Black Friday and the mobile market.
Since arriving in this country, Black Friday has become a key date in UK shopping. This is equally true for the mobile market. If we look back to Black Friday 2015, total Smart-Mobile sales grew +29% compared to the week before Black Friday. In 2016, we saw an even stronger uplift in sales volume of +49% in the week on week sales growth.
There is a general expectation among consumers that prices will continue to rise. If we look back at our UK Consumer Confidence survey in November 2016, ~40% of respondents said that they expected prices to rise at a faster rate over the next 12 months. The perception of rising prices has been proved correct for the mobile market with the average selling price increasing over Black Friday and throughout 2017. Within the mobile market, the premium price point of £450 + (*nsp) saw an impressive Black Friday spike. During 2017 we have witnessed higher prices, and slow wage growth coupled with sterling erosion. How will the rise in average selling prices so far this year be reflected in 2017 Black Friday prices?
Black Friday was once an opportunity for the none – post-pay space. However, contract sales have sky rocketed in 2016. Will we see this same pull towards the contract market in Black Friday 2017 or will the more traditional markets flourish? Up until now, the Black Friday event has happened in store. However, over recent years this has shifted to become an online event. Indeed, the share of the online Smart- Mobile market peaked on Black Friday 2016. Q4 shopping should be substantially boosted by the online channel if the current trend in online growth continues.
SOURCE and IMAGE: GfK