December 2, 2015
Shopping mania continues this year as well around Black Friday and Cyber Monday in stores. This year, Black Friday sales maintained steady growth with online and mobile payments channels being the top priority of the shoppers.
According to the National Retail Federation, more than 151 people shopped online and/or offline this weekend with over 103 million shopping online this thanksgiving weekend. In the UK, it is estimated that British shoppers spend around £1.1 billion during Black Friday—a 36% increase from last year.
App Annie Store Stats examined the retail apps used in the UK & the US on Black Friday and ranked them accordingly. According to the stats, the US saw three consistent winners on both iPhone and Google Play: Amazon, Wish—a mobile-first shopping app from ContextLogic, and Walmart, all held within the top 50 overall downloads. Cartwheel by Target and Kohl’s also ranked well on Black Friday.
In the UK also, the top three were the same as the US with Amazon and Wish taking the top two spots. Bricks & Clicks apparel retailer JD Sports claimed the number three rank on iPhone while Geek, another mobile-first shopping app from ContextLogic, took that spot on Google Play. ASOS and Argos were also strong on iPhone during Black Friday.
According to the stats by App Annie, in the US, Amazon had a short dip in overall iPhone downloads at the start of the month but quickly ramped up in the two weeks before Black Friday, peaking on Thanksgiving Day.
According to InfoScout, a provider of real-time shopper insights, Apple Pay usage was at its lowest rate since they started tracking it, being used for only 2.7% of Apple Pay-eligible transactions. This is a fairly marked decrease from what we saw last year on Black Friday when iPhone six owners used Apple Pay for 4.9% of eligible transactions at participating merchants. Of course, back then, the primary owners of Apple Pay-enabled devices were early and technologically curious adopters, whereas now the technology is in the hands of the broader population.
According to InfoScout, this year, 79% of iPhone users and 74% of Android users paid with their credit and debit cards on 2015’s Thanksgiving.
Apart from Black Friday, Cyber Monday also got attention and was one of the busiest days for retailers. According to Adobe, by 10:00 AM ET, consumers had already spent close to $500 million, and the day saw a 14% increase over last year. Mobile users continue to rise, with 53% of all shopping visits coming from mobile devices, accounting for 32% of the total sales. Out of the 32% in total sales, 20% were from phones, while the other 12% came from tablets.
Adobe’s estimates come from its data tracking of over 4,500 US retailers’ websites, which include 80% of all online transactions from the top 100 US retailers.
Target, the mega-retailer offered 15% off every online order on Monday, along with 30% off select clothing, shoes and toys. Target also featured discounts on a large host of household items on Cyber Monday. The company’s website received twice as much traffic than its previous busiest day. To manage the traffic, Target had to set up a queue, allowing a set number of people to shop while others wait to access the site.
Reason for growth in Online Shopping:
The ownership of the overall consumer buying experience by retailers/merchants is the primary driving factor for their early success, with the mobile/online channel. Centralized mobile commerce platforms delivering a holistic solution, whereby combining mobile based product information/discoverability, payment and loyalty services, seems to be the recipe of success.
The value of commerce transactions conducted in the US via mobile handsets/tablets will exceed US $120 billion by 2017 with 150 million users according to a recent report by LTP on Mobile Commerce. Primary drivers for mobile commerce growth are growing smartphone penetration, growing tablet ownership, increase in mobile internet penetration, consumer adoption and better apps and browser-based solutions. Mobile commerce is moving ahead with a more centralized approach in terms of technology, user experience, etc.