Posts Tagged ‘black friday’

Black Friday 2010: double digit growth for online retailers

Monday, November 29th, 2010

Now in it’s third year of publication, IBM’s Coremetrics recently delivered reports from online retailer’s Black Friday sales numbers, and the news is, quite simply, great! When compared with last years’ figures, online spending saw a dramatic 16 percent increase in holiday shopping, with social networking sites, and mobile devices quickly becoming the forerunners in the “go-to” consumer information source.

Coremetrics sampled more than 500 top U.S. retailers including Macy’s, Bloomingdale’s, L’Occitane en Provence, and PETCO and found online sales to be up 15.9 percent, and the average final checkout price rising, on average, $20, from $170.19 to $190.80.

“On Black Friday, consumers came, they clicked and they shopped their way across the Internet, and this time, they weren’t just looking for bargains,” said John Squire, chief strategy officer, IBM Coremetrics. “Consequently, we’re watching online retail, and increasingly social media and mobile, become the growth engines for retailers everywhere as consumers embrace online shopping not only for its ease and convenience, but as a primary means of researching goods and services. ”

As noted by Squire, consumers are becoming more and more critical of their purchasing decisions, and often relying on friends, either via mobile or social networking services, or both, for buying options and opinions. And more than jusy friends’ opinions, consumers are plugging into their favorite brands via these media, taking advantage of special “Facebook fans only,” promotions, as well as checking in on stock levels. Naturally, when I say social networking sites, what I really mean is Facebook, as Coremetrics reports that the majority of social shoppers arrive via Facebook. With that said, although these visitors make up only 1 percent of the total traffic online retailers received this past Black Friday, Coremetrics points out that the trend is growing.

Likewise, as the pervasion of smartphones grows, with more and more consumers having the power of online in their hands, 5.6 percent of shoppers landed on a retailer’s site using a mobile device this past Friday. That’s a 26.7 percent spike in traffic when compared to just the previous Friday.

Also noteworthy from Coremetric’s findings is the emergence of the surgical shopper. Meaning, online consumers are no longer “surfing” retailers sites, but rather making surgical strikes. They know exactly what they want, and where to get it. If one retailer can not meet their demands, they’re quickly off to find another that will.

So what does it all mean? Naturally, for those of us in the digital domain, increased online shopping can only be a good thing. IBM is predicting a 3.5 percent increase in consumer electronics related spending this holiday season. Coremetrics also noted that consumers have started spending earlier than usual this year, with November’s sales figures larger-than-usual.

 

Zynga brings Black Friday madness to social gaming

Friday, November 27th, 2009

Ladies and Gentlemen – let the holiday shopping season…..begin! It’s post turkey day in America today, which can only mean one thing: Black Friday. Traditionally, Black Friday is the kick off to the massive holiday shopping spree that most retailers depend on to bring the revenues home. Perhaps even more so this year. But that’s not to say that the virtual world is free from any mass marketed consumerism.

black_benjaminWhile there’s a number of virtual goods price drops headed our way today, the biggest fish in the sea, Zynga is offering virtual world players some serious Black Friday offerings.

Starting out with their biggest bread winner, Zynga’s Mafia Wars will be offering discounts on some of it’s most in demand items. Starting today, and running the entire weekend (including Monday until midnight PST), Zynga will be running promos and deep discounts on “Limited Edition and consumable items.” To up the ante (and sales figures), users can track how many items they’ve purchased on a “mastery bar”. Once said users acquires a minimum of 20 items, they’ll received a special gift “über” gift.

But wait…there’s more. Mafia Wars will also be offering an hourly featured item (blue light special) that’s reported to be insanely cheap. The Black Friday promotion is tied to the already running Thanksgiving Fight promo, in which both mobs have the chance of dropping Thanksgiving themed items.

If Mafioso aren’t your thing, fear not, Zynga’s serving up other tasty Black Friday treats. Their 15.5 million monthly users Roller Coaster Kingdom will also feature a number of promos. The concept of Roller Coaster Kingdom is simple – build a world class amusement park. Not always something accomplished on the cheap. Therefore, Zynga is offering steep 25% discounts across the board. I.e. not only are they offering a 25% discount on in-game coin purchases, but also those of RMT’s.

These discounts are great for fans of the game, but they also bring up an interesting case of controlling a virtual world economy. If said ‘desireable’ objects in Mafia Wars are suddenly common (due to the large number of purchases of these items), do they still retain their desirability – and associated price point? On the other side of the coin, this might be a good way for Zynga to unload a large amount of virtual content, preparing the way for newer, rarer, and therefore more expensive items to be released into the game in the near future? Say….around Christmas? We’ll have to wait and see – but my money’s riding on new, rare content soon.