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Brightstar Black Friday Trend Report 2013


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Overview of 2013 Black Friday/Cyber Monday activities as it relates to the wireless industry.

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Brightstar Black Friday Trend Report 2013

  2. 2. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS CON TE NTS Results at Retail: Traffic and Spend Overall Electronics Online Shopping — Black Friday / Cyber Monday Black Friday Handset Promotions What the Winners Did Predictions for Remainder of 2013 and Beyond NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S
  3. 3. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS Results at Retail: Traffic and Spend 141 million unique shoppers found their way into retail stores during the 2013 Thanksgiving/Black Friday shopping weekend. That number was relatively flat to 2012’s number of 139 million. Shopper Traffic 3% While overall shopper traffic was only up 3%, record numbers of customers found their way to stores on Thanksgiving Day resulting in a 27% increase in traffic over Thanksgiving Day 2012; unfortunately traffic on Black Friday appears to have suffered as the day was down 13.2% in relation to 2012. (NRF Survey) 3.8% Spend per shopper Average spending per shopper for the weekend remained relatively steady at $ 407 compared to the $ 423 spent in 2012. Overall spending reached $57.4 billion, down 2.9% from 2012. (NRF Survey) NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S
  4. 4. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS Overall Electronics Electronics continue to drive Black Friday weekend sales with over 1,500 promotions dedicated to the category during the weekend. (CEA) TVS – 400 PROMOTIONS HEADPHONES – 330 PROMOTIONS UP FROM 200 PROMOTIONS LAST YEAR TABLETS – NEARLY 300 PROMOTIONS MOBILE PHONES – 250 PROMOTIONS LAPTOP COMPUTERS – 150 PROMOTIONS MP3 PLAYERS – 125 PROMOTIONS Tablets accounted for 39% of all electronics purchased during Black Friday, making it #1 in the electronics category. TV sales, on the other hand, dropped in comparison to previous Black Fridays. Over 39% of the electronics purchased were tablets during this year’s Black Friday shopping period. Currently, it is projected that 1 in every 2 American households will have a tablet by the end of 2013. Tech Crunch reports that over 1.4 million tablets were sold by a top retailer during their sale, which began Thanksgiving morning. NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S
  5. 5. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS THE TOP SITES DURING BLACK FRIDAY WEEKEND: 1 Online Shopping — Black Friday/ Cyber Monday Black Friday Sales It was the first online billion dollar day of the year as online retail sites brought in $1.20 billion in sales (up 15% from 2012). Average spend online Black Friday was $135.27 per transaction versus the Cyber Monday number of $128.77 per transaction. (Comscore, Inc) 2 Cyber Monday Sales Black Friday sales numbers were eclipsed by Cyber Monday, bringing in $2.29 billion in sales up 16% LY (Adobe Digital Index). Cyber Monday 2013 and the four days preceding it are now the largest online shopping sales period in history. 3 4 Online Shoppers Over 23% of Black Friday and 17% of Cyber Monday online shoppers placed their orders from mobile phones (up 43% and 55% respectively from 2012), reinforcing the growing importance of mobile phones as a valid shopping platform. (IBM) 5 Almost 25% of online traffic was generated via a smartphone. While online shopping continues to grow, the percentage of total online purchases dedicated to Consumer Electronics (CE) continues to be relatively small as CE represented only 7% of all Black Friday online purchases. (Comscore, Inc) (Adobe Digital Index) NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S
  6. 6. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS Black Friday Handset Promotions The year’s four hottest devices (Galaxy S3 & S4 and iPhone 5c & 5s) were featured consistently among top national retailers’ Black Friday promotions. Many leveraged gift cards as a means of supplementing price to drive in-store and online handset sales. NOTE: Promotions for Samsung and iPhone were carrier agnostic this year. Samsung - ADVERTISING: Many retailers featured the S4 prominently in Ad during Black Friday – The S4 was the only phone with Ad coverage across ALL top national retailers. - PROMOTIONS: Four of the S4 promotions netted to Free after gift card; only 1 offer was Free without gift card. - PRODUCT: Only two of the key retailers chose to promote the S3 in Ad. Apple - ADVERTISING: All of the top national retailers featured either an iPhone 5c or 5s this year - PRICING: iPhone 5c pricing before gift card was consistent among the 3 who advertised it: $45-$49. Only 1 national retailer priced the 5c at $0 with 2-year activation. - PROMOTIONS: No iPhone 5s prices found their way under $100 even after gift card promotions — and these were priced $179-$199 before gift cards. NATIONAL RETAIL Gift Cards Gift Cards were aggressively used in netting phones to free during this holiday season, driving incremental and theoretically more margin-rich sales through gift card redemption (store-specific cards). While most gift card promotions utilized store specific cards, general cards (Visa, MasterCard, etc.) also found their way into Black Friday promotions. (Brightstar) Phone Trade In Several retailers promoted their phone Buy Back/Trade In, offering customers up to $300 for their used phones. Insight Customer feedback on actual values offered at store will be interesting as we continue to evaluate this holiday season. Well-received programs could lead to the remainder of the electronics market integrating Buy Back/Trade In promotions next year. TREND REPORT BRIGHTSTAR A N A LY T I C S
  7. 7. 2013 BLACK FRIDAY WEEKEND CATEGORY REVIEW: MOBILE / ELECTRONICS What the Winners Did Made Handset Price the Primary Factor Samsung product at free was a key win during the period, either netting to free after gift card or just plain free. Got Customers to End Dinner Early In an effort to jumpstart the brick & mortar holiday shopping season, many retailers opened their doors early on Thanksgiving Day. This was just one strategy to lengthen the calendar-shortened holiday shopping season. Advertised Samsung and Apple If there was any question before, it has now been answered — the US handset market is owned by Samsung and Apple. Both were big winners during the Black Friday weekend. NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S
  8. 8. 2013 BLACK FRIDAY WEEKEND Predictions for Remainder of 2013 and Beyond 2013 - Panic Sales For the balance of 2013, we can expect to see “Panic Sales” coming on products that didn’t meet their Black Friday sales projections as well as whole store sales for chains that have fallen off their anticipated sales pace during the first week of holiday shopping. From a handset perspective, expect to see retailers aggressively advertise slow moving devices in a bid to clear back rooms and shelves as early as possible. Also look to see Black Friday-type promotions continue on GS4 & GS3 product from retailers that were not as successful as they had hoped during the weekend. (Brightstar) CATEGORY REVIEW: MOBILE / ELECTRONICS 2014 Holiday Flat Disposable Income and Job Growth Projections for disposable Income and Job Growth in 2014 are not positive. These will continue to lead toward consumer confidence issues as we move into the midterm election year. These factors will likely lead to reduced or stagnant overall spending during the 2014 Holiday season. (Brightstar) Mission Shopping Becoming More Prevalent Mission shopping is when a customer shops a retailer for a specific item based on price, and for that item only. Consumers will spend but not on peripheral items. This will impact margin rates as loss leaders will not be buoyed by add on peripheral and accessory sales. (Brightstar) Shopping and Promotions Will Begin Earlier Look for retail doors to open earlier on Thanksgiving Day. Those sales will continue to eat into the volume historically associated with Black Friday. The same holds true for promotions with several retailers offering up matching Black Friday deals on Tuesday and Wednesday before Thanksgiving. (Brightstar) Online Sales Will Continue to Grow ComScore has projected that 2014 Thanksgiving Day sales will be $1 billion. Black Friday and Cyber Week sales will continue to grow, eating into brick & mortar sales as online mission shopping becomes easier and more affordable with free shipping. Tablet Ads Will Increase While Tablet Sales Will Level Out Tablets are projected to have a 55-60% or greater household penetration by Holiday 2014. The CEA estimates market saturation for consumer electronics at 65-70%. NATIONAL RETAIL TREND REPORT BRIGHTSTAR A N A LY T I C S