No bonanza at year-end shopping festivals

Consumer spending during this month's major pre-Christmas shopping days is likely to be far below previous years, according to reports: globally, average spend on Black Friday will decline by 50%, while a third of Chinese consumers expect to spend less on Singles Day. 

The big picture isn’t rosy

The ongoing cost-of-living crisis, rising inflation and debt concerns are expected to limit spending around the world during this year’s big shopping events.

According to figures from Wunderman Thompson Commerce*, overall spending per person over Black Friday will fall from £168.18 in 2021 back to the 2020 average of £86.06. 

And in China, Bain & Company research suggests 34% will spend less on November 11, up from 9% last year. “A lack of confidence is very obvious,” Kelly Liu, head of China retailing at the consultancy, told the South China Morning Post. 

But there will be winners

Wunderman’s data indicate that over three-quarters (76%) of shoppers intend to increase their proportion of spend online. Large-scale marketplaces that offer good deals, range, speed and convenience are best placed to benefit; indeed, two-thirds (66%) of Black Friday shoppers are set to buy from Amazon.

Consumer habits are changing 

• Over a third (34%) of global shoppers now say they get inspiration from marketplaces, ahead of search engines (31%). 
• 30% of consumers want special deals on social, while 31% rely on social platforms to find Black Friday deals. 
• Globally, two-thirds of consumers (65%) claim to have purchased on social channels previously and 53% intend to buy more in the future.
  
• Dominant platforms Facebook (33%) and Instagram (24%) are most likely to be used by Black Friday shoppers for inspiration, search and purchase. 
  
• Over a quarter (26%) of shoppers say they are actively choosing brands and retailers to buy from during Black Friday with a strong sustainable focus. 
  
• In China, JD.com reports that consumers are becoming “more rational”. They’re also using multiple platforms, prompting the big players to launch new loyalty drives. 

And they are cynical 

Over half (56%) of consumers believe that Black Friday deals are misleading and a further 47% say they were left disappointed with the offers available during last year’s peak shopping period. 

Key quote

“[Brands, retailers and marketplaces] all now have many more channels at their disposal and must take a wise approach to meet shoppers’ demands. Fusing together deals and discounts across different platforms can offer a foundation to reach millions and on a global scale” – Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce.

*responses from 31,040 online shoppers across 18 markets (UK, US, France, China, Japan, Australia, Argentina, Colombia, Spain, Brazil, Mexico, India, Germany, South Africa, UAE, Netherlands, Thailand and Indonesia).

Sourced from Wunderman Thompson Commerce