New Klarna Cyber Week shows shift towards spending on intangible items like event and airline tickets, while the marketplace and leisure categories continue to see momentum
New York, NY (December 10, 2020) – Klarna, the leading global payments provider and shopping service, today released data that indicates shoppers in the US - particularly Millennials - shifted their share of e-commerce spending towards intangible items such travel and event tickets during Cyber Week (November 30–December 6). Klarna also identified spending trends among US Gen Zers, Millennials, Gen Xers and Baby Boomers during Cyber week, pointing to a rise in purchases in the leisure, sport & hobby and marketplace categories leading into the holidays.
"Online shoppers are especially cognizant of holidays shipping deadlines, which are approaching fast and will impact whether delivery by Christmas Day is possible this year," said David Sykes, Head of US at Klarna. "Klarna's Cyber Week data shows that more shoppers are embracing intangible products like event tickets, trips and vacations as gifts, since they can be bought in advance and shared easily online. We expect growth in this category to continue during the holidays, as shoppers make plans for the new year."
- The intangible items category, which includes event tickets and travel services, saw a 4% increase in share of wallet among all generations during Cyber Week compared to Black Friday week (week ending November 29). This growth was particularly pronounced among Millennials, whose share of wallet in this category grew by 5% week over week.
- The leisure, sport and hobby category’s share of wallet increased by 14% among all generations during Cyber Week compared to Black Friday week. This growth was especially pronounced among Millennials, Gen X and Boomers, whose share of wallet in this category rose by 14%, 15% and 33%, respectively, week over week.
- Marketplaces remain a popular shopping category among all generations. This category’s share of wallet rose by 3% week over week and by 48% during Cyber Week compared to the average baseline week in Q3.
- Shoppers were divided on children’s products during Cyber Week. Klarna app data shows that this category’s share of wallet fell by 18% among Millennials and 11% among Gen X during Cyber Week compared to the week ending November 29. Meanwhile, share of wallet among Gen Z and Boomers rose by 13% and 22%, respectively, week over week.
- Shoppers were also divided on home and garden products during Cyber Week. While Boomers’ share of wallet in this category grew by 28% during Cyber Week compared to the week prior, Gen X, Millennial and Gen Z shoppers shifted their spending away from this category, decreasing their share of wallet by 8%, 11% and 16%, respectively, week over week.
- While electronics continues to be a popular spending category among Klarna shoppers, products in this category were less of a priority during Cyber Week. This category registered a 20% drop in share of wallet across all generations during Cyber Week compared to the week prior.
Klarna has been analyzing share of wallet, or how its app users are dividing their spending among different shopping categories, to identify which categories consumers are shopping most often through the Klarna app. Throughout December, the company will continue to analyze proprietary data weekly to identify notable insights into consumer behavior during the critical 2020 holiday peak season period.
Klarna analyzed purchases made through Klarna’s US in-app shopping feature for the week of November 30 - December 6, compared to an average baseline day in the US during the third quarter (July–September) and compared to an average day during the previous week (ended November 29).
The data indicates the distribution of purchase volumes among the following selected categories:
- Children’s products: children’s and infant clothing, childcare services
- Electronics: diversified electronics, electronic equipment and related accessories, household electronics (including white goods and appliances), office machines and related accessories (excluding computers), and car electronics
- Home and garden: furniture, tools and home improvement, pet supplies, kitchenware, plants and flowers, and cleaning products
- Intangible items: travel services and event tickets
- Leisure, sports and hobby: gift, card, novelty and souvenir shops; sports and outdoor gear; concept stores; hobby articles; prints and photos; costumes, and party supplies
- Marketplaces: items purchased from the likes of Amazon.com, Walmart.com, Target.com and eBay.com
We make shopping smooth. With Klarna, consumers can buy now and pay later, so they can get what they need today. Klarna’s offering to consumers and retailers includes payments, social shopping and personal finances. Over 200,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress, have enabled Klarna’s innovative shopping experience online and in-store. Klarna is ranked number five on the 2020 CNBC Disruptor 50 list, is the most highly valued fintech in Europe with a valuation of $10.65 billion, and is one of the largest private fintechs globally. Klarna was founded in 2005, has over 3,500 employees and is active in 17 countries. For more information, visit klarna.com.
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