E-commerce companies are adjusting their strategies for Black Friday as consumer behavior continues to evolve. Instead of concentrating their shopping on the traditional late November frenzy, consumers are now spreading out their purchases throughout the month. This shift has prompted a significant increase in retailers offering early Black Friday promotions, according to a report by Capgemini and IMRG.
The data from the report shows that during the first two weeks of November, there has been a 78% increase in early activations compared to the same period last year. This means that more retailers are launching their Black Friday campaigns earlier than ever before in an attempt to stimulate demand. However, despite the increased activity, online sales for the first week of November were down 2.7%.
In addition to the decrease in sales, the Average Basket Value (ABV) also saw a decline from £140 to £135. This suggests that consumers are becoming more cost-conscious and cautious with their spending. They are likely considering their purchases more carefully and looking for better deals. This decline in ABV highlights the need for e-commerce companies to offer compelling promotions and discounts to attract consumers.
While overall online sales may have been down, the beauty category experienced a positive impact during the first week of November. Major retailers in the beauty category bringing their sales forward contributed to a 6.9% increase in sales. On the other hand, the electronics category, which heavily focused on televisions for watching the World Cup, saw a 9.4% decline in sales compared to the same week in 2021.
The surprising lack of response from shoppers despite the increased early promotions has caught the attention of industry experts. Simon Binge, Commerce Senior Manager at Capgemini, suggests that retailers may need to review their promotional plans for the Black Friday weekend. Deeper discounts and more attractive promotions may be necessary to secure a larger share of consumers’ limited budgets.
As the shopping landscape continues to change, it is crucial for e-commerce companies to adapt their strategies accordingly. Black Friday remains an important event for retailers, but the shifting dynamics of consumer behavior require a more strategic and comprehensive approach. By understanding the trends and preferences of shoppers, companies can position themselves to capitalize on the evolving shopping habits.
Useful links:
1. Black Friday 2021: What to Expect and How to Prepare
2. Retailers Plan Their Deals for Black Friday and the Holiday Shopping Season
