Consumers in the US, UK, France and Germany plan to spend in more categories and will embrace technologies such as voice-assistance to further streamline their purchasing experience as more than 70% of them look to take part in Amazon Prime Day 2019.
Last year’s global sales event was celebrated in 17 countries and, according to Amazon, was its ‘biggest in history’ yet, with more than 100 million products purchased. Now, new research report from Periscope By McKinsey – The Amazon Prime Day Effect: Consumer Anticipation and Excitement Grows in 2019 – has found that among 2,587 consumers there is an overwhelmingly positive feeling towards Prime Day, with 66% of respondents being either excited or eager to get engaged and 70% or more of consumers expecting to participate in this year’s shopping bonanza.
Asked about their spending plans for Prime Day 2019, compared to the last time they shopped in a Prime Day event, 33% of shoppers in the UK together with 30% of those in France, 29 % in Germany and 28% in the US say they’re planning to spend a bit more. Interestingly, a significant cohort of consumers (US, 16%; Germany, 15%; UK, 12%; France, 10%) had not yet locked down their budget and were undecided about how much money they intend to ringfence for shopping around the event.
That said, a noteworthy number of consumers in all markets – US, 18%; France, 17%; UK, 16%; Germany, 9% – say that they expect to spend much more during Prime Day 2019.
Interest in hunting down Prime Day offers on Amazon’s own branded devices, products and services is particularly high, with Amazon Video and Music and Amazon Echo/Alexa topping one-third or more of consumers’ wish lists.
Additionally, the report finds that most consumers intend to pre-plan and research the products categories they will shop—just 21% expect to shop spontaneously on the day. While 30% of shoppers anticipate spending a bit more than they did last year, an enthusiastic 15% have plans to spend much more.
Amazon customers embrace voice-assisted shopping
According to the study, today’s hyper-connected consumers regularly use their mobile devices to make everyday purchases and a growing number of Amazon customers are using Alexa to enjoy an even more convenient voice-shopping experience. The research found that an impressive 40% or more of all consumers surveyed now ask the voice-assistant Alexa to order products from Amazon.
The fast and frictionless advantages of voice shopping exert a strong appeal for consumers aged 18-39, although those aged 40-49 were not averse to using voice to get real-time shopping assistance.
Today’s experienced online shoppers don’t anticipate engaging with Amazon’s summer sales shopping spectacular without first undertaking some degree of planning in advance – 75% or more of all consumers in the markets surveyed say they will be researching potential purchases ahead of the game.
Shoppers in the U.S. (25%), Germany (23%) and the UK (22%) were the most likely to shop spontaneously on the day, compared to just 15% of shoppers in France. For the vast majority of consumers, however, planning will begin up to a month in advance of Prime Day 2019.
Who is buying what?
Consumer Electronics Tops the Category List – but Amazon Grocery Services Gain Traction
Evaluating which products will prove the most enticing for this year’s Prime Day 2019 shoppers, unsurprisingly ‘Consumer electronics’ tops the bill for consumers in all markets surveyed.
In the US and Germany, the top three categories where consumers plan to shop for deals are: #1 Consumer electronics (Germany: 60%, US: 58%), #2 Clothing and accessories (US: 54%, Germany: 51%), and #3 Books/movies/music (Germany: 46%, US: 43%). In the UK, the ranking looked somewhat similar although, while Consumer electronics ranked #1 with 53% of shoppers, Books/movies/music came it at #2 (43%), and Clothing and accessories ranked #3 (42%).
French shoppers, meanwhile, are bucking the general trend. While Consumer electronics was rated as #1 by 58% of French consumers, followed by Clothing and accessories #2 (51%), the third most popular shopping category for 48% of French shoppers is likely to be Kitchen appliances (48%).
Interestingly, consumer awareness of Amazon’s online grocery delivery and pick up service also appears to be fast gaining traction. This year, around one-fifth of shoppers in France (22%), the US (21%), Germany (17%) and the UK (17%) say they have plans to explore and shop Amazon Fresh deals.
Shopping holidays and deals go hand in hand – and consumers want more
Looking beyond Prime Day, consumer awareness of, and participation in, shopping holiday events appears widespread. Black Friday/Cyber Monday appears by far the most popular and well-established event in consumers’ minds, with over 70% of consumers in all markets surveyed saying they regularly participate and shop for deals.
The research shows that 63% of US shoppers and 61% of UK shoppers are eager to try out different deal events, indicating that these markets in particular represent a golden opportunity to generate additional online revenue. Similarly, with 53% of French shoppers and 47% of German shoppers saying they’re excited by the prospect of more online shopping holiday possibilities, retailers in these markets should seriously consider kicking-off their own special events. With consumer enthusiasm clearly riding high for online shopping holidays, there are significant opportunities for other retailers to get in on the act.
“Excitement for Prime Day keeps growing and is fuelling a hunger for other online sales events,” says Brian Elliott, Partner and Head of Innovation at Periscope By McKinsey. “But for Amazon itself, it is a highly effective promotion engine that not only fuels more sign-ups to Prime membership, but it also incentivizes customers to purchase and subscribe to additional Amazon own-brand products and services.”
He continues: “The extremely positive result for other brands and retailers is that consumers have clearly indicated that they have the appetite for more of these kind of shopping events. For eCommerce organizations who are able to deliver an optimized customer journey and provide a seamless experience over online, mobile and now voice, the opportunities are ripe and ready for the picking.”
Tech
via https://www.AiUpNow.com
Paul Skeldon, Khareem Sudlow
