2017 - affirm · 2020. 8. 22. · holiday deals, many stress over how they’ll cover holiday...

2017 Holiday Shopping Report

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2017

Holiday Shopping ReportStrong year-over-year growth driven by a surge in mobile use, male and millennial shoppers


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2017 just may be seen as a pivotal year for retail. From stores closing at record rates to major brands placing increased focus on their e-commerce channels, there has been a feeling of an industry in shift. This isn’t to say that it’s all bad news for retailers—in fact, online sales grew 15 percent in Q3.

That’s why it’s so important for retailers to stay attuned to progressive consumer shopping behavior and leverage those emerging trends to align with consumers in order to win their business. All eyes were on the biggest shopping weekend of the year to see what trends emerge ahead of the new year.


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The “Amazon Effect” Continues to Snowball

The dominance of Amazon continues. Their

ability to beat nearly everyone on price is one

reason why they claimed a staggering 45-50

percent of online sales over the four-day

holiday weekend.

This price pressure creates an ever-present

need for retailers to provide deep discounts

to compete. And it’s why two-thirds of retail

executives predicted promotions playing an even

bigger role in 2017’s holiday season.

However, persistent discounts only condition

customers to expect lower prices and can impact

the perceived value of that product—or the price

integrity of those items. Offering consumers a

superior shopping and customer experience

without resorting to constant discounts is going

to to be the best way to compete in the age of

the “Amazon Effect.”

Shoppers Are Still Spending, But Also Searching for Stress-Free Credit Alternatives

While shoppers are still on the hunt for the best

holiday deals, many stress over how they’ll cover

holiday spending. Affirm conducted a survey of

1,000 U.S. adults prior to the holiday weekend

about their shopping habits. 61 percent reported

that holiday spending is a source of marital

or familial strife. Over a third (34 percent) said

they’re worried about how they’re going to afford

holiday spending costs.

Much of this worry arises from the uncertainty

that comes with credit cards. 15 percent of

respondents said that they have maxed out a

credit card just to cover holiday purchases, while

58 percent who used a credit card last year don’t

know how much they ultimately paid in interest

charges. Deferred interest credit products,

particularly pervasive during the holiday

shopping season, only adds to the confusion.

In another recent survey of 1,600 U.S. adults,

we asked about their use and views of deferred

interest credit cards (e.g. 0% APR for 12 months).

One of the top three reasons respondents

reported using them was for holiday-related

purchases. Yet, 67 percent of respondents

believe that some credit products are designed

to purposefully cheat consumers. 55 percent

also said that they would think less favorably of

a brand that offers financial products that are

known to harm some consumers.

Paying Over Time is a Better Experience for Many Shoppers

No wonder 87 percent of consumers have

expressed interest in a simple way to pay over

time that is not a credit card. 68 percent also

cited “knowing exactly how much I’ll owe and

when, including interest,” as the most appealing

element of a simple credit card alternative.

It’s reasons like these that more shoppers are

turning to Affirm. Not only does our unique

underwriting model approve 126 percent more

than industry averages—especially those

underserved by traditional credit or those

deemed credit invisible—but it’s our predictability

when it comes to spending that keeps

25 percent of users coming back to use

Affirm again.

That’s because what Affirm users see is what

they get. There aren’t any of the hidden or

“gotcha” fees that most credit cards have.

Affirm charges no late fees or any penalty fees.

Ever. We show users upfront the amount they’ll

owe, each month and in total, including interest

charges. It’s that simple.


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Affirm’s 2017 Holiday Shopping Results

Strong Year-Over-Year Growth Driven by a Surge in Mobile Use, Male and Millennial Shoppers

We had an unprecedented holiday weekend, shattering expectations and seeing huge year-over-year

growth. Shoppers flocked to our retail partners and took advantage of the ability to break down their

holiday purchases into transparent, and more manageable, monthly payments. This was true for both

the total number of purchases made with Affirm, as well as the total amount shoppers spent.

For the entire holiday weekend, beginning on Black Friday and ending Cyber Monday, the number

of purchases made with Affirm increased by 115 percent over 2016, while the total amount shoppers

spent on holiday purchases rose by 91 percent.


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Black Friday & Cyber Monday Spending

Shoppers Spent More This Year Than in 2016

Black Friday saw an astounding 124 percent

increase in the total number of purchases

made than in 2016, while shoppers spent an

eye-popping 106 percent more on gifts and

goods.

Cyber Monday saw similar results. 110

percent more purchases were made with

Affirm leading to 81 percent more sales

volume than last year.

The number of purchases increased exponentially

Leading to a spike in total dollars spent


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The peak hours of shopping for both days

were similar, with some notable differences.

Black Friday actually peaked later this year at

1 p.m. to 2 p.m EST instead of before noon

at 11 a.m. to 12 p.m. EST in 2016. Conversely,

Cyber Monday peaked earlier at the 9 p.m. to

10 p.m. EST hour, whereas it climaxed an hour

later last year.


Peak Hours of Shopping Were later for Black Friday & earlier for Cyber Monday


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Mobile vs. Desktop Mobile continues to be the preferred platform for Affirm

users, outperforming industry averages once again.

Interestingly, but perhaps unsurprisingly, men waited just

a bit longer to finalize their shopping on both days. Men

peaked at 12 p.m. EST on Black Friday, while women got the

bulk of their shopping done at 11 a.m. EST. Similarly, women

had their busiest Cyber Monday shopping hour at 10 p.m.

EST while men waited slightly longer, peaking at 11 p.m EST.

Similar to 2016, Affirm users heavily favorited mobile over

desktop. In fact, mobile use increased by 14 percent on

Black Friday for a 73 percent share of all purchases made.

While mobile accounted for slightly less of the total share of

purchases made—perhaps because many shoppers were

back behind their desks—mobile use actually grew by 25

percent, accounting for 66 percent of all purchases made.


BLACK FRIDAYAVG. PURCHASE TIME

CYBER MONDAYAVG. PURCHASE TIME

Men Waited Longer to Buy

BLACK FRIDAY CYBER MONDAY


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Men made more purchases with Affirm over

Black Friday and Cyber Monday and also

spent more. Their average order values

were consistently higher than women

leading to a significantly larger share of

dollars spent on both days.

* We recognize gender as a protected class and do not collect data on gender. We use an open source statistical probability model to infer

Holiday Shopping by Gender*


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Women and men both favored spending on furniture and

homegoods throughout the holiday weekend, accounting

for 41 percent of all purchases made but only 22 percent of

men’s. Instead, consumer electronics was a close second

for men and may account for why men ended up spending

more. They even outspent women on jewelry. Meanwhile,

women chose to buy apparel over electronics, and also

spent on travel-related purchases.

Yet, women turned out to be the savvier shoppers over the

weekend, favoring mobile over men. 74 percent of women

chose to checkout with mobile, in contrast to 69 percent

of men.

Holiday Shopping by Gender

Women Favored Furniture While Men Spent More on Electronics and Jewelry

Women Used Mobile More Over the Holiday


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Both Millennials and late Gen Zers spent more with

Affirm this year. The number of Millennials (24-34) who

leveraged Affirm to make holiday purchases increased

by 15 percent over the entire holiday weekend. But it

was Gen Z who saw the biggest lift—57 percent more

shoppers between 18 and 21 years-old spent more this

year over 2016.

The older generations, however, actually spent more on

average per purchase. Over the four-day weekend,

Gen Xers (35-51) spent an average of $702 on purchases

while Baby Boomers (51+) spent an average of $690

per purchase.

Holiday Spending by Age

TOTAL SALES VOLUME FOR 2017 HOLIDAY WEEKEND

Millennial & Gen Z Sales Volume Grew This Year

But Gen X and Boomers Bought more large ticket items over

the holiday weekend

Gen X(35-51)

Millennial(22-34)

Gen Z(>21)

Boomer (52+)

$558

$639

$702

$690

Affirm is modernizing consumer credit and changing

the way people shop. We partner with 1,000+ retailers

to enable consumers to buy what they want today

and pay over time—boosting conversion rates

and AOVs. Our simple and transparent financing

options (no hidden fees, no compounding interest)

improve customer satisfaction, driving up repeat

purchase rates. We also enable retailers to expand

their consumer reach: Our advanced underwriting is

designed to reach those overlooked by the traditional

credit system. With a lightning-fast, mobile-first UI,

we’re built to seamlessly integrate with your checkout

flow and make purchasing quicker, simpler, and more

consumer-friendly.

2017 - affirm · 2020. 8. 22. · holiday deals, many stress over how they’ll cover holiday...

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