Beware the Premium Anticipation of Prime Days

What Display Daily thinks: This news should give everyone with a vested interest in holiday season sales some pause. It indicates some concern about the impact of a slowdown, pullback, or cut (whatever you choose to call it) in consumer spending that is quite severe.

Heavy discounting and aggressive marketing implies that manufacturers of consumer electronics – all those displays – are likely to face greater pressure on their profits. While there is a lot of talk about inventory management in 2023, it is less relevant to display manufacturers looking for better margins and sales if there is no actual pull-through. Either someone is going to look to increase inventories to push sales through or hold back to create artificial scarcities to maintain prices. Neither of which seem like much of an option. The question is how will this impact next gen display rollouts if OEMs pullback expensive new releases due to waning demand?

Amazon Looks to Mitigate Consumer Spending Cutbacks With Second Prime Day

CNBC is reporting on Amazon’s announcement of a second sales event similar to Prime Day, called “Prime Big Deal Days,” which is scheduled to take place in October. The event aims to attract consumers who are looking to start their holiday shopping early. The company originally introduced Prime Day in 2015, a special day with significant discounts and deals for its Prime members.

Amazon’s previous year’s attempts at expanding its sales events for Prime members had mixed success, as reported by third-party analysts. It’s not specified exactly how successful those attempts were, but it indicates that the company is experimenting with different strategies to maximize the impact of such events.

According to CNBC’s own supply chain survey, about two-thirds of respondents anticipate that consumers will be actively searching for discounts during the upcoming holiday spending season. Additionally, 71% of the respondents expect shoppers to reduce their spending in response to inflation. This suggests that consumers are expected to be more cautious with their spending due to economic concerns, which could impact retailers’ sales during the holiday season. This context helps explain why Amazon and other retailers are looking to create attractive sales events like Prime Big Deal Days to entice consumers and maintain their revenue streams.