The Australian calendar has become littered with online sales events in recent years. From platform and technology-based events like Amazon Prime Day and Afterpay Day to events imported from overseas like Cyber Monday and Black Friday to our own home-grown online events like Click Frenzy, the online sales event has become a critical part of the activation calendar for pure-play retailers, traditional bricks and mortar brands and CPGs alike.
These events have become so embedded into the cultural calendar of Australians that it is fundamentally reshaping how we buy, and all of this is being further reinforced as a result of the cost-of-living crisis.
The consumer shifts occurring as a result of the “online sales event”
According to the 2024 Inside Shopping Report from Australia Post, we are seeing significant double-digit growth in online sales during key sales events when comparing 2019 with 2023 (pre and post the pandemic). Black Friday has seen a whopping 88% growth in online sales and when combined with Cyber Monday it is believed that these events have now made November the key selling period for Xmas. These events are also changing the way we plan and buy during the silly season, pulling many decisions and sales forward and influencing customers to begin spending earlier. The Black Friday and Cyber Monday event period, is now considered to be one of the most dominant sales periods on the Australian sales calendar, as 2023 sales results superseded 2022 Boxing Day sales results.
In 2024, Amazon Prime Day also reached new heights, recording 19% growth, one of the highest amongst its global counterparts. And the jugger-naught also acquired 1.2m new customers during the process.
As online sales events become embedded into the consumer psyche, we also see that consumers are increasingly delaying purchases, holding off on making expected purchases to align with a sales event. According to research from Rithium in 2023, 71% of Australians now tend to wait for annual promotional shopping events before making their expected purchase. This is higher than many other leading economies across Europe and the US.
But despite Australian consumers shifting their shopping behaviour, it still pales in comparison to what is now occurring in Asia.
Double-digit days which are essentially 1st of January, 2nd of February etc, now dominate the online sales event calendar within key Asian markets. So entrenched are these days, that sometimes half of all sales for a given month will occur on the double-digit day of that month, making online sales event activation a core part to every retailer and CPGs GTM plan.
So how can brands make online sales events a core part of their promotional calendar and GTM approach?
A blanket approach won’t cut the mustard; The brands that maximise the opportunities that exist within the online sales calendar are those that leverage data and insights to identify the most opportune times to run promotions, and then give thought to the right range and assortment based on audience segment and needs to maximise relevance and engagement during individual sales events.
Active or passive participation; Whilst some brands choose not to participate actively within the event on a given platform e.g. Click Frenzy or Amazon Prime Day, they may still orient sales activity around this event timing to take advantage of consumers' willingness to sniff out a bargain during an event period. What is equally important to consider, is when to begin to promote – year on year we are seeing brands go to market earlier and earlier to snaffle extra sales on discretionary items. That doesn’t make it the right strategy, just before your competitor is doing it, so testing timing for GTM before an official event launch is important.
Collaborate and partner with influencers: With small windows to drive purchase, brands particularly those that are lesser known need to drive a consumer from awareness to sales quickly. With social media a buzz with content creators, creating and sharing during these sales periods, it stands to reason that partnering with influencers to extend the reach of your specials and offers is key. with social media influencers to maximise your impact during sales events. Tailor your collaborations to specific age groups, ensuring resonance with your target audience. For instance, partnering with younger influencers can significantly influence Gen Y and Gen Z shoppers.
Beyond the sale; Whilst sales events are great for driving short-term sales performance, as consumers increasingly shift their behaviour to buy during sales periods, we need to think about how we maximise their value from our investment over time, as it becomes more costly for us to acquire them through promotional and discounts combined. Sales promotions are a great way to acquire new customers into the “basket” for repeat purchase products. Therefore, we may strategically focus and gear our activity to drive and engage new customers as it helps us to deliver longer-term value which grows share over time. Whilst for others, consideration needs to be given to how the customer is nurtured over time to build that deeper connection and relevance of the brand to their lives to drive that second or third purchase from the brand.
Arktic Fox is partnering with an array of brands to build and define a strong digital shelf strategy.
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