The Thanksgiving shopping landscape has undergone a significant transformation in recent years, marked by a substantial shift towards online shopping. This change was particularly evident during the Black Friday of 2023, where surprising statistics and trends defied conventional expectations. Today we explore the nuances of this shift, looking into consumer behavior, the impact of inflation, and the role of online shopping, concluding with an examination of how KIVO BPO can be a strategic partner.
Black Friday 2023: A Paradigm Shift
In a surprising turn of events, a YouGov Report in mid-November 2023 revealed that 52% of Americans planned to skip Black Friday. This significant deviation from traditional shopping patterns indicated a substantial change in consumer attitudes towards this once-thriving shopping day. Notably, only 10% expressed the intention to experience Black Friday for the first time, showcasing a decline in its allure.
Consumer Sentiments
Black Friday Abandoners
- Discount Perception: A mere 17% of Black Friday abandoners believed they could find genuine discounts, in stark contrast to 51% of returners.
- In-Store Discomfort: 54% of abandoners had previously visited a physical store on Black Friday and found it overcrowded and uncomfortable, as opposed to 36% of returners.
- Preference for Local Businesses: 69% of abandoners expressed a preference for shopping at local businesses, highlighting a shift towards supporting smaller, community-based establishments.
Black Friday Shoppers
- Luxury Spending: 45% of Black Friday shoppers were willing to pay more for luxury brands, indicating a segment of consumers not necessarily focused on budget constraints.
- Higher Spending: 28% of Black Friday shoppers reported a general spending of over $100 on a gift, compared to only 12% of those skipping Black Friday.
- Social Media Engagement: 35% of Black Friday shoppers used Instagram daily, demonstrating a correlation between active social media users and Black Friday participation.
Analyst Insights
Kenton Barello, VP at YouGov America, noted, “With many tuning out because of bad previous experiences or lack of trust in the deals being offered, Black Friday isn’t shaping up to be everything it was in the past.”
Post-Black Friday Scenario
Inflation’s Impact
Inflation emerged as a persistent challenge for retailers, fostering cautious consumer behavior. Weeks ahead of Black Friday, retailers, cognizant of this caution, began promoting holiday shopping deals earlier than usual.
Online Shopping Surges
Contrary to the in-store trends, online spending on Black Friday saw a remarkable increase. Consumers spent a record $9.8 billion online, a 7.5% surge from the previous year, according to Adobe Analytics.
TD Cowen Guidance Adjustment
Despite the record online spend, TD Cowen lowered its holiday season spend guidance, now expecting a growth of 2% to 3%, down from the initially forecasted 4% to 5%.
Mobile and Online Triumph
Mobile Overtakes Desktop
For the first time, mobile shopping is expected to overtake desktop buying this holiday season, constituting 51.2% of all online spend, as per Adobe Analytics.
Salesforce Data
Salesforce reported a surge in mobile buying, reaching an all-time high. Improved shopping experiences on mobile devices contributed to this trend.
Calendar Dynamics
The fiscal calendar, with 53 weeks instead of the usual 52, is anticipated to bolster revenues for retailers, providing an additional weekend for shoppers.
Discount Hunting Trends
Consumers displayed a strategic approach to discounts, engaging in what Rob Garf from Salesforce referred to as “discount chicken.” They waited patiently for the best and final deals.
Doorbuster Decline
The traditional frenzy of early morning doorbuster deals at physical stores seemed to wane. While strong traffic was observed, it was not the previously iconic “kick-the-doors-down” Black Friday experience.
Looking into this data, online shopping emerges as a key player. The convenience, accessibility, and evolving consumer preferences indicate a paradigm shift. KIVO BPO, with its expertise in business process outsourcing, can be a strategic ally for businesses aiming to navigate this digital transformation.
- Customer Support: KIVO BPO provides robust customer support services, crucial in the era of online shopping where seamless interactions enhance the customer experience.
- Data Analysis: In a data-driven landscape, KIVO BPO’s data analysis services can provide valuable insights into consumer behavior, aiding businesses in making informed decisions.
- E-commerce Support: As e-commerce gains prominence, KIVO BPO can offer support in managing online platforms, order processing, and inventory management.
- Cost Efficiency: Outsourcing non-core functions to KIVO BPO can lead to cost savings, enabling businesses to allocate resources more efficiently.
The Thanksgiving shopping landscape is experiencing a transformative shift, marked by a decline in traditional Black Friday in-store shopping and a surge in online spending. Consumers are displaying strategic shopping behaviors, and retailers need to adapt to this changing dynamic. In this scenario, KIVO BPO stands as a partner, ready to assist businesses in navigating the challenges and capitalizing on the opportunities presented by the rise of online shopping.
