For retailers around the world, the four-day period following Thanksgiving kicks off holiday shopping and marks a veritable goldmine of opportunity.
Over 60 years ago, the day following Thanksgiving celebrations in the US was dubbed “Black Friday” by frazzled Philadelphia police officers lamenting the disruptive traffic issues caused by hordes of shoppers hitting the stores. This shopping day soon became a national phenomenon, capitalized on by retailers and distinguished by long lines, deep discounts, and chaotic scenes in store aisles and checkouts.
“Cyber Monday” was introduced in 2005 as the Black Friday equivalent for online shopping, with retailers offering promotions and unbeatable prices. It has become a similarly iconic global phenomenon, with a steady uptick in revenue year over year.
Today, Black Friday and Cyber Monday have transcended their original meanings, as numerous retailers now provide discounts across the entire Thanksgiving weekend, erasing the traditional boundaries between these shopping events. Black Friday has seen a more pronounced shift from physical store to online shopping, with many retailers offering website deals in addition to their in-store discounts.
The timing of Cyber Week has evolved—many Black Friday offers are rolled out as early as late October, and Cyber Monday sales are starting earlier and extending throughout the week following.
As you read further, you’ll learn more about how different regions and individual countries participate in Cyber Week, the most popular products purchased during the period, and the challenges and opportunities for online retailers.
2023 saw record increases in Cyber Week spending
As the sales data began to trickle in during the days following Thanksgiving 2023, Black Friday and Cyber Monday once again proved to be significant and profitable days for retailers. A record $9.8 billion was spent online on Friday while shoppers spent $12.4 billion on Cyber Monday, according to Adobe Analytics.
That’s an astounding 7.5% and 9.6% increase, respectively, over November 2022 spending. For Cyber Week, which spans Thanksgiving Day to Cyber Monday, Adobe Analytics predicted $37.2 billion in online spending, which pencils out to almost 20% of the entire holiday season.
The National Retail Federation released a report indicating that over 200 million individuals engaged in both online and in-person shopping during the five-day span from Thanksgiving to Cyber Monday in 2023. This surpassed the 2022 record of 196 million participants.
According to a November 30 article in Forbes, five categories drove sales, including electronics ($21.7 billion), apparel ($19.2 billion), furniture ($14.7 billion), grocery ($6.8 billion) and toys ($3.1 billion).
As for mode of shopping, in 2023, Cloudflare reported, mobile use was highest on Black Friday with 55.3% of all traffic, while Cyber Monday showed a shift to desktop with mobile use down to 47.6%.
Cyber Week shopping trends for the US and Canada
It’s clear that 2023 has trumped prior years in sales figures for Cyber Week, at least in the US. According to Adobe, this year is surpassing Cyber Week 2022 by almost a billion on Black Friday sales and $1.4 billion for Cyber Monday. In 2021, the figures were markedly lower than 2022, by 5.8% and 2.3%, respectively. The total season’s revenue for 2022 was $211.7 billion, a 2.5% increase compared to 2021.
Cyber Week was first introduced in Canada around 2008; prior to that, shoppers needed to cross the border to participate in the Black Friday shopping frenzy. Many Canadian retailers began to have both Black Friday and Cyber Monday sales after The National Post featured a 2010 article pointing out the parity of the Canadian dollar with the US dollar.
According to Cyber Monday Global, Canadians generally spend 1982% more on Black Friday and 598% on Cyber Monday, compared to regular calendar days. Adobe reported that Canadians spent $10.3 billion during Cyber Week in 2022.
It’s clear that the country is still warming to the idea, however. When surveyed in early November 2023 by Statista, 60 percent of Canadians said they did not buy anything during the sales event last year.
This may be partly due to security vulnerabilities: Proofpoint, a leading cybersecurity and compliance company, recently revealed that nearly three-quarters (72%) of the top 50 online retailers in Canada are not taking appropriate measures to protect consumers from potential email fraud and cybercrime. A recent survey by the cybersecurity company NordVPN indicated that more than two million Canadians have been scammed in the past on Black Friday or Cyber Monday.
UK spending modest due to inflation woes
In 2022, the swift escalation of inflation in the UK – driven by Covid-19, Russia’s invasion of Ukraine, and supply chain-related issues – significantly affected household incomes and profoundly shaped people’s perceptions of their financial situations. Moreover, the crisis in the cost of living has triggered widespread alterations in consumer behavior, most certainly affecting this year’s Cyber Week revenues.
According to a Statista report, however, consumers still were expected to spend a total of 8.74 billion British pounds over the course of the Black Friday weekend in 2023, 3.9 billion of which would be spent in stores.
British consumers geared up for Black Friday week by delaying their purchases in the preceding weeks and maximizing their savings for Cyber Week shopping. Like 2022, UK retailers generated three times the typical weekly revenue over this period compared to the average for the rest of the year.
An estimated 46 percent of consumers in the United Kingdom (UK) planned to shop for electronics, while around 50% of gifts given in 2022 were clothing, as identified in Mintel’s 2023 UK Christmas Gift Buying Report. Other popular gifts included books, food and drink, and toiletries.
Europeans wait it out for the best deals
In contrast to the extraordinary Cyber Week numbers exhibited in the US this November, European consumers exhibited a more cautious approach. According to an article from Awin, however, European Black Friday sales experienced a 2% annual decline in 2023 revenue.
While the sales distribution remained consistent across the four days in the US, the European trend in Europe was for shoppers to postpone immediate purchases, opting to wait and assess whether better prices would emerge later. Additionally, a report from Klarna revealed that European online consumers tended to exhibit a greater level of price-consciousness compared to their American counterparts.
That said, a Statista report released in 2022 showed that in most European countries, consumers did not expect to reduce their Cyber Week purchasing due to the increase in cost of living. Indeed, over the entire Cyber Week, European sales saw a 3.3% increase compared to 2022, and revenue followed suit with a 6% rise. European shoppers also demonstrated an increased spending per transaction, with an average of €2.33 more compared to the previous year.
European and US consumers had similar wish lists for their Cyber Week purchases. Notably in Europe, the home and garden sector witnessed significant growth with a 21.3% increase in Average Order Values (AOVs), while clothing experienced a notable uptick of 14.8%, translating to over €10 more per transaction compared to 2022.
Black Friday/Cyber Monday shopping trends in the Asia/Pacific region
eCommerce has flourished recently in the APAC region, making it a dynamic and lucrative market for online retailers. A combination of demographic, technological, and economic factors has fueled the rapid growth of online opportunities for businesses and their customers.
The region’s large and diverse consumer base, increasing internet penetration, adoption of digital payment methods, increased efficiency tech efficiency and reliability, rise in cross-border trade, addition of marketplaces (like Alibaba and Lazada) are all among the forces driving the rise of eCommerce.
Notably, China’s version of Black Friday, deemed “Singles Day” and taking place on November 11, saw massive profits compared to Cyber Week in the US, according to Statista. Initially born out of the celebration of individuality and the happiness of being single, November 11 (11.11, where each digit symbolizes a single person) has transformed into a significant shopping phenomenon. Chinese eCommerce powerhouse Alibaba has excelled in promoting and capitalizing on this occasion.
In Japan, starting on January 2, consumers shop extensively during Hatsuuri (“the first sale of the year” in Japanese). Cyber Week is a more a recent phenomenon in Japan; Black Friday became the scale of its size today when companies like Nojima and Aeon launched Black Friday for the first time in Japan in 2016. In 2019, Amazon launched deals that became associated with Cyber Monday.
In a Statista November 2023 survey among Australian consumers regarding their Christmas shopping payment plans, nearly 50 percent of respondents said they would use their savings for these purchases. The next most favored payment methods were credit cards and Buy Now, Pay Later (BNPL) services, according to the survey.
Southeast Asia is becoming more deeply integrated into the global consumer market, and recent research shows that 80% of its consumers mark their calendars for Black Friday. As the region’s use of the internet continues to grow in and eCommerce platforms extend their influence, Black Friday and Cyber Monday are poised to assume an even more crucial role in the local retail calendar in Southeast Asia.
Notably, APAC consumers often use mobile video to research and make purchase decisions. Electronic goods dominate the market in numerous APAC nations, yet it’s evident that there are more specific priorities by country. Australians prefer to hunt for deals on accessories and jewelry, while Thailand and Vietnam boast a significant number of enthusiasts for fashionable footwear, for example.
Despite worries stemming from unprecedented inflation, increased prices, and the looming specter of a recession, consumers worldwide enthusiastically participated in 2023 Black Friday and Cyber Monday shopping events. The surge in sales was notably influenced by elevated price levels for goods. Nevertheless, amidst this seemingly gloomy scenario, consumers managed to secure significant discounts on items such as electronics, clothing, and toys.
How can online retailers strategize to maximize their Cyber Week success next year?
Here are some tips:
- To maximize Thanksgiving shopping, start preparations early considering various factors. Given the higher advertising costs during this period, optimize ads across digital platforms to attract fresh leads, allowing for remarketing with tailored offers.
- With intense competition on Black Friday and Cyber Monday, focus on improving brand visibility. Optimize your website, use relevant keywords, and leverage social media or influencers to expand your audience.
- Don’t neglect email marketing, as it offers a cost-effective alternative to CPC campaigns with substantial ROI potential.
- Carefully plan your deals beyond mere discounts. Explore product bundles and discounted shipping rates to offer diverse value.
- Personalize your marketing efforts year-round based on customer data to drive sales, boost conversion rates, and foster customer loyalty.
- Optimize your website for both mobile and desktop users to enhance shopping experiences, drive sales, and reach a broader audience.
- Combat cart abandonment by employing personalized offers, email reminders, and retargeting ads to enhance conversion rates during major sales events.
- Make returns as easy as possible. Anticipate an increase in returns and be prepared to handle them efficiently. Use returns as an opportunity to enhance customer relationships through exceptional service.
What did your business learn from this most recent Black Friday and Cyber Monday? Share your experiences with us in the comments!