2024 Amazon Prime Day is about to begin! Adobe: Major promotions are expected to drive this year's online consumption to a new high
The 2024 Amazon Prime Day event is expected to set a new record, with online consumer spending estimated to reach $14 billion, a year-on-year increase of 10.5%. Discounts could be as high as 22%, with the largest discounts on electronic products. This shopping festival will also drive online back-to-school consumption. Amazon's discounts may have an impact on other retail companies
According to the Zhītōng Finance and Economics APP, Adobe released online shopping forecasts for the 2024 Amazon (AMZN.US) Prime Day event starting on July 16.
Adobe predicts that on the first day of the Prime Day event, there will be $7.1 billion in online revenue, an 11.3% year-on-year increase. The second day of the Prime Day event is expected to bring $6.9 billion in online spending, a 9.2% year-on-year increase. The total online spending is expected to increase by 10.5% year-on-year, reaching $14 billion, setting a new record for Prime Day.
It is worth noting that the strong consumer spending is expected to be driven by larger discounts this year, with discounts potentially reaching up to 22%. Adobe predicts that electronics will have the largest discounts at 22%, compared to 14% last year. Clothing (20%, up from 12% last year), home/furniture (17%, up from 9% last year), toys (15%, up from 12% last year), TVs (14%, up from 5% last year), and sports equipment (11%, up from 6% last year) are also expected to see significant discounts. This year's shopping festival is also expected to drive strong back-to-school online spending, partly due to the slightly later date of the Amazon Prime Day event.
In the first half of this year, online consumer spending increased by 7.4% year-on-year, reaching $502.9 billion. In the next three months, Adobe expects online spending to reach $229.1 billion, a 7.2% year-on-year increase.
However, the discounts offered by Amazon may impact many companies in the retail industry, including Mattel (MAT.US), Hasbro (HAS.US), Best Buy (BBY.US), Gap (GPS.US), Macy's (M.US), Dick's Sporting Goods (DKS.US), and Target (TGT.US)