Webinar Presenters. Mike Griffin Vice President, Partnership Development, Consumer and Merchant Services Pitney Bowes
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1 Webinar Presenters Don Davis Editor-in-Chief Internet Retailer Stefany Zaroban Director of Research Internet Retailer Mike Griffin Vice President, Partnership Development, Consumer and Merchant Services Pitney Bowes
2 1. The Holiday Weekend in a Nutshell 2. Mobile Shopping 3. Performance Winners/Losers 4. Online Marketing Trends 5. The Pricing Wars 6. What s Next?
3 $11 billion was spent online from Thanksgiving day through Cyber Monday up 15% year over year In line or slightly ahead of predictions Source: Adobe
4 Online sales 2015 vs Cyber Monday sales surpassed Black Friday as far as the biggest sales day. Over the holiday weekend Saturday sales totaled $1.69B (+16% YoY) and Sunday sales totaled $1.87B (+14% YoY) Billion $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 ONLINE SALES 2015 VS $2.74 $2.40 $1.73 $1.38 $3.07 $2.64 $0.00 Thanksgiving Black Friday Cyber Monday Source: Adobe Digital Index
5 Store sales decline 10.4% on the Thanksgiving weekend. 7 of 10 top shopping days still ahead, ShopperTrak says. Projects 2.4% increase in store sales for the season. Malls easy to navigate, and lines at Wal-Mart, Target were about half of last year (Source: SunTrust) Source: ShopperTrak $23.00 $22.50 $22.00 $21.50 $21.00 $20.50 $20.00 $19.50 $19.00 Store Sales (in $billions) $22.80 $
6 2015 Thanksgiving weekend sales (in billions) 2014 Thanksgiving weekend sales (in billions) 28% online $20.4 $8.0 23% online $22.8 $6.8 Online Stores Online Stores Source: Adobe, ShopperTrak
7 YOY % increase in online sales 35.0% Thanksgiving 21.0% 26.0% Black Friday 21.5% 25.5% Cyber Monday 17.8% 12.1% 11.2% Nov Nov. 23 Nov. 24 Nov. 25 Nov. 26 Nov. 27 Nov Nov. 30 Source: IBM
8 Amazon launches pre-black Friday deals a full week beforehand Lowe s, hhgregg, Newegg and many others follow suit UsTrendy rolls out deals a full week before Black Friday and experiences a 48% jump in sales
9 Free Shipping Is the New Black 83% of orders shipped free over the weekend, up from 78% last year (Source: Demandware) Discounting Eases The average order was discounted 22% this year, versus last year s 25%. Discounts peaked at 24% on Black Friday. (Source: Demandware) 38% of online shoppers this year say they re a part of a shipping club (like Prime, Walmart s ShippingPass and ShopRunner) versus 34% last year (Source: Bizrate Insights, a division of Connexity)
10 27% 26% 26% 25% 25% 24% Average Thanksgiving Day discounts 25% 26% 24% 23% 23% 23% 22% 22% 10 a.m full day 2014 full day 2015 Source: Adobe Digital Index
11 AOV from Saturday and Sunday of Thanksgiving Weekend Consumers Cash in on Weekend Deals: The average order value for the mobile and desktop shopper combined for the weekend were $130.57, up 5.5% over $ $ $ Average Order Value $ $ $ $ Tablets Outspend Desktops: Tablets average order value $80.00 of $ exceeded that of desktops, which ended the $60.00 day at $ Smartphone shoppers spent $ $40.00 per order, an increase of 6.1% over $20.00 Source: IBM Watson Trend $0.00 Tablet Desktop Smartphone
12 Mobile sales for 3 key days: $2.3 billion, or 30% of total Mobile sales grow: MOBILE SALES 2015 VS (IN $M) % on Thanksgiving % on Black Friday and 143% on Cyber Monday Thanksgiving Black Friday Cyber Monday Source: Adobe
13 Percent of Website Traffic from Mobile Devices Retail chains have especially high traffic from mobile Major increases over 2014 Source: SimilarWeb Retailer Thanksgiving Black Friday Amazon 53% 55% ebay 52% 51% Walmart 66% 67% Etsy 53% 53% Target 62% 62% Best Buy 56% 60% Home Depot 55% 61% AliExpress.com 48% 48% Lowes 51% 57% Macy s 57% 59%
14 Officia keytar 90's listicle Desktop 6.39% Tablet 3.94% Phone 2.19% Source: ChannelAdvisor
15
16 According to Catchpoint data the five e-commerce sites with the fastest median webpage load time during Thanksgiving day were: Target Inc seconds Walgreen Co seconds Amway 1.51 seconds Apple Inc seconds Best Buy Co seconds As of noon on Black Friday the average response time for retailers home pages was 5.1 seconds and the slowest site took over 13 seconds to download.
17 BLACK FRIDAY ONLINE SALES BY MARKETING CHANNEL Other 5% Social Media 2% Display Advertising 1% Affiliate Marketing 12% 25% Paid Search 16% Source: Custora Direct Traffic 18% Organic Search 21%
18 Source: Bronto
19 When do you plan to shop on Cyber Monday? 42.4% 33.0% 29.5% 24.2% 24.8% 16.6% 14.5% 1.7% EARLY MORNING LATE MORNING OVER MY LUNCH HOUR EARLY AFTERNOON LATE AFTERNOON EARLY EVENING LATE EVENING OTHER Source: National Retail Federation, Prosper Insights & Analytics
20 Retailer volume was up but open rates were down % % 10.62% 10.55% Black Friday CyberMonday Black Friday Cyber Monday Source: edatasource
21 Thanksgiving-Cyber Monday sales results ChannelAdvisor e-retailer clients OTHER MARKETPLACES 82.8% -1.6% SEARCH -1.6% GOOGLE SHOPPING 24.3% COMPARISON SHOPPING EBAY 7.4% 2.6% AMAZON TOTAL SALES 24.1% 20.9% Source: ChannelAdvisor
22 Poor social sales (2%) despite a big push on social media from retailers and networks themselves Retailers boost Facebook ad spend 91% over the weekend. (Source: Nanigans) Buzz still matters: Pie Face is a case in point REI is another case is point. #OptOutside attracts more than 50,000 mentions (Source: Salesforce) #KohlsSweepstakes draws more than 120,000 mentions.
23 Amazon holds onto its massive share of voice with 29% of mentions on Twitter over the Thanksgiving holiday week. Amazon Walmart Target Walmart Source: Brandwatch
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26 Source: Ugam
27 Source: Ugam
28 Source: Ugam
29 $30 billion in online sales up for grabs in Dec. Source: Adobe and comscore
30 Amazon s shipping cutoff dates: Standard: Dec day (Prime members get its free: Dec. 22 Same-day Prime Now (Prime members in 16 metro areas): Dec. 24 % of U.S. population eligible for Prime Now shipping Prime Now: 30% Same-Day Delivery is available in the following cities and their surrounding metro areas: Atlanta, Baltimore, Boston, Chicago, Dallas / Ft. Worth, Indianapolis, Los Angeles, New York City, Orlando, Philadelphia, Phoenix, San Diego, San Francisco Bay Area, Seattle / Tacoma, Tampa Bay Area, Washington, D.C. Source: Amazon, Internet Retailer
31 What We Learned From Black Friday & Cyber Monday Mike Griffin Pitney Bowes Vice President, Partnership Development, Consumer and Merchant Services
32 Global Expansion Made Easy Marketing Services Website Localization Fully Landed Cost and Compliance Expansive Payment Options Managed Risk Logistics Management Customer Care Develop and deliver the right message to the right audience and acquire new, high-intent international customers. Present a meaningful localized customer experience that resonates in any country you serve. Quote duties and taxes up front and accurately while ensuring your business complies with all international customs regulations. Offer payment options across the globe including Alipay in China, while protecting your customers and business against fraud and currency fluctuations. Provide a seamless delivery and returns experience with competitive rates, parcel protection, and easy package tracking. Empower your customer care representatives to provide the highest level of support to your global consumers.
33 The U.S. & U.K. Company We Keep 200+ customers 70+ currencies including 220+ countries & territories
34 Black Friday and Cyber Monday for International Consumers Both shopping holidays are very real for international consumers.
35 Top Three Countries ordering from U.S. retailers on Black Friday China 38% increase over Canada 3% increase over U.K. 37% increase over 2014
36 Orders placed with U.S. retailers on Cyber Monday 2015 Orders placed by Taiwanese consumers 114% increase over 2014 Orders placed by Chinese consumers 78% increase over 2014 Orders placed by Korean consumers 34% increase over 2014
37 Additional notes from Cyber Weekend Black Friday still significantly bigger than Cyber Monday internationally, in virtually every country While trumped by China on Black Friday, Canada remained #1 international market Consumers targeted specific products. Average order values (AOV) down 10% while avg. unit retail (AUR) held steady. Checkout Conversion increased dramatically by day Thanksgiving Black Friday Weekend Cyber Monday 37
38 Regional Pop The major regions were fairly consistent, with all experiencing a significant Black Friday pop in sales, less so on Cyber Monday Increase over Average November Day Declining Aussie dollar continues to be a major factor - AFRICA ASIA AUSTRALIA NZ CANADA CENTRAL AMERICA EUROPE MIDDLE EAST & AFRICA SOUTH AMERICA Black Friday Cyber Monday 38
39 Country Pop Increase over Average November Day Very wide range among retailers: 2% - 75% of intl. sales from China Driven primarily by social media majority of sales from a few key merchants CANADA CHINA UNITED KINGDOM AUSTRALIA HONG KONG KOREA, REPUBLIC OF SAUDI ARABIA JAPAN MEXICO SWITZERLAND Black Friday Cyber Monday 39
40 Black Friday success not limited to bargain brands, retailers Luxury brands participated in Black Friday promotions more than previous years, with very strong results. It s not just a mass market play for international consumers Increase over Average November Day Luxury and high end retail brands offered exclusives over discounts, maintaining high AOVs Mass Brand (High End) Retail (High End) Brand (Middle) Luxury Flash Retail (Luxury) Retail (Luxury) Retail (High End) Retail (Luxury) Black Friday Cyber Monday 40
41 Facts and figures from the big weekend Pockets of incredible sales exist all over the world for certain retailers but there are still massive gaps on a country/merchant level in awareness. 70% of a mass merchant s international sales came from China, while only 11% for another Korea represented 55% of Cyber Weekend sales for a luxury retailer. International consumers have learned to wait the Black Friday peak gets steeper each year. Despite FX headwinds, double digit YOY increases were common for most retailers on both Black Friday and Cyber Monday. Several historical second tier markets emerged with massive increases in sales YOY for the weekend Russia, Taiwan, Egypt, Israel, Nigeria
42 Key takeaways from the weekend You can t go viral if they don t know who you are. Efforts to engage with consumers throughout the year pay big dividends on Cyber Weekend. Breakaway sales are very often product/brand specific. Bloggers talk about products, not merchants. Rice Cookers - Korea Designer handbag brand China Jewelry Mexico Baby - Russia Partnerships remain the best path to international scale. Pitney Bowes & Alipay - China Recognizing cultural norms is key Translated checkout Localized Payment & Carrier Options Duty/VAT inclusive and omnichannel pricing 42
43 The continued rise of mobile Overall mobile sales increased 20+% as a percent of all sales, with great variety on a country basis % 14.00% Mobile Up 50% YOY 12.00% Mobile as a % of Sales 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% South Korea United Kingdom Australia Hong Kong Saudi Arabia China Canada Singapore Israel Mexico 43
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45 Don Davis Stefany Zaroban Mike Griffin
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