2014 Holiday Shopping Recap Adobe Digital Index
ADOBE DIGITAL INDEX
Methodology • Data from Adobe Marketing Cloud: Adobe Analytics, Adobe Mobile Services, Adobe Media Optimizer, and Adobe Social • Based on analysis of aggregated and anonymous data • More than 18 billion visits to 4,500 retail websites during November and December • Over $7.00 out of $10.00 spent online with top 500 retailers is measured by Adobe Marketing Cloud • Separate findings from surveys of 400+ U.S. consumers, and digital marketers
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
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ADOBE DIGITAL INDEX
US: Online Shopping Adobe Digital Index
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
ADOBE DIGITAL INDEX
73 billion spent online this holiday season 2014 online sales (billions)
Online sales
Prediction
$3 Cyber Monday Black Friday
$2 Thanksgiving Christmas
$1 $73.4 B + 12%YoY
$0 1-Nov
8-Nov
15-Nov
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
22-Nov
29-Nov
6-Dec
13-Dec
20-Dec
27-Dec
• During November and December US retailers raked in an impressive $73.4 billion • Holiday season sales up 12% over 2013. • US retailers are more dependent on the holiday shopping season than those of any other country as this key time period represents 28% of annual online sales. • Mobile accounted for 16% of all online sales and was as high as 29% on key shopping days like Thanksgiving and Black Friday
ADOBE DIGITAL INDEX
Shop online, pick it up in your local store • In-store pickup became a key differentiator for brick-and-click retailers over their online-only competitors in 2014 • Especially on key traditional offline shopping days consumers chose skip the lines by purchasing online before and while shopping in-stores and pick up in the store. • On Black Friday In-Store Pickups soared to 40% above the average day and stayed elevating throughout the Thanksgiving weekend. • In-store pickup rates again shot up just before Christmas when it became too late to wait for shipping. ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
In-Store Pickup: relative to normal 150%
Black Friday
140% 130% Thanksgiving
120%
Cyber Monday
Christmas
110% 100% 90% 80% 70%
1-Nov
8-Nov
15-Nov
22-Nov 29-Nov
6-Dec
13-Dec
20-Dec
27-Dec
ADOBE DIGITAL INDEX
Geo-Based Personalization: Consumer Sentiment • 34% report receiving a marketing promotion based on their location (another 21% unsure); • Open to Beacons? 55% feel it would be useful to receive marketing promotions on their mobile device while in a physical store • 71% like having ads personalized, but opinions differ about quality of today’s personalization efforts:
• 20% like it, but say that such ads are “not done well enough today” • 30% like it and feel that today’s efforts are “as tailored to me as they need to be” • 20% feel today’s personalization efforts are too intrusive • 29% don’t think ads should be personalized at all
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
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ADOBE DIGITAL INDEX
Location Aware Content
• The use of location technologies to personalize mobile experiences is expanding via both GPS location data and iBeacons. • For GPS location, 49% are already using device position to deliver location-aware content. • In addition, majority of expert mobile marketers, 56.5%, use GPS in comparison to only 36.6 % of lessexperienced marketers. • But the newbies are catching up; 48.8 percent plan to add it in the next 12 months.
Request GPS Location Data
Use Beacon Technology
• In the case of iBeacons, sports media companies like Major League Baseball have already deployed beacons in their stadiums to “push” relevant content to fans. Furthermore, companies like Safeway, American Airlines and Marriott have announced the deployment of beacons at retail stores, airports and hotels to drive a location-aware experience for customers. ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
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ADOBE DIGITAL INDEX
Digital Wallets Share of online sales via digital wallet payments 25%
• 35% of consumers report that their mobile phone allows them to make payments at a physical store; of these people, 47% report having used their mobile phone to make such a payment • Consumers, weary of entering credit card information on mobile devices, rely more on alternative payment methods like PayPal, Amazon Payments, Google Wallet to make purchases online. • 23% of purchases on smartphones • 19% of purchases on tablets • 16% of purchases on desktops
20%
15%
10%
• Apple Pay will soon become the default alternative payment tool for many consumers. Enabling easy transactions both off and online.
5%
0% Mobile Phone
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Tablet
Desktop
• Mobile conversion rates expected to increase as digital wallets become ever more commonplace for online shopping.
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ADOBE DIGITAL INDEX
Growth by Retailer Category 2014 Winners and Losers • Specialty, General Merchandise, and Apparel retailers faired the best YoY • Jewelry, Food & Drug, Health & Beauty sold less online in 2014 than 2013 When do people shop? • Toy and General Merchandise retailers saw high sales levels on Thanksgiving • Most other categories didn’t see major spikes until Black Friday and Cyber Monday.
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
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ADOBE DIGITAL INDEX
Price Level and Product Availability • Online prices hit rock bottom on Thanksgiving Day at an average discount of 25.2% • Online Sales started on Monday before Thanksgiving as prices fell by more than 5% in two days. • During Thanksgiving week the average item was discounted more than 20%. • Prices began to increases dramatically after Black Friday and remained elevated during the rest of December. • Out-of-stock messages increased 5-fold to peak Cyber Monday due to increased demand and limited supply
2014 average discount: online prices by day
Average discount
Prediction
-10% -15% -20%
Cyber Monday
-25%
Black Friday
Thanksgiving
-30% 1-Nov
8-Nov
15-Nov
22-Nov
29-Nov
6-Dec
13-Dec
20-Dec
27-Dec
Out-of-stock product views per visit 130%
Black Friday
Cyber Monday
Thanksgiving 110% 90%
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
70%
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New Sales Records
Cyber Monday growth of online sales (billions)
Record Sales growth on Thanksgiving Day • $1.33 Billion • 25% YoY growth Black Friday barely lags behind Cyber Monday • $2.40 Billion • 24% YoY growth Cyber Monday continued to drive top dollar • $2.65 Billion • 16% YoY growth Online sales growth (billions) $3.0 $2.0
$3
40%
$2 30%
2013
+24%
50%
2014
+16%
20%
$1 10%
+25%
$1.0
$-
0%
2009
$0.0
Thanksgiving ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Black Friday
Cyber Monday
2010
2011 Online Sales
2012
2013 YoY Growth
2014
ADOBE DIGITAL INDEX
Mobile Continues to Move Sales Online The iPad was the online shopping device of choice for consumers in 2014 • Mobile accounted for 16% of all online sales and was as high as 29% on key shopping days like Thanksgiving and Black Friday • 48% of mobile sales came from consumers using iPads to shop online • iOS represented nearly three-quarters of all mobile sales. Smartphones aren’t just for browsing anymore. • Large screen phones led smartphones to account for nearly half of all mobile ecommerce, up from a third last year. • Tablets still drove the majority of mobile sales on Thanksgiving, Black Friday and Cyber Monday with 13%, 12%, and 9% of total sales. ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Tablet Smartphone
Mobile share of sales 16%
14%
13% Thanksgiving
12%
12%
9%
Black Friday
Cyber Monday
Android Phone, 17%
Other Mobile, 2%
Android Tablet, 6%
iPad, 48%
iPhone, 27% iPad
iPhone
Android Tablet
Android Phone
Other Mobile
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ADOBE DIGITAL INDEX
Retail Facebook trends Posts: • In retail, up 74% year-over-year in November • Up 64% year-over-year in December Paid Impressions: • In retail, up 13% year-over-year in December • Up 20% year-over-year in November
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
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ADOBE DIGITAL INDEX
Top Gifts according to Social Media Buzz Top Gifts • Mobile Phones: iPhone 6/6+ • Wearable Devices: Fitbit • 4K TVs: Sony and Samsung • OTT Devices: Roku • Video Games: “Call of Duty” • Game Consoles: PS4 tops Xbox One Toys: • Guardians of the Galaxy Toys • My Little Pony • Transformer Toys • Legos • Teenage Mutant Ninja Turtles
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Top buzzed about gifts
Top children’s gifts
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ADOBE DIGITAL INDEX
International: Online Shopping Adobe Digital Index
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
ADOBE DIGITAL INDEX
Online sales and spend per person Online Spend on Largest Online Shopping Day (Millions)
United States China United Kingdom Japan Germany France Brazil Canada Australia Spain Italy Russia Netherlands Poland Switzerland Sweden Austria Belgium Finland Denmark Norway Ireland Hong Kong New Zealand Portugal Singapore Thailand
$3,000 $2,500 $2,000 $1,500 $1,000 $500 $-
Switzerland Finland United States United Kingdom Sweden Austria Denmark Ireland Norway Netherlands Australia Canada France Germany Belgium New Zealand Japan Singapore Hong Kong Spain Poland Italy Portugal China Brazil Russia Thailand
$12 $10 $8 $6 $4 $2 $0
Spend per Person on Largest Online Shopping Day
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
US Cyber Monday sales exceeded the largest shopping day in Japan, Germany, France and the UK combined • Mobile spending alone in the US will surpassed most other countries total online sales • China’s Singles Day (Bachelor’s Day), which appropriately falls on 11/11 every year, rivals Cyber Day as the largest online shopping day worldwide The Average U.S. consumer will spent $8 online on Cyber Monday • The Swedes, Swiss, and Fins spent $12+ per person. • The large economies of China, Brazil, and Russia all ranked near the bottom of the list in spend per person. 16
ADOBE DIGITAL INDEX
Growth by Country US, Austrian and Brazilian retailers brought in the largest share of annual online sales during the holiday period. Online sales growing fastest in Ireland China, Russia, Brazil, and Thailand. • All five countries saw holiday sales grow by more than 20% over last year. • Average growth was closer to 10% year-over-year. • Offline sales are growing at 2-4% in most countries.
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Holiday Season YoY Growth Ireland Russia Brazil Thailand China Poland Hong Kong Italy Switzerland Belgium United Kingdom Singapore Austria Canada Australia Germany United States Japan Sweden France Spain Finland Netherlands Denmark Portugal New Zealand Norway
Holiday Season Share of Annual Online Sales 34% 30% 29% 29% 28% 27%
18% 17% 16% 16% 16% 15% 15% 14% 13% 12% 12% 11% 11% 9% 9% 9% 8% 7% 4% 0% -4%
United States Austria Brazil Russia Norway Switzerland United Kingdom Italy Canada Sweden Denmark Belgium Germany Spain France Portugal Thailand Ireland Japan Finland Netherlands China Hong Kong Singapore New Zealand Australia Poland
28% 26% 25% 23% 23% 22% 21% 20% 20% 20% 20% 19% 19% 19% 19% 19% 18% 17% 17% 17% 17% 16% 16% 16% 16% 15% 13% 17
ADOBE DIGITAL INDEX
Mobile Share of Sales
But shoppers in Asia including Japan, Hong Kong, Thailand, and Malaysia are the most likely to pull our their phones rather than a tablet to shop online.
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
Phone
Tablet
25% 20% 15% 10% 5% 0% United Kingdom Ireland Japan Norway Australia Sweden Denmark Spain United States Singapore Netherlands Hong Kong Thailand Canada Italy Switzerland New Zealand Germany Finland France Austria Russia Malaysia Belgium Brazil China Poland
The most mobile friendly (phones and tablets) shoppers in the world can be found the countries of North-west Europe: UK, Ireland, Norway, Swedish and Denmark.
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ADOBE DIGITAL INDEX
Product Price Variation - International Comparison United States Germany United Kingdom
2014 average discount: online prices by day -10%
-15%
The biggest discounts of the season were found in the UK on Boxing Day, followed by the 11th of December in Germany and Thanksgiving for the US. In UK and Germany prices fall gradually throughout the holiday season and hit their lowest point in December.
-20%
-25%
Thanksgiving Dec 11th
-30% 1-Nov
8-Nov
15-Nov
ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap
22-Nov
29-Nov
6-Dec
Boxing Day
13-Dec
20-Dec
27-Dec
US prices are lower throughout November, but stay relatively high during December when many consumer expect lower prices due to inventory blow-outs. 19
