’Tis the season to be shopping in record numbers

Key Concepts:

• Black Friday Spending
• Cyber Monday Projections
• Generative AI in Shopping
• Year-on-Year Growth
• Consumer Deal Expectations

Black Friday Spending Trends

Black Friday 2023 saw record-breaking consumer spending, with a total of $11.8 billion spent. This represents a significant 9.1% year-on-year growth, indicating that consumers continue to prioritize major shopping days like Black Friday for the best deals, despite the proliferation of discounts throughout the season. Vivek Pandya, Director of Digital Insights at Adobe, highlighted this strong consumer engagement with marquee shopping events.

Impact of Generative AI on Shopping Journeys

This year's holiday shopping season marked the first official season where generative AI has demonstrably influenced consumer shopping behaviors. Consumers are leveraging AI tools for various aspects of their purchasing decisions, including:

• Product Discovery: Seeking ideas for items to buy.
• Price Comparison: Identifying the cheapest available items.
• Product Alternatives: Discovering alternative versions of desired products.

This integration of generative AI has led to a substantial influx of traffic from AI platforms to retail websites, with traffic topping over 800% on Black Friday. This demonstrates AI's growing role in guiding consumers through their shopping journeys.

Cyber Monday Projections and Expectations

Cyber Monday is anticipated to be the final major shopping day of the holiday period, with projections estimating a spend of approximately $14 billion. This is expected to show a growth rate in the 4% to 5% range. Consumers are likely to monitor deals throughout the weekend, potentially making some purchases, with a significant acceleration in spending velocity expected in the final hours of Cyber Monday.

Conclusion

The 2023 holiday shopping season, particularly Black Friday, has demonstrated robust consumer spending, driven by a continued expectation of significant deals on key shopping days. The emergence of generative AI as a tool for consumers in their shopping journeys is a notable trend, influencing product discovery and price awareness, and significantly boosting traffic to retail sites. Cyber Monday is poised to continue this trend, serving as a final opportunity for consumers to capitalize on online deals.