Blog,  Brand Management,  Business Strategy & Growth,  Case Study

What is “Brand-mas”? – Why Amazon Broke Records This Holiday Season

December 27, 2018

According to multiple sources that track holiday spending (Mastercard Spendingpulse & Amazon), consumers spend increased 5.1% (Nov 1 – Dec 24) this holiday season verses 2017. Total sales were close to $850 Billion!! Amazon also reported this holiday season was their record breaking season as statistics show they shipped more than a billion items just in the United States! (They have not yet released their global numbers)

But first…

WHAT IS BRAND-MAS?

The more I thought about consumer behavior during the holidays, I realized that purchasing habits for Christmas time holiday’s are a bit different than the shopping craze of Black Friday sales. Yes, many consumers purchase their holiday presents early on Black Friday but purchasing behavior is a little different. What do I mean by that? During Black Friday, consumers are more focused on sales and the amount they can save on purchases they’re trying to make. Black Friday, brands drive sales by the discounts given on their products and that’s what most consumers base their purchasing decision from. As a business owner, this is where you focus your promotional advertising efforts.

During the holiday’s, we have to realize that consumers aren’t making purchases for themselves anymore. When it comes to Christmas shopping, we don’t have much control on what we want to purchase. It’s the one time of the year we can all ask Santa for what we’ve wanted all year and if you were nice, you’re more than likely to get that! When it comes to Christmas, (at least in my family) it’s the time you get to ask for something you’ve wanted but didn’t make the purchase yourself because it’s not something you necessarily needed. This is where the power of branding comes into play the most.

The Christmas list you receive from your family & friends usually consists of specific products and even more, specific brands! Remember when you were a teenager, you always asked for a specific brand of clothing or the newest coolest brand item that was out that year, so you can go back to school showing it off to all your friends? Well, times haven’t changed, we still do that as adults and trust me, teenagers now do it more than ever. This is why I can’t stress enough to my clients, the importance of building a brand name and why one of the items I usually advise them on is how to grow their brand’s presence.

AMAZON BEAT THE COMPETITION & THEMSELVES

“This season was our best yet, and we look forward to continuing to bring our customers what they want, in ways most convenient for them in 2019. We are thrilled that in the U.S. alone, more than one billion items shipped for free this holiday with Prime,” said Jeff Wilke, CEO Worldwide Consumer.”

I personally did 75% of my Christmas shopping on Amazon this year and am not surprised by these numbers. Especially, when it came to children’s toys!

Amazon also mentioned their sales on Amazon devices increased by millions than years in the past with the all-new Echo Dot leading the charge. Other top-selling items also included, Fire TV Stick, Fire Tablet, Kindle products and Alexa Voice Remote. Not only they sold millions of Amazon products but they also drove tens of millions people to start Prime free trials or paid memberships. Which makes a lot of sense as their biggest value there is the FREE 2-Day shipping, Same-Day, and two-hour delivery with Prime Now! For all you last minute shoppers.

Small and Medium-Size businesses also had their best holiday season with their Amazon stores with a faster growth rate than retail. More than 50% of the items sold on Amazon this season came from their small and medium-sized businesses.

Here are some other top-selling brands that sold on Amazon:

I’m not surprised Amazon’s at the top of the list this year with all the progress they’ve made in 2018. The brand has made a huge leap as they entered into various markets and the value they continue to provide their customers and their uniqueness to focus on value vs. pricing has made them the largest online retailer in the world.

As you continue to build your brand, keep in mind there’s no one size fits all. A major aspect I advise my clients as we put together their brand strategy is you have to continuously optimize your brand strategy as the year progresses due to the seasonality in consumer purchasing behavior. Most business owners are so busy in their day-to-day operations, they don’t have time to figure out the “how” to’s. 2019 is right around the corner and I highly recommend you take time into understanding your customers purchasing behavior and putting together a plan. If you’re an owner who doesn’t have much time or don’t know how, reach out to me for a FREE 30-min consultation.

Happy Holidays!!

Don’t forget subscribe so you’re aware as soon as I post future blogs like this & please leave a comment below with your thoughts on this post! 🙂

-Rushi

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