2016 Holiday Shopping Predictions: Europe And Asia-Pacific

© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

2016 Holiday Shopping Predictions: Europe and Asia-Pacific Adobe Digital Insights


Methodology

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Most comprehensive and accurate report of its kind in industry

Report based on analysis of 100 billion visits to over 700 companies across Europe and Asia -Pacificfrom January 2013 to present

Companion research based on survey conducted in October 2016 with 4,000+ consumers in the UnitedStates, United Kingdom, France, and Germany and 800+ consumers in Australia and Singapore

Holiday Season estimates include data between November 1 and December 31 in each country;currency is converted and represented in USD

Based on analysis of aggregated and anonymous data

Data from different Adobe Marketing Cloud solutions:

Adobe Analytics

Adobe Mobile Services

Adobe Social

Adobe Marketing Cloud has seen strong adoption in the retail space – Adobe’s leadership in the Web analytics market has given it a big advantage here. Retailers need “big data” insights to optimize their cross-channel digital experiences and campaigns –and deliver the personalized, relevant experiences that inspire customer loyalty and advocacy. – Melissa Webster, IDC Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other

trademarks are the property of their respective owners


Consumers Will Increase Spend By 10% This Holiday Season

Holiday spending will increase $15.8B year-over-year in the 13 countries tracked

Going online to shop is still about deals, but convenience factors are on the rise (ADI Holiday Survey 2016) Lower prices and good deals still tops the reason

to shop online across all countries

However, convenience factors grew across theboard, with the UK, France, and Singaporeshowing particular interest in the ability to avoidlines

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Companies See Visitors Mostly from Their Own Country

9 out of 10 visitors come from within the country While some countries see sizable traffic

from other countries, particularly theUK, most traffic is from residents

Consumers indicate that price, familiarity with brand, and product reviews are the top influencers of a major purchase (ADI Holiday Survey 2016) Price is the #1 influencer for a major

purchase in all countries surveyed

Familiarity with brand ranks #2

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Consumers Either Choose Promotions, Or Wait Until The Last Minute

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Promotions entice consumers to purchase around major sales events, such as Black Friday Examples: United Kingdom, Denmark, Sweden

Other countries skew towards last minute shopping, and major sales events drive little-to-no increases Examples: Germany, Belgium, Austria

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Black Friday is Larger than Cyber Monday Across Europe

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Over the past four years, Black Friday sales have grown more than twice as fast as Cyber Monday (+126%). Nordic countries see Black Friday growth at 187% over four years compared to 66% for other European countries

Cyber Monday’s growth figures are 85% in Nordic countries, compared to 29% elsewhere


Black Friday Changes Holiday Season Spending

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2013:Holiday sales ramped up until mid-December,. The biggest day was Cyber Monday, and Boxing Day had a noticeable spike.

2015:Black Friday took off, with 20% higher sales than Cyber Monday. Daily sales evened out, and weekend dips disappeared.


Holiday Sales Events Take Revenue From Other Days

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The combined sales of Black Friday and Cyber Monday are growing faster than annual rates in the UK and Nordic countries (50% and 150%, respectively) Despite growth on key dates, the holiday season isn’t getting any bigger. The share of annual sales in season in the UK is

down -0.3%; in Nordic countries it is down -1.2%. Sales now concentrate on key promotion dates: Roughly 10% of Black Friday and Cyber Monday sales come from other

days in the holiday season


European Shoppers Spend 61% More Per Day During The Season

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Monday is the most popular day to shop online in Europe in the regular season, but weekend shopping increases during the holiday Holiday season (Nov. and Dec) sees 7% more revenue on weekends than during the rest of the year

Online shopping decreases 20% from Sunday to Saturday.


Worldwide, Black Friday Grows Faster Than Cyber Monday

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Black Friday continues to be adopted worldwide, with revenue growing 40% faster than Cyber Monday

Black Friday has become the biggest day in many countries, including Denmark, Norway, Sweden, United Kingdom


$1 in $4 Will Come From A Mobile Device During Holiday

Smartphone revenue will nearly double (+96%) and browsing is is expected to be up 60% over last year

Tablet traffic is down 2%, while revenue is up by 13%

Smartphone holds a 2:1 advantage in share of revenueand more than a 3:1 advantage in share of browsing

Use of smartphone and tablets vary by country

Mobile activity ranges by 50% across countries,reflecting a different mix in technology adoption

UK and Japan have the highest mobile usage duringthe holiday season

Belgium, France and Germany continue to be moredesktop oriented

Europe continues to be the strongest region fortablets: British spend almost as much on tablets asphones (17% to 20%)

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Smartphone Revenue Will Surpass Tablets For First Time

Smartphone revenue will surpass tablet revenue in Europe for the first time in 2016

133% growth over three years vs. tablet’sstagnant performance

However, smartphone shopping still difficult

On average, only 23% of UK, France andGermany consumers say smartphoneshopping has gotten easier since 2015

Australia (22%) Singapore (30%) seesimilar trends

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Despite smartphones having lower revenue contribution, consumers still check sales and buy with their smartphones In every country, smartphones account for more revenue on Christmas Day than on Cyber Monday or Black Friday

Christmas Continues To Be The Most Mobile Day Of The Season

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Smartphones account for 58% more revenue on Christmas than on Cyber Monday and 34% more on Black Friday.


Best Online Source for Shopping Deals and Bargains

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US UK France Germany Australia Singapore

Email directly from a retailer 22% 23% 21% 14% 26% 18%

Ad seen from searching on a specific product/service 21% 27% 19% 22% 26% 16%

In-person conversation with friends/family 14% 14% 21% 24% 15% 14%

Display ad seen while browsing 13% 11% 16% 9% 10% 18%

Online or traditional news media 12% 10% 8% 15% 10% 14%

Social media 11% 7% 6% 7% 7% 11%

Push notification from an app 5% 4% 4% 3% 4% 8%

Email is consistently ranked high for receiving shopping deals and bargains, but not first in every country The US, France, Australia, Singapore rank email #1 for receiving deals; the UK ranks email #2

Another method consistently ranked high includes ads seen from searching for a specific product or service

Source: ADI Holiday Survey 2016


Online Shopping Stats by CountryAdobe Digital Insights


United Kingdom: Black Friday Drives the Season

Biggest day of the year for online shopping will again be Black Friday

Holiday Season Estimate: up $3 billion over last year $29.6 billion, 10% YoY growth Smartphone: 20% of revenue, 41% of

browsing Tablet: 17% of revenue, 16% of browsing

Biggest day: Black Friday $1.1 billion 3.2x a typical day $18.39 per Internet user

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Japan: Steady Growth Through The Season Until Year End

No significant day expected

Holiday Season Estimate: up nearly $3 billion $35.7 billion, 8% YoY growth Smartphone: 35% of revenue,

49% of browsing Tablet: 6% of revenue, 6% of

browsing

Biggest day: December 11th - $696 million 1.3x a typical day $6.05 per Internet user

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Germany: Black Friday Starts The Shopping Season, It Peaks in Mid-December

No single day, but rather a steady increase in sales

Holiday Season Estimate: up over $2 billion this year

$25.0 billion, 10% YoY growth Smartphone: 14% of revenue, 33% of

browsing Tablet: 10% of revenue, 12% of browsing

Biggest day: November 27th - $604 million

1.9x a typical day $8.45 per Internet user

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France: A New Shopping Period Is Emerging

Black Friday weekend competes with the Winter Sale (Les Soldes)

Last year, the Sunday after BlackFriday was 6% higher than the firstday of the winter sale period (Jan 6,2016)

Expect the Black Friday weekend tobe higher again in 2016

Holiday Season Estimate $15.6 billion, 11% YoY growth Smartphone: 11% of revenue, 27%

of browsing Tablet: 10% of revenue, 11% of

browsing

Biggest day: Black Friday - $420 million 2.1x a typical day $8.45 per Internet user

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Netherlands: Season Builds and Sees Shopping on Mondays in December

No day is expected to be twice the norm, one of the lowest lifts among countries tracked

Holiday Season Estimate $5.6 billion, 13% YoY growth Smartphone: 16% of revenue,


browsing

Biggest day: December 12th -$128 million 1.7x a typical day $8.06 per Internet user

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Sweden: Combines The Two European Trends – Binge and Wait

Sweden sees shopping early and late in the season

Holiday Season Estimate $4.3 billion, 12% YoY growth Smartphone: 21% of revenue,


browsing

Biggest day: Black Friday- $149 million

2.9x a typical day $16.35 per Internet user

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Austria: Shopping Doesn’t Start In Earnest Until December

Cyber Monday is the official beginning of the season, which ends two weeks later

Holiday Season Estimate $2.3 billion, 7% YoY growth Smartphone: 7% of revenue, 19% of

browsing Tablet: 7% of revenue, 9% of

browsing


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Belgium: Holidays Marked By Late Season Shopping

Interest spikes on Black Friday and sales continue to grow through December



browsing


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Denmark: Jumps On The Black Friday Bandwagon

Black Friday will be most significant day

Holiday Season Estimate $1.7 billion, 14% YoY growth

Smartphone: 13% of revenue, 25%of browsing

Tablet: 13% of revenue, 15% ofbrowsing

Biggest day: Black Friday- $66 million 2.9x a typical day

$12.10 per Internet user

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Finland: Black Friday Kicks Off The Holiday Season

Holiday Season Estimate $1.9 billion, 9% YoY growth

Smartphone: 13% of revenue,25% of browsing

Tablet: 13% of revenue, 15% ofbrowsing

Biggest day: Black Friday - $71 million 3.2x a typical day

$13.84 per Internet user

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Norway: Sales Rise Slowly After the Black Friday Spike

Norwegians shop on Black Friday and take Christmas off



browsing

Biggest day: Black Friday - $35 million

2.4 a typical day $7.10 per Internet user

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Canada: Black Friday Kicks The Season Off, Cyber Monday Leads

Black Friday kicks things off, immediately followed by Cyber Monday

Holiday Season Estimate $5.6 billion, 12% YoY growth Smartphone: 18% of

revenue, 38% of browsing Tablet: 10% of revenue, 11%

of browsing

Biggest day: Cyber Monday -$203 million

3.0x a typical day $6.34 per Internet user,

lowest among all countries

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AppendixAdobe Digital Insights


Data Table For ADI Holiday Survey 2016: Why Shop Online?

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UK France Germany Australia Singapore

Lower prices/good deals 64% 60% 50% 65% 69%

Free Shipping 40% 33% 30% 49% 48%

Product Variety 30% 33% 39% 25% 31%

Product Availability 38% 34% 34% 31% 24%

No traffic/lines 18% 31% 35% 19% 17%

Can shop from work 8% 7% 12% 11% 9%



Data Table For ADI Holiday Survey 2016: Influencers Of A Major Purchase

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UK France Germany Australia Singapore

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

Price 78% 67% 82% 72% 81% 65% 78% 70% 79% 65%

Familiarity with brand 49% 46% 46% 57% 37% 54% 60% 52% 53% 51%

Product reviews 45% 50% 48% 43% 64% 49% 36% 41% 44% 53%

Familiarity with retailer 27% 29% 24% 24% 14% 26% 23% 26% 21% 21%

Social media 1% 8% 2% 5% 3% 6% 2% 11% 3% 11%



Data Table: Reasons Why Online Shopping Has Gotten Easier

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US UK France Germany Australia Singapore

Retailers doing better at mobile optimization for shopping 54% 62% 57% 56% 65% 60%

Begun using apps for shopping, find them easier than browsing 41% 42% 33% 45% 48% 39%

Upgraded to a larger screen smartphone, things easier to see 36% 31% 44% 38% 32% 43%

Become more comfortable with smartphone security/privacy 32% 38% 34% 19% 41% 42%

Better mobile payment options 32% 39% 26% 39% 48% 45%
