Black Friday Insight to empower your business. GfK October 7, 2016 Black Friday 2016: Insight to empower your business
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1 Black Friday 2016 Insight to empower your business 1
2 What happened last year? 2
3 Black Friday shoppers head to the web with online taking 75% of the growth Last year saw retailers taking differing approaches to Black Friday; some didn t participate, some promoted early and for longer, and some marketed without actually using the words Black Friday. Despite the differing approaches, consumers responded and based on the GfK Point of Tracking weekly data, Black Friday 2015 was the biggest yet for consumer durables. Total sales were up +8% in value and +6% in volume Year-on-Year (YoY). When comparing to the previous week, week-on-week (WoW*), there was an uplift in value of +65% and +31% in volume. In fact the week of Black Friday 2015 was the biggest sales week of 2015 to date, performing +62% better than the previous highest value week. In 2014 Black Friday madness arrived in the UK, with some ugly scenes in stores and negative media. This year learnings were applied and as a result the in-store shopping experience was more civilized, with orderly controlled queues forming outside some stores on Friday morning. However, the real story in 2015 is that the majority of consumers avoided the in-store chaos of previous years and moved to shopping online. Online sales outperformed the total market sales with growth of +21% in both value and volume (YoY). With +33% of value and +27% volume going through online, internet sales made up a whopping +75% of the overall value increase for this Black Friday. 3
4 Black Friday shoppers head to the web with online taking 75% of the growth Many consumers consciously delayed making purchases in anticipation of the Black Friday deals, with sales for the week prior to Black Friday down -7% in value and -6% in volume. This decline in volume was not seen in the week before Black Friday As Christmas was just a few weeks away, it wasn t surprising to see gifting items high up on many peoples shopping lists. One of the must-have products, wearable technology, saw growth of +158%. Action cameras saw an increase of +182%, and the ongoing resurgence in turntable sales continued at +121%. Health and wellbeing products were also in great demand with massage up +58% and balneo therapy (including foot spas) +56%. TVs were one of the most fought after products last Black Friday and despite strong comparisons, TV category sales were still up +26% YoY both in-store and online. This was largely driven by inch models up +202% and inch up +40%. Consumers traded up online with +35% of 50 inch plus TVs being sold in value. Michael McLaughlin Head of Retail UK & Ireland Regional Retail Director UK, Nordics & Baltics 4
5 Market Size (Value ) Black Friday is increasing in importance every year Value GfK Weekly Leaderpanel Weeks Black Friday Boxing Day Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 5
6 The real deal on UK Black Friday 2015 Top growth product groups Black Friday 2015 vs 2014 TV s % Action Cams 182% Wearables 158% Turntables 121% Vacuum Cleaners 56% In 2014 consumers went mad for Black Friday deals, with fights breaking out and stores getting trashed. However in 2015 the shopping experience was much more civilised, as consumers formed orderly queues to take advantage of the Black Friday deals. With more and more shoppers going online to get the best deals, we saw online performance grow by +26% in both value and volume (YoY). In this infographic we look specifically at the key trends of Black Friday and how 2015 performed compared to Week 48 Online Share % 41% Total market and online YoY growth Week Week % Total Market Growth 26% Online Growth % Total Market Growth 21% Online Growth Total online pricing* 2015 vs Week on Week The volume of price changes +28% The discount % on the price changes -12%? GfK data. GfK Electronic Point of Tracking, weekly data, Black Friday YoY comparisons are week vs (dates 22/11/15-28/11/15 vs. 23/11/14-29/11/14) and WoW comparisons are week (22/11/15 28/11/15) vs. week (15/11/15 21/11/15). *GfK Online Pricing Intelligence (OPI), data based on daily Black Friday sales 27/11/15 vs. 28/11/14. 6
7 Retail sales tracking data Black Friday
8 What would you receive? Options Available Categories Available from What it includes What will it answer Your guide to Black Friday 2016 What happened? Consumer Electronics IT & Office Mobile Telecoms Small Domestic Appliances DIY & Garden 5 th December Learn what happened on Black Friday Benchmark your performance against the market. Using: Retail Tracking data Online Price Intelligence data What were the overall sales on key consumer durables categories? How did markets perform vs. last year? What were the winners and losers across categories, brands and models? How much was sold online vs. offline What are the consumer trends driving the path of purchase? Cannibalisation of other sales cycles 8
9 What would you receive? 1 Hitlists Top 10 selling models for each category 4 Brand mix Brand share and growth including benchmark to see the best performing brands during this period 2 Market size Including year-on-year growth comparisons for top 3 product groups by category 5 Retailer Analysis Compare your performance to the market, with specific analysis tailored to your performance 3 Internet performance Understand the importance of online to the market and your Black Friday sales 6 Online Price Intelligence Data Compare your performance to the market 9
10 Hitlists Model Brand Total Rank GBP Value % Panelmarket Units Units % Price GBP Value % Cum. Units % Cum. Model 1 Brand A 1 820, , Model 2 Brand B 2 593, , Model 3 Brand C , , Model 5 Brand B , , Model 6 Brand B , Model 7 Brand D 6 393, , Model 8 Brand C , , Model 9 Brand A , , Model 10 Brand C , Bench Rank GBP Value % Retailer Units Units % Price GBP Value % of Mkt Units % of Mkt EXAMPLE Market & Internet Size & Growth + benchmark Leaderpanel - Top 3 Product Groups by Value with ASP Top 3 leaderpanel Product Groups by YoY Value Growth xx (2016 ASP) XXm Product Group B Product Group A Product Group A xx (2016 ASP) XXm XXm Product Group C xx(2016 ASP) Product Group A Product Group A Market Retailer 10
11 Brand Mix & Growth + benchmark EXAMPLE Brand E Brand D Brand C Retailer Total Market Brand B Brand A Online Price Intelligence Data YoY Price Change Comparison Comparing price changes on Black Friday 2016 vs YoY Intraday Price Change Comparison Comparing the number of price changes that occurred throughout the day on Black Friday 2016 vs WoW Price Change Comparison Comparing the number of price changes on Black Friday to week before Average Price Cut Comparing the highest prices recorded on the week before Black Friday, to the lowest recorded on Black Friday itself 11
12 Consumer response Black Friday
13 What will you receive? Options Available Categories Available from What it includes What will it answer Your guide to Black Friday 2016 What happened and why? Consumer Electronics IT Mobile Telecoms Small Domestic Appliances DIY & Garden 5 th December for initial Retail Tracking report. 16 th December for full report. Learn what happened on Black Friday 2016 & why Includes: Retail sales Tracking Online Pricing Intelligence data General consumer response to Black Friday event Retail Tracking Report plus Which demographics engage with Black Friday? Who drives sales volume? How much was sold online vs. offline and what are the consumer trends driving path of purchase? Is Black Friday now part of consumer planning cycles? How might it impact the coming Boxing Day/January sales period? How much of the purchasing done was planned vs. impulse? Did it live up to expectations? Your guide to Black Friday 2016 What happened and why? Consumer Electronics IT Mobile Telecoms 5 th December for initial Retail Tracking report. 16 th December for full report. Made to your needs and objectives Includes: Retail sales Tracking Online Pricing Intelligence data General consumer response to Black Friday event Detailed consumer response and behaviour in your category The above plus What did they buy? Where from? Category/brand specific planning levels? When does planning start? What where the triggers to, and influencers of purchase? Perceived vs. actual savings do consumers feel they are still getting a bargain? How to target impulse/additional sales as opposed to savvy shoppers? and much more 13
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