The dog days of summer have proved a boon for cats.
You are what you buy. If that’s true, Americans have revealed a lot about what’s meaningful to them during Amazon Prime Day’s two-day festival on July 11 and 12. Among the top five items: Temptations Cat Treats, Amazon Fire TV Sticks, Liquid I.V. Packets, Apple Watch Series 8 and Melissa & Doug Toys, according to Numerator, a consumer data and analytics company.
“It’s a very eclectic collection,” said Charles D. Lindsey, associate professor of marketing at the University of Buffalo. Like Black Friday and Cyber Monday, Prime Day gives people an opportunity to purchase big-ticket items like electronics, while the popularity of cat treats reflects the rise in and importance of pet ownership during the pandemic, he added.
The most popular purchases give an insight into the priorities of U.S. consumers three years after a pandemic upended people’s lives — at least, for those who can afford to shop, consumer psychologists and marketing experts say. Nearly 9 in 10 Prime Day shoppers said they were long-time members of Amazon Prime
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which costs $139 a year or $15 a month to join.
For those who can afford to shop on Amazon Prime Day — and purchase other items from rival retailers like Walmart
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and Target
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which also have their own competitive discounts to rival Prime Day — it appears that shoppers are gung-ho for convenience, connection, cord-cutting, children and, well, cats. They’re seeking meaningful experiences online — and in real time.
High-quality cat treats
So what about those cat treats? There was a surge in pet adoptions during the pandemic. When people returned to work, and the cost of taking care of those animals took a bite out of people’s budgets, animal shelters also reported an increase in people returning their pets. Pet owners felt the added responsibility of taking care of their pets, compounded by the effects of inflation.
Not everyone was surprised by the popularity of cat treats. Sharmin Attaran, a professor of marketing and director of the digital marketing program at Bryant University in Smithfield, R.I., said the willingness of owners to prioritize pets and their needs has never been so important, particularly since those long, lonely days of the COVID-19 pandemic.
People are grateful to have them. “Cats are low maintenance,” Attaran told MarketWatch. “The popularity of Temptation Cat Treats shows the really significant role that pets play in the lives of American consumers. They’re also willing to prioritize high-quality treats. We saw a rise in pet ownership during COVID. Cats are easier to take care of and are more independent than dogs.
But the relationship between people and their pets has not always been a smooth one over the last three years, researchers say. While dog walking provided people with an outlet during the early days of the pandemic, a study published in the journal Animals last October concluded that pets have also been a source of stress for many owners during that time.
The importance of hydration
“Liquid I.V. is a bit of an oddball,” Lindsey said. Liquid I.V. — a powder to help with hydration, and another top-five item during Prime Day — is used by athletes and people who want to stay hydrated and/or need to rehydrate. It’s also used as a hangover cure, he said. But he does not read too much into the latter. “It’s summer and people are trying to stay hydrated,” Lindsey said.
Indeed, a recent report by Goldman Sachs found that beer and liquor sales do not tend to be dramatically impacted by a rise or fall in economic growth. During a recession or times of economic contraction, however, the Goldman Sachs
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report said that people tend to drink at home, which provides a cheaper alternative to drinking in restaurants and bars.
Marketing obviously plays a part. Attaran recently received a free Liquid I.V. in a goodie bag she received at Whole Foods. “I’ve never had one before,” she said. “Consumers place importance on health, awareness of proper hydration and how important it is.” The product is perfect for a revenge-travel, post-lockdown world. (Its slogan: “Fueling life’s adventures!”)
It’s an easy way to stay healthy, and helps reduce the level of sodium in your body. A National Institutes of Health study published earlier this year in the journal eBioMedicine found that adults who stay well-hydrated “appear to be healthier, develop fewer chronic conditions, such as heart and lung disease, and live longer compared to those who may not get sufficient fluids.”
Burned by higher prices
Prime Day was an opportunity for those burned by higher prices. “In an event typically dominated by electronics, we instead saw many shoppers stocking up on everyday essentials like pet food or pantry staples,” said Amanda Schoenbauer, a Numerator analyst. People wanted to save on standard purchases, and held off on buying big-ticket items until Prime Day.
People do appear to be feeling more confident about spending. U.S. consumers spent $12.7 billion on online purchases over July 11 and 12, up more than 6% on last year, according to an analysis of over a trillion visits to online stores by Adobe Analytics. Electronics topped the list, followed by apparel, toys, home and furniture, computers, appliances, sporting goods and TVs.
“Consumers have felt the effects of persistent inflation and an uncertain economic environment, and it has pushed shoppers to embrace more flexible ways to manage their spending,” said Vivek Pandya, lead analyst at Adobe Digital Insights. Inflation slowed in June to the lowest level since 2021, but analysts said that may not stop the U.S. Federal Reserve from raising rates.
But people were also buying on buy now, pay later. BNPL accounted for 6.5% of online orders, equating to $927 million in revenue, up 20% on the two-day event in 2022, Pandya said. BNPL is driven by essentials, including apparel, furniture/home, and electronics. It also provides a preview of how people will spend and what they buy during the holiday season, he added.
Wearable tech and cord-cutting
The Apple Watch
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topping the list of Prime Day purchases is — for most observers — a no-brainer. “The Apple Watch reflects America’s fascination with wearable technology and how we can integrate these devices into our daily life,” Attaran said. “It can be like your personal assistant. I always feel like Inspector Gadget talking to my watch, and telling it to do things for me.”
Ditto Amazon’s Fire Stick, a media-streaming device. Americans want an on-demand, personalized viewing experience, and it is a direct result of the surge in cord-cutting. Total pay-TV subscribers in the U.S. and linear-television subscribers have fallen by the millions over the last year, continuing a growing trend over the last decade.
But the real charm lies in Melissa & Doug Toys, which are made from sustainable materials, Attaran said. “I have two kids. I totally get it,” she said. “I buy all their stuff. This highlights traditional hands-on experiences for kids. Even with the rise in digital entertainment with the Fire Stick, we still value imaginative play and the cognitive development of children.”
It’s also good timing: Most children are at home during the summer, and they need distractions. Attaran’s daughter received a pasta set made of felt when she was 2 years old. “She still plays with it at age five,” she said. “It lasts a long time and she can play at being a restaurant owner or a chef. And as with most online toy sales: “You’re not paying the toy-store markup.”
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