November 25, 2008
Retailers Selling Cyber Monday Deals
It can be argued that
Black Friday is not nearly as important for retailers today as it has been
in the past.
It can also be said
that Cyber Monday was essentially a marketing creation of the retail industry
designed to spur consumers to go online the Monday following Thanksgiving
and buy stuff.
While it may be possible
to argue the validity of the previous statements, one thing that many retailers
agree on is that Cyber Monday and all the online days that follow are going
to be more important this year than in the past as sales in stores are
expected to be down for the holiday season.
According to the eHoliday Survey,
conducted for Shop.org by Shopzilla, nearly
84 percent of online merchants will have special Cyber Monday promotions
this year versus 72.2 percent in 2007. In addition to specific savings,
22.5 percent of e-tailers plan to offer free shipping in all purchases.
"As
shoppers focus on price this holiday season, online retailers will be extremely
competitive to offer the very best deals," said Scott Silverman, executive
director of Shop.org, in a press release. "Americans who are looking
to put a dent in their holiday shopping will be able to find thousands
of bargains on Cyber Monday."
Discussion Questions:
How much more (or less) important is the online channel to retail performance
this holiday season? What online merchants do you think are doing the
best job of promoting deals leading up to Black Friday and Cyber Monday?
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Discussion Questions
Poll
The best performers will be the well integrated systems. When people feel stress they become risk averse and look to ways to reduce stress levels. The ability to easily buy something online with the knowledge that they can always go to a brick and mortar store to return the item will appeal on many levels. Online comparison shopping is easier so the consumer can be confident about the price they are paying and the features they want. Having one less errand to run while out makes life a little easier and no shipping costs combined with easy returns makes for less stress. However, small online business may suffer. People will be unwilling to risk a purchase from a business they know nothing about out.
Dave Bierbaum: “many consumers cherish the experience of going to the mall at holiday time”? I think holiday shopping is the biggest reason to stay away from the malls and go online!
It is not just a matter of this holiday season, online retailing is going to become a more and more important part of a retailer’s mix. Customers will not only use it for buying, but also for pre-shopping. Nowhere can consumers get a better idea of the offerings in a category they are shopping. Those retailers that embrace their online arm are going to be the winners this holiday season and beyond.
As I wrote several months ago, “cross-channel success comes with a strategy that sees both channels as one. It comes with a critical concern in keeping the brand constant. If an online component is already started, it must be integrated into ‘brick and mortar’ business. From a company point of view, it should not make a difference if an item is sold online or at the store. The online component should even be used to drive shoppers to the stores and those who don’t go, won’t go or can’t go, will buy online.”
Cyber selling this season will probably do fairly well, however, the dynamics are a mixed bag.
Pro-Cyber:
1. Aside from the economy and any related considerations, fact is, each year there are a growing number of consumers that shop online as a matter of convenience and preference. This year will be no different.
2. Many cyber retailers have reduced or eliminated the cost for shipping. This will go a big way to attract more consumers.
3. More consumers have mobile technology to buy from e-commerce.
Not Pro-Cyber:
1. Gas prices have come WAY down so trips to the regional shopping malls are no longer an expensive undertaking for most consumers.
2. Consumers perceive that the better deals are at “real” stores, no so much online.
3. Many consumers cherish the experience of going to the mall at holiday time.
The best retailers this holiday season will have a beautiful store with excellent customer service while maintaining state-of-the-art online service. The key is to be passionate about both.
Online etailing will be much more popular this year. The comparison price model, incentive buy and free shipping will be big players this season. Kohl’s is one retailer doing a great job promoting; others are using their existing databases to market which may limit their scope of new consumers. Kmart, Sears and Walmart are also doing a decent job. We’ll see at the end which one wins the race to the bank!
I am a huge fan and user of e-retailing but have some reservations about the overall consumer response we will see this year:
1) I think brick and mortar retailers will be delivering strong incentives to get early sales and reduce their inventories as quickly as possible. The pre-Black Friday advertising of large ticket items at great prices is a good example.
2) Unless there are stronger than normal incentives to buy on-line (large discounts and/or free shipping), I think people will be lured onto the brick-and-mortar stores to make their purchases.
3)The possibility of enhanced extended credit terms/price discounts offered by brick-and-mortar retailers to use their branded credit cards may be a major influencer for consumers this year.
4)The projected growth in gift card purchases may also be a factor this Holiday Season.
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The best performers will be the well integrated systems. When people feel stress they become risk averse and look to ways to reduce stress levels. The ability to easily buy something online with the knowledge that they can always go to a brick and mortar store to return the item will appeal on many levels. Online comparison shopping is easier so the consumer can be confident about the price they are paying and the features they want. Having one less errand to run while out makes life a little easier and no shipping costs combined with easy returns makes for less stress. However, small online business may suffer. People will be unwilling to risk a purchase from a business they know nothing about out.
Dave Bierbaum: “many consumers cherish the experience of going to the mall at holiday time”? I think holiday shopping is the biggest reason to stay away from the malls and go online!
It is not just a matter of this holiday season, online retailing is going to become a more and more important part of a retailer’s mix. Customers will not only use it for buying, but also for pre-shopping. Nowhere can consumers get a better idea of the offerings in a category they are shopping. Those retailers that embrace their online arm are going to be the winners this holiday season and beyond.
As I wrote several months ago, “cross-channel success comes with a strategy that sees both channels as one. It comes with a critical concern in keeping the brand constant. If an online component is already started, it must be integrated into ‘brick and mortar’ business. From a company point of view, it should not make a difference if an item is sold online or at the store. The online component should even be used to drive shoppers to the stores and those who don’t go, won’t go or can’t go, will buy online.”
Cyber selling this season will probably do fairly well, however, the dynamics are a mixed bag.
Pro-Cyber:
1. Aside from the economy and any related considerations, fact is, each year there are a growing number of consumers that shop online as a matter of convenience and preference. This year will be no different.
2. Many cyber retailers have reduced or eliminated the cost for shipping. This will go a big way to attract more consumers.
3. More consumers have mobile technology to buy from e-commerce.
Not Pro-Cyber:
1. Gas prices have come WAY down so trips to the regional shopping malls are no longer an expensive undertaking for most consumers.
2. Consumers perceive that the better deals are at “real” stores, no so much online.
3. Many consumers cherish the experience of going to the mall at holiday time.
The best retailers this holiday season will have a beautiful store with excellent customer service while maintaining state-of-the-art online service. The key is to be passionate about both.
Online etailing will be much more popular this year. The comparison price model, incentive buy and free shipping will be big players this season. Kohl’s is one retailer doing a great job promoting; others are using their existing databases to market which may limit their scope of new consumers. Kmart, Sears and Walmart are also doing a decent job. We’ll see at the end which one wins the race to the bank!
I am a huge fan and user of e-retailing but have some reservations about the overall consumer response we will see this year:
1) I think brick and mortar retailers will be delivering strong incentives to get early sales and reduce their inventories as quickly as possible. The pre-Black Friday advertising of large ticket items at great prices is a good example.
2) Unless there are stronger than normal incentives to buy on-line (large discounts and/or free shipping), I think people will be lured onto the brick-and-mortar stores to make their purchases.
3)The possibility of enhanced extended credit terms/price discounts offered by brick-and-mortar retailers to use their branded credit cards may be a major influencer for consumers this year.
4)The projected growth in gift card purchases may also be a factor this Holiday Season.