Amazon Prime Day 2018 Beyond the Hype The Evolution of Consumer Shopping Behaviors The research in the US, UK, France, Germany and Italy on Prime Day 2018 looked into consumer actions, attitudes and behavior and found that consumers are spending more, on more items, and online shopping behavior continues to grow in sophistication.2 Executive Summary Back in July 2015, Amazons iconic Prime Day online summer retail event made its first debut in nine countries; the US, the UK, Spain, Japan, Italy, Germany, France, Canada and Austria. Since then, Prime Day has become established as a global one-day shopping event, where Prime members can shop thousands of deals sitewide - with new deals starting as often as every five minutes. The inaugural event and the year 2016 offered Prime members a 24-hour shopping bonanza. By 2017, Amazon had extended the shopping period to 30 hours to make more of its members desire for a bargain. Fast forward to 2018, and this year Amazon reports its fourth annual Prime Day surpassed all prior sales records in the e-commerce giants 24-year history including every Black Friday and Cyber Monday with Prime members ordering over 100 million products during the 36-hour sales event. To examine shopper sentiment toward the event and how its reshaping purchasing behaviors, Periscope surveyed consumers to understand their attitudes and actions during Amazon Prime Day 2018. The research 1 , conducted in the US, the UK, France, Italy and Germany, found that: Awareness of Amazon Prime Day is exceptionally high even among non-Prime members with consumers in all countries surveyed reporting over 80% awareness of the event, except for France where just 63% of consumers were conscious of the occasion. Amazon has strong loyalty amongst its consumers. 61% of US respondents confirmed they have a Prime account followed closely by 58% of Italians. Germany (54%) and the UK (53%) also showed strong loyalty to Amazon through their Prime memberships with only 40% of French consumers confirming that they have a Prime account. Consumer participation in Amazon Prime Day is growing fast, increasingly typically 4-5x between 2015 and 2018 in all countries surveyed, with the greatest multiple increase observed in the UK (6.8x). Prime members bought more items and spent 50% or more compared to last year the biggest move was in the UK where 59% of Prime members say they spent a bit more or much more compared to 2017, closely followed by shoppers in France (57%) and Germany (54%). US consumers were more constrained in their spending, however, with 40% of shoppers saying they spent the same. Shoppers appear increasingly sophisticated in their approach to Amazon Prime Day, with an average of 62% of consumers in the UK, the US and Italy confirming they had pre- planned the product categories they wanted to shop within on the day. However, 51% of consumers in France and Germany adopted a more spontaneous shopping approach. 1Study Methodology: In July 2018, Periscope By McKinsey conducted online research targeting consumers in France (500), Germany (500), Italy (500), the UK (500) and the US (1000). Respondents were aged between 18 and 70 and responses were selectively evaluated by age category and gender.3 Many consumers evaluated the value of the Prime Day 2018 deals they encountered; an average of 62% checked a couple or several item prices before committing to a purchase. Key Findings: Online Shopping Comes of Age Amazon Dominates in All Markets Online and multichannel shopping behaviors predominate Appraising the typical channel shopping preferences of todays consumers, this years survey highlights how multichannel shopping behaviors predominate, with 56% or more consumers in all markets balancing on- and offline channels to make purchases. Online shopping behavior 56% online and ofine 5% only online 10% only ofine 11% mostly online 17% mostly ofine Answered: 1035 Answered: 516 Answered: 511 Answered: 519 62% online and ofine 6% only online 4% only ofine 17% mostly online 10% mostly ofine 59% online and ofine 6% only online 5% only ofine 21% mostly online 10% mostly ofine Answered: 509 63% online and ofine 3% only online 6% only ofine 12% mostly online 16% mostly ofine 63% online and ofine 3% only online 3% only ofine 16% mostly online 14% mostly ofine4 Similarly, the findings reveal how a growing number of consumers in all countries surveyed are shopping exclusively or mostly online, with just 10-12% of consumers stating that they now predominantly or only shop offline. By contrast, the US trails other countries in its adoption of online shopping; consumers in the US appear the most committed offline shoppers with 27% saying they mostly or always shop in-store. Furthermore, a significant 10% say they only ever shop offline more than double that of other countries where the average is 5%. Consumer engagement with Amazon is high The online retail giant appears to dominate consumer mindsets, with more than half the respondents in most markets surveyed identifying themselves as loyal or regular shoppers with Amazon. General attitude toward Amazon 37% frequently shop at Amazon 8% dont shop at Amazon 9% rarely 24% loyal Amazon shopper 22% sometimes Answered: 1035 Answered: 516 Answered: 511 Answered: 519 47% frequently shop at Amazon 7% dont shop at Amazon 6% rarely 21% loyal Amazon shopper 19% sometimes 49% frequently shop at Amazon 3% dont shop at Amazon 5% rarely 22% loyal Amazon shopper 21% sometimes 30% frequently shop at Amazon 11% dont shop at Amazon 8% rarely 25% loyal Amazon shopper 25% sometimes 31% frequently shop at Amazon 4% dont shop at Amazon 4% rarely 43% loyal Amazon shopper 18% sometimes Answered: 5095 European shoppers are strongly wedded to shopping in the online marketplace, with 49% of UK and 47% of German shoppers saying they frequently shop at Amazon, or that the platform is often their first port of call when making purchases online. The percentage of Italian consumers who classify themselves as loyal Amazon shoppers was notably high at 43% (on top of the 31% stating frequent shopping at Amazon); double that of German (21%) or UK (22%) shoppers. Key Findings: Prime Membership is on the up Prime Day awareness among consumers is impressive The survey of 3,000 consumers found awareness of Amazon Prime Day is very high; over 80% of respondents in all countries reported awareness of the event, with the exception of shoppers in France where consumer awareness sat at just 64%. Prime Day awareness no yes Answered: 1035 Answered: 516 Answered: 511 Answered: 519 no yes no yes no yes no yes Answered: 509