CCTV Script 27/11/23
— This is the script of CNBC's news report for China's CCTV on November 27, 2023.
Black Friday, a key indicator for U.S. holiday retail sales, witnessed record-breaking online sales this year. Adobe Analytics reveals a surge in sales to $9.8 billion, a 7.5% increase, outstripping the predicted $9.6 billion. Utilizing a consumer-focused metric, Salesforce reports even higher U.S. online spending of $16.4 billion, contributing to a global sum of $70.9 billion.
Top-selling items included Bluetooth headphones, toys, vacuum cleaners, kitchen appliances, skincare products, and coffee makers, as per Adobe Analytics.
The first major trend is that this Black Friday, retailers offered substantial discounts, with Salesforce data showing an average 30% discount, notably higher than 2021's 24%. As consumers are now budget-conscious and have been reducing their purchases of non-essential items, retailers need promotions to attract them.
Ruhell Amin
Consumer Edge's Analyst
"The consumer is under pressure. And really, the takeaway from the latter part of Q3 sort of Q4 was that, you know, we are seeing softness in discretionary areas. So you're gonna see a lot of discounting."
Amin also noted that many retailers are extending promotional periods as much as possible, which could impact their profit margins to some extent.
The second trend highlights the rise in mobile shopping. Adobe Analytics reports a 10.4% year-over-year increase in smartphone-based sales, totaling $5.3 billion and representing 54% of all online sales. Furthermore, Salesforce's data showed that of all shopping traffic, including browsing and ordering, 79% was done through mobile phones, setting a new historical high for their records.
The third significant trend is the growing popularity of 'buy now, pay later' options among U.S. consumers. Although the current inflation rate in the U.S. is significantly lower than the same period last year, macroeconomic uncertainties persist, and consumers continue to feel the pressure. In light of tight consumer budgets, 'buy now, pay later' has become increasingly popular this year. According to Adobe Analytics, transactions using this method jumped by 72% compared to last year, amounting to approximately $79 million in orders.
In conclusion, the significant discounts and flexible shopping options have been key drivers of this year's Black Friday online sales in the U.S. Attention is now shifting to Cyber Monday, with Adobe Analytics projecting it to be the year's largest online shopping day, expecting sales to reach $12 billion, a 5.4% increase from last year.
