Tag Archives: ecommerce

New Shopping Records: Black Friday and Cyber Monday

If you are reading this, congratulations. It means you survived the busiest shopping days of the season: Black Friday and Cyber Monday. And, busy is an understatement. Shoppers took to the stores and online in masses, scoping up deals and getting started on holiday shopping for loved ones (and their selves).

The numbers are nearly as staggering. According to Adobe Analytics:

  • Shopping dollars from Nov. 1 – 26 totaled $58.52 billion
  • Black Friday accounted for a record-making $7.9 billion, including $6.22 billion spent online
  • Top products included Fingerlings, L.O.L. Surprise, Nintendo Switch, Laptops from Dell & Apple, LG TVs, drones, and Amazon Echo
  • Sales traffic vs. revenue by device type:
    • Desktop: 42% traffic for 61% of purchases
    • Smartphones: 49% of traffic for 30% of purchases
    • Tablets: 8% of traffic for 9% of purchases
  • Buy Online, Pickup In-Store (BOPIS) increased 50% from last year
  • Cyber Monday sales reached $7.9 billion, the largest single shopping day in the U.S.
  • Sales from smartphones also hit an all-time high of $2 billion

What did you buy?

Group Activities and Discussion Questions:

  1. Poll students about shopping over the Thanksgiving weekend.
  2. What did they buy? How much did they spend? Gifts or personal purchases?
  3. Did students shop in stores, online, or both?
  4. Purchase volumes by type?
  5. Review the data and charts from Adobe site: http://exploreadobe.com/retail-shopping-insights/
  6. Additional information CNBC Article and video: https://www.cnbc.com/2018/11/24/black-friday-pulled-in-a-record-6point22-billion-in-online-sales-adobe.html
  7. Other video: https://youtu.be/DDhk6O5TSN0
  8. Given the results from holiday shopping, what are three things that retailers must do to continue to meet customer needs?

Source: Adobe Analytics, CNBC, New York Times, Wall Street Journal, other news sources

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Singles Day 2018 – “11/11 Global Shopping Festival” Hits $30 Billion

Once again the world’s biggest shopping event has occurred. And, no, it’s not Black Friday and Cyber Monday. By far, the biggest shopping day of the year is on November 11, Singles Day, in China. The holiday originally began in 1993 by college students as a celebration for people who are single, chosen because of the connection between singles and the number ‘1’. November 11 now serves as an occasion for single people to party – and shop!

This year, sales (stated as Gross Merchandise Value – GMV) hit $1 billion in only 1 minute and 25 seconds! At the end of the first hour, the sales reached $10 billion! By the end of 24 hours, the sales were an astounding $30.8 billion!

There were more than 100 million items sold in 17 countries, with 180,000 brands participating. More than one billion packages are estimated to be shipping. Even more impressive is that a whopping 90% of sales were completed from mobile devices. Wow.

Singles’ Day is by far the largest shopping and entertainment festival in the world. Compare it to Amazon’s Prime Day at $4 billion, and Black Friday at $14 billion online to see the difference.

Singles’ Day has become an event on its own, including celebrities, fashion shows, TV galas, virtual reality, and augmented reality shopping. It started with a November 10 evening event with a live-streamed, star-studded gala show that drew in 240 million viewers (that’s the equivalent of one in five people in China). There was also interactive entertainment and sport via Alibaba’s app to increase audience and shopper participation.

Why is it so important for global brands to enter this shopping day? Consider that there are roughly 300 million middle-class shoppers in China, rising to an estimated 500 million in the next 10-15 years. While Singles Day may have originally started for lonely Chinese consumers, the shopping day now is seen as critical to driving China’s – and the world – economy.

If you are not familiar with Singles Day, there are many sources with information about the event and Alibaba, including the following:

Group Activities and Discussion Questions:

  1. Most students will not have previously heard of China’s Single Day. Discuss the shopping holiday and its importance in China.
  2. This is likely the first time students have heard about Singles Day. There are a number of videos that can help explain the event:
    1. What is 11/11?  https://youtu.be/bRv9qG75x2c
    2. Evolution of Singles Day: https://www.alizila.com/video/the-evolution-of-11-11/
    3. Highlights of 2018 event: https://youtu.be/W9JNfS0dAL0
  1. Discuss how this holiday compares to Black Friday and Cyber Monday in the U.S.
  2. How should U.S.-based companies participate in Singles Day?

Source: Wall Street Journal, New York Times, Forbes, CNBC, The Verge, other news sources

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Amazon Expands in India Using Hindi Language

Amazon recently hit the one trillion dollar mark in valuation – quite an accomplishment and it puts the company in rarified air. The path to the valuation has not been easy, or fast. Expansion into different services and countries were essential.

Amazon now operates in more than a dozen different countries, including India. India presents a very specific challenge to all of the companies that are operating within its borders; roughly only 10 percent of the country’s 1.3 billion citizens understand English. In effect, this limits the access to online shopping to a majority of the Indian people.

Amazon aims to fix this situation in India. It recently stated that it will make mobile websites and apps available in Hindi – India’s most popular language. Similar to how U.S. citizens can select Spanish as their language of choice, users of the India app will be able to choose Hindi as their preferred language. Although Amazon is the second largest player in India’s multi-billion dollar e-commerce market, the English language is not sufficient to reach the country’s customers.

The task is a difficult one. Using a translation algorithm was insufficient and a far cry from the language and cultural translations that are needed to gain customers’ trust. Only 40% of Indian customers use ecommerce, and of those, roughly one-third only make a single purchase. Amazon also has 14,000 retail locations across India as part of its Amazon Easy program; this allows a local shopkeeper to help customers place orders, receive packages, and deliver them.

The push to Indian languages will be key to gaining new Internet users over the next few years. Research studies forecast that by 2021, 536 million Indians will use their native languages to access the Internet.

Group Activities and Discussion Questions:

  1. Ask students about their experiences at Amazon. What works, doesn’t work?
  2. Poll students: What are some of the challenges and barriers Amazon faces as it expands into India?
  3. View Amazon’s India site: https://www.amazon.in
  4. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats.
  5. Divide students into teams. Have each team develop a SWOT for Amazon in India.
  6. What are the issues and risks?

Source:  New York Times, CNN, other news sources

 

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