What We Learned From Black Friday

& Cyber Monday

Mike Griffin

Pitney Bowes

Vice President, Partnership Development, Consumer

and Merchant Services

Global Expansion Made Easy

Customer

Care

Empower your

customer care

representatives

to provide the

highest level

of support to

your global

consumers.

Website

Localization

Present a

meaningful

localized

customer

experience

that resonates

in any country

you serve.

Fully Landed

Cost and

Compliance

Quote duties and

taxes up front

and accurately

while ensuring

your business

complies with all

international

customs

regulations.

Offer payment

options across the

globe including

Alipay in China,

while protecting

your customers

and business

against fraud and

currency

fluctuations.

Expansive

Payment Options

Managed Risk

Provide a

seamless

delivery and

returns

experience

with competitive

rates, parcel

protection, and

easy package

tracking.

Logistics

Management

Develop and

deliver the right

message to the

right audience

and acquire

new, high-intent

international

customers.

Marketing

Services

The U.S. & U.K. Company We Keep

countries & territories

220+

customers

200+

70+currencies including

Black Friday and Cyber Monday for International ConsumersBoth shopping holidays are very real for international consumers.

Top Three Countries ordering from U.S. retailers on Black Friday 2015

China38% increase over 2014

1Canada

3% increase over 2014

2U.K.

37% increase over 2014

3

Orders placed with U.S. retailers on Cyber Monday 2015

increase over 2014

78%

Orders placed by

Chinese consumers

increase over 2014

34%

Orders placed by

Korean consumers

increase over 2014

114%

Orders placed by

Taiwanese consumers

Additional notes from Cyber Weekend

7

• Black Friday still significantly bigger than Cyber Monday internationally, in virtually

every country

• While trumped by China on Black Friday, Canada remained #1 international market

• Consumers targeted specific products.

• Average order values (AOV) down 10% while avg. unit retail (AUR) held steady.

Thanksgiving Black Friday Weekend Cyber Monday

Checkout Conversion increased dramatically by day

Regional “Pop”

8

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

AFRICA ASIA AUSTRALIA NZ CANADA CENTRALAMERICA

EUROPE MIDDLE EAST &AFRICA

SOUTH AMERICA

Incr

ease

ove

r A

vera

ge N

ove

mb

er D

ay

Black Friday Cyber Monday

The major regions were fairly consistent, with all experiencing a significant Black Friday pop in sales,

less so on Cyber Monday.

Declining Aussie

dollar continues

to be a major

factor

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

CANADA CHINA UNITEDKINGDOM

AUSTRALIA HONG KONG KOREA,REPUBLIC OF

SAUDI ARABIA JAPAN MEXICO SWITZERLAND

Incr

ease

ove

r A

vera

ge N

ove

mb

er D

ay

Black Friday Cyber Monday

Country “Pop”

9

Very wide range

among retailers:

2% - 75% of intl.

sales from China

Driven primarily by

social media –

majority of sales

from a few key

merchants

Black Friday success not limited to bargain brands, retailers

10

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Mass Brand (HighEnd)

Retail (HighEnd)

Brand (Middle) Luxury Flash Retail (Luxury) Retail (Luxury) Retail (HighEnd)

Retail (Luxury)

Incr

ease

ove

r A

vera

ge N

ove

mb

er D

ay

Black Friday Cyber Monday

Luxury brands participated in Black Friday promotions more than previous years, with very strong

results. It’s not just a mass market play for international consumers.

Luxury and high end retail

brands offered exclusives

over discounts, maintaining

high AOVs.

Facts and figures from the big weekend

Pockets of incredible sales exist all over the world for certain retailers but there are

still massive gaps on a country/merchant level in awareness.

• 70% of a mass merchant’s international sales came from China, while only

11% for another

• Korea represented 55% of Cyber Weekend sales for a luxury retailer.

• International consumers have learned to wait … the Black Friday peak gets

steeper each year.

• Despite FX headwinds, double digit YOY increases were common for most

retailers on both Black Friday and Cyber Monday.

• Several historical second tier markets emerged with massive increases in

sales YOY for the weekend

• Russia, Taiwan, Egypt, Israel, Nigeria

Key takeaways from the weekend

12

• You can’t go viral if they don’t know who you are.• Efforts to engage with consumers throughout the year pay big dividends on Cyber Weekend.

• Breakaway sales are very often product/brand specific. Bloggers talk

about products, not merchants.• Rice Cookers - Korea

• Designer handbag brand – China

• Jewelry – Mexico

• Baby - Russia

• Partnerships remain the best path to international scale.• Pitney Bowes & Alipay - China

• Recognizing cultural norms is key• Translated checkout

• Localized Payment & Carrier Options

• Duty/VAT inclusive and omnichannel pricing

The continued rise of mobile

13

Overall mobile sales increased 20+% as a percent of all sales, with great

variety on a country basis.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

South Korea UnitedKingdom

Australia Hong Kong Saudi Arabia China Canada Singapore Israel Mexico

Mo

bile

as

a %

of

Sale

s

Mobile

Up 50%

YOY

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