Category Archives: IT Distribution

Service is at the heart of Dixons Carphone’s long-term ambitions

While positive short-term results may grab the headlines, the real story is how longer-term transformation positions Dixons Carphone for future success

Positive financials are the backdrop
Given the potential pricing and downward margin pressures of BREXIT, investors were pleased at the end of June with Dixons Carphone producing an enviable set of retail results. Much focus was on the impressive growth in profit before tax of 10%, to above £500 million, with 4% increase in like-for-like revenues.

The other bottom line from the CEO: “Customer relationships are everything”
While the top line numbers headline the financial achievement of Sebastian James and team, it is the long-term transformation plans of Dixons Carphone which capture the imagination, and forecast the pillars of future success. Sebastian James highlighted transformation strategies focused on building a long-term future for Dixons Carphone:

  • Channel agnostic
  • Service as core offer and differentiator
  • Transition from ownership to consumption
  • Lifetime value relationships

Personalisation for consumption + differentiate services = Lifetime Value
The commentary highlighted the transformation of how service is now a core offering, not just an attach to the sale of a product. Services such as warranty, maintenance, and repair are creating a predictable, profitable revenue stream and a deep ongoing relationship with consumers.

Whilst mobile and phones were highlighted as one of the most challenging categories due to the rise of SIM free phones, James’s commentary emphasised how there is an aggressive plan for both financing and leasing to increase phone replacement.

To differentiate service, Dixons Carphone will roll out same day phone repair services. Plans also indicate a breakthrough 7-day repair promise compared to 28-day market standard. These strategies not only differentiate Dixons Carphone, but create positive lifetime relationships beyond the sale of a handset. A NPS (Net Promoter Score) in the 90s is particularly noteworthy and evidence of positive customer response.

Last year Sebastian James pledged to increase service income from £500mn to £1 billion. We did not hear any specific numbers on the investor call on progress towards this goal. At £1bn, services revenue would represent 10% of today’s revenues, and would outstrip Best Buy currently at 7%. Clearly both national tech retailers are seeing a bright future in services both as a differentiator and profit stream to offset product margin pressures.

Dixons Carphone is well positioned to profit as the “Digital Plumber”
One of the most exciting and innovative long-term developments is Dixons Carphone’s journey to becoming the digital plumber of the nation in its joint venture with SSE, briefly referred to in the presentation. It is all about occupying a place of trust in people’s homes, making life easy for the customer through leveraging the Knowhow expertise of Dixons Carphone and supporting SSE’s 5 million smart-meter customers. If the two companies can make this work, they will have moved the point of sale from the store and the smartphone into the home, a new offline revolution for tech retail.

The store as destination for new technology
There is one area where Dixons Carphone is lagging the market, and that is making the store a destination for experiencing new technology. Given that Oculus Rift and HTC Vive were launched at the end of last year, not enough has been done to create experiences for customers. The price-point of Virtual Reality is evidently beyond the purse of most consumers, but customers are looking to retailers to take a lead in demonstrating this and other new technology such as smart home. We did note, however, that in next year’s plans Dixons Carphone will be introducing a new in store gaming proposition and look forward to seeing what they do for this growing category.

Positive short-term results complimented by strategy with promising trends
Beyond the top line numbers, reaching more than £1 billion in online electrical sales is a significant milestone. The projected 24% average annual growth in home delivery, and one day delivery coming in the next year, Dixons Carphone is strategically positioned i) to capitalise on one of the largest customer bases ii) to be more profitable than a pure play business, with the capability to leverage its personalised “My Account” approach iii) to sustain customer relationships that translate into profitable life time value.

by AS

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Filed under Connectivity, IT Distribution, Market Analysis, PCs, Retail, Retail in CONTEXT, Smart Technology, Tablet PCs

GTDC EMEA Summit – Positive at the midpoint of the year

At the recent GTDC EMEA Summit, the CONTEXT data and team were in evidence as the preliminary results of its annual 2017 ChannelWatch survey were unveiled in a dedicated workshop, and the GTDC Rising Star awards were selected using the CONTEXT data.

There was a real buzz this year with over 175 attendees, a record number of vendors, and senior executives from across the industry. The location was excellent with top class hospitality in the Kempinski Hotel in Vienna.

The conference opened with an upbeat introductory speech from Tim Curran, the CEO of the GTDC. Europe is on the move, growing faster than the US, and with excellent results in Q1 2017. Curran also took the occasion to remind members of the services provided by the GTDC.

We were then treated to a fascinating glimpse into the future by “futurist and humanist” Gerd Leonhard. Bringing together a myriad of ideas about the current technology explosion, he closed off his speech with a slide which really sums up the challenge ahead. Humans can only advance at a linear pace, whereas technology capabilities are advancing exponentially. We need to deal with this so that we don’t become “useless humans” and we must channel the new technology to the benefit of all mankind.

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From GTDC Keynote Presentation by Gerd Leonhard, 13/6/2017 ©

The final session of the morning, before breaking off into workshops and 1-to-1 meetings, was a Distribution panel, hosted by Peter Ward. On the panel were Graeme Watt, formerly CEO of Avnet Europe, now SVP Value at Tech Data; Jeremy Butt, Executive VP of Westcon EMEA; Ilona Weiss, CEO of ABC Data; Eric Nowak, President of Arrow ECS EMEA; Svens Dinsdorfs, CEO of Elko; and Anton Herbst, Head of Strategy at Tarsus.

The discussions were broad-ranging around the future of Distribution, the impact of recent consolidations, and there was a plea from Graeme Watt for vendors to think solutions not products, in order to get the right results for customers. An interesting debate took place about the importance of recruiting and retaining the best talent in the tech industry, a challenging area. One of the panellists said that often when people have been trained up in a specialist area, they are subsequently targeted for recruitment by resellers or vendors. This is definitely the stuff of future discussions for this audience to grapple with and find solutions.

In the CONTEXT workshop the preliminary results of the ChannelWatch survey for 6 out of 17 countries – UK, France, Germany, Spain, Italy and Poland – were presented. A number of questions were asked by attendees at the GTDC conference who were curious to know more. As Andy Dow, Group Marketing Director of Tech Data UK said, “The more deeply you dive, the more you understand that you need to dive even deeper.”

In this year’s ChannelWatch survey we had an overwhelming response of nearly 7,000 resellers, supported by our distributor partners who shared the survey with their reseller clients. The respondents were mainly owners, CEO’s and senior management, covered a broad spectrum of resellers, VAR’s, etailers and retailers, as well as small, medium and large sized companies.

Overall resellers in these countries are confident about 2016 and optimistic about 2017. This has been confirmed by a stellar opening to 2017 with 5% growth in Q1 panel revenues in these countries compared to last year, ranging from 13% growth in Spain to 1% in the UK. The outlying country for optimism is Spain (71% think that 2017 will be better than 2016) and the country with the highest number of doubters is the UK where 20% see 2017 as being worse than 2016.

The preliminary ChannelWatch data supports the encouraging opening talk by Tim Curran, and we look forward to a positive second half of the year.

The full results of the ChannelWatch survey will be made available in the coming weeks.

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by AS

 

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At the heart of the CIO’s agenda: Business analytics is the stand-out technology investment in 2017

The recently published “State of IT” 2017 annual survey by Salesforce reveals that IT in industry is experiencing the biggest historical shift of its role to date, from a straightforward cost centre to a service delivering value and innovation, the “central nervous system” of modern business, “partnering with departments to orchestrate experiences with connected data sources and new capabilities”.

With this has come a significant change in the role of the Chief information officer (CIO). No longer just there to keep the lights on, the CIO is increasingly at the heart of the enterprise providing more customer-focused business analytics. Vala Afshar, Salesforce Chief Digital Evangelist, writes that “to be successful, modern CIOs must abandon their tendencies toward control and adopt an outlook that is more collaborative and customer-centric than ever.” There is evidence already that this attitude is becoming commonplace, with 61% of IT leaders saying that providing a single view of the customer is a high priority over the next 12–18 months.

Despite this shift, there remains an uncomfortable mismatch between business strategy and expectations, as CIO priorities are evolving rapidly but traditional views of the CIO as chiefly an operational role are yet to be shrugged off. The Salesforce survey found that 77% of IT leaders now view IT as an extension/partner of business units rather than a separate function. Yet a CIO survey by Deloitte’s found that while 78% of the CIOs polled said that strategic alignment on IT was essential to their success, only 36% ranked their organisation as “excellent” or “leading” in this capability.

A look at IT distribution
Like the business CIO, technology distributors worldwide are intent on making analytics a key area of investment. GTDC’s recently published report, “Insights into 2017 – Channel Executives and distribution leaders share their partner perspectives”, considered analytics as a key focus for distributors. Far from being a new area, analytics in 2017 promises distributors further innovation, incremental revenue and profit potential through the development of complex business intelligence (BI) solutions. As one Distribution executive put it:

“We’re using Analytics to identify opportunities for our business partners. For example, bringing new products to partners. We continually do an analysis of customers for the last two years. We have to move faster in investing in some next-generation areas and help our partners learn how to monetize these new opportunities. That’s really key for us.” — Miriam Murphy, Senior Vice President, North Region EMEA, Avnet TS.

Key questions for CONTEXT’s upcoming Channel Research Group
CONTEXT will be exploring the role of BI and analytics in the inaugural meeting of its Channel Research Group on May 30th in London, UK, asking the following questions to its Distribution, Reseller and Vendor partners:

  • What kind of opportunity is BI/Analytics to your business?
  • Has your company benefited from BI/Analytics information provided by a 3rd party?
  • How are you currently investing in BI? Is this for your own business or to help your partners develop BI solutions in their business?

For more information on CONTEXT’s Channel Research Group, please contact us!

by CS

 

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B2B – a risk for the channel or a missed opportunity for tech retailers?

The recent news about Amazon launching its B2B activity in Europe, starting in Germany, has generated a lot of press coverage. In the US it is reported that in the last two years the number of business customers shopping at Amazon has increased from 200,000 to 400,000, so resellers in Europe are concerned. “Amazon’s B2B challenge is a danger for the Channel,” was the headline on CRN UK’s front page.

So is this news a risk to the channel or in fact a missed opportunity for retailers?

Three years ago CONTEXT ran a conference which highlighted the opportunity of what we named “R2B” short for “Retail-to-Business”. Many retailers from across Europe attended this conference, but very few had the real commitment to make it happen. So will the news of Amazon’s arrival in this space make them wonder if they missed an opportunity? Surely if Amazon, with no stores, no experience of providing human-to-human customer service, and no expertise in business IT, can go for this sector, then the tech retailers can do so also.

Successful retailers in B2B are those who have invested in a service capability. Best Buy and the Geek Squad, DixonsCarphone and Knowhow, the Darty van with “le contrat de confiance” emblazoned on it – these are the retailers that have invested in service. Sebastian James, CEO of DixonsCarphone, said at Retail Week Live in March 2015 “if we don’t invest in the whole chain we risk to become irrelevant”. Some etailers have also managed to create a space in this area – an example is LDLC in France which has set up a nationwide network of resellers who help their business customers to install and maintain their IT equipment.

If a retailer is keen to take on Amazon in the B2B area here are the 5 key steps to follow:

  1. Identification and targeting of business customers through the use of CRM and intelligent sales activity – for example, every time a customer asks for a VAT invoice, this is a sure sign that they are a business; or when they purchase more than 2 of any machine, this should be a sign. Human interaction with the customer is important, as well as the posing of key questions online. On Staples website, the very first action is to identify yourself as a business or as a normal customer
  2. Curation of business SKU’s – with the support of vendors, retail is a way of targeting incremental sales from small businesses of less than 25 seats. But it is necessary to have the right products, which are not always made available to retailers. You can buy a Lenovo Thinkpad for a B2B customer on PCWorldbusinessonline, at Amazon.co.uk, at LDLC but not at Fnac, Darty, El Corte Ingles or even Media Saturn.
  3. Category management to drive out the optimal product mix – the business SKU is part of an ecosystem – understanding the upselling opportunities to meet the full needs of the business customer is a key element of success. R2B market data is a vital support for retailers by showing top selling products and typical market baskets.
  4. Service at every stage – the business customer needs service in store, online, at the point of installation and support in maintaining equipment in a functioning state. This is the most demanding element of the proposition in terms of investment. Recently, I asked the CEO of a retailer in the Middle East if he was concerned about Amazon’s purchase of Souk.com, and he said “No! We will differentiate ourselves through our service offering.”
  5. Financing of small businesses – this is a key activity which helps SMB to survive and grow. Healthy credit terms and even loans help small and medium businesses to expand without fear of cashflow shortage.

It is not too late for retailers to enter into this space, and capture a market which is at risk from the ever-innovative and expanding Leviathan which is Amazon.

by AS

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2017 Tech Retail Trends – Omnichannel Transformation

 

Omnichannel is critical, but 40% of retailers say that they are not yet getting an ROI on their omnichannel investments

At its CES breakfast in Las Vegas, two retail CEOs presented their view of omnichannel transformation in Europe, and CONTEXT delivered the highlights of the Omnichannel Retail Survey it conducted in December 2016. The responses from 31 European technology retailers, two-thirds of them in the C-suite, illustrate dramatically the transformation of retail to omnichannel.

While the focus last week in Las Vegas was on new products, CONTEXT hosted a CES breakfast on selling technology products in an omnichannel world. Retailers clearly recognise the critical importance of omnichannel transformation – 90.3% of responses to the CONTEXT survey said that omnichannel is critical or very important to their business, but 40% also said that they are not yet getting an ROI.

“Consumers are already omnichannel, but very few retailers are, because it is really hard and expensive to become truly omnichannel,” said Oliver Meakin, CEO of Maplin, as he opened the session. “Service and advice will be the key areas of differentiation in technology retailing in the future, coupled with good old retail-tainment – people like going shopping, and, therefore, omnichannel – rather than pure clicks – will ultimately win through.”

While the investments are substantial, they appear to be worthwhile. Retailers responded that they know they have to do it. 96.8% responded that they are transforming themselves to adapt to customer behaviour. The expectation is that omnichannel customers will engage more often, purchase more, and potentially add more items to their market basket. And yet, when CONTEXT asked the top tech retailers if omnichannel customers were more profitable, the verdict was not clear:
• 40% of tech retailers said yes, omnichannel customers are more profitable
• 30% said no, omnichannel customers are not more profitable
• 30% said they do not know

This mixed set of responses is indicative of two factors. Major omnichannel investments are relatively recent, so perhaps there has not been time to measure results. Additionally, it can be challenging for retailers to measure total customer relationships across time and channels.

“Do the consultants on omnichannel realise how difficult it is?” asked Hans Carpels, President of Euronics International, Europe’s second-largest tech retailer. Mr Carpels highlighted as an example the difficulty of setting up an omnichannel returns process with stores who are not the beneficiaries of that particular online sales.

There are no end of processes which need to be addressed in order to make omnichannel work. As Dr Chris Petersen, keynote speaker and retail expert said, “The whole is greater than the sum of the parts. You may have a great click-and-collect experience online, but if you wait for ten minutes to collect your goods, or the wrong product has been picked, that one piece breaks the whole experience.”

The reality is that is that transformation to omnichannel is happening in retail. It is significant that 19.4% said that they are well prepared for omnichannel, 74.2% said that they are making considerable progress and only 6.4% owned up to being not ready.

Clearly, other than sales from social media, the majority of retailers are now offering enormous variety in how they fulfil customer orders, whatever this may cost them.

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The level of complexity is evident from the different areas of investment which retailers have made. Systems integration tops the list, as it is essential to develop the web interface and link the POS system with logistics and CRM. Only returns management scored low, with just over 20% of retailers having added new internal or external resources in that area.

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Our key takeaways

It is clear that omnichannel is not just the new normal for customers, but for retailers as well. There are some clear trends and calls to action for 2017. In the retailer transformation to omnichannel:
• Retailers will continue to invest in omnichannel but will have to manage programmes closely to ensure that they get the ROI on it, or they risk seriously weakening their financial position.
• We expect that omnichannel retailers will gain competitive advantage by increasing the number of categories and SKUs held online – in the survey, 80% said that they have already significantly increased the number of SKUs.
• Retailers will manage the inventory implications of omnichannel fulfilment by partnering with third parties such as distributors.
• Omnichannel success will be not based on one thing, but rather a collective enterprise approach involving merchandising, systems, technology, and logistics.
• Consumers do not think in terms of channels: they view their path to purchase as a seamless experience across their customer journey. As a consequence, the term omnichannel itself is no longer accurate. In 2017 omnichannel will become omniretailing.
It is a great time to be an omni-consumer and a very challenging time to transform to become an omni-retailer!

For more information about the CONTEXT Retailer Omnichannel Survey please email asimon@contextworld.com

oliver-meakin-2Oliver Meakin, CEO of Maplin speaks at CONTEXT Retail CEO Breakfast at CES, 6 January 2017

By AS

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Tech Predictions: 2017

Untitled.pngPC’s in 2017
In 2017 European PC sales in the business segment are likely to benefit from a gradual pick up of Windows 10 refreshes. In Western Europe in particular, the commercial PC segment is expected to also benefit from the need for enterprise mobility solutions which will be a co-driver in sales of both notebooks and mobile 2-in-1 products.

The consumer PC segment is expected to remain more challenged across Western Europe. There is a possibility that component shortages, which impacted product availability in 2H 2016, will lead to price increases in the first half of 2017which could affect demand. However, on a positive note, the market is likely to benefit from continuing high demand for gaming PCs. While this segment remains small in terms of volume, new technologies – including virtual reality – will also drive growth that will have a positive effect on revenue and margins.

From a wider, macroeconomic perspective, PC sales in a number of EMEA countries are likely to continue to be affected by uncertainties including currency fluctuations and political instability.
Marie-Christine Pygott, Senior Analyst, PCs

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View on Apple
Although you never know what Apple will pull out of the hat when launching new products, the last few years have been quite staid. The last “new” new Apple product was the Watch: but this was heavily trailered so, when it finally arrived, it wasn’t a surprise. We have waited in vain over the years for an Apple TV, and recently yawned when the new MacBook’s Touchbar was announced. In 2017 we have the prospect of yet another phone, the iPhone 8, and not much else.

Except, after much speculation, Apple has acknowledged for the first time that it is investing in autonomous car technology. In a letter to US transport regulators, Apple said the company was “excited about the potential of automated systems in many areas, including transportation”. Apple was first rumoured to be working on an autonomous vehicle in early 2015, when reports suggested that the company already had 600 employees working on an electric car design. Later that year, more rumours suggested that the company hoped to launch an electric car to the public by 2019.

So maybe Apple can surprise us next year. The race for electric vehicles is hotting up, and with the word being that Apple has been in talks to buy luxury-supercar maker McLaren, we may just see a prototype iCar roll onto the stage in 2017 after hearing those words, “one more thing”.
Jeremy Davies, CEO & Co-founder

Enterprise
CONTEXT will be closely tracking the evolution of storage systems and converged architecture: as cloud-managed wireless network service companies slowly but surely replace in-house wireless LAN appliances, we expect continued strong growth on these two fronts. Companies to watch: Cisco Meraki, Open-Mesh, Zebra (part of Extreme Networks), Ruckus.

Sales of solid-state drives (SSDs) have increased throughout 2016 and, for the first time, surpassed those of hard disk drives. As the price of SSDs fall and their capacity increases, 2017 will see this trend continue. In 2014, we predicted that 90% of storage components would be SSDs by 2020, and the industry is well on track to achieve this.
Gurvan Meyer, Senior Research Analyst, Enterprise Team

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Displays
Large Format Display sales in 2017 are expected to continue to grow strongly with demand being driven by the education and corporate sectors. For AV providers, the corporate business market continues to be a huge growth opportunity, with a big shift towards interactive products for meetings rooms, as corporates increasingly collaborate over multiple sites, with numerous remote attendees.  The education market is also expected to be a key driver of growth in the LFD segment with educational institutions increasingly adopting display solutions to change and enhance the ways they communicate with students, staff and visitors.
Lachlan Welsh, Senior Analyst, Displays

Imaging
Printer hardware sales will continue to contract overall, though some segments are expected to register growth in 2017, such as business inkjets with higher end products due to be released in 2017 to compete with laser devices. The shift from hardware to contract sales continues, therefore, the importance of partnerships and focus on channel partners will prevail. HP’s acquisition of Samsung printer business is expected to complete in the second half of 2017, as companies join their efforts aiming to disrupt the A3 copier market business.
Zivile Brazdziunaite, Senior Market Analyst, Imaging

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3D Printing
2017 will continue to see the two sides of 3D printing – the personal/desktop side (those under $5,000) and the industrial/professional side – evolve separately.  Desktop 3D printers will become even more affordable (some already cost as little as $300!) while the some of the world’s biggest brands will increase their presence in the Industrial/Professional market where technology will continue to advance and improve.

Desktop market leader XYZprinting has already expanded its brick-and-mortar retail presence – at Best Buy, Toys-R-Us, and Barnes and Noble in the US, and Darty, Dixons and Media Saturn in Europe – and it is expected to continue with aggressive price points in to promote further retail expansion around the globe. Next year will see HP fully enter the 3D printing world with the first shipments of their professional Multi-Jet Fusion 3D Printers, and a new business is to emerge from GE after their acquisition of two of the top five metal 3D printing companies in 2016.  HP and others will champion a change of focus in the plastics 3D printing market from rapid prototyping to mid-range production.
Chris Connery, Vice President Global Analysis and Research

VR & Gaming
The world of eSports will continue to grow in both popularity and recognition, as a movie is planned starring Will Ferrell on the burgeoning phenomenon. Vendors and retailers will pay more attention to PC gaming as the category offers them the chance to make up for losses in a sector which has been declining in the last few years. High average selling prices for gaming products, excellent attach rates and margins for gaming accessories, and the availability of unsecured consumer borrowing will be major drivers. Virtual reality will also continue to grow in the consumer space, although still at a modest pace. However we expect to see more HMDs going into the B2B and corporate reseller channels for which products such as the Hololens are a gift.
Jonathan Wagstaff, Country Manager UK & Ireland

Smart Home – Battle of the Giants
Back in October 2015 we predicted that new forms of control for smart home devices would stimulate growth in the market. We highlighted three: voice activation, gesture recognition and mind control. The first two are already here: voice control has exploded since Amazon launched the Echo in 2016 and 5 million devices have already been sold. We predict that this trend will grow quickly in 2017 with the Amazon Echo continuing to sell and the launch of Google Home in 2017. Google will apply a massive marketing budget – in the US they are already paying for end-of-gondola slots for Google Home devices.

With this in mind, we see four, and potentially five, giants battling for the smart home in 2017: Amazon, Google, Apple (with Homekit), Samsung (with Smart Things) and Microsoft. The ace up their sleeve for Amazon is entertainment (access to Prime Music), for Google it is search, for Apple and Samsung it is interoperability (potentially using the TV), and for Microsoft it is building out from the PC. We are optimistic that consumers will benefit: with a more coherent offer, small start-ups will no longer be able to create proprietary systems and existing systems will make themselves linkable to the big five in order to survive. It is too early to place bets on a winner, but Amazon has rapidly taken advantage of being first-mover. Gesture control will grow and develop in 2017, but mind control will need to wait for another year!
Adam Simon, Head of Retail

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Is Black Friday dead? A US perspective

Guest blog by Chris Petersen, CEO of IMS, Inc.

Is Black Friday dead, or just rapidly waning? Data indicates the demise of the premier kickoff to holiday shopping in the US. It’s not just about the economy and consumer confidence, although those are key factors. The retail phenomena unfolding right now is about universal changes in consumer behaviour, regardless of socio-economic status.

Black Friday has declined in US retail … will the same trend happen in Europe?
In the not too distant past, stores were the premier focal point of holiday shopping. Black Friday was an event created by bricks and mortar retailers to entice consumers to come shopping on the Friday after US Thanksgiving, which always falls on the 4th Thursday of November. Since many US customers take off from work on Black Friday, it became the quintessential retailer marketing event to lure shoppers to the stores with “best deals” of the season. The theory was that if shoppers came early to find a deal, they would come back to stores for the rest of their shopping.

Not surprising, the UK and other European retailers adopted Black Friday as a promotional event to kick off the holiday selling season and draw traffic to stores. CONTEXT’s analysis of distribution trends in 2015 was very predictive for UK retail sales spiking for Black Friday. Will the trend continue in 2016?

Black “Friday” — death by a thousand clicks
Increasingly retail stores have been jumping the gun on Black Friday by offering Black Friday sales before the actual Friday. The result in the US is that there is no longer a singular event. Black Friday has suffered scope creep, and it literally has become a “Black Week” of promotions and deals.

More importantly, consumers don’t see Black Friday as just “stores” any more. Amazon and other online retailers have creatively capitalised on “Black Friday” by offering daily online deals across an entire week, or more. This has created a new trend for “Cyber Monday” which is the first Monday after the traditional Black Friday. In the US, workplace productivity actually drops on Cyber Monday as people at work scramble to get better deals on stuff they didn’t buy or couldn’t get on Black Friday. Cyber Monday is projected to be the single largest volume day of the entire holiday shopping season.

Did the same trend happen in the UK and other countries? Compared to the US, the UK has a higher % of sales occurring online, especially for technology. Many of the UK promotional ads in 2016 now in fact show the Black 5 days of deals: Thursday, Friday, Saturday, Sunday and Cyber Monday.

The net result is that today’s consumer is an empowered consumer. They are not bound by place or time of event. This translates into a much diminished effect of single retailer store events like Black Friday.

Large retailers have privately confided that Black Friday needed to “die”. The traditional approach of cramming all deals into a single day dramatically lowers prices and margin. It would be healthier for both if retailers and consumers could evaluate offers and spread shopping over a period of time. In fact, that is how today’s omnichannel shoppers are already behaving – shopping multiple days in multiple ways.

So what happened in the UK for 2016?
Were Black Friday sales up again this year? Or, did consumers shift more of their shopping purchases to Cyber Monday? How much of their Christmas budget have they spent? The final store sales numbers won’t be tallied for a couple of weeks.

However, CONTEXT is conducting consumer pulse survey right now. We are asking consumers when they shopped, and how much they purchased on Black Friday and Cyber Monday. It will be interesting to see how much they expect yet to spend in the rest of holiday season.

 

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