Watch our interactive and shoppable video, revealing the many facets of the new yoox.com through the exclusive collaboration with ThingLink for Video. Click the icons to "go deeper” into interactive visual, auditory, social media and shopping experiences linked to various elements of the video. Discover the world-class team of curators and ambassadors: Francesco Bonami, Amber Valletta, Lynn Yaeger, Osanna and Madina Visconti di Modrone.
yoox.com: a journey into creativity without limits.
This annual survey helps companies better understand changing consumer attitudes about Black Friday retail and how shoppers are planning for the 2018 holiday season.
No longer a one-day shopping extravaganza, Black Friday kicks off an extended discount period running through Cyber Monday. This has become an established feature of the retail calendar on both sides of the Atlantic—one that has dramatically changed the way people shop in the run-up to Christmas.
The Black Friday 2018 Shopping Report delivers detailed insights into consumer sentiment and intentions, exploring how consumers plan to shop, what they intend to buy, how much they anticipate spending, and whether they will be making purchases in stores or online.1
Providing retailers with in-depth intelligence on potential opportunities on the horizon, this year’s report also lifts the veil on several topics:
how consumers are planning ahead for the event—and the budgets they have set aside to shop
which product categories consumers are planning to shop—and the channels they will be using to research and make purchases in these categories
what is triggering changes in consumer shopping behaviors
This article, an extract of the Periscope by McKinsey report, highlights key findings on these topics and suggests what brands and retailers can do to prepare.
The predisposition to participate in Black Friday retail is high
Our survey showed many consumers are inclined to shop in the Black Friday period, and they are generally enthusiastic about promotions.
More than 70 percent of consumers plan to get involved in Black Friday
With retailers outside the United States now participating in Black Friday and Cyber Monday, discounting practices are stimulating ever-greater consumer participation in the annual shopping event.
In Europe, just 19 percent of UK respondents had participated in Black Friday retail back in 2015, compared with an impressive 54 percent in 2017. It was a similar story in Germany, with 9 percent of consumers getting involved in 2015; that figure jumped to 43 percent in 2017.
In Canada, consumer participation during the period has shown similar impressive gains, growing from 26 percent in 2015 to 48.5 percent in 2017 (Exhibit 1). And 81 percent of Canadian respondents say they definitely plan to shop or browse during Black Friday in 2018.
Anticipation in the other surveyed regions is also high, with 77 percent of respondents saying that they, too, plan to shop or browse at this year’s event and will consider making a purchase if the price is right.
Exhibit 2
Growing numbers of consumers report participating in Black Friday.
Positive attitudes abound—consumers expect to encounter enticing one-off promotions and deals
Consumer enthusiasm for Black Friday retail is running high; excitement levels among US (39 percent) and UK (36 percent) shoppers appear especially elevated (Exhibit 2). And around a quarter of Canadian (27 percent) and German (25 percent) shoppers say they are eagerly anticipating the event.
Exhibit 2
Consumers are enthusiastic to participate in Black Friday, particularly in the United Kingdom and United States.
Asked to evaluate the top motivational factors for participating in Black Friday 2018, 54 percent or more of consumers in all countries surveyed said taking advantage of steep discounts was their number-one reason. The opportunity to encounter unique one-off promotions was the second-most motivating factor for consumers, followed closely by making Christmas gift purchases (Exhibit 3).
Exhibit 3
Respondents report various motivations for shopping on Black Friday—but steep discounts are a primary factor.
Spontaneous behaviors will prevail, as consumers limit pre-event preparations
While many respondents expressed enthusiasm about Black Friday, relatively few say they have planned ahead. Preparation, if it happens, tends to be conducted online.
Limited consumer preplanning presents a major opportunity for retailers
Despite stating a clear objective to participate in Black Friday, consumers appear to be keeping their options wide open when it comes to exactly what they will purchase—and from whom.
Asked to evaluate their pre–Black Friday shopping preparations, the vast majority of respondents in all countries surveyed admitted to doing no or very little preplanning with regard to which stores or products they will seek out (Exhibit 4).
Exhibit 4
Most respondents say they do little or no planning for their Black Friday shopping.
This indicates that consumers are prepared to play the waiting game in anticipation of truly tempting offers that capture their attention or give them incentive to make a purchase.
Research nearer Black Friday will be conducted primarily online, but in-store browsing holds strong appeal
The ease and convenience of browsing retailer websites held the greatest appeal for the majority of respondents looking to hunt down ideas for their Black Friday purchases (Exhibit 5).
But browsing in-store came a close second for US (45 percent) and Canadian (47 percent) shoppers and held a strong attraction for 41 percent of German and 35 percent of UK consumers.
German (48 percent) and UK (38 percent) shoppers will be the most likely to wield their search-engine expertise when researching Black Friday deals.
Exhibit 5
Across countries, consumers are likeliest to browse retailers’ websites for Black Friday inspiration.
Digital and omnichannel purchasing behaviors will dominate
When it comes time for shoppers to make purchases, it is interesting to look at the channels they will use, the categories they will shop, and their changing preferences.
While European shoppers prefer to go digital, omnichannel is a popular option for shoppers everywhere
This year’s survey results reveal that European consumers mostly intend to head online to shop on Black Friday.
Germany leads the fray, with 33 percent of respondents saying they will exclusively shop online and 28 percent saying they will mostly do so.
It is a similar story in the United Kingdom, with “digital only” identified as the top choice for 29 percent of respondents and a further 34 percent saying they plan to shop mostly online (Exhibit 6).
Exhibit 6
For Black Friday purchases, many shoppers will go online, though some expressed strong omnichannel inclinations.
But Canadian shoppers weren’t far behind on the digital curve: while 16 percent plan to use only digital channels to make Black Friday purchases, 30 percent expect to be shopping mostly online.
By comparison, just 12 percent of US shoppers expect to shop exclusively online—with 21 percent saying they will be making mostly digital purchases.
That said, shoppers in all countries surveyed exhibited strong omnichannel inclinations. In the United States, 48 percent of respondents intend to shop both online and in stores. And it was a similar story for around a third of consumers in Canada (39 percent), Germany (32 percent), and the United Kingdom (30 percent).
This year’s findings indicate the percentage of consumers intending to shop only in stores is extremely low across the board—and was highest in the United States and Canada (4 percent).
Consumers intend to shop a variety of categories, and their channel preferences are changing
This year, clothing moved ahead of all other categories to take the top spot on consumer shopping lists in all countries we surveyed, bumping consumer electronics into second place. While digital remains strongly ahead as the primary method consumers plan to use when shopping for consumer electronics, 50 percent of shoppers in Canada and 54 percent in the United States still favor offline shopping when it comes to selecting new clothes.
Movies, books, and music emerged as the third-most popular product category, selected by 33 percent of US and 39 percent of Canadian respondents, while 40 percent of consumers in Germany and 42 percent of UK shoppers plumped for beauty and fragrances.
Would you like to learn more about how we help clients drive revenue growth with Periscope by McKinsey?
Even in big-ticket categories where consumers have traditionally exhibited in-store or offline purchasing behaviors—such as for furniture, household appliances, and cars—there are indications that a growing number of consumers are now prepared to head online to snap up Black Friday deals.
However, consumers are still voting with their feet and heading to the store when it comes to grocery and beverages, with an average of 45 percent of all respondents stating that they prefer to shop offline for these items and the same number saying that they don’t plan to shop for them at all on Black Friday.
Online shopping: What is the motivation?
With an average of 54 percent of shoppers in all surveyed markets saying they are planning to shop more online this Black Friday compared with previous years, it is clear that digital is becoming increasingly dominant as a channel.
When asked to evaluate what is motivating them to shop more online, the simplicity and convenience afforded was the top reason for shoppers in most age groups and in most countries.
The findings also reveal that US respondents across every age category were the most likely to plump for online shopping as the ideal antidote to escaping the chaos they say they have encountered when venturing to stores to shop during Black Friday events.
Which channels resonate most with which shoppers?
Respondents were asked to evaluate their top three shopping channels of choice. This year’s findings highlight how a growing number of shoppers will be reaching for their mobile devices to research or make purchases (Exhibit 7).
Exhibit 7
Although most respondents report they will shop in store or on a desktop, an increasing share will use mobile devices to research or buy on Black Friday.
Indeed, taken together, mobile apps and mobile browsers proved a popular option, selected by 50 percent or more of consumers in all countries surveyed, with 75 percent of US and 61 percent of German shoppers using these channels.
Meanwhile, US shoppers in general appear to be stealing a lead on consumers in other countries, with 8 percent saying they will be turning to voice-activated digital assistants, such as Alexa and Siri, to bag deals on Black Friday.
Consumers allocate sizable shopping budgets to this year’s Black Friday purchases
Once again, this year’s research indicates consumers are planning to spend even more on purchases than they have in previous years. The following results reaffirm Black Friday’s increasingly preeminent position as one of the most significant revenue-generating opportunities on the retail calendar (Exhibit 8):
Of US respondents, 16 percent expect to spend $1,000 or more—up from 9 percent in 2017—with a sizable 22 percent budgeting $500 for Black Friday purchases.
Of Canadian respondents, 14 percent have allocated $1,000 or more for Black Friday sales, with an additional 20 percent expecting to spend $500.
A substantial portion of UK shoppers (37 percent) are budgeting between £200 and £300 for Black Friday purchases.
Of German respondents, 21 percent expect to spend €200, with a further 14 percent setting aside €300 for purchases.
Exhibit 8
Many respondents say they are planning to spend a substantial amount on Black Friday shopping.
With consumers clearly eager, ready, and willing to participate in and shop Black Friday 2018, retailers and brands should look to prepare the right promotions for the right customers to ensure they attract high numbers of shoppers—and secure big-basket orders.
No customer left behind
No customer left behind: How to drive growth by putting personalization at the center of your marketing
Read the article
Consumers have already set aside significant budgets to fund their Black Friday 2018 shopping sprees and have clear purchasing intentions when it comes to who they will be buying for and which product categories they will be prioritizing. But beyond that, they are adopting a much more spontaneous approach in relation to what items they will actually purchase, preferring instead to sit back and see which promotions and offers most entice them to spend.
With everything up for grabs, retailers and brands should focus on a few areas:
Stimulate wants and needs. The majority of consumers say they have invested minimal effort in planning which items they will buy. But they have certainly reserved significant budgets to fund potential Black Friday purchasing activities, giving retailers and brands a clear opportunity to stimulate wants and needs ahead of the event. Those able to up their game to craft the right marketing messages and promotions will seize the day, attracting shoppers to their stores and websites on the day.
Make it personal. Consumers are more open than ever to receiving personalized messages that stimulate them to consider potential product options. Retailers and brands that can leverage their customer data to stimulate demand with personalized campaigns ahead of the event will win a greater share of consumer hearts and minds.
Improve the in-store customer experience. It is clear from this year’s survey that many shoppers are now wary of battling for bargains and trying to make purchases in chaotic stores. Retailers and brands can consider implementing processes such as mobile payments and online ordering for pick up in store to relieve the pressure on store operations and limit the risk of alienating consumers or damaging brand loyalties.
Smart shopping is on the rise. A growing number of consumers are turning to smart shopping assistants, such as Alexa and Siri, to help streamline their shopping chores, and many of those doing so hold considerable shopping budgets for events like Black Friday. These big spenders represent a prime opportunity.
Think omnichannel. Today’s sophisticated shoppers are leveraging every channel available to explore their Black Friday options—whether for researching deals, seeking out inspirations for gifts, or experiencing the excitement of the shopping event in person. And digital channels are increasingly dominant. This makes it vitally important for retailers and brands to ensure they catch their target audiences in the right channels and provide a seamless experience as shoppers move from one channel to another to complete their purchasing journeys.
BlackMilk Clothing has opened its first Sydney pop-up store at Macquarie Centre.
BlackMilk designs and manufactures its outerwear collections from its Brisbane HQ.
CEO Sally Osburn said the opening was down to demand.
“We have had so many requests from our customers to offer an instore experience, so we are thrilled to be opening four pop-ups in Sydney, Brisbane Melbourne and Perth before the end of the year, with Sydney being first.
“We understand that new customers are also keen to see and touch our garments before purchasing, so this gives them a great opportunity to come and try for themselves the high quality products we are making.”
“Bricks and mortar stores will be a key part of our future growth strategy to become a multi-channel retailer."
The opening is supported by the appointment of experienced store director Cassandra Towill.
“We recognise that having a multi-channel offering in the current retail market is a key success factor and have a strong, experienced team to deliver this.”
Europe’s biggest online fashion retailer is working to counteract a fall in average order size after it reported the slowest sales growth since launching a decade ago.
BERLIN, Germany — Zalando, Europe's biggest online-only fashion retailer, is working to counteract a fall in average order size and to ensure more returned goods are resold after it reported the slowest sales growth since it was launched a decade ago.
Facing rising competition from e-commerce players like Amazon.com and chains like H&M, Zalando cut its 2018 outlook for a second time in as many months in October due to the unusually long, hot summer, sending its shares tumbling.
Shares in Zalando, which have fallen by a quarter in the last year, were 6.4 percent lower at €32.19 by 10:14 GMT, making them the biggest decliners on the German MDAX index .
"Weaker sales growth versus consensus and continued deterioration in basket economics will disappoint," said UBS analyst Andrew Hughes, who rates Zalando "sell."
Third-quarter sales rose 12 percent to €1.2 billion ($1.37 billion), missing average analyst forecasts for €1.22 billion, and well below the 20 to 25 percent annual growth it has targeted for years.
In contrast, British rival ASOS last month met its full-year sales growth forecasts and reported a 28 percent rise in pretax profit, flagging years of double-digit sales growth to come and propelling its shares higher.
About half of the products Zalando sells are returned, with most of them processed and resold.
Zalando reported a quarterly adjusted loss before interest and taxation of €39 million, which it blamed on a slow start to sales of colder weather clothing, as well as rising fulfilment costs and problems with how it handles returns.
Returns
About half of the products Zalando sells are returned, with most of them processed and resold.
Previous changes to the handling of returned goods that needed to be ironed or repaired resulted in fewer of them being refurbished, an issue that has since been resolved, co-CEO Rubin Ritter told journalists.
Zalando said profitability was also hit by a 7 percent fall in average order size to €57.50, despite efforts to bolster orders by adding beauty products to its range in the hope that customers would add a lipstick when they buy a dress.
The company is taking steps to try to increase the profitability of smaller orders, including making size recommendations to reduce the likelihood of returns, and trialling a minimum order value of €25 in Italy, Ritter said.
He does not yet know if Zalando will extend that to other markets, as some analysts have recommended.
Higher transport costs and investments in logistics also weighed, although Zalando trimmed its expectation for capital expenditure for 2018 to €300 million, from a previous €350 million, as projects are spread over a longer period of time.
Ritter said Zalando planned a new centralised warehouse to process shipments of garments from brands before they are sent to regional centres for delivery to customers, as it seeks to increase the efficiency of its logistics network.
Catch Group continues to gain momentum with strong top-line growth and over a million active customers as at September 30.
The online retailer released its trading results for the first quarter of fiscal 2019 on Monday, revealing a 72.9 per cent increase in overall gross transaction value (GTV) to $99.39 million, up from $57.49 million in the previous corresponding period.
The results offered Catch an opportunity to flex its muscles at a time when it is widely believed to be pursuing an IPO. IR understands that this is not expected to occur until next year, or when market conditions improve.
Marketplace growth
The bulk of the growth in the quarter was driven by Catch’s marketplace offering, which facilitated $33.85 million in transactions in July, August and September, roughly one year after launching in June 2017. This represents an 843 per cent year-on-year increase in GTV, admittedly from a low base in the previous corresponding period.
The marketplace offers more than 1.9 million SKUs from over 950 third-party sellers, including Tarocash, Ezibuy and Alannah Hill.
Catch’s sales of its core in-stock offering, end-of-line ranges from big-name brands that are sold at steep discount, increased 21.6 per cent year-on-year to $65.54 million, up from $53.9 million in the previous corresponding period.
The company had 1.2 million active customers at the end of Q1, up 50 per cent from the 800,000 active customers it had in the same quarter last year.
Catch Group’s CEO and managing director Nati Harpaz credited the company’s growth to its expanding range.
“I’m extremely proud of the strong financial and operational results that the team here at Catch Group have delivered this quarter. Our ability to offer in-demand products across a wide range of categories from highly sought-after brands at great prices, continues to attract and retain customers,” he said.
Last month, the company announced it had secured a new 22,000sqm warehouse close to its current facilities in Truganina, Melbourne, to provide additional capacity needed for the next five years of expected growth.
“With over 100 million annual website and app visits, the addition of a new warehouse will allow us to continue to capitalise on this potential growth,” Harpaz said.
The results come less than a week after fellow online-only retailer Kogan.com disappointed investors with a 27.4 per cent year-on-year drop in revenue from sales of global brands for the quarter.
But unlike Kogan.com, Catch was not impacted by the new GST law that went into effect on July 1, closing a loophole that allowed retailers to avoid collecting and remitting GST on imports valued at under $1000.
While Kogan.com rose to prominence thanks to its low prices on items like the Apple iPhone, which it shipped to customers from overseas warehouses, exploiting the loophole, Catch has always shipped stock from its Melbourne warehouse.
But while the two businesses are often compared, they are not true competitors. Kogan.com plays more squarely in the consumer electronics and small appliances space, drawing a more male-centric audience, while Catch offers a wider range of items, including many household goods, and appeals to a female customer shopping for the whole family.
Alibaba Group reported 54 per cent year-on-year growth in revenue at its September Quarter 2018 results on Friday. The strong growth comes ahead of its annual 11.11 Shopping Festival on November 11, 2018 which will feature 180,000 brands.
Alibaba announced its core e-commerce revenue, which accounts for 84 per cent of the total, rose 56 per cent to RMB72,475 million (US$10,553 million) in the second quarter.
“Alibaba had another strong quarter of rapid growth. In particular, annual active consumers increased by 25 million to reach 601 million in the 12 months ended September 30, 2018,” said Daniel Zhang, CEO of Alibaba Group.
“We generated synergies across our businesses, demonstrating the power of the Alibaba digital economy, which will be further showcased during our upcoming 11.11 Global Shopping Festival. Under our New Retail strategy, we are realizing our vision to enable renewed growth for traditional retailers through digitising their store-based operations, powered by Alibaba’s technology and consumer insights.”
Alibaba’s chairman Jack Ma hinted in his recent letter to shareholders, that the e-commerce giant in China is set to continue its growth in the region. It has continuously announced innovations in its leading platforms of Tmall, Cainiao, Hema, Ele.me, Koubei, etc.
Alibaba focuses on New Retail strategy optimised by technology innovations. Its Hema supermarket and robot restaurant in China continue to expand and introduce new initiatives to enhance consumer experiences. Currently there are 77 Hema stores in China where it offers shoppers a 30-minute on-demand delivery service for fresh foods and groceries.
“We are making good progress in digitising partner retailers and enabling their New Retail model. For example, our partner Sun Art, the largest hyper-mart chain in China, has adopted our technology and is working closely with us in on-demand delivery, joint procurement and supply chain management,” added Alibaba in a statement.
Alibaba has opened a warehouse with over 700 robots to get packages to customers anywhere in China within 24 hours and internationally in 72 hours.
“We outpaced all industry peers by again delivering robust revenue growth of 54 per cent this quarter,” said Maggie Wu, CFO of Alibaba Group. “While the growth of our overall profitability this quarter has been tempered by significant investments in local services, logistics, entertainment and international expansion, our core marketplace business continued to show strong profit and cash flow growth, which enables us to re-invest into strategic areas and our technology.”
In October, the Chinese business partnered with Swiss luxury group Richemont, the parent company of Cartier, to launch a joint venture with Richemont-owned Yoox Net-a-Porter, an online retailer for luxury goods.
Alibaba revised its fiscal year 2019 revenue guidance to a range of RMB375 billion to RMB383 billion. The new guidance range reflects a 4 per cent to 6 per cent adjustment to the original revenue guidance.
“In light of current fluid macro-economic conditions, we have recently decided not to monetize, in the near term, incremental inventory generated from growing users and engagement on our China retail marketplaces. We expect this decision to benefit SMEs on our marketplace platforms,” added Alibaba in a statement.
In a bid to ratchet up its appeal to high-end fashion and accessories companies, China e-commerce giant JD.com has opened a high-tech, dust-free, climate-controlled warehouse with unprecedented security. It’s for the exclusive use of brands that open flagship shops on JD’s luxury retailing portal TopLife.
The ventur appears to be working: The warehouse began operating shortly after TopLife’s launch a year ago, and is now home to a variety of luxury labels in China, including Alexander McQueen, Armani, Canali, Ermenegildo Zegna, Balenciaga, and more.
Now, sources close to matter tell Jing Daily that the facility could be a magnet for even more: LVMH, the world’s largest luxury group and owners of high-profile luxury brands like Louis Vuitton, Celine, and Givenchy, will pay a visit to TopLife’s warehouse at the end of this month as a part of a business meeting with the company.
JD.com’s effort to create a more upscale image for luxury brands, which includes everything from building the Shanghai warehouse to launching a premium delivery service in China, are addressing one of luxury brands’ biggest concerns about launching online: fear of their products losing an aura of opulence and exclusivity.
TopLife’s warehouse is near a number of regular JD.com warehouses, but as a specialty location, it has extremely different interior and exterior designs. Upon entering, visitors immediately encounter the black and gold TopLife logo while soothing music plays in the background. They enter a room with the look and feel of a wellness spa, the only exception being a large electronic screen that runs a loop of fashion runway shows from participating brands.
To improve the company’s image as a luxury goods marketplace, it has even expanded its white-glove service to the warehouse instead of relying heavily on automation as it does for other warehouses. The warehouse is also more heavily secured than others since it stores high-value luxury goods. Only JD.com staff with verified fingerprints and facial recognition can enter, and when unverified people enter the system, the warehouse automatically sends an alert to local police. The core warehouse stays at a temperature of 25 degrees Celsius and a humidity level between 55-75, according to JD.com—ideal specifications for storing premium leather goods. There’s a vault for storing gold, valuable jewelry, and watches.
Currently, there is a relatively small number of orders being processed per day in the TopLife warehouse, in comparison to the daily average of orders processed by regular warehouses, which stands at 100,000 during a normal period and can jump to 230,000 at peak times such as the upcoming Singles’ Day shopping festival.
“However,” a JD staff who toured the press around the warehouse on November 5 said, “we are undergoing a rapid growth period.” And with more luxury brands joining TopLife, the daily order average will increase quickly. Big luxury industry players have been slow to embrace e-commerce trends in China, but that is changing.
In a bid to ratchet up its appeal to high-end fashion and accessories companies, China e-commerce giant JD.com has opened a high-tech, dust-free, climate-controlled warehouse with unprecedented security. It’s for the exclusive use of brands that open flagship shops on JD’s luxury retailing portal TopLife.
The ventur appears to be working: The warehouse began operating shortly after TopLife’s launch a year ago, and is now home to a variety of luxury labels in China, including Alexander McQueen, Armani, Canali, Ermenegildo Zegna, Balenciaga, and more.
Now, sources close to matter tell Jing Daily that the facility could be a magnet for even more: LVMH, the world’s largest luxury group and owners of high-profile luxury brands like Louis Vuitton, Celine, and Givenchy, will pay a visit to TopLife’s warehouse at the end of this month as a part of a business meeting with the company.
JD.com’s effort to create a more upscale image for luxury brands, which includes everything from building the Shanghai warehouse to launching a premium delivery service in China, are addressing one of luxury brands’ biggest concerns about launching online: fear of their products losing an aura of opulence and exclusivity.
TopLife’s warehouse is near a number of regular JD.com warehouses, but as a specialty location, it has extremely different interior and exterior designs. Upon entering, visitors immediately encounter the black and gold TopLife logo while soothing music plays in the background. They enter a room with the look and feel of a wellness spa, the only exception being a large electronic screen that runs a loop of fashion runway shows from participating brands.
To improve the company’s image as a luxury goods marketplace, it has even expanded its white-glove service to the warehouse instead of relying heavily on automation as it does for other warehouses. The warehouse is also more heavily secured than others since it stores high-value luxury goods. Only JD.com staff with verified fingerprints and facial recognition can enter, and when unverified people enter the system, the warehouse automatically sends an alert to local police. The core warehouse stays at a temperature of 25 degrees Celsius and a humidity level between 55-75, according to JD.com—ideal specifications for storing premium leather goods. There’s a vault for storing gold, valuable jewelry, and watches.
Currently, there is a relatively small number of orders being processed per day in the TopLife warehouse, in comparison to the daily average of orders processed by regular warehouses, which stands at 100,000 during a normal period and can jump to 230,000 at peak times such as the upcoming Singles’ Day shopping festival.
“However,” a JD staff who toured the press around the warehouse on November 5 said, “we are undergoing a rapid growth period.” And with more luxury brands joining TopLife, the daily order average will increase quickly. Big luxury industry players have been slow to embrace e-commerce trends in China, but that is changing.
Newly released research suggests that the 2018 peak shopping period, between 1st October and 24th December, is likely to see 10 per cent more items delivered, with more Australians doing their holiday shopping online.
CouriersPlease saw 10 per cent increases during 2016 and 2017’s peak shopping periods, and is forecasting the same period during 2018 to be even bigger.
This data echoes what Adobe revealed in its shopping predictions for the 2018 holiday season, noting that Australian retail is likely to see similar growth to what is expected in the US; a 14.8 per cent increase in online, totalling US$124.1 billion, with offline retailing expected to increase by a modest 2.7 per cent.
“As we head into one of the busiest and most lucrative shopping periods of the year, it is critical that Australian retailers are setting themselves up for success,” Adobe head of transformation Scott Rigby said.
“The 2018 holiday shopping predictions reflect a very similar retail landscape to ours here in Australia and with US online sales expected to increase by double digits this holiday season, we expect there will also be a significant increase in Australian online sales.”
Rigby noted that retailers with an online and offline footprint are more likely to see a significant increase in sales conversions over the Christmas period.
“Many shoppers want to interact with retailers’ products and the brand in-store, and the ability to pick up online orders in-store within a matter of hours can’t be underestimated,” Adobe head of marketing and customer insights John Copeland said.
“Adobe Analytics data anticipates shoppers increasingly buying online and picking up items in-store during the holiday season… [which] has increased 119 per cent since January 2018 across all retailers and over 250 per cent for large retailers.”
The Adobe report also points out that social referral traffic is beginning to decline in importance for retailers, generating 11 per cent less revenue-per-visit compared to Q4 2016, and being the only marketing channel to see a decline in RPV attributed to the weakening trust in social networks.
Global online marketplace eBay barely beat analyst estimates, delivering earnings of US56 cents per share, while analysts expected US54 cents per share.
Net income rose 38 per cent year-on-year to US$720 million ($1.01 billion) for the quarter ending September 30, while active buyers grew 4 per cent across its platforms.
EBay revenue reached US$2.6 billion ($3.65 billion), a 6 per cent increase on an as-reported basis, primarily driven by a gross merchandise volume of US$22.7 billion ($31.9 billion).
“This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities,” eBay president and chief executive Devin Wenig said.
During the quarter the business began accepting Apple Pay as part of its revised payment experience, with approximately 12 per cent of iOS transactions having been made with Apple Pay during the period.
EBay also expressed interest in the acquisition of UK-based classifieds site Motors.co.uk, which would join Gumtree UK and eBay Motors UK to assist UK car dealers increase leads and offer more choice.
Looking forward, the company is expecting net revenue of US$2.85-$2.89 billion ($4.01-$4.06 billion) in the fourth quarter of 2018, leading to a net revenue of between US$10.72 – $10.76 billion ($15.07-$15.12 billion)for the 2018 financial year, representing a growth of approximately 6 per cent.