Singles' Day 11.11

Cyber Monday

Black Friday

Event Report - 2019

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Singles' Day 11.11

Cyber Monday

Black Friday

Online Shopping Events 2019

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$38.4 Billion

Increase of 24.7%

$7.4 Billion

Increase of 18.9%

$9.4 Billion

Increase of 19.7%

Source: Adobe Analytics

The Brick-and-mortar retail sales fell by 6.2% compared to last year.

Source: https://www.sana-commerce.com/blog/prepare-black-friday-cyber-monday/Adobe Analytics

$1.93$2.40

$2.74

$3.34

$5.03

$6.22

$7.40

0

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2

3

4

5

6

7

8

2013 2014 2015 2016 2017 2018 2019

Black Friday - Online Sales ($bn)

Black Friday – biggest year of online sales

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Online shopping pulled in a record $7.4 Billion,

that's a 18.9% growth over last year. The

online shoppers average spend was

$168 per order - up nearly 6% YoY.

$2.9 Billion spent using

smartphones, up by 21 percent

39% of all e-commerce sales were

made on a smartphone

Black Friday purchase trend

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40.5%

20.2% 20.4% 18.9%

38.2%

25.6%

18.6% 17.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Did not purchase In-store only Online only Online and in-store

2019 2018

Source: https://www.pymnts.com/news/payment-methods/2019/new-data-millennials-drove-2019s-black-friday-spend/

2,000 millennials purchase trend Black Friday

In Store Online

2019 2018 2019 2018

Clothing/Apparel 57.3% 57.8% 56.0% 49.7%

Electronics and appliances 44.6% 48.3% 51.6% 47.4%

Grocery items 31.3% 27.8% 15.3% 11.5%

Books, music and sporting goods 24.3% 23.6% 22.9% 20.8%

Health and personal care products 21.9% 20.1% 21.8% 21.0%

Home furnishings 23.9% 20.0% 16.2% 19.8%

Gasoline 12.4% 6.5% - -

Building materials, tools and hardware 8.5% 9.2% 5.4% 5.5%

Auto parts 4.8% 4.0% 2.8% 2.8%

Automobiles 3.7% 4.2% 2.5% 3.2%

Others 14.1% 10.3% 13.1% 13.0%

In-store technology integrationAccording to Coresight Research, the following technologies were used in-store during Black Friday event:• Omnichannel integration—transparent inventory across chain and online• In-store technology, including virtual try-on and size finder• Digital payment options—for example, ApplePay, WeChat Pay, Alipay,

Samsung Pay and Venmo• Checkout process – Cashless/Self check-out

Black Friday deals 2019

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• Amazon: New Black Friday deals every hour• Walmart: Best deals you can get now• Best Buy: Shop Black Friday now• Dell: Save up to 40% on XPS, monitors, desktops• Newegg: Sales on components, graphics cards, SSDs• Mixbook: 45% off sitewide via "BF19"• Lenovo: Up to 56% off ThinkPads• HP: Up to 63% off Envy, Spectre, and more laptops• Alienware: Up to $550 off Alienware gaming desktops and laptops• B&H Photo: Up to $500 off Canon, Nikon, and more• Adidas: Up to 50% off select apparel• Chewy: Up to 60% off pet food and toys; BOGO select items • Xfinity: $150 Prepaid Visa card with Internet + TV bundles• Verizon: Free phone and 50% off activation fee when purchased

online• Microsoft: $500 off Surface Book 2• Purple: Up to $400 off Purple mattresses• Lowe's: Up to 60% off DeWalt, Dyson, Honewell, GE, more

• Amazon.com: Black Friday countdown• Walmart.com: The early Black Friday sales• BestBuy.com: Today's daily deals• Target.com: Sneak Peek deals• Adidas.com: Sales on trainingwear• Belk.com: Daily doorbusters - 75% off• Dell: Sales incoming on Black Friday• Disney Plus: Get a free 7-day free trial here• Ebay.com: A strong focus on TVs and consoles• Google Store: Large sums off Pixel phones• HomeDepot.com: Daily deal Black Friday savings• JCPenney.com: Pre-Black Friday deals• Kohls.com: Coupons aplenty in big sale• LoveHoney.com: Up to 50% off a wide range of items• Lowes.com: Deals on tools and smart home• Macy's.com: Preview specials with 60% off womenswear• Mixbook: See the new Black Fri-yay deals• NewEgg.com: Black Friday deals• Nike.com: Big savings on apparel• Sears.com: Hefty savings on TVs• Stage.com: Up to 60% off a range of apparel

Black Friday deals as on 11/28/2019Black Friday deals as on 11/28/2019 Black Friday deals as on 11/29/2019Black Friday deals as on 11/29/2019

An average of 50% discount

Winners & Losers of Black Friday 2019

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Winners Losers

1. Target, Nordstrom and Walmart were stand-out performers this Black Friday with both retailers reaching strong traffic store-wide, according to most Wall Street retail analysts.

2. Lululemon, who’s stock is up 70% since last year, was another strong performer this holiday.

3. The online giants, Amazon and Shopify did well.

4. The top-selling items online were toys and products affiliated with the movie “Frozen 2,” Lil Outrageous Littles Surprise dolls and toys, Amazon Fire TV products and Apple laptops.

1. Wells Fargo said some of the laggards of Black Friday were cosmetics store Ulta and clothing company Gap. Victoria’s Secret was not a top traffic driver.

2. Kohl’s, Macy’s and J C Penney saw weak online sales

Source: https://www.cnbc.com/2019/12/02/target-and-walmart-top-the-list-of-wall-street-analysts-black-friday-winners.html; https://fortune.com/2019/11/27/black-friday-thanksgiving-shopping-retailers/

Cyber Monday 2019

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Source: https://www.sana-commerce.com/blog/prepare-black-friday-cyber-monday/

The top sellers among toys were – Frozen 2 Toys, LOL Surprise, Nerf Products, Madden 20

The top sellers among electronics were – Samsung TVs, Fire TV, Airpods, Air Fryers

Amazon has reported the biggest ever order received - more than 25 Million items ordered for toys during Black Friday and Cyber Monday combined

Cyber Monday tops the chart at $9.4 Billion, an

increase of 19.7% over 2018

30% sales achieved during final 4 hours

$2.29$2.65

$2.98$3.39

$6.59

$7.90

$9.40

0

1

2

3

4

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2013 2014 2015 2016 2017 2018 2019

Cyber Monday - Online Sales ($bn)

Source: Adobe Analytics

Online sales via smartphones accounted for 33% of sales at $3.0 Billion

Deals of Cyber Monday 2019

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• Amazon: New holiday deals every hour• Walmart: Best deals you can get now• Best Buy: Shop holiday deals now• Dell: Save up to 40% on XPS, monitors, desktops• Newegg: Sales on components, graphics cards, SSDs• Mixbook: 45% off sitewide via "BF19"• Lenovo: Up to 56% off ThinkPads• HP: Up to 63% off Envy, Spectre, and more laptops• Alienware: Up to $550 off Alienware gaming desktops and laptops• B&H Photo: Up to $500 off Canon, Nikon, and more• Adidas: Up to 50% off select apparel• Chewy: Up to 60% off pet food and toys; BOGO select items • Xfinity: $150 Prepaid Visa card with Internet + TV bundles• Verizon: Free phone and 50% off activation fee when purchased online• Microsoft: $500 off Surface Book 2• Purple: Up to $400 off Purple mattresses

Cyber Monday deals: 12/02/2019Cyber Monday deals: 12/02/2019

Cyber Monday had the best deals for Television

with average savings above 19%. The day

before Cyber Monday (1st

Dec) saw the biggest discounts on Toys (20%) and Computers (18%)

Winners & Losers of Cyber Monday 2019

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Winners Losers

1. E-commerce – Target and Walmart

2. Investors - Amazon

3. Products – Samsung T.V., Fire T.V, Air Fryers, Apple Laptops, Airpods, Lil Outrageous Littles Surprise dolls, Madden 20, Nintendo Switch, Jedi Fallen Order, NERF products and Frozen 2 Toys

1. Kohl’s

Source: https://www.bloomberg.com/news/videos/2019-12-02/the-winners-and-losers-of-cyber-monday-video

Influence of Social media on Black Friday/Cyber Monday

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of people become more interested in a brand or product after seeing it in Stories

of people become more interested in a brand or product after seeing it in Stories

of people find Stories in Facebook and Instagram to be a great way to discover and become familiar with new products or services

of people find Stories in Facebook and Instagram to be a great way to discover and become familiar with new products or services

69%69%

62%62%

24.4%

21.2%18.8%

16.8%

2.6%

Paid Search Direct Traffic Natural Search Email Account Social Media

Influencers for Cyber Monday 2019

up 5.2% on last year

Down 0.6%

Up 8.9%

Up 17.5% over 2018

Down 5.9%

Source https://theblog.adobe.com/adobe-data-shows-record-cyber-monday-with-9-2-billion-in-online-sales/:

More than 30% of millennials and parents were influenced to buy through influencer videos

Top U.S. Newspaper Headlines speaking on the events

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Black Friday LosesIts Appeal forSome Shoppers Black Friday bargain

shopper pro tips: Make aplan, check it twice, shopearly and often.

Black Fridayshopping tipsretailers don'twant you toknow.

Black Fridayshoppingsecrets—revealed.

5 Black Fridayshoppingstrategies thatactually work.

Top China Newspaper Headlines speaking on the events

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U.S.-based tech giant Amazon.com Inc has kicked off itsbiggest-ever Black Friday promotion by offering morethan 100,000 quality products, which cover thousands ofinternational brands from Amazon's four overseas sitesin the United States, the United Kingdom, Japan andGermany.

Black Friday bonanza on the horizon

Trade war castsshadow onBlack Fridaybusiness

Black Friday, which fell onNovember 29 this year,remains the busiestshopping day for U.S.retailers. But while saleswere up, there may be amixed feeling, as thetariffs the U.S. imposedon China have slashedtheir profits, and the long-discussed phase one dealposes more uncertaintieson future sales.

Modes of promotion – Cyber Week

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Website Offers

Website Offers

Email & MessageEmail & Message

Social MediaSocial Media

Brochures and NewslettersBrochures and Newsletters

Promoting “Red Card” exclusive card to get early access during Black Friday salePromoting “Red Card” exclusive card to get early access during Black Friday sale

Cut-off time for delivery of products to customers

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Free for Standard Shipping (Average of 6-9 Business Days)

Free for Standard Shipping (Average of 6-9 Business Days)

2-3 Business Day Charges2-3 Business Day Charges

One day delivery chargesOne day delivery charges

Based on product range and location

Based on product range and location

Free for 2 Day delivery

Free for 2 Day delivery

$10.95 – 2 days$5.95 – 3 Days$10.95 – 2 days$5.95 – 3 Days

$18 – 2 days$11 – 3 Days$18 – 2 days$11 – 3 Days

Free for 2 Day delivery

Free for 2 Day delivery

One Day ShippingOne Day Shipping

Free on minimum

purchase of $35

Free on minimum

purchase of $35

Charges vary based on location

Charges vary based on location

$16.95$16.95$18 – 2 days

$24 – Saturday Delivery

$18 – 2 days$24 – Saturday

Delivery

For order above $35 flat $9.99 for same

day delivery and free for red card holders

For order above $35 flat $9.99 for same

day delivery and free for red card holders

What happened in 2019 Black Friday and Cyber Monday

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• Selling on or through Facebook & Instagram

• Influencer Marketing & Social Media Engagement

• Content and commerce integration and strategies

• Email marketing, specifically prior to Thanksgiving

• Selling on Amazon

• Site UX & Checkout Optimization

• Inventory Preparation

• Selling on or through Facebook & Instagram

• Influencer Marketing & Social Media Engagement

• Content and commerce integration and strategies

• Email marketing, specifically prior to Thanksgiving

• Selling on Amazon

• Site UX & Checkout Optimization

• Inventory Preparation

Hashtag posts shared by genderHashtag posts shared by gender Most Successful Cyber Week TacticsMost Successful Cyber Week Tactics Event’s Top HashtagsEvent’s Top Hashtags

Hashtags Posts

#blackfriday 9,097,243

#cybermonday 1,548,718

75%

25%

Black Friday

64%

36%

Cyber Monday

Male Female

Emails

#blackfriday 719,432,056

#cybermonday 654,842,073

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Some extra words on

CHINA

Chinese Singles’ Day 2019

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• China Merchants Bank said its credit card transactions on Nov. 11 hit a record 27.2 Billion yuan, while Industrial and Commercial Bank of China (ICBC) said it processed at least 20 Billion yuan on the same day

• Some of the top-selling products early in the day included the 5G version of Huawei’s Mate 30 Pro smartphone, as well as Apple’s iPhone 11 Pro and Pro Max

• As per Alibaba reports, the below 15 brand crossed $143 million(1 Billion yuan) in sales.

Source: https://www.cnbc.com/2019/11/15/singles-day-sales-hit-record-high-as-chinese-buyers-rack-up-credit-card-bills.html

Alibaba’s Singles' Day recorded

$38.4 Billion of sales

24.7%

200,000 brandsfrom 78 countries

90% of sales happened

via smartphone$12 Billion in

1st Hour sale of the day

Technology won the events

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Source: https://www.cnbc.com/2018/12/04/how-chinas-singles-day-became-the-worlds-biggest-shopping-holiday.html

Core technologies used by Alibaba during this year’s Singles’ Day:

Singles’ Day sales helped by tech such as

facial recognition

Alibaba’s X-Dragon servers helped improve cost efficiency by 20 percent

Alibaba’s Cloud database called POLARDB supported sales activity with a peak of 87 million requests processed per second

Alibaba's customer-service chatbot AliMeShop Assistant, handled 97% of online customer inquiries on the firm's e-commerce platforms Taobao and Tmall

Alibaba DAMO Academy provides enhanced machine translation technology for the cross-border e-commerce platform AliExpress

Taobao’s new, real-time communications framework Alibaba Blink, managed to reduce network latency from 5 to 7 seconds to 1.5 seconds while improving the real-time interaction experience

Over 1 million orders were placed and processed through voice command usingAlibaba AI Labs', Tmall Genie.

BUT - Site glitches and down-time plagued retailers during cyber week in America

Singles' day promotional strategies

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How did Alibaba’s Singles’ Day become so big?It all comes down to strategic planning, marketing, and sales promotion. Here’s a breakdown of Alibaba’s brand experience for Singles’ Day:• Interactive and engaging shopping experience• Consistent multichannel selling and omnichannel marketing• Virtual reality experiences for customers—from interactive games to lucky draws• High quality and affordability• Mobile-first and in-app coupons (over 90% of purchases last year were done via smartphone or tablet)• Customer loyalty program with the chance to earn rewards, credits, and free gifts

“Live-streaming” creates a real-life shopping experience scenario that draws consumers even closer to a product. Live-streaming, just like every other content marketing tool, is a catalyst to help consumers make shopping decisions.The rise of livestreaming has also been a boon for overseas brands, who have found it easier to break into the Chinese marketby partnering with a native influencer

Global view on Singles’ day, Black Friday and Cyber Monday

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Source: https://www.cnbc.com/2018/12/04/how-chinas-singles-day-became-the-worlds-biggest-shopping-holiday.html

According to retail analyst Tiffany Lung of Hong Kong-based research and tech firm Tofugear,

“America runs on such a price-driven concept in retail, which is what ultimately upholds the whole concept of Black Friday sales”

In contrast, “China celebrates Singles' Day with a fun and social experience through games and entertainment”

China’s permissive data regulation environment allows tech giants like Alibaba and Tencent to be with the customer throughoutthe retail process, including social media, payment and other financial services.

Singles' Day festival will eventually go global at a mass scale, as Black Friday ties in with America’s Thanksgiving traditions and cannibalizes retailers’ holiday sales.

Adobe’s Klein says, “Singles' Day is a phenomenon around a one-day event, whereas Cyber Monday is one day during an event that spans two months”

U.S. and the China Market

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Source: https://www.nextbigfuture.com/2019/01/china-will-have-larger-retail-market-than-the-usa-in-2019.html

In recent years, consumers in China have experienced rising incomes, catapulting millions into the new middle class. The result has been marked rise in purchasing power and average spending per person.

E-commerce is a major driver of China’s retail economy, with sales growing more than 30% in 2019 to reach nearly $2.0 trillion. 35.3% of China’s retail sales occur online which by far the highest rate in the world. The U.S. lags far behind, with e-commerce on track to represent 10.9% of its retail sales.

China will have 55.8% of all online retail sales globally, with that figure expected to exceed 63% by 2022. The U.S.’s share of the global e-commerce market is expected to drop to 15% by 2022.

China’s overall GDP was $13.7 trillion at the end of 2018 and should be about $14.7 trillion in 2019. U.S. GDP was $21 trillion in 2018 and could be $21.7 trillion in 2019.

Chinese consumers shopping habits

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• PWC’s latest Global Consumer Insights Survey 2018 (GCIS) found that in terms of shopping habits, 50% of Chinese consumers (compared to the global average of 22%) buy products online weekly

• Chinese consumers are also the leaders in mobile payments as 86% of them have used mobile payments to make purchases (compared to the global average of 24%)

• 44% of Chinese consumers would consider a drone as a delivery method for a low value product vs. 22% globally

• 67% of Chinese consumers expect retailers to have up-to-date information of them and personalise their experiences accordingly, compared to 42% globally.

• Chinese Consumers Are Price Sensitive, but Brand Conscious – Harvard Business Review

Source: https://www.pwccn.com/en/retail-and-consumer/publications/global-consumer-insights-survey-2018-china-report.pdf

Source: Goldman Sachs, Euromonitor and PwC analysis

What happened in 2019 Singles' Day 11/11

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• Japan

• United States

• Korea

• Australia

• Germany

The retail giant Alibaba said that dozens of brands, including Apple, L’Oreal and Dyson, had received more than 100 million yuan, or $14 million, in pre-orders.

• Japan

• United States

• Korea

• Australia

• Germany

The retail giant Alibaba said that dozens of brands, including Apple, L’Oreal and Dyson, had received more than 100 million yuan, or $14 million, in pre-orders.

Top 10 countries selling to Chinese consumersTop 10 countries selling to Chinese consumers

• The top-selling brands were Apple and Nike

• JD.com’s transaction growth

• Global brand participation and product offerings

• Innovative consumer shopping experiences, including livestreaming

• Consumption in lower-tier cities

• A focus on sustainability

• Estée Lauder was the first brand to sell more than 1 billion Yuan on the platform

• The top-selling brands were Apple and Nike

• JD.com’s transaction growth

• Global brand participation and product offerings

• Innovative consumer shopping experiences, including livestreaming

• Consumption in lower-tier cities

• A focus on sustainability

• Estée Lauder was the first brand to sell more than 1 billion Yuan on the platform

$12 Billion in 1st Hour sale of the day$12 Billion in 1st Hour sale of the day

Highlights of 2019 SaleHighlights of 2019 Sale Golden Hours of RetailGolden Hours of Retail