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/ Wednesday, December 1, 2021
Pandemic slows down Cyber Monday sales
Technology, marketing and online sales specialists do not expect sales to exceed those of previous years
A
Brenda A. Vázquez Colón
bvazquez@elvocero.com
fter large chain stores and island retailers spent months offering online deals, and Puerto Ricans made all kinds of purchases online since the beginning of the COVID-19 pandemic, promotions and offers during Cyber Monday were not as good as in are on Cyber Monday. the past. Although they understand that sales at the beginning of the Christmas season continue to Fewer Discounts be important in the United States and Puerto According to Wilton “el Tecnético” Vargas, Rico, technology, marketing and online sales advertised offers for digital purchases have not connoisseurs do not expect them to exceed those been striking enough and have been diluted with of previous years. other specials that have been promoted during the This year’s Cyber Monday sale –the Monday past weeks. Given the drop in sales in the United immediately following Black Friday– had fewer States, the possibility of creating Cyber Month is products and discounts, compared to other years, already being mentioned. which they assure was a consequence of the “On this Cyber Monday there were fewer offers, COVID-19 pandemic, which continues to cause a fewer products and less attractive prices, although shortage of products at a global level. consumers always adjust to what is available. As indicated, the new pandemic reality has The deals started early, global challenges, such as changed the sales pattern for this day and, inflation and little variety of products, continue… although there is still demand for products there is little inventory available,” mentioned Vargas. through online platforms, Cyber Monday 2021 Online sales had become the option of those did not generate the interest who want to avoid the long lines of other years, nor did it offer in stores on Black Friday. substantial savings. Pedreira estimates the Juan Carlos Pedreira, digital discounts announced on Cyber marketing and social media Monday were between 5% and strategist, indicated they 25%, while in previous years expect “Cyber Monday sales they had exceeded 30%. in the United States to be In addition to the impact Average budget for similar to last year, with about COVID-19 has had on online purchases. $10.9 billion. In Puerto Rico, manufactured products, there 1.3 million people buy online, Source: Simon-Kucher & are other situations that were especially electronic items Partners and Dynata already present before the and tickets. The most sought pandemic and that worsened after product this season when the disease appeared and is the PlayStation 5. Many caused the death of millions of consumers expect the discounts to be announced people around the world. closer to Christmas.” “Taiwan’s Semiconductor Manufacturing Pedreira said there is no data for Puerto Rico on Company (TSMC), the largest technology producer, Cyber Monday sales. caught fire just before the pandemic and However, Travel + Leisure company, which reconstruction was delayed due to the arrival of offers travel advice, indicates that the best deals the virus. The largest chip factory in the world has on plane tickets, car rentals and accommodations not been able to supply them, they cannot cope
In fact, $243
In Puerto Rico, 1.3 million people buy online, especially electronic items and tickets. The most sought after product this season is the PlayStation 5. – Juan Carlos Pedreira, digital marketing and social media strategist
with demand,” Vargas explained. He added that despite the difficult outlook in the manufacturing and distribution of many products –especially electronic ones– large companies was expected to capture a high percentage of purchases on Cyber Monday, as it has happened before. “In 2020, 43% of Cyber Monday sales were from Amazon, followed by Best Buy with 11% and Walmart with 9%. Rush hour is at night,” Pedreira said. According to Google data, Puerto Rico is a particular case because unlike the rest of the countries in the region, Cyber Monday is more popular than Black Friday, followed by the Dominican Republic and Panama. Regarding Cyber Monday, during the months of November and December, Puerto Ricans perform 40% to 70% more searches related to “shopping” than the average for the other months of the year, which represents a business opportunity. Meanwhile, interest for Black Friday begins three to four weeks before the date.
Worldwide Projections
Simon-Kucher & Partners and Dynata, two consulting firms specialized in strategy, marketing, prices and sales, carried out a global study on purchasing behavior, and the average budget for ‘online’ purchases was $243. In the surveyed countries –such as Belgium, Brazil, China, Denmark, Germany, Colombia, Mexico, the United Kingdom and the United States– the willingness to buy on Cyber Monday was above 50%, leading China with 95%, Turkey with 88% and Brazil with 83%. According to a study by the Organization of Consumers and Users (OCU), which monitored the evolution of 1,260 products offered in 41 stores, product prices dropped 19%, but 28% of the products advertised on the internet increased their prices by an average of 2.6%.
