Performics UK 2019 Christmas Shopping Consumer Behaviour Study

Christmas Shopping Consumer Behaviour Report 2019 Industry analysis into consumer shopping behaviour during the holiday season and trends in how consumer behaviour online is changing.

2

Introduction

“

2019 was a challenging year for retail in the UK. You couldn’t go five

Firstly, we found a series of insights that support Black Friday as being

minutes without hearing a news report or retail pundit exclaiming about

“the shopping holiday of temptation”, meaning consumers are much

the death of the high street or economic instability being caused by

more interested in shopping around and open to retailers convincing

Brexit. And these challenges are only being amplified during this year’s

them to buy into their brand. They are looking for the right brand not

Christmas period, when consumers spend more, stress more, and

the right product. In certain categories such as Luxury and Beauty,

competition increases dramatically.

consumers are spending 100%+ more than they would spend outside Black Friday. We are regularly asked how brands should compete with

To support our brand partners and all retailers, Performics are

massive retailers such as Amazon and this seems like a great starting

launching the Christmas Shopping Consumer Behaviour Report. An annual

point.

report that aims to identify and quantify changing trends in consumer behaviour during the holiday season.

Tom Wigley Managing Partner Strategy

Secondly, consumers are much more likely to engage with an advert or content experience as part of their purchase journey. This validates the

As this is our first edition of this report, we don’t have any historic

importance of leveraging paid media during this period. However, what

benchmark data to compare behaviours against, so we have instead

is often overlooked is the importance of leveraging publishers and

focused on comparing the differences between Black Friday shoppers

influencers as part of this journey. Shoppers appear to not only be

and traditional UK shoppers.

browsing lightning deals for themselves, but increasingly relying on others to curate the best deals for them.

Despite these limitations, this years report has genuinely opened my eyes to aspects of Black Friday that make it both a totally unique

Brand’s should place a greater focus on content marketing and editorial

shopping experience (differentiated dramatically from it’s US

partnerships during this time of year which we believe will be a growing

counterpart), that are vitally important when considering a brands 2020

trend over the next few years.

Black Friday strategy.

”

3

Key insights Findings Temptation & Inspiration

Brands not Products

Luxury, Tech and Makeup

Content Curation

Increasingly Mobile Greater Discounts and Average Order Value

Black Friday. The Shopping Holiday of Temptation.

Consumers Rely on Others to Curate Deals

During a typical digital shopping journey consumers are purchasing because of need. However during Black Friday, this flips dramatically towards purchasing because of temptation (3% to 11%) and inspiration (13% to 18%), This stems from a need to purchase Christmas gifts, however appears to overspill into self purchases when a consumer finds a deal that cannot be resisted.

As Cyber Monday and Black Friday continue to mature in the UK, consumers are realising that they can save time by relying on other people to curate deals before they start their own research journey.

This is increasingly third party publishers, brands themselves and their own networks within social platforms.

Brand Driven. Not Product Driven

Increase in Smartphone Usage During Black Friday

Whilst shopping during Black Friday, consumers are more interested in finding the “right brand” (20% to 30%) , rather than the “right product” (22% to 12%).

This speaks to the fact they are purchasing gifts, where a discounted brand provide more personal cachet than the specific product.

Despite being a shopping event where consumers know they may need to spend a significant amount of time researching, shoppers are spending more time on a smartphone than they do during a normal digital shopping experience.

Luxury, Tech and Makeup All three of these product areas see at least a 50% increase in product interest during Black Friday, continuing the trend of shopper interest in self purchases and products driven by temptation.

Highly Influenced By Advertising Black Friday shoppers overall are more than 3x more likely to interact with touchpoints with advertising opportunities that are likely to drive them online to browse.

Expect a Further 12% Discount Consumer expectation of what constitutes a good discount for a brand changes dramatically during Black Friday, increasing from an average of 25% to 37%.

Significantly Increased Average Spend Despite Discount Despite brands and retailers having to engage in significant discounts to appear relevant, average spend in our top three categories dramatically increases, as consumers are tempted to purchase products beyond the price they would normally spend at.

The Luxury, Tech and Makeup categories see a dramatic increase in average spend of 98%, 51% and 87% respectively.

Regular Shoppers Concerned About Frivolous Purchases The number one reason for shoppers to not engage in Black Friday is due to concerns about being tempted to spend on products that they don’t need.

4

Black Friday Dominates as an Online Event You previously mentioned that you shop online.

Please indicate on the scale below, what proportion of your shopping is done online vs. in-store

40%

44% 56%

Online

Offline

60%

Online

Offline

Non-black friday shoppers tend to be more traditional in their shopping habits, still preferring to do so offline. Whilst Black Friday is a significant offline retail event in the US, in the UK it is primarily an online event, with 60% of all Black Friday shopping planned to be done online.

Source: Black Friday shoppers (n=781); Non-Black Friday shoppers (n=275)

5

Black Friday Shoppers Significantly More Spontaneous Thinking about the last time you bought something online/Black Friday, which of the following statements best describes how you planned the purchase?

The day of‌ 1 day before

49%

10%

26%

11%

A week or less 1-2 weeks before A month before 2-3 months before 4-6 months before 7-12 months before Longer than a year before

61%

13%

13%

9%

Unsurprisingly, the majority of black friday purchases are time-restricted, with the vast majority of purchases being considered on the day of purchase. However, almost ½ of online shoppers are still spontaneous, being planned and purchased on the same day.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

6

Traditional Shoppers Driven by Need.

Black Friday Shoppers Driven by Temptation.

And roughly how long before did you start thinking about shopping for that specific item?

8%

42%

34%

13%

3%

Urgent - It was something that really needed doing/buying quickly and I didn’t have any choice Need - It was something that I had to do

Want - It was something I felt I wanted to get done/buy, but didn’t really need to Inspiration - I was motivated by something I had seen, talked or read about

8%

25%

38%

18%

11% Temptation – I was tempted by receiving emails about the deals / the people I follow/ know talking about it

When we consider what is actually driving these purchases we can see that Black Friday shoppers are driven significantly more by temptation/inspiration potentially looking at deals that could tempt them into purchase. Whereas online shopping tends to be less driven by temptation and more by actual need (42%, representing the largest single category for traditional shoppers).

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

7

Older Demographics Most Likely to Be Tempted And roughly how long before did you start thinking about shopping for that specific item?

Older

6%

Middle Age

49%

11%

28%

35%

14%

38%

3%

14%

2%

Urgent - It was something that really needed doing/buying quickly and I didn’t have any choice Need - It was something that I had to do

Millennials

8%

39%

39%

11%

3%

Want - It was something I felt I wanted to get done/buy, but didn’t really need to Older

Middle Age

Millennials

4%

23%

8%

10%

32%

26%

25%

26%

39%

41%

15%

16%

15%

Inspiration - I was motivated by something I had seen, talked or read about

11%

9%

Temptation – I was tempted by receiving emails about the deals / the people I follow/ know talking about it

When we consider the demographic of the audience, we can see that for Black Friday shoppers, inspiration & temptation is a more prominent driver for those older and who have more disposable income. Likewise in traditional shopping, product need is almost a more prominent driver for the older group. Whilst Millennials and Middle Aged groups do vary, their behaviour doesn’t fluctuate to the same degree, possibly because of their comfort with technology and understanding of events such as Black Friday.

Source: Black Friday shoppers (n=514); Millennials (n=190); Middle Age (n=223); Older (n=101)

8

Smartphone Usage Increases During Black Friday.

When shopping online/for Black Friday, please select which device you would most likely use for each stage of the journey.

36%

36%

29%

27%

Smartphone Tablet Laptop Desktop

17% 15%

15%

Overall, across both types of shopper, we see as many users buying on a mobile device as are browsing, which highlights the importance of having mobile-friendly brand websites for both smartphone & tablet.

Black Friday shoppers are 25% more likely to be on a smartphone than normal digital shoppers.

17%

38%

40%

33%

31%

16%

16%

16%

18%

Browsing

Purchase

Browsing

Purchase

Source: Black Friday shoppers (n=514); Millennials (n=190); Middle Age (n=223); Older (n=101)

This is surprising due to the additional research and time that is required to find good deals during Black Friday, however could be because consumers are using their time when out of the house, for example when commuting, to find deals.

9

Significant Polarisation in The Device Demographics Use to Purchase When shopping online/for Black Friday, please select which device you would most likely use for each stage of the journey.

Purchasing

Browsing

13%

16%

43%

38%

39% 19%

46%

26%

While millennials are clearly more digitally adept for Black Friday shopping, over 1/3 of those older are transacting using mobile formats.

Smartphone Tablet Laptop

13%

16%

16% 13% 44%

Desktop

29%

41%

30%

30% 27%

22% 15%

15%

Millennials

Middle Age

16%

13%

Older

Millennials

Middle Age

Source: Black Friday shoppers (n=514); Millennials (n=190); Middle Age (n=223); Older (n=101)

21%

Older

However their device usage is still very polarised with the preferred purchase device for older being laptop and millennials being smartphone.

10

Significant Differences in The Way Black Friday Shoppers Shop Around and Interact with Advertising Which of the following best describes the steps or experiences that you went through?

48% 41% 37% 31% 26% 19%

24%

23%

22%

20%

19% 13%

11% 5%

17%

9% 5%

Saw, read or heard Read articles in Read articles, blogs advertising general newspapers or reviews online or magazines

10%

9% 4%

13%

12% 6%

12%

8% 7%

7% 4%

Spoke to family or Got advice via social Got inspiration via Got inspiration from Used a search engine Visited a friends networking (e.g. by social networking videos online (e.g. (e.g. google) to find store/department asking friends for (e.g. Pinterest, YouTube) deals store recommendations) Instagram etc)

Black Friday shoppers

Visited a store’s website

Visited a price comparison website

17%

9% 3%

4%

Seen online Received a Saw an advert online Saw a TV Made the editorials about newsletter/email programme about transaction without what the best deal about the best deals Black Friday considering any were this year other steps

Non-Black Friday shoppers

Black friday shoppers overall are more likely to shop around, visiting store websites and encountering more touchpoints than non-black Friday shoppers. They are significantly more likely to interact with touchpoints with advertising opportunities that are likely to drive them online to browse. They are 3x more likely to have seen editorial online leading them to select a deal with a retailer.

Source: Black Friday shoppers (n=514); Millennials (n=190); Middle Age (n=223); Older (n=101)

11

Adverts and Editorial Play a Greater Role During Black Friday Which of these did you do first?

Saw, read or heard advertising Read articles in general newspapers or magazines

1%

2%

Read articles, blogs or reviews online

5%

2% 2% 3%

8%

Spoke to family or friends Got advice via social networking

3%

1%

3% 3%

Got inspiration via social networking Got inspiration from videos online

12%

1%

3%

Used a search engine to find deals

17% 5% 5%

Visited a store/department store Visited a store’s website

20%

Visited a price comparison website Seen online editorials about what the best deal were

19%

4% 1%

9%

4%

Saw an advert online

Made the transaction without considering any other steps

6%

2%

Received a newsletter/email about the best deals

Saw a TV programme about Black Friday

21%

Black Friday shoppers Non-Black Friday shoppers

2%

4% 4% 4%

6%

17%

While the first steps are similar for both online and Black Friday shoppers, paid touchpoints are influential as a key first step in the journey, accounting for over a (36%). Black Friday more heavily influenced by advertising, articles in newspapers, editorial about deals and newsletters.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

12

Consumers Rely on Brands and Publishers to Curate Deals And which were the three most important to you when it came to researching and purchasing online/for Black Friday?

33%

Saw, read or heard advertising

50% 36% 38%

Read articles in general newspapers or magazines

53%

Read articles, blogs or reviews online

58%

Spoke to family or friends Got advice via social networking

82% 62%

59%

25% 34%

Got inspiration via social networking

60% 38%

Got inspiration from videos online

50% 73%

Used a search engine to find deals 46%

Visited a store/department store

67% 73%

Visited a store’s website 65%

Visited a price comparison website Seen online editorials about what the best deal were this year

90% 90%

49%

25%

Received a newsletter/email about the best deals

54%

43%

Saw an advert online Saw a TV programme about Black Friday

Black Friday shoppers Non-Black Friday shoppers

78%

38% 32%

43% 50%

Opportunity to support shoppers by filtering the influx of information available on Black Friday, as consumers increasingly rely on advice and reviews of deals to simplify the decision making process. The most important touchpoints for consumers tend to be places where they can compare deals.

Source: Black Friday shoppers who mention more than 3 events/ experiences prior to purchasing (n=158); ); NonBlack Friday shoppers who mention more than 3 events/ experiences prior to purchasing (n=30)

13

During Black Friday, Consumers More Likely to First Visit a Brand’s Website Please rank the brands you have selected above, from 1 being most likely place you would shop online to least likely...

91% 86%

Black Friday shoppers

Non-Black Friday shoppers 78% 71%

TOP 3

64% 47%

42% 42%

44%43%

42% 34% 28%

37% 31%

48%

48%

45%

39%

50% 44% 38%

35%

54% 47%

55% 33%

45%

32%

32%

26% 20%

22%

13%

19% 12%

21% 16%

Generally speaking, larger scale retailers such as Amazon, eBay and Argos all see small decreases in their share of being a top 3 or first choice retailer, whereas brands see the reverse.

Nike seeing an 175% increase in being a first choice shopping destination.

FIRST CHOICE

54%55%

33%

19% 17%

19% 14% 6%

11% 4%

11% 5%

9%

7%

7%

Source: Non-Black Friday shoppers (n=275), Black Friday shoppers (n=267)

10% 8%

7% 3%

0%

15%

13%14% 9%

18% 12%

12% 9%

15%14% 10% 8%

6%

8% 4% 0%

2%

0%

We can presume that this is because shoppers are more likely to shop around and visit a brand directly to see their deals. Possibly even before visiting larger retailers, which represents a significant opportunity for directto-market brands.

Section 1: Brand Trust & Loyalty

15

Amazon Dominates for Awareness Alongside Other Multi Category Retailers Which of the following brands listed below are you aware of?

93% 87%

89%

88%

90%

89% 85%

90%

89%

89%

87%

85%

85%

84% 79%

74%

Source: All respondents (n=953)

73%

79%

76%

16

Experience Appears to Drive Trust Rather Than Physical Presence From the brands listed below, how much do you trust each of them? (score 0-10)

40%

16%

29%

31%

33%

33%

25%

19%

32%

34%

30%

25%

29%

36%

24%

35%

20%

23%

26%

10 9 8 7 6 5 4 3 2 1 0

With Amazon ranking highest for trust, this is telling in the change of shopping behaviour whereby physical presence is no longer essential in building brand loyalty. Instead we can presume that consumers appreciate the simplicity and convenience offered by Amazon’s experience and with time this leads to them becoming a more trusted brand.

Source: All aware; Amazon (985); Asos (812); Adidas (928); Nike (949); Apple (941); Google (953); Currys (911); Nespresso (797); Argos (963); Tesco (956); Asda (953); Ebay (951); Next (931); M&S (914); Debenhams (909); John Lewis (902); HoF (859); Selfridges (856); Dunelm (832)

17

Consumers More Interested in ”The Right Brand” Rather Than ”The Right Product” During Black Friday When shopping online/on Black Friday, please select which of the behaviour below that best fits how you act

12% 30%

20%

22%

The vast majority of consumers across both cartegories aren’t brand loyal and will shop around. However, there are two fundamental differences in the way consumers shop between Black Friday and during normal shopping.

On Black Friday, 30% of consumers (an increase of 50%) will shop based on brand and buy several products from them. This comes directly from the category of consumers who have a specific product in mind when making a purchase.

58% 58%

I shop for my favourite brand(s) mainly and tend to buy several products from them I shop for specific products and will look for several brands for each product I have specific product by specific brand in mind

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

During regular shopping, we see a shift back to product, with the vast majority of consumers having a specific product in mind.

18

Social Plays a More Influential Role When shopping online, please select the statement that best describes how you shop

I browse online for inspiration but will usually wait to buy in-store

I am swayed by brand websites that I see on social media

17% 7%

20%

16% 25%

I will follow a deal to a website I have received in my emails

24%

I will often browse brand websites to pass the time

29%

33% 44%

I will often browse lots of different websites to compare all the options

I will only visit the brand websites that I know and trust

36%

Non-Black Friday shoppers

52% 49%

Black Friday shoppers

Consumers are conflicted – while around ½ are deal driven, for some products they will be brand loyal and will commit to what they are familiar with.

Black Friday shoppers are predominantly deal driven and are potentially more open and susceptible to comms for this reason.

Non-black Friday shoppers are have less driven by deals and will go to what they know and trust.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

19

Shoppers Find Global Large Global Retailers Appealing Outside of Black Friday Non-Black Friday Shoppers: From the brands you have selected, please rate how appealing you would find shopping on their website (0-10)

% 9 or 10

60%

32%

44%

27%

47% 23%

45%

26%

56%

41%

31%

37%

14%

16%

22%

37%

38%

40%

44%

41%

44%

10% 20%

21%

23%

21%

23%

20%

32% 21%

24%

20%

19%

32%

21%

21% 28%

25%

29%

10%

6%

13%

9% 8%

17%

17%

23%

17%

15%

17%

33% 15%

18%

30%

24%

8%

14%

27%

21%

22%

23%

18%

30% 30%

9% 10% 2%

16% 13%

17% 6%

14%

21%

30%

8%

19% 13%

17%

12%

38%

23%

25% 20%

6%

17%

29%

21% 24%

28%

46%

20%

17%

18%

30%

10%

16%

14% 12% 10%

17% 12%

9%

8%

20%

21%

4%

11%

5%

11%

20% 6% 0% 12%

5%

Outside of Black Friday, online shoppers are more likely to feel that more premium/tech retailers are more appealing potentially as their websites are more likely to be more seamless and easier to navigate.

Source: Online shoppers who would shop at the following retailers; Amazon (420); ASOS (79), Adidas (96), Nike (107), Apple (96), Google (87), Currys (87), Nespresso (154), Argos (257), Tesco (201), Asda (164), Ebay (284), Next (138), M&S (181), Debenhams (126), John Lewis (142), HoF (58), Selfridges (47), Dunelm (101)

20

Shoppers Rate Direct Brand Experiences More Highly During Black Friday Black Friday Shoppers: From the brands you have selected, please rate how appealing you would find shopping on their website (0-10)

% 9 or 10

56%

29%

48%

31%

44%

29%

56%

30%

53%

35%

37%

16%

17%

26%

19%

27%

17%

47%

42%

24%

22%

36%

22% 11%

15%

8%

27%

25%

18% 10%

29%

27%

21%

25%

27%

24%

26%

25%

22% 16% 17%

9%

52%

25% 24%

7%

50%

19%

22%

25%

29% 20%

43%

24%

26%

29% 26%

61%

20%

27% 26%

30%

48%

20% 23%

15%

45%

16%

14%

12%

8%

20% 11%

9%

9%

For Black Friday shoppers, we see slightly lower scores attributecd towards some of the global retailers that performed as well in the previous round, and alongside this slightly higher ratings for direct brand experiences such as Nike. This may be because Black Friday shoppers have the added expectation of good value deals, and these deals may easier to find or more memorable when they are found direct from the brand.

Source: Black Friday shoppers who would shop; Amazon (422); ASOS (65), Adidas (91), Nike (96), Apple (78), Google (57), Currys (189), Argos (216), Tesco (131), Asda (101), Ebay (175), Next (88), M&S (89), Debenhams (86), John Lewis (117)

Section 2: Category Performance

22

Consumers Focused on Christmas Shopping and Upgrading Tech When shopping online, please select the statement that best describes how you shop 44% 38%

16%

18%

16%

14%

12%

12%

12%

4%

I like to shop mainly to do my Christmas I like to shop mainly to upgrade my tech shopping

3% I like to shop mainly to shop appliances/big ticket items shopping

I shop like any other day

Black Friday shoppers

I like to shop to shop premium brands

5% 2% I like to shop to buy holidays

3%

I like to shop to use expensive winter clothing

Non-Black Friday shoppers

Black Friday has a higher association with shopping behaviours such as Christmas shopping, upgrading tech and shopping premium brands. It has a low association with holiday shopping and typical day-to-day shopping.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

23

Tech, Luxury and Makeup of Particular Interest during Black Friday What are the categories you tend to shop online/Black Friday?

57%

44% 44% 37% 32%

35% 24%

23%

20%

39%

38% 38%

23%

21%

19%

16%

15%

Toys

Food / Alcohol

Tech

Make up / Perfume

Luxury products

Black Friday shoppers

16%

10%

9%

Apparel / clothing

16% 15%

Appliances

Sportswear

Holidays

House decoration

Home furniture

Non-Black Friday shoppers

The shopping behaviours on the previous slides align with these product categories, to create categories where Black Friday interest is much higher than normal. Tech is the largest area of interest during Black Friday, with consumers both looking to upgrade their own tech and to purchase tech as a Christmas gift at a discounted price. Makeup and Luxury products, also both see the same increase in interest, and again both could be applicable as a Christmas gift or a self purchase.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

24

Despite Discount, Average Order Value Increases Significantly in These Product Categories And on average, how much do you spend for the following when you shop online?

145%

£1,200

£1,016 £1,000

111% 87%

£800

87%

£663

69%

£600

51%

Black Friday shoppers

H

it u re

H

om

e

fu rn

n ra t io

H

ou se

de co

ol id ay s H

Sp o

rt sw

ea r

es ia nc pp l

pr

od u

ct s A

up

Lu xu ry

/P

er fu m

Te ch ak e

cl ot hi pp ar el / A

om

e

fu rn

it u re

n ra t io

-25%

-35%

H

ou se

de co

ol id ay s

rt sw Sp o

H

ea r

es ia nc pp l A

pr

od u

ct s

e up

ak e M

Lu xu ry

/P

er fu m

Te ch

l od

/A lc

oh o

To ys Fo

pp ar el /

cl ot hi

ng

£0

e

0%

£113 £66

M

£125 £51

l

£132

£86 £46

oh o

£90 £90

/A lc

£115 £54

£241 £195

ng

£114 £61

24%

£280 £211

od

£200

£261

Fo

£311 £206

To ys

£400

A

98%

Non-Black Friday shoppers

Despite product discounts, shoppers still have a much higher average order value during Black Friday. In particular this appears to happen in categories such Sportswear, Luxury and Makeup, where a discounted cost means a consumer can make there money go further, and they are therefore more likely to buy more expensive brands, or more from their chosen brand. Home furniture and Holidays are the only areas where average order value decreases, which makes sense as consumers will have a very specific product in mind and aren’t likely to buy two sofas or holidays because of a discounted rate.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

25

Consumers More Likely To Shop Direct From Brands such as Adidas and Nike During Black Friday Amongst the following retailers/brands, please select all the ones you would shop from?

77%

78%

54% 51%

48% 46%

22% 16% 13%

13%

23% 17%

22%

21%

14%

11%

40% 34%

32% 25%

31% 30%

29% 22%

36% 31%

28% 19%

28% 24% 12%

10% 4%

Black Friday shoppers

21% 16% 9%

10%

7%

Non-Black Friday shoppers

Multi-product retailers attract a greater audience potentially due to their larger offering and variance in affordability. However again, we see consumers increasing their likelihood to be shopping directly with brands. In particular this appears to happen most consistently with premium brands, such as Nike and Nespresso, as their products are most affordable on Black Friday.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

26

Consumers Expect A Further 12% Discount From the brands you have selected above, how much would be a good discount for you to consider buying from them?

Total Avg. % Discount

37% 25%

46% 38%

43% 38%

32% 23%

26%

39% 29%

39%

35%

32%

34%

36%

33%

37%

35%

27% 22%

22%

Black Friday shoppers

23%

23%

24%

35%

38%

38% 33%

26% 22%

41%

25% 20%

22%

39%

31% 21%

Non-Black Friday shoppers

While consumers expect a minimum of 20% discount to consider buying, there is a 12% difference in expectations on Black Friday vs. General online shopping. Consumers are more expectant of discounts when it comes to black Friday. Brand’s such as ASOS who discount regularly get hit with very high expectations of what a good discount needs to look like on Black Friday. Even brands such as Apple, still see high expectations of discounts, despite very little discounting as a brand.

Source: Black Friday shoppers (n=514); Non-Black Friday shoppers (n=275)

Section 3: Regular Digital Shoppers

28

Regular Digital Shoppers Purchase Online Because of Convenience You mentioned before you like to shop online, what are the main reasons for this?

53% 45% 41%

41%

38%

34% 26%

36% 32%

27% 19% 15%

It is more convenient

I enjoy browsing different brand It is easier to compare prices to get websites the best deal

There is more choice online

Black Friday shoppers

The deals are better online

I don’t have the time to visit instore

22% 18%

16% 12%

The choice in-store is limited

Non-Black Friday shoppers

Black friday shoppers are driven online because of the opportunity to compare price promotions.

Non-black friday shoppers are more likely to do so due to unavoidable barriers such lack of time and accessibility

Source: Non-Black Friday shoppers (n=275), Black Friday shoppers (n=267)

I don’t have the stores I like close enough to visit

29

Regular Shoppers Concerned About Purchasing Products They Don’t Need What are the reasons you have not shopped on Black Friday in the past two years?

53%

27%

24%

24%

12%

12% 8%

I don’t want to spend my money for They only discount products I am not interested in things I don’t need

The deals are not good

It’s too much work / hassle

There is too many options and I don’t have the time

Too many deals and I don’t know what to choose

I was disappointed by previous Black Friday purchases

6%

The websites don’t work

The majority feel who don’t participate in Black Friday feel it is frivolous and not necessary. In total, 80% feel that Black Friday offerings aren’t relevant for them. Nearly 50% feel that its too overwhelming to get involved. Historically we believe consumers used to be more concerned that websites didn’t work, however that doesn’t appear to be such an issue now, with only 6% of consumers expressing a concern.

Source: Non-Black Friday shoppers (n=275)

30

Free Delivery Still Vital As An Incentive to Purchase For All Shoppers Which online deals are most attractive to make you consider purchasing from a specific retailer?

Exclusive deals (e.g. accessibility of certain products/brands) Free gift with purchase

6%

10% 8%

11% 35% 36%

Discounted/free delivery

£X of when you spend £X

10%

12%

X% discount off final bill

31%

Non-Black Friday shoppers

40%

Black Friday shoppers

Free delivery is a huge incentive for online shopping suggesting consumers are more open to buying online if they don’t have to fully commit and can buy/send back without consequence. A discount off the final bill is a significant incentive for non-black Friday shoppers, however becomes slightly less of interest during Black Friday, presumably because shoppers understand discounts are built into the listed product price.

Source: Non-Black Friday shoppers (n=275), Black Friday shoppers (n=267)

31

Ease-Of-Use and Convenience Key For Regular Shoppers From the brands you have rated the best above, explain in your own words why you find it interesting/appealing to shop on their website?

“Always good product selection” “Choice and convenience and fast delivery” “Easy to use” “Everything you need in one place“ “Good service” “Quick delivery on orders whatever I buy” “Search engine is easy to navigate“ “Looking at the reviews”

“Apple is my phone brand so I like the technology the same ” “Great products well designed ” “Innovative products ” “Easy to navigate “ “Easier to read all the information online without being forced into buying ” “Clean and easy ” “Because nobody bothers you whilst your browsing the best possible deal “

“A very large selection that can be collected locally. ” “Can check stock before collection ” “Easy to find reviews on products. ” “Easy to use, variety, affordable “ “Quick and cheap delivery ” “They stock almost everything ” “Very good products at reasonable prices “

“Cheaper prices” “Choices are endless ” “Ease of shopping” “Hassle free. Easy to find specific items “ “It is very competitive prices I love the auction sites, great deals. Everything I want in one place. ” “Good returns policies and delivery and purchases are covered by paypal.”

Common themes of the most popular websites seem to be ease of use, comparability and being a one-stop shop for everything they need.

Source: Non-Black Friday shoppers (n=275)

Section 4: Black Friday Digital Shoppers

33

Black Friday Shoppers Like to Shop Around When shopping for Black Friday, please select how you shop:

I don’t care much about Black Friday but I will look around for specific items in case there is interesting deals

25%

I like to shop Black Friday sometimes and will have a look to see what the deals are on several websites I like

I look forward to Black Friday & tend to go on many websites, looking for a good bargain

43%

32%

The majority of shoppers on Black Friday, will shop around several websites to find the best deals. They do this on several websites, and don’t appear to have a specific product in mind for the majority of the time they are browsing like this.

Source: Black Friday shoppers (n=514)

34

Purchases Regularly Delayed Until Black Friday

33%

Do you tend to wait for Black Friday to make purchases?

67% Black Friday shoppers are fundamentally deal seeking and will wait for deals in order to check a product isn’t discounted. This in particular makes sense for tech upgraders and luxury products, where a saving could be several hundred pounds.

Yes

Source: Black Friday shoppers (n=514)

No

35

Black Friday Shoppers Expect To Dedicate Hours to Finding The Right Deal

6% 8%

17%

On average, how many hours will you dedicate to shopping for Black Friday deals online?

28%

There is a wide variety in the amount of time consumers are willing to spend during shopping. 42% of all black Friday shoppers will dedicate at least two hours to shopping for black Friday deals online. However, 58% of black Friday shoppers will only spend up to two hours.

41%

Less than 1 hour

Source: Black Friday shoppers (n=514)

Between 1-2h

Between 2-3h

Between 3-4h

More than 4 hours

36

Ease of Use Still Important for Black Friday Shoppers, But Range of Deals Feature More Regularly From the brands you have rated the best above, explain in your own words why you find it interesting/appealing to shop on their website?

“A wide range of products at reasonable prices ” “Amazon have a huge range of deals - I like waiting for the special offer prices to pop up ” “Clearly advertise Black Friday deals. Easy to navigate. Next day prime delivery ” “Good deals on lots of items“ “Lightening deals ” “Several days before and after Black Friday of bargains ”

“I only ever buy Apple tech, so I would be interested to see what they have on offer...and how good the offers are. ” “Better than queuing in shop” “Deals on tech ” “I love the brand and it would be great to find a Black Friday deal “ “to discover their latest products, discounted" “Very good website experience”

“Always have bargains . ” “Easy to navigate and can search by price ” “Ideas fit gifts ” “They always seem to have fantastic range of offers and ideas. “ “Variety, trusted website. ” “I can get almost everything I need from Argos for my children ”

“Endless choice and rarer items . ” “I get cash back on my purchases on eBay ” “It’s a lot cheaper than going to a high street shop ” “Lots of variety and brands to choose from. “ “They have some great deals on electronic items ” “no postage ”

For Black Friday specifically, appeal is still driven by website convenience and ease of use. However, as you would expect, the ability to find deals and the breadth of deals available are a significant factor in what makes a website experience appealing.

Source: Non-Black Friday shoppers (n=275)

37

Purchases from Premium Retailers More Likely to be Delayed From the brands you have selected above, how likely are you to delay a purchase you had planned to make to fit the Black Friday weekend? (Rate from 0–10)

% 9 or 10

46%

26%

29%

20%

37%

24%

53%

29%

55%

40%

41%

36%

21%

22%

23%

19%

13% 24% 17%

19%

13%

40%

17% 29%

38%

9% 21%

33%

16%

35%

23%

53%

33%

11%

38%

25%

47%

30%

13%

11% 20%

Consumers are more likely to delay a purchase from premium retailers where they have to justify more luxurious purchase.

Source: Black Friday shoppers who would shop; Amazon (422); ASOS (65), Adidas (91), Nike (96), Apple (78), Google (57), Currys (189), Argos (216), Tesco (131), Asda (101), Ebay (175), Next (88), M&S (89), Debenhams (86), John Lewis (117)

16%

43%

26%

17%

38

Discounts Generally Trusted More From Brands That Discount Less Frequently From the brands you have selected above, how much do you trust the discount each of them make for Black Friday shopping? (Rate from 0–10)

% 9 or 10

45%

26%

42%

47%

20%

24%

50%

29%

9% 21%

46%

46%

42%

41%

21%

22%

23%

38% 19%

13% 24%

17%

19%

13%

45%

17%

53%

29%

16% 11%

38%

23%

55%

33%

11%

39%

48%

53%

25%

30%

26%

13% 20%

16%

17%

Distrust in the actual value of discounting as part of Black Friday is a growing concern across all retailers, Generally speaking, discounts are more trusted for widely recognised brands that don’t tend to discount often. Interestingly, we can see eBay listed as less trusted when it comes to Black Friday discounts. Presumably this is because of a lack of understanding how Black Friday discounts could apply in an auction based marketplace.

Source: Black Friday shoppers who would shop; Amazon (422); ASOS (65), Adidas (91), Nike (96), Apple (78), Google (57), Currys (189), Argos (216), Tesco (131), Asda (101), Ebay (175), Next (88), M&S (89), Debenhams (86), John Lewis (117)

39

Survey Methodology Age <24

12%

25-34

21%

Insights team carried out an online questionnaire to

35-44

20%

1000 respondents who identified as being an online

45-54

20%

shopper in the past two years.

55-64

15%

65+

12%

Performics in association with the Publicis Media

Gender

All respondents had to be at least 18 years old.

Fieldwork for this questionnaire lasted 2 days, during the week of the 4th November 2019.

Male

57%

Female

43% NRS Social Grade

NET: ABC1

57%

NET: C2DE

43%

The demographic split of the respondents is broken down in the tables to the right.

Parental Status Children

68%

No Children

32%

40

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