Is Your Brand Ready for the Next Sales Event?

Ally Feiam By Ally Feiam | 25 Sep 2019

From Cyber Monday to Click Frenzy, there are more sales events in the calendar year than you could shake a stick at. But do they have the same effect as they used to for customers?

While these events come and go every year, there is a myriad of planning and developmental strategies that retailers need to consider if they wish to succeed.

Sales events used to be the pinnacle of a shopper and retailer’s calendar alike. Boxing Day was the ultimate sales event, with most retailers spending a considerable amount of time determining the best strategy to create an uplift in sales. Now, however, there are so many sales events that take place online and in-store, that it can be hard for retailers to keep up.

As a result of globalisation and e-commerce growth, an oversaturation of the market has allowed events like Cyber Monday, Singles Day, Prime Day and Afterpay Day to slip through the cracks – but does this hinder sales for retailers, do customers still pay attention to the events, and can this damage the way we see a sale?

According to the latest Spotlight Series report, Sales Events: Growing and Evolving by Power Retail, 82 per cent of online shoppers take advantage of an online sales event, with male and female shoppers taking advantage of these sales equally.

Which are the Most Successful Online Sales Events?

There are three distinct categories that Power Retail defined sales events into – Online, Multichannel, Gift Based Sales Events.

From 2017 to 2018, Black Friday and Cyber Monday have seen significant growth, with a 29 per cent rise in popularity since its inception. In second place, there has been a boost in sales events in the two weeks leading up to Christmas, with transaction growth of 26 per cent.

“Retail turnover from online sales continues to increase at a high rate, and this can be attributed to the rise in popularity of events such as Click Frenzy and Cyber Monday, combined with the fact that buying online is a convenient option for many shoppers,” explained Lindsay Carrol, the Deputy CEO of the National Retail Association.

“We covered 24 national sales events in this study, but there are also other sales events conducted by major retailers like Myer, so there’s certainly a lot,” explained Mark Fletcher, the Insights Manager at Power Retail. “What’s interesting is that despite there being so many, when you break them down into groups of online-only, multichannel and gift-based events, there are some real differences.”

Some of the Online-Only Sales Events that take place include Afterpay Day, Amazon Prime Day, Click Frenzy, Cyber Monday and Vogue Online Shopping Night.

In contrast, the Multichannel Sales Events include EOFY (End of Financial Year), Black Friday, Boxing Day, Winter Sales, New Year’s Eve/Day, Australia Day and Anzac Day. And the Gift-Based Sales Events include Christmas, Pre-Christmas, Father’s Day, Mother’s Day, Back to School, Easter, Valentine’s Day, Halloween and Chinese New Year.

Is Your Brand Ready?

Online shoppers cite ‘really big discounts’ as the most important thing for them at sales events, Power Retail discovered. ‘The average discount on RRP offered by Australian online stores during Black Friday 2018 was 53 per cent, and it’s likely to be the discount offered by the 74 per cent of online retailers who plan to offer discounts on their standard prices for sales events,’ the report found.

“Basically, online shoppers are very clear that the whole purpose of a sales event is to save money; specifically by not having to pay RRP. In fact, the phrase most used by shoppers is that they want “really big discounts’. And we know from our previous report on Discounting that it takes 50% off for shoppers to count it as really big. Let’s not forget however, that our increasingly demanding consumers also don’t want to have to wade through lots of stuff that’s not interesting, so their second most common requirement is for relevant deals. And online retailers better make sure that they don’t just try to get rid of slow-moving stock as shoppers demand discounts on both top-selling items and across a wide range of product lines. In short, they want it all!” Mr Fletcher explained.

In Power Retail’s latest instalment of the Spotlight Series ReportsSales Events: Growing and Evolving are further insights into the ever-growing sales events throughout retail. The report covers in-depth knowledge of the user demographics, its impact on Australian retail and the popularity of these diverse industry events.

Tune in to the Power Retail Podcast for an overview of the latest report with Mark Fletcher. Listen below for the full podcast:

Like this story? Sign-up for the free Pulse Weekly Newsletter for more essential online retail content.

[class^="wpforms-"]
[class^="wpforms-"]