In the aftermath of Cyber Black Friday, the economic ripples are still influencing consumer behaviors, showcasing a persistent softness in purchasing power. Let’s delve into the data to understand the current landscape:
According to data from Adobe Analytics during Thanksgiving, mobile consumption accounted for 60% of total Thanksgiving sales. Online sales, without considering inflation, have shown a growth of 7.5% compared to 2022, with Cyber Friday sales experiencing a notable increase of 9.6%.
While the sales data looks promising compared to 2022, the significant problem arises from the 60% dominance of online sales. The rapid encroachment of online sales into the offline market raises the question: Should we abandon the offline market?
Answer: A Definite No.
The Online Marketing Strategies Conundrum:
Forbes reports a concerning trend during Black Friday, where advertising costs for online traffic have skyrocketed, leading to a decline in Return on Ad Spend (ROAS) since 2022. This paints a picture of the increasing expense associated with online traffic.
Examining China’s Double 11 sales promotion, it becomes evident that undisclosed figures signify unmet growth expectations. This suggests that relying solely on online channels may not guarantee the anticipated surge in sales.
Future Retail: Multi-Channel Development
Considering these factors, multi-channel development emerges as the optimal choice, allowing brands and retailers to tailor online strategies to online consumer habits while adopting different promotional approaches for offline channels.
Offline Evolution Opportunities:
The impact of online trends poses challenges but also opens doors for evolution. Streamlining offline spaces, optimizing product offerings, and maintaining efficient profit-making methods are key considerations.
For instance, leveraging Interactive Display‘s consumer behavior analytics allows retailers to optimize Stock Keeping Units (SKUs) based on real-time data. This tailored approach ensures a perfect alignment of marketing events with the unique habits of the surrounding community.
In the face of weak purchasing power, understanding consumer habits becomes paramount. Establishing connections with loyal consumers is crucial, especially in times of economic uncertainty. Implementing personalized, cost-effective services is key. Marketing strategies like the star effect, designed to resonate with individual preferences, are proving to be crucial in this new era of promotions.
