Title: Unraveling Consumer Trends for 2025 through 2024's Black Friday and Cyber Monday Spending
In the aftermath of the 2024 Black Friday and Cyber Monday (BFCM) madness, businesses are left to unravel the data and dissect the insights that may guide their strategies for the forthcoming year. With uncertainty flooding the market due to political and economic unrest, the success of holiday purchasing was far from certain. But now, the figures have been crunched, and they paint a promising picture.
As CEO of a marketing agency, I can attest to the fact that a prosperous sales period does not automatically indicate future success. Rather, this is the perfect time to strategize for what's to come, be it good or bad. In this spirit, let me share some crucial observations based on the available data.
Digital Dominance Persists
According to Mastercard, while brick-and-mortar Black Friday sales only registered a paltry 3.4% increase in the U.S., e-commerce sales saw an impressive 14.6% surge compared to last year. While quantifying the distribution of sales between direct-to-consumer websites and e-commerce titans like Amazon, Walmart, and Target remains unclear, the undeniable fact is that online shopping's momentum continues to grow.
In the context of 2023, when e-commerce activity only saw an 8.5% increase, the addition of another double-digit figure to the tally demonstrates a persistent trend in digital domination. Some of the primary drivers embodying this phenomenal growth include:
- Availability of products
- Convenience in delivery
- Competitive alternatives available with a simple click
Alas, hold the presses! The delightful world of in-person shopping is now facing trying times.
The Decline of In-Person Retail Experience?
I, for one, still find joy in an enchanting in-store retail experience. Growing up, I relished the joys of ambling around the mall, admiring the latest offerings with a dash of excitement on weekends. But times do indeed change, and it's crucial to acknowledge the present-day realities.
On Black Friday, in-store foot traffic witnessed a 6.3% decline compared to the previous year. More specifically, the traffic between November 24 and 29 also dipped 3.9%, and considering the absence of digital comparison, these figures paint a dismal picture.
Regrettably, it remains unclear if this devastating performance is a result of struggling small mom-and-pop businesses or large-scale retailers facing setbacks. However, if retailers wish to entice shoppers back in 2025, focusing on enhancing the in-store customer experience is imperative.
Amazon's Unyielding Reign
Undoubtedly, the fabled juggernaut that is Amazon held an unparalleled grip on the e-commerce purchasing power in 2024. One survey revealed that an astounding 86% of BFCM shoppers named Amazon as their go-to holiday gift destination. In comparison, Walmart and Target lagged behind, trailing by 21 and 40 percentage points, respectively.
Our marketing agency has relentlessly championed this notion for years. Selling on Amazon can be a hard pill to swallow for direct-to-consumer e-commerce businesses, primarily due to the competitive landscape and slim profit margins. However, if you're determined to reap the benefits of Amazon's extensive reach in 2025, it might be an idea to grit your teeth and accept the lower DTC profits in favor of the greater product volume that Amazon can move.
Some factors contributing to Amazon's All-Star reputation include:
- Established trust
- Simple return policies
- Free shipping
To provide customers with similar perks, consider how you can emulate these features and create a riveting shopping experience tailored to your clients.
The Reality of Purchasing Power – and its Hidden Costs
The pervasive question around BFCM 2024 was whether or not consumers would continue their lavish purchasing habits. To everyone's relief, yes – they did (fairly). Holiday online consumer spending witnessed an 8.7% increase, indicating a gain in consumer confidence.
Interestingly, the burgeoning use of "buy now, pay later" options, a la Klarna and Afterpay, boosted overall spending by over 11.4%. While providing retailers with an opportunity to attract customers with financing alternatives, the rising debt levels among U.S. consumers may pose concerns in the coming year.
Though the positive consumer sentiment appears promising, it is essential to strike a balance between offering enjoyable shopping experiences and ensuring that customers understand the financial commitment involved. Perhaps prioritizing your tried-and-true best-selling products in promotions over fresh, untested releases can be a prudent strategy for minimizing potential backlash.
In closing, I must say that I'm looking forward to what the new year will bring. Following the post-BFCM frenzy, many of our clients observed steady purchasing throughout December. I would choose consistent and gradual interest over short-lived spending spikes any day of the week.
Here's wishing you and your business a prosperous 2025!
And if you're a successful PR, media, creative, or advertising agency executive, you may just qualify for our exclusive invitation-only community, the Website Agency Council.
In light of the data analysis, Bernard May, the CEO of a marketing agency, emphasizes the importance of strategizing for the future, regardless of the positive sales during the BFCM period.
During the 2024 BFCM, while brick-and-mortar sales saw a minimal increase, e-commerce sales surged significantly, further demonstrating the digital dominance in retail.
