In anticipation of the upcoming Black Friday season in the UK, mixed forecasts persist. Nevertheless, a recent Shopify report provides an optimistic view.
According to Shopify’s Black Friday Cyber Monday 2023 Report, approximately two-thirds of shoppers intend to allocate as much, or even more, of their budget to the Black Friday/Cyber Monday shopping event in 2023 compared to the previous year.
This report challenges the prevailing notion that the year ahead may present challenges for retailers, asserting that «shoppers are poised to sustain or increase their online and in-store spending during the Black Friday Cyber Monday (BFCM) weekend.»
The report also underscores consumers’ active quest for specific deals and their readiness to leverage AI technology to explore new brands and products, even indicating their willingness to switch brands for better offers.
For this comprehensive report, Shopify conducted surveys involving over 2,000 UK consumers, 1,000 small and medium-sized businesses (SMBs), as well as 12,000 global consumers and almost 5,000 businesses across six countries.
Key Revenue Opportunity
Deann Evans, Managing Director for EMEA at Shopify, expressed, «Despite forecasts of a challenging period for retailers as consumers tighten their spending, our data suggests that this could be a pivotal revenue opportunity for those who embrace BFCM.»
Nonetheless, this doesn’t imply that consumers are carefree with their finances. In many respects, the study mirrors the financial constraints faced by shoppers. Evans added, «In fact, shoppers have recently curtailed their spending, preparing to make the most of BFCM to get better value for their money. Brands must seize this opportunity by offering competitive deals and higher-quality products; otherwise, consumers may look elsewhere.»
The report reveals that shoppers are not curbing their overall spending but are focusing on targeted bargains. Globally, 73% of consumers (74% in the UK) have trimmed discretionary spending in recent months, yet 53% of UK shoppers are setting aside more funds each month compared to previous years. This translates to 69% of consumers who are more inclined to shop during BFCM weekend and upcoming peak sales moments to maximize their budgets. Additionally, 66% of UK shoppers (67% globally) plan to spend as much or more during this year’s BFCM weekend compared to last year.
Moreover, 83% of UK shoppers will diligently compare prices to unearth the finest deals, with 68% pinpointing cost as a major driver for brand-switching. A significant 77% are also on the lookout for superior product quality.
While festive season shopping has largely migrated online, in-store browsing remains a close second behind online browsing as the primary means for British consumers to discover new products (33% in-store vs. 39% online). Furthermore, 76% of UK merchants (81% globally) emphasize that physical stores are either as important as or more important than last year, marking a substantial increase from 68% in 2022.
Social Media Shopping and Tech Integration
Increasingly, consumers are open to making purchases through social media platforms, with 32% in the UK expressing willingness to acquire products directly on Facebook. Notably, 80% of UK merchants assert that selling via social media maintains the same or increased importance compared to a year ago.
Remarkably, 40% of UK shoppers display a heightened inclination to buy from brands that actively integrate technology into the shopping experience, with an additional 20% demonstrating a stronger propensity for brand loyalty to such tech-savvy companies. Consumer-favored features include self-service checkout and real-time order tracking.
Furthermore, 68% of shoppers believe that AI will enhance their ability to discover new brands and products while offering more comprehensive information about their purchases. Personalization also finds favor with a notable minority, as 13% regularly or always make use of the ability to create customized designs, slightly ahead of those who engage with virtual assistants or AR/VR experiences (12%).