End of Financial Year 2020
It’s been 11 years since Foxtel launched the infamous “Happy EOFYS (End of Financial Year Sale)” ad, making the term EOFYS an acceptable part of the Australian lexicon. Since then, advertisers have adopted the phrase and begun to mark June as an important month in the retail calendar. Many brands have used this opportunity to […]
It’s been 11 years since Foxtel launched the infamous “Happy EOFYS (End of Financial Year Sale)” ad, making the term EOFYS an acceptable part of the Australian lexicon. Since then, advertisers have adopted the phrase and begun to mark June as an important month in the retail calendar. Many brands have used this opportunity to help consumers save in tax deductions and encourage them to spend by offering promotions throughout the month, and 2020 is no different.
As Australia continues to grapple with the global pandemic, Rakuten Advertising’s affiliate network data has seen solid year-on-year growth as sales, clicks, orders and AOV all show an uplift from last year. Although Apparel & Accessories remained the number one pick for consumers during this period, accounting for 39% of all sales, our data also shows new categories such as Food & Dining and Lingerie & Intimates have emerged as a result of the change in consumer habits this year.
Customers, Clicks and Conversions
This year, Rakuten Advertising’s affiliate network saw an uplift in sales of 61% YoY, with the largest increase coming from the Footwear vertical, growing at 143% YoY. More and more Australian consumers are becoming familiar with the online shopping process as proven by the 56% rise in number of orders YoY. Click activity has also surged, increasing by 33% as compared to last year, which resulted in an uplift of 17% in conversion. On average, consumers are spending $125 per order throughout the month of June, which is 3% higher than the previous year.
From Outdoor to Indoor
Consumers have swapped outdoor items for indoor comfort, with sales in Travel & Vacations replaced by Lingerie & Intimates, and Sporting Goods replaced by Food & Dining. A trend for self-care and entertainment has also become apparent, with Beauty & Personal Care sales growing by 125% YoY, followed by Software which received a 90% boost in sales as compared to last year.
In previous years, EOFY sales are often aligned with electronics, appliances and household goods. However, this year saw these verticals take a lower share of sales percentage, perhaps due to the success and high demand throughout lockdown in March, April and May.
Apparel & Accessories
Despite the change in consumer behaviour due to COVID-19, Apparel & Accessories sales showed a steady growth, increasing by 52% YoY. A majority of consumers are choosing to purchase from local brands during EOFY, with six out of the top ten Apparel & Accessories retailers being Australian-owned brands. Sales in this category peaked towards the end of the month in both 2019 and 2020, as retailers ramped up offers and consumers rushed to purchase before the financial year ends.
As Australia slowly emerges from lockdown, it will be interesting to see how retail events in H2 impact consumer shopping habits as the population become more comfortable with online shopping, and brands are looking for more ways to attract, engage and retain online shoppers.
If you would like to find out how your brand can prepare for the next retail event, visit rakutenadvertising.com and speak to an expert today.