amazon prime day 2016 wrap-up - fbicgroup · 2016-09-06 · amazon prime day offered a huge win for...
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JULY13,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
• Amazon reported that Prime Day 2016 was its biggestsalesdayever,withordersupmorethan60%worldwideandmorethan50%intheUS.
• SalesofAmazondevicestripled,andtheFireTVStickwastheoverallhottestseller.AmazondevicesareoptimizedtoconsumeAmazonmediacontent.
• Thediscountsencouragedahostofnewmemberstosignup for Amazon Prime—and Prime members outspendnonmembersbyafactorofmorethan2:1.
AMAZON PRIME DAY 2016 WRAP-UP
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JULY13,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
FUNGGLOBALRETAIL&TECHNOLOGY’STAKE
Data on Amazon Prime Day 2016 was mixed: E-commerce solutionscompany ChannelAdvisor estimated that US sales were flat and that UKsaleswereupbyasubteenpercentage,butAmazon itself said that it sawsolid double-digit figures for both countries. Despite these discrepancies,AmazonPrimeDayofferedahugewinforthecompany.It likelysignedupnearly1.5millionnewPrimemembersforthenext12months—andthosemembersoutspendregularAmazoncustomersbyafactorofmorethan2:1.The company also reported huge sales of Amazon devices, which areoptimizedtoconsumeAmazonvideo,musicandothercontent.
PRIMEDAY2016RESULTS
Today, Amazon released initial results from its 2016 Prime Day shoppingevent, which it termed its “biggest day ever.” The company said ordersincreasedby60%worldwideandbymore than50% in theUS. (Last year,Amazonsaidthatordersincreasedby266%onPrimeDayversusthesamedaytheprioryear.)Followingitsbiggestdayever,thecompanystated(asitdidlastyear),“Afteryesterday’sresults,we’lldefinitelybedoingthisagain.”
Source:androidauthority
Highlightsofthedayinclude:
• Record PrimeDay sales of Amazon electronic products, including FireTVdevices,Firetablets,Kindlee-readersandAlexa-enableddevices.
• PrimeDayordersnearlytripledyearoveryearforsmallbusinessesandsellersonAmazon.
• Amazon calculated that customers achieved double the savings as onPrimeDay2015.
• Salesincludedmorethan2milliontoysand1millionpairsofshoes.
• Morethan90,000TVsweresold.
• The number of customers ordering via the Amazon smartphone appincreased by more than a factor of two, and more than 1 millioncustomersusedtheAmazonappforthefirsttime.
• Other hot products included pressure cookers, headphones,hammocks,Roombaroom-cleaningrobotsandLenovolaptops.
AmazonPrimeDayofferedahugewinforthecompany,itlikelysignedupnearly1.5millionnewPrimemembersforthenext12months—andthosemembersoutspendregularAmazoncustomersbyafactorofmorethan2:1.
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JULY13,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
Amazon strongly marketed its own consumer electronics products byofferingsignificantdiscountsonthem.Asaresult:
• Amazon sold three timesmore devices than it did last year on PrimeDay.
• It sold 2.5 timesmore Fire TVdevices than last year, and the Fire TVStickwasthebest-sellingdeviceglobally.
• AmazonsoldhundredsofthousandsofKindlee-readers.
• Sales of theAmazonEchoartificial intelligence appliancewereup2.5timesversusthepreviousdailyrecord.
• ThemostpopularAmazonDashButtonbrandspurchasedonPrimeDaywereCascade,CharminandTide.
• Membersusedvoice commands topurchaseoneexclusiveAlexadealpersecond,onaverage(thereare86,400secondsinaday).
Thehottestproductsvariedbycountry,asshownbelow.
Figure1.HotPrimeDay2016Products,byCountryCountry Product
US 7-in-1multifunctionalpressurecooker
UK Oral-BBluetoothelectrictoothbrush
Spain USBmemorystick(SanDisk)
Japan Breakfastcereal
Italy USBmemorystick(Lexar)
Germany/Austria JamieOliverfryingpan
France/Belgium GameofThronesDVDset
Canada Sennheiserheadphones
Source:Amazon
WHATAMAZONDIDNOTANNOUNCE
Like last year, Amazondid not provideAmazonmarketplace sales figures,foreitherrevenuesorgrossmerchandisevolume. Italsodidnotprovideaspecific figure regarding how many Prime members there are—thecompanyjustreferredtothe“tensofmillions”figurethatithasbeenusingrecently.
Incontrast, lastyear, thecompanyannounced that ithadsignedupmorenewPrimemembersthanonanyothersingledayinAmazonhistory.Basedon figures from Consumer Intelligence Research Partners (CIRP), FungGlobalRetail&Technologyestimatesthat1.5millionpeoplesignedupforPrimeonPrimeDaylastyear.
VARYINGPRIMEDAYFIGURES
PrimeDaysalesestimatesfromChannelAdvisordiffersignificantlyfromtheorder figures Amazon provided today. According to ChannelAdvisor, USsaleswereflatasof5:00p.m.ETonPrimeDay(i.e.,witheighthourslefttogo untilmidnight PDT) after having been flat at 11:00 a.m., andUK sales
AccordingtoChannelAdvisor,USsaleswereflatasof5:00p.m.ETonPrimeDay(i.e.,witheighthourslefttogountilmidnightPDT)afterhavingbeenflatat11:00a.m.,andUKsaleswereup12%.ThesefigurescontrastsharplywithAmazon’sclaimsthatordersincreasedby60%worldwideandby50%intheUSyesterday.
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JULY13,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
were up 12%. These figures contrast sharply with Amazon’s claims thatordersincreasedby60%worldwideandby50%intheUSyesterday.
FungGlobalRetail&Technologyismaintainingitsestimateof$525millionindailysales,up26%from$415milliononPrimeDaylastyear.
PRIMEDAY:THEGIFTTHATKEEPSONGIVINGFORAMAZON
Ultimately, Amazon Prime Day is a win-win scenario for customers andAmazon. Customers receive deals and discounts on the day, and Amazonlocksinnew,big-spendingPrimemembersforthenext12months.Manyofthe biggest sellers were Amazon hardware devices, which generate astream of multimedia sales for the company. Prime customers spend anaverage of $1,200 per year, compared to $500 per year for normalcustomers(accordingtoCIRP),soPrimeDayisasuccessfultoolthatservesto lock in a new group of highly profitable Amazon customers for thefollowing12months.
Source:Forbes
Ultimately,AmazonPrimeDayisawin-winscenarioforcustomersandAmazon.Customersreceivedealsanddiscountsontheday,andAmazonlocksinnew,big-spendingPrimemembersforthenext12months.
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JULY13,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:[email protected],CFASeniorAnalystHONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
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