and 32% on iOS in 2021. Although there is no data yet on the distribution of e-commerce sales through apps and via websites, the share of app use for online shopping is expected to grow. So far in 2021, consumers have generated 35% more revenue in e-commerce applications compared to 2020. In-app spending for 2021 peaked in March, topping 156% the previous March, according to Appsflyer data.
8. Today’s CyberMonday is set to be the biggest online shopping day of the year
the National Retail Federation predicted 62.8 million people will shop today during Cyber Monday, to cap off a holiday weekend for retailers who combined for a mixed bag of in-store and online sales compared to last year. Adobe predicted purchases of $ 10.2 billion to $ 11.3 billion on November 29, or Cyber Monday, which the firm says is set to be the biggest online shopping day of the year . Adobe reiterated its forecast of US $ 207 billion in consumer spending for the holiday season as a whole.
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