Endemic supply chain problems have been part of a gloomy soundtrack into the key Q4 retail trading period this year. Against a backdrop of inflation, a shortage of raw materials, like computer chips and a lack of sufficient workers, Apple, Costco and Nike are just some of the consumer businesses to warn recently about inventory availability because of unprecedented production and delivery delays. Apple specifically mentioned chip shortages and a slow supply chain as the major reasons for warning shareholders about lower-than-expected Q4 revenue figures.
The threat of delivery delays and holiday inventory stock outs have pushed retailers and consumer brands to sound the whistle on Cyber 5 earlier than ever so that the mega shopping holiday event has felt more like Cyber month than just a long weekend.
However, Esben Poulsson, Chairman, The International Chamber of Shipping, said earlier this week that he believes “the worst is over” for global supply chain disruption and there are a number of encouraging signs - like slightly easing shipping costs and port backlogs - that he may be (thankfully for brands and retailers and customers of course) right.
There is no question that the operating environment is challenging though - probably even more than 2020 - but predictions are that we will still see a bumper Black Friday and Cyber 5 weekend, breaking yet more sales records, particularly online.
The brands that are being discovered online today and on the other Cyber 5 days will win this holiday season, which will be dominated by ecommerce.
Almost two-thirds of clicks (64%) occur on the top three products of a category page. So, we analyzed search results of the most popular search terms from Black Friday last year to see which brands are set to win this year.
Consumer Electronics
Winners (Greatest average weighted share of search* on Amazon, Best Buy and Walmart)
TV (Terms - “TV”, “Smart TV”, “Television”) - Samsung
Samsung was the best performer in the TV category across all search terms analyzed. Samsung had 50% of the Best Buy and Walmart top 10 for “TV” and also had the greatest share of top 10 on both retailer sites for “Television”. For “Smart TV” it had 30% of the top 10 but importantly it had the entire top 3 on Amazon for both “TV and “Smart TV”.
Amazon’s new Fire TVs were also prominently promoted. It was the first product behind the top 3 sponsored row on Amazon’s search results for all search terms. It was also the top-listed product on Best Buy for both “TV” and “Smart TV”.