Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
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July 17, 2018 Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe • Amazon launched its 2018 Prime Day (and a half) at noon local time in the UK and Europe markets and at 3:00 p.m. EDT in the US. • As expected, Amazon’s homepage during the European promotional event focused on the promotion of the company’s own consumer electronic products, such as its Echo smart speaker, whose price was reduced by 50%. • In the US, Amazon launched extra deals 12 hours early on Amazon electronic devices. The company organized its deals in 40 interest categories, which are available online, via the Amazon App, in Whole Foods Market locations, at Amazon Books and pop-up locations and at its Treasure Trucks. • This year, Amazon says that it is offering more than 1 million deals worldwide, compared to 100,000 deals two years ago. When we checked Amazon's US and UK websites on July 16 and July 17, between 2,000 and 3,000 products on each site were listed as "active or upcoming" deals for Prime Day. Prime members will also be able to take advantage of Lightning Deals in addition to 140 curated Spotlight Deals. Amazon Launches 36-Hour Prime-Day 2018 In the UK and the Rest of Europe Amazon Prime Day 2018 started at 12 p.m. (local time), July 16 in the UK and EU markets. The promotion will run for 36 hours until midnight (local time) on the following day, July 17. In Europe, this was the first offering of this event for shoppers in the Netherlands and Luxembourg. Still, Amazon does not operate full platforms for either of these two markets. For example, shoppers in the Netherlands can access Prime Day deals via the Dutch language version of Amazon.de, the company’s German portal. Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 The type of promotions offered this year are the same as previous editions of the event: Spotlight Deals (which cover major brands and popular products), Lightning Deals (which are valid for a few hours at a time) and other savings and sales. As expected, Amazon’s homepage during the promotional event focused on the promotion of the company’s own electronics, such as the Echo smart speaker, whose price was reduced by 50%. Still, third-party brands enjoyed great visibility and featured extensively among the Spotlight Deals, such as the Sangenic Tec Nappy Disposal System, which was listed on Amazon.fr, Amazon’s French portal. Source: Amazon In the Netherlands and Luxembourg, two markets that saw their first edition of the promotional event, topics on Twitter ranged from reporting of products available on promotion, to advice on best practices when scoping for deals on Prime Day. Source: Twitter Other retailers ran competing promotions in response to Amazon Prime Day during the day of the event. For example, the UK portal of online retail platform eBay highlighted deals that were available to all shoppers—with no need to pay for a membership fee—and stated that the website runs promotions all year round, not just for one day. All these were indirect references to Amazon Prime Day. Among other examples, British catalog retailer Argos highlighted flash sales and other promotions on the same day. Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 2 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 Source: EBay In the US At 3:00 p.m. EDT on Monday, July 16, Amazon launched its 36-hour Prime Day shopping event, offering more than 1 million deals worldwide, and consumers were able to access the website after roughly an hour-long outage. The company launched a presale, featuring “double the deals on Amazon devices,” 12 hours early, with extra discounts on Amazon electronics such as the Echo, Fire TV and Fire tablets, as well as new products for home security and Echo devices with screens. Consumers can also sign up for a free Prime trial subscription to take advantage of the deals. Amazon is organizing its deals in more than 40 interest categories, such as style and fashion, electronics, cooking, travel and so on. Prime members can capture the deals online, via the Amazon App, at Whole Foods Markets, Amazon Books and Amazon pop-up stores and from its Treasure Trucks. Members can also watch live programming on Amazon’s website. This year, Amazon says that it is offering more than 1 million deals worldwide, compared to 100,000 deals two years ago. When we checked Amazon's US and UK websites on July 16 and July 17, between 2,000 and 3,000 products on each site were listed as "active or upcoming" deals for Prime Day. The company will offer limited-time Lightning Deals throughout the 36-hour event, and US Prime members will be offered more than 140 highly curated Spotlight Deals. Prime Day Advance Offers Amazon started offering discounts on selected Prime Day products a full 12 hours before the shopping holiday began. Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 3 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 Source: Amazon Early-access deals were offered on Alexa-enabled products such as Echo, Fire TV and Fire tablets, as well as products for home security and Echo devices with screens. Source: Amazon Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 4 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 The First Batch of Deals The first batch of deals includes discounts in the following categories: • Amazon devices—Deals include a free trial subscription to Amazon Music, and discounts on TVs and Fire TV sticks, Echo products, Ring doorbells, Fire tablets and a 10% discount when using the Amazon credit cards. • Amazon brands—Amazon is offering 30% off on private-label brands such as AmazonFresh, Presto! and Solimo, AmazonBasics items such as bedding, office products, cookware and electronics accessories, and furniture and home décor from Rivet and Stone & Beam, in addition to 50% off on private-label apparel brands, including Amazon Essentials, Goodthreads and Daily Ritual. • Fashion—Amazon is offering 40% off on select denim styles from Levi’s and The Children’s Place, and on select jeans for men and women from Hudson, NYDJ and Lucky, as well as 50% off on athleisure shoes for men and women from Adidas, New Balance and Puma, and on activewear brands, including Champion, Lacoste, Russell and Puma. • Electronics—Products on sale include smart TVs, cellphones, headphones, memory cards, monitors, PCs, routers, accessories, 3D printers and robots. Eligible Prime members will receive 15% back on select Samsung TVs when using Amazon credit cards. • Smart home—Discounts range from 30% to 40% on smart home products, including lighting, sprinklers and smart plugs. • Home and kitchen—Amazon is offering 30% off select furniture, mattresses, rugs and appliances, as well as 40% off select cat treats and supplies. • Video games—Discounts include 25% off on an Xbox bundle and discounts on two Nintendo bundles. • Toys, books and baby—Discounts range from 30% to 50% off on select toys, puzzles, children’s books, games and baby products. • Sports and outdoor—Amazon is offering discounts on camping gear, grills, griddle stations and water filters. • Other deals—The company is also offering discounts on IMDPro (the Internet movie database) subscriptions, virtual dash buttons and Subscribe & Save subscriptions. • Small and medium-sized businesses—Amazon partners are offering discounts on tea and accessories, DBA testing sets, power banks, handmade products and Amazon Launchpad startup products. Where Consumers Can Access the Deals Prime members can access Prime Day deals through a variety of channels, including: The Amazon App—Members can set alerts to track deals up to six hours before they are live, as well as use the app to unlock additional discounts on select deals. Alexa—Members can just ask, “Alexa, what are my Prime Day deals?” to learn about deals or track orders. AmazonFresh—Prime members receive up to 30% off on frozen treats this summer, plus up to 30% off groceries and household supplies. New and existing AmazonFresh customers can get $30 off an order of $100 or more. Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 5 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 Whole Foods Market—Through July 17, Prime members who spend $10 in a single transaction in the store can receive a $10 credit to be used during Prime Day. Amazon Prime Rewards cardmembers will enjoy double the rewards—10% back—when shopping at Whole Foods Market on up to a total of $400. Prime Now—Prime members who have not yet tried Prime Now will receive $10 off their order before July 17 and receive $10 to use towards a future order. Treasure Truck—There are 25 trucks in select cities, each with special offers that can be picked up at the truck on Prime Day. Amazon Books and Pop-Ups—Members can take advantage of Prime Day deals at 82 Amazon Books and pop-up locations in 21 states across the US. Amazon.com in Spanish—Customers can shop Prime Day deals, view their shopping cart and place orders in Spanish. Amazon Prime Credit Cards—Cardmembers can enjoy 5% back on all Prime Day purchases when shopping with Amazon Prime Rewards Visa credit cards. Other US Retailers’ Activities Other retailers have jumped on the Prime Day bandwagon, offering their own promotions: • Best Buy is offering discounts on 4K smart TVs, laptops, smartphones and other products. • EBay is offering thousands of deals on brands such as Adidas, Apple, Dyson, KitchenAid, Samsung and others. • Target is offering deals on smart TVs, smart home and kitchen products. • Walmart is offering a Nintendo Switch console bundle, discounts on selected video games, TVs, tablets, phones and laptops and on Google Home products. Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 6 Copyright © 2018 Coresight Research. All rights reserved.
July 17, 2018 Deborah Weinswig, CPA CEO and Founder Coresight Research New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 deborahweinswig@fung1937.com Filippo Battaini Analyst John Harmon, CFA Senior Analyst Hong Kong: 6/F, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong London: 242–246 Marylebone Road London, NW1 6JQ United Kingdom New York: 1359 Broadway, 18th Floor New York, NY 10018 Coresight.com Deborah Weinswig, CEO and Founder, Coresight Research deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 7 Copyright © 2018 Coresight Research. All rights reserved.
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