Amazon Prime Day faces fierce competition, Temu becomes a strong rival on mobile

According to the latest research by data.ai, the usage time of Android global shopping apps is expected to exceed 1 billion hours on Prime Day this year, a year-on-year increase of 9%, reaching a record level. For sellers, Prime Day is not only a key period to increase sales, but also can increase exposure and deliver traffic for the year-end promotion.

The US market is particularly important to Amazon, accounting for about 60% of its Prime Day sales. According to Adobe Analytics, in 2022, Prime Day sales in the US exceeded US$11.9 billion, an increase of 8.5% year-on-year.

Amazon will face more intense competition during this year's Prime Day. Other large retailers have announced that they will launch online and offline promotions to compete with Prime Day, including Walmart, Target, and Best Buy.

In addition, American consumers are increasingly shopping through omnichannels. The survey shows that 81% of American consumers use omnichannels when shopping, an increase of 75% from a year ago. Generation Z is the most enthusiastic about "omnichannel", with 85% using omnichannels when shopping, an increase from the previous 77%.

As omnichannel shopping becomes more and more popular, promotional discounts are increasingly used as a strategy to increase customer loyalty. Research points out that as we enter the mid-year promotion, mobile applications are an important part of consumers' omnichannel shopping, so the layout of the mobile terminal cannot be ignored.

However, as of now, Temu and Shein have taken the first and second place respectively in the US shopping app download list, including iOS and Android, leaving Amazon behind. The former is likely to launch promotions during Prime Day. In fact, Temu has announced that it will hold promotional interactions every six months starting from June 26, 2023.

In terms of mobile shopping experience, Temu has the experience and support of its parent company Pinduoduo. With its social fission gameplay and price advantages, the daily active users of Temu shopping app continue to grow.

In addition, there are mixed signals in the US consumer market. With high inflation, tight labor market, and unemployment rate remaining high, US consumer spending continues to shrink, but confidence has increased significantly. Therefore, consumer demand is elusive, but there are still some categories worth paying attention to.

Key areas of focus in the US market during Prime Day:

• Electronics (Big Ticket): Many consumers buy electronics during sales events, so this is a key competitive area, with Best Buy, Amazon and Newegg all expected to have strong sales.

  
  

• Lower-priced “white label” brands: 88% of Gen Z consumers say they would “trade down” to a cheaper or higher-value item, compared to 80% of the U.S. population as a whole. Target announced discounts of up to 50% on its white label products for loyalty members on TargetCircle.

• Non-essentials: Apparel is a key area of ​​purchase for Generation Z and Millennials; travel and outdoor experiences remain popular after the epidemic; consumer spending on cosmetics has continued to grow since 2020.

• Food: U.S. consumers express a higher willingness to spend at restaurants and grocery stores — something Walmart and Target may be able to capitalize on through loyalty offers and traffic from habitual shoppers, especially during Walmart+ and TargetCircle weeks.

Although the U.S. economic signals are complex, so sellers need to carefully understand the nuances of consumer habits, competitors, and purchasing patterns. This year's Prime Day and other mid-year promotions will also be a strong indicator that can reveal Americans' spending power and trends to a certain extent.

Editor✎ Ashley/

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