Black Friday: Heyday Or Hype?
The Black Friday mega shopping phenomenon debuted in South Africa in November 2016 to much anticipated consumer excitement. Black Friday is the holiday promotion day after Thanksgiving, originating in the USA. It’s seen as the start of the festive shopping season and retailers traditionally offer shoppers incredible sales and promotions. Although it started in the USA, Black Friday is fast becoming a headline feature on South Africans’ promotional calendars.
In just two years, Black Friday has already expanded beyond the single Friday promotional offerings, to Cyber Monday, early-bird countdowns, pre and post deals and entire weeks now dedicated to a variety of promotions, flash sales and markdowns. Consumers have responded by storming websites and stores in search of greater value for their ever-squeezed, equivalent spending ability.
As retailers and manufacturers gear up for this year’s Olympian promotional event, there are a number of key insights from previous years that can be used to inform strategies and planning. Much of the speculation is that Black Friday activities cannibalise festive season shopping, impact post-season spending, or only benefit specific brands and not overall categories. And within the FMCG industry, conjecture is that Black Friday is less relevant for regular, lower value, day to day consumer goods items. By analysing the total FMCG basket, category and brand retail performance there are a number of valuable insights that manufacturers and retailers can use to inform their preparation for 2018.
A WINNING WEEK
Digging deeper into the specific Black Friday phenomenon, overall FMCG retail sales, in the week commencing 26 November 2017, outstripped previous weeks driving foot and finger (click) traffic and sales.
Black Friday activities, if executed well, have the ability to incrementally ramp up the necessary growth and returns. As you gear up for this year’s Olympian promotional event, here are some key insights that can be used to inform your strategies and planning.