Black Friday Unmasked: Decoding Retail's Pinnacle Even
Picture chaotic streets filled with eager shoppers and tourists, an eclectic atmosphere with charming deals. This scene unfolds on one of the most significant shopping days of the year – the celebrated holiday known as Black Friday, typically falling on November 24th. The origins of this day trace back to the chaotic post-Thanksgiving shopping rush in 1960s Philadelphia,USA as streets were filled with shoppers and tourists.
The term “Black Friday” was initially used by the police to describe the chaotic and congested streets filled with both shoppers and tourists.
However, the term gained popularity due to the accounting shift from “red to black.” Traditionally, losses were recorded in red ink, while profits were in black.
Retailers viewed the holiday shopping season as an opportunity to transition from losses to profits and clear out inventory in preparation for the upcoming holiday season.
Black Friday, now, is synonymous with the day after thanksgiving and is one of the busiest shopping days of the year in the retail calendar.
Record-Breaking Black Friday: A $9.80 Billion Shopping Spree
Now turn the pages of the calendar to the present, where Black Friday shoppers shattered sales records across the United States.
According to Adobe Analytics, online spending on Black Friday reached a staggering $9.80 billion, marking a 7.5% increase from the previous year.
The methodology behind these insights involves the analysis of one trillion visits to U.S. retail sites and tracking 100 million SKUs across 18 product categories.
Unveiling the Top-Selling Category
Among the myriad of product categories, Electronics emerged as the frontrunner. What’s interesting is that the discounts issued in the electronics category were also higher than its counterpart categories.
Smartphones, smartwatches, TVs, and audio equipment witnessed substantial sales growth,compared to pre-holiday levels in October driven by attractive discounts.
This specific category experienced a remarkable price slash during the Black Friday extravaganza, boasting an impressive 27% discount. The excitement didn’t end there, as Cyber Monday brought an even more enticing offer, with prices plummeting further to an outstanding 30% off!
The allure of discounts played a pivotal role where the top-selling products directly correlated with the most attractive discounts.
This shows consumers are actively seeking attractive discounts, making it important for brands to strategically position their promotional offers to remain competitive in the market.
Discounts have very interesting stories to tell. Read our interesting analysis on Amazon Prime day discounts.
CYBER MONDAY’S ENCORE
As the festivities of Black Friday subside, Cyber Monday takes centre stage.
With an initial forecast of $12 billion in online spending, Cyber Monday presents enhanced discounts, building on the momentum of Black Friday, especially in the electronics category.
The total revenue for Cyber Monday reached an impressive $12.4 billion, solidifying its status as a significant online shopping event.
The overall surge in revenue not only signifies the resilience of consumer confidence but also the consistent year-on-year growth in online spending points to an enduring trend in the e-commerce landscape, emphasising the need for businesses to prioritise their digital presence.
Festivities are a time of promotions! But is it really as promising as it is perceived? Read our in-depth analysis of the Festive season.
Mobiles: The driver of sales
Well, wait . Have we thought about examining the distribution channels, where actually the consumers engage with these discounts? We did!Our research shows that online sales experienced an 8% surge compared to a modest 1% rise in in-store sales from the previous year.
However what was shocking was most of the online sales were conducted via smartphones indicating the significance of mobile devices in driving sales cannot be overstated.
These devices accounted for a substantial $5.3 billion in Black Friday sales, marking a remarkable 10.4% increase from the previous year and constituting 54% of online sales.
Consumers are increasingly relying on the convenience of mobile platforms, emphasising the need for businesses to prioritise mobile-friendly interfaces and seamless app experiences, indicating a transformative trend in consumer behaviour.
BNPL Surges: The Rise of 'Buy Now, Pay Later’
Decoding the brands and discounts represents one side of the equation. The complementary aspect involves analysing how these discounts are perceived by end consumers.
To deep dive into the intricacies of consumer psychology regarding their perception of discounts, we’ve conducted a thorough analysis of a captivating concept:Buy Now, Pay Later.This BNPL flexible payment method accounts for $79 million in sales – a remarkable 72% increase from the prior week .
Another indication of this surge would be the case of Cyber Monday as it witnessed an influx of $940 million in online spending . The influx was fueled by the flexibility offered by Buy Now, Pay Later options, reflecting consumers’ increasing preference for adaptable payment arrangements.
The rise of BNPL concepts reflects a consumer demand for instant gratification, allowing them to balance affordability while indulging in high-profit margin purchases.
Such shifts in consumer buying patterns also have to be roped well in advance, so that the retail industry seizes significant revenue-generating opportunities without overlooking them.
As technology and analytics play a pivotal role in deciphering consumer behaviour, these record-breaking figures set a new standard, challenging businesses to meet the heightened expectations of consumers and innovate the retail industry.
Navigating the Peak Sales Period with BRIO
In the aftermath of Black Friday & Cyber Monday, a crucial revelation emerges – brands must possess a heightened sense of agility and awareness during peak sales periods.
During sale seasons, where demand deviates from the norm, product promotions, accurate listings, optimal inventory levels, and tracking customer lifetime value become the prerequisites for success.
Yet, amidst this one element reigns supreme – the price.
Setting the right price is an art, demanding synchronisation with competitors along with a nuanced understanding of the ever-shifting market dynamics.
The ability to adapt prices in real-time does not just become an advantage but a necessity in the face of such pressures.
Feeling the weight of these demands? Enter BRIO, the AI dynamic pricing engine, designed to alleviate this pressure.
With its unparalleled ability to track real-time market factors, events, and players, you can ensure the price you set is perfect for the season!
With BRIO, the perfection of pricing ceases to be an aspiration – it becomes a certainty.
Book a free demo of our automated retail solutions or contact our optimization experts at info@sciative.com.
To see how BRIO can empower your brand, ensuring it not only survives but thrives, visit sciative.com
