Adobe Data suggests Amazon’s Prime Day fashion game isn’t strong – WWD
It is no secret that the pandemic has led to an increase in web shopping. But while COVID-19 may have funneled huge levels of traffic to online stores, new data from Adobe adds reason to believe such behavior is not going to dissipate with the lockdowns. Add the ripple effects of Amazon’s Prime Day to the mix, and e-commerce could be about to explode.
But Adobe’s Digital Economy Index also tells a different story. The report, released Wednesday, may show Amazon’s success with toys and electronics, but that magical touch still doesn’t extend into fashion.
Products popular during the previous Prime Day, which was held in October of last year, included books, gadgets and home appliances, which saw leaps of 112%, 77% and 52%, respectively.
The latecomers ? Clothing, 11 percent, and jewelry, 10 percent.
“Because there were a lot of department stores and clothing stores that were still closed or partially open, you want online clothing to perform at a high standard, a very high standard,” said Vivek Pandya, senior manager. from Adobe Digital Insights. WWD. “So it increased, but it was a more moderate increase compared to things like electronics and other categories that we profile. “
He thinks at least part of the reason is that fashion, which tends to shrink more on a seasonal basis to make room for new collections, doesn’t necessarily follow the same type of downsizing methodology or schedule. prices as toys, games and other items. .
But it’s hard to ignore the fact that Amazon has been unable to shed light on clothing sales in a year that has effectively frozen, shut down, or otherwise hampered much of the competition in the trade. Retail.
As for beauty, another Amazon priority, the company is doing much better. Beauty products saw a 62% increase in Prime Day 2020, according to Adobe Analytics, and April just marked a period of strong growth, with a whopping 233% increase from the numbers at the start of February.
Of course, these are slices of an empire doing amazing business in general, and especially during Prime Day, in multiple categories.
In the seven years it has hosted the sale, the tech company has managed to turn it into a mega business event of holiday proportions, Adobe noted. “Last year’s Prime Day event was able to generate almost a Cyber Monday in online spending – so those two days combined almost generated as much as a Cyber Monday,” Pandya said.
Adobe’s Digital Economy Index mapped the numbers: Online spending in the United States during the two-day Prime Day last year grossed $ 5.2 billion a day, topping $ 5 billion. $ 1 billion from Thanksgiving. Amazon sales were lower than Cyber Monday’s $ 10.9 billion, but Adobe expects this year’s edition, slated for June 21-22, to cross that threshold this time around- this.
Playing at a high level again is “obviously very important to Amazon,” Pandya said, “but the sales and the days themselves can have a huge impact on retailers of all sizes as well.”
This is because the event tends to inspire competitors like Walmart, Target and other stores to launch their own promotions, fueling sales in the retail sector. The overall growth of e-commerce in the United States in 2020 was 41% year-on-year. During Prime Day, it climbed 79%.
This halo effect could be even more massive this year and even help further accelerate online shopping trends. The data in the May 2021 report provides some context, but it requires a bit of analysis.
Data from Adobe Analytics puts online spending in the United States that month at $ 73.5 billion, which is an 11% year-over-year decline. But it was an unusual time with “high peaks” due to the pandemic, Pandya explained, so he went back further to better understand the trajectory of e-commerce.
“When you compare to [May] 2019 and do a two-year comparison, we’re actually up 58% in terms of online growth, ”he added.
Monthly comparisons can seem just as misleading. March and April showed greater year-over-year growth of 74% and 70%, respectively, surpassing that of May. However, those months were boosted by the stimulus payments. Considering this, it’s worth noting that May kept most of the momentum without having extra cash to motivate consumers.
This is not only impressive, but it bodes well for online shopping universally. As many experts have predicted, a large portion of consumers seem to rely on e-commerce more than ever.
Obviously, this benefits the industry as a whole, including Amazon. And now, as he prepares for his next Prime Day, expectations are high, at least outside of the clothes.