Human cognitive behavior is quite complex. Place a banner for a discount sale, and the consumer is immediately more interested. However, if you set a deadline or a time limit for the same to end, the consumer becomes a customer, believing they will miss out on purchasing something valuable at a lower cost. Maslow’s Hierarchy should have been more integrated between needs and wants.
That’s the power of the year’s busiest shopping week: Black Friday and Cyber Monday.
Cyber Monday: What Is It?
Coined in 2005, Cyber Monday was created to extend Thanksgiving and Black Friday, mainly for online retailers to offer irresistible tech deals. People typically shop for Hanukkah, Christmas, and New Year’s. With pre-pandemic Black Friday already raging in the stores, Cyber Monday has recently found a firm footing in the post-pandemic world.
While Black Friday used to be an in-house brick-and-mortar experience, Cyber Monday was up for grabs on the digital front. But lately, it has become a hybrid of both. This year, retailers and online selling platforms are benefiting from shopping across multiple channels.
Amazon, Walmart, and eBay were the leading giants of Cyber Monday 2021. Even this year, there were lucrative Black Friday deals on Amazon Fire Tablets, as well as on the best gaming laptops.
Impact on Consumer Behavior
Cyber Monday generated a whopping $10.7 billion in 2021. With a prediction of $11.2 billion in sales this year, studies suggest that 66% of consumers will spend more on Cyber Monday. With the new BNPL (Buy Now, Pay Later) schemes in trend, consumers’ spending patterns depict an upward graph.
When people see the words, “Shop for the upcoming holiday season at a steal deal,” they feel compelled to spend more money than they had planned. Their spontaneity is enhanced by urgency and time sensitivity.
Consumers are expected to receive an average discount of 32% in 2022, compared to 26% in 2021. This incentive to buy things one doesn’t even need but does because they’re on sale is incredible and contributes to impulse buying. Customers are now purchasing even without free shipping for the same reason.
While the stocks that grace the market are also leftovers from Black Friday, retailers have found a way to control a consumer’s thrill. Black Friday offers are usually advertised well in advance, but Cyber Monday offers surprise the consumers, which fuels the impulsive thrill.
Before Cyber Monday is officially over, Walmart launched last-minute offers. It is also luring consumers to sign up for Walmart+ memberships, through which they can receive extra benefits like free two-day shipping and a complimentary subscription to the Paramount+ streaming service.
How are Other Countries Adapting To This Phenomenon?
The United States ranks #1 in GDP growth-wise and has always been widely viewed as a lifestyle influencer. A holiday tradition turns into a maddening shopping spree, and it has never stopped at any boundaries.
Countries like Belgium, Chile, France, Japan, New Zealand, Sweden, and the United Kingdom have all adopted Black Friday and Cyber Monday over the past decade with twists and trades.
How Does This Work For The Industry?
The sales trajectory demonstrates that November and December are the busiest of the year. Consumers flock to stores and online web pages by the millions, and the overwhelm is felt everywhere.
Selling more for less allows all retailers to clear the extra stock and earn more than triple what they usually do. It also proves that a business needs a robust digital identity to handle this heat.
Day by day, companies are focusing more on building personas and generating more revenue. But with almost every major corporation taking advantage of BFCM (Black Friday Cyber Monday), how does it make your brand stand out?
Luxury houses like Hermes, Chanel, Rolex, Louis Vuitton, and Apple do not participate in this massive shopaholic season, and it’s truly a mark of their craftsmanship. They do not sell at a rate less than what they are worth because their name and products are timeless. To own their pieces is an experience.
Leveraging this potential power is essential but— are you capable of being a trendsetter, or do you think you are a herd follower?
