Distribution companies shift spending from trade shows
MDM released research showing distribution companies are spending less on industry events and more on digital media. The hosts noted that regional and niche events continue to grow, where people seek local connections and specific expertise. Broad industry events struggle unless they are very large or very focused. This shift reflects how the new B2B buyer researches and learns about products online rather than at physical trade shows.
Consumer holiday numbers keep climbing
The Cyber 5 in 2023 set records with $38 billion in total sales, a 7.8% year-over-year increase. Cyber Monday was the biggest online shopping day ever in the United States, with shoppers spending $15.7 million every minute. eMarketer projects approximately 9.5% growth for 2024, estimating $266 billion in November and December retail ecommerce sales. The hosts noted that 24% of consumers had already started shopping by early October, and 81% of consumers are looking for deals and discounts during the holiday period.
Budget cycles drive year-end purchases
The hosts questioned whether B2B holiday purchasing reflects holiday marketing or simply fiscal year budget cycles. Justin Rinaldi from Safety Speed Manufacturing noted that his company sees a slight sales increase during the holiday period primarily because smaller businesses have use-it-or-lose-it funds at year end. Research indicates approximately 70% of US companies use a calendar fiscal year, especially common among smaller companies without significant seasonal variations in their business.
We see a slight increase in sales during the holiday period primarily because a lot of smaller businesses have use-it-or-lose-it funds.
Justin Rinaldi, Safety Speed Manufacturing
Amazon Business runs B2B holiday promotions
Amazon Business runs deals and promotions during the holiday season. The hosts noted that while these promotions are not as heavily marketed as consumer deals, they aim to support businesses looking to restock, upgrade, or prepare for their own holiday demands. Global Industrial ran a Cyber Monday sale offering 20% off, extended to Friday. This puts pressure on traditional distributors to match these promotions or risk losing wallet share to digital competitors.
Category determines impact
Ben Guay from Caterpillar noted that while some North American dealers put offers out during Q4, the results have been insignificant for heavy equipment. The hosts agreed that a $300,000 backhoe is not going to be affected by Cyber Monday promotions. However, adjacent product categories and consumables may see more impact. Dan Stepchew from Zest Dental Solutions integrates winter sales across all channels including their website, email, SMS, social media, and sends promotions to sales reps to help close deals and pull forward repeat orders.
Attention economics drive spillover
Andy argued the holiday period creates inevitable spillover because it commands attention. The Super Bowl analogy applies: whether you watch football or not, you cannot be unaffected by such a large event. B2B buyers are also consumers, and when they are primed to expect deals from Amazon for personal purchases, that expectation carries over to professional purchasing. Companies like Home Depot straddle both worlds, selling to consumers and contractors simultaneously.
Whether you like it or not, you have to think about it. I think that’s where B2B is with regard to the holiday season. It’s just such a large event that you’d be almost foolish not to try and take advantage of it if you can.
Andy Hoar, Master B2B
Most practitioners see an impact
A Master B2B LinkedIn poll asked whether Q4 holiday peaks in consumer shopping impact B2B ecommerce. The results showed 78% said yes, while 22% said no impact at all. The hosts concluded that B2B companies should examine their specific category, watch competitors, and consider the budget cycle dynamics that may be the primary driver rather than holiday sentiment itself.