volumes go down and prices go up

Product sales show a slight increase in value in the first quarter, according to Foxintelligence’s e-commerce purchasing report. Consumer electronics are taking the hit.

Purchases of products increased slightly in the first quarter of 2023. Foxintelligence, a company specializing in the analysis of purchasing data for brands, presented this Thursday, April 6, 2023 its report on e-commerce purchases for the first quarter of 2023. company relies on its panel of 400,000 consumers in France whose purchases it analyzes via the invoices received in their mailbox. Spending related to online purchases of products increased by 6% in the first quarter of 2023 compared to the first quarter of 2022. Seven categories were analyzed: FMCG, high-tech, fashion, home and household appliances, culture and games, DIY and garden , sports and auto.

High-tech fell by 7% and FMCG rose by 8% in value in the first quarter of 2023. © Foxintelligence

FMCG are up in value by 8% like DIY and gardening (20%). Consumer electronics took the hit and recorded a decline of 7%. Volumes are down 1% overall, FMCG sales are down 3%, while the DIY and garden category is up 17% and the sports and auto category by 15%. By comparing the evolution of the average price per item and per category, high-tech is down 8%. For Guillaume Coudry, Foxintelligence’s chief customer officer, “prices have fallen in high-tech but that has not been enough, buyers in the category have reallocated their budget to other expenses.

3/4 of online shoppers returned

According to Foxintelligence analytics, 75% of 2022 online shoppers have already made an online purchase in Q1 2023, 24% have yet to purchase online, 4% are new market entrants,” e-commerce is still recruiting new customers”, underlines Guillaume Coudry. Among these buyers, those who buy FMCG are the ones who have returned the most: 62% of buyers in 2022 have already checked out in the first quarter of 2023 with almost one purchase per month. Overall, almost one purchase every two weeks was made online in the first quarter of 2023.

Where have the quick trade customers gone?

Foxintelligence sought to determine what happened to the quick trade buyers. Customer purchases from Gopuff, Getir, Gorillas and Flink in 2022 were analyzed over 2023. Only 28% of them repurchased in quick trade in the first quarter of 2023, 14% did not repurchase from PGC online and 58 % continued to purchase FMCG online elsewhere. “They turned to other more traditional brands with drive or to players like Deliveroo and Uber Eats”, testifies Guillaume Coudry.

Only 28% of quick trade buyers in 2022 renewed their purchase from a quick trader in 2023. © Foxintelligence

On the fashion side, the peak of the winter sales in January 2023 was less strong than that of Black Friday in November 2022. By analyzing more closely the sales during the winter sales 2023, the first day particularly stands out and generates the more purchases over the period. In the first quarter of 2023, in the DIY and garden category, specialist brands are doing well and have won market share over general brands. These specialist brands recorded a market share of 42.2% over the period, up 5.5 points, compared to 49.1% market share for generalist pure players, down 5 points.

The first day of sales is the most important selling day for merchants. © Foxintelligence

Women buy more on Tiktok

Tiktok launched its online store in the United Kingdom in 2022 and for Guillaume Coudry “many brands in France are interested in sales on this channel in case it arrives in France”. Among the best sellers over the last twelve months, especially skincare and make-up products, but also two advent calendars, seasonal Christmas products. According to Foxintelligence, buyers are mostly women (61%) and generation Z (from 1995) is overrepresented with 60% of buyers against 29% for generation Y (1980-1994). Women are interested in beauty for 29% of them against 12% of men. The latter favor consumer electronics products (16%).

In the online beauty market, Tiktok’s market share had fallen to 3% in December 2022 and reached between 4 and 5% between January and March 2023. Customers who buy on Tiktok are loyal: the channel accounts for 17 % of their beauty budget on average, just behind Amazon (23%).

#volumes #prices

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