Effective Discounts: Despite retailers offering up to 80% off sitewide, high sell-out during the holiday season was registered for 20-39% range. Consumers are willing to purchase items with lower discounts so long as the products meet their needs. Strong sell-out on Outerwear over Christmas sale at under 40% off, proved that the category was also season-appropriate.
Early Shoppers: The holiday shopping mood began in the second week of November, which was 3 weeks ahead of Black Friday (Chart 2). Consumers continued to look out for bargains in the lead up to Black Friday.
Combination of Offer Mechanics: Asos performed well during Black Friday weekend with leading sell-out rates across most discount ranges. However, it failed to deliver similar success over Christmas sale, where Missguided topped.
The contrast in Asos’ performance between the two sale periods was attributed to the combination of offers executed. The retailer used promo codes and gave free shipping during Black Friday weekend, but these were absent during Christmas sale.
Next Steps for Retailers
Promotional Assortment: Retailers should consider curating a promotional assortment instead of just focusing on marking down slow-sellers. Planning ahead allows capitalising on the hype and traffic generated during the holiday to boost sales.
By backing a new vanilla-coloured cardigan with volume quantity and offered it at 20% off, is likely to drive 30% higher sell-through than during a non-peak period.
Timing Sale: Due to increasing sell-out starting from the second week of November, retailers should start stocking up for the holiday season as early as in October. Retailers can start discounting in early November and implement further markdowns in the week leading to a major discounting event.
Singles’ Day on Watchlist: Singles’ Day has famously overtook Black Friday in global sales volume but yet to gain traction among the retailers in the US and UK markets. Retailers in the western hemisphere can rely on Omnilytics to monitor discount movements on Singles’ Day across the other regions to capitalise on early signs of demands.