amazon prime day preview by fbic global retail tech july 14 prime day preview... · !2 fung...
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1 Fung Business Intelligence Centre Global Retail & Technology Flash Report: amazon prime day preview Competitors Respond to Amazon Prime Day Copyright © 2015 The Fung Group. All rights reserved.
July 14, 2015
PREVIEW Last week, Amazon announced that it is designating July 15 as Prime Day, set merely 6 days before its potential strong competitor jet.com’s July 21 launch date. Amazon Prime Day will be a global shopping event exclusively for Amazon Prime members who will be able to shop new deals offered every 10 minutes. The announcement drew a strong response from Walmart and focused more attention on Target’s and Best Buy’s long-‐standing tradition of holiday-‐inspired summer sales.
Today Amazon released a Prime Day final countdown that provided a preview of deals available at various times on July 15. Examples of Deals include: • Fire TV Stick, fastest selling Amazon device of all time, $15 off • Kindle, $30 off • Fire HD 7, $60 off • Fire HD 7 Kids Edition, $60 off • 32-‐inch LED TV, $75 • 40-‐inch 1080p LED TV, $115 • Brand-‐name 32-‐inch Smart HDTV, under $200 • 50-‐inch 4K TV bundle, under $1000 • Bose headphones at the lowest price ever on Amazon • Chromebook laptop, only $199 • Over 50% off two Nikon COOLPIX cameras • K'NEX 2-‐in-‐1 Ferris Wheel Building Set (Amazon Exclusive), $35.99 • K'NEX Crossfire Chaos Roller Coaster Building Set (Amazon Exclusive), $23.99 • Playskool Heroes Transformers Rescue Bots Optimus Prime Figure
(Amazon Exclusive), $9.99 • Up to 50% off any of the Harry Potter books • Save more than 70% on the Divergent Series Complete Box Set of books • Save up to 70% on select kitchen products from top brands like Cuisinart, KitchenAid,
Foodsaver and Thermos • Save up to 50% on select tools for the DIY auto enthusiast • Connected Car and Scan Tool products starting at 60% off • Road-‐trip-‐ready automotive products starting at 50% off • 30% off select clothing, shoes, jewelry, watches & more • Free luxury beauty sample box with $50 purchase of luxury beauty products, with
promo code LUXSAMPLES • Buy an Amazon.com Gift Card multipack, get $10 in Amazon.com promotional credit • Get 25% bonus Amazon Coins when you buy 5,000 or 10,000 Amazon Coins • Prime Now will also offer deals in the six cities where the service is offered
2 Fung Business Intelligence Centre Global Retail & Technology Flash Report: amazon prime day preview Competitors Respond to Amazon Prime Day Copyright © 2015 The Fung Group. All rights reserved.
Competitors’ Responses
BEST BUY OFFERS “BLACK FRIDAY AND CYBER MONDAY” SALE IN LATE JULY Best Buy is advertising its own Black Friday in July event that will run at the end of this month. Its summer deals are perfect for occasions such as weddings, graduations, birthdays, housewarming parties and family reunions. Following the Black Friday, Best Buy is also hosting a Cyber Monday on July 27 for special online offers. On Best Buy’s website, the promotion claims that there’s “[n]o need to wait for after Thanksgiving sales to get
Black Friday pricing….”
This is not the first time Best Buy has held a Black Friday–inspired sales event. Last year, the same event occurred on July 25 and 26. Apple products, Samsung smartphones, Panasonic TVs, Jawbone fitness trackers and Canon cameras were included in the promotion. However, the prices offered were not close to real Black Friday prices, especially for ASUS laptops and Jawbone activity trackers, according to some tech editors.
TARGET’S “BLACK FRIDAY IN JULY” PROMOTES APPAREL AND ACCESSORIES BEFORE PRIME DAY Target’s Black Friday in July sale is not all about stealing thunder from Amazon’s Prime Day. The company has run the sale every year since 2010. This year, the midsummer event offers buy one, get one 50% off on clothes, shoes, fragrances and other items on the Sunday and Monday before July 15
Last year, Target’s Black Friday in July sale was a three-‐ weekend promotion: the first weekend focused on apparel and footwear, the second on home items, and the third on electronics and toys. WALMART TO HOST A RIVAL ONLINE EXCLUSIVE SALE OF 2,000 ITEMS ON JULY 15 In response to Amazon’s Prime Day, Walmart just revealed a rival sale on over 2,000 items that will start the same day as Prime Day, July 15. The 2,000 rollbacks (Walmart’s term for discounts) will be offered online exclusively for 90 days, not for just “one day only” on July 15. In addition to announced deals in the electronics, home, baby and toy categories, Walmart promises some “atomic deals.” The company also lowered its minimum requirement for free shipping, from $50 to $35, which will apply until further notice.
Walmart’s upcoming rollbacks are clearly targeting Amazon’s membership-‐only Prime Day promotion. In advertising its sale, Walmart emphasized that its low prices require no “admission fee” and are “available every day.” In a blog post on the Walmart.com website, Fernando Madeira, President and CEO of Walmart.com, said, “We’ve heard some retailers are charging $100 to get access to a sale. But the idea of asking customers to pay extra in order to save money just doesn’t add up for us. We’re kicking off some awesome deals this week that will be available for everybody with no hidden
costs or admission fees, and they won’t be available for just one day.”
Amazon immediately reacted to the criticism by accusing its competitors of charging higher prices for items in their physical stores than they do for the same items online. “The idea of charging your in-‐store customers more than your online customers doesn’t add up for us, but it’s a good reminder that you’re usually better off shopping online,” said Greg Greeley, Vice President of Amazon Prime.
3 Fung Business Intelligence Centre Global Retail & Technology Flash Report: amazon prime day preview Competitors Respond to Amazon Prime Day Copyright © 2015 The Fung Group. All rights reserved.
Deborah Weinswig, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: +852 6119 1779 [email protected]
Cam Bolden [email protected] Sunny Chan, CFA [email protected] Tal Dor [email protected] Marie Driscoll, CFA [email protected] John Harmon, CFA [email protected] Aragorn Ho [email protected] John Mercer [email protected] Swarooprani Muralidhar [email protected] Charlie Poon [email protected] Kiril Popov [email protected] Stephanie Reilly [email protected] Lan Rosengard [email protected] Jing Wang [email protected]