The evolution of 24/7 Black Friday specials from a single-day shopping event to a month-long retail phenomenon reflects changing consumer behaviours and strategic adaptations by retailers and logistics companies. This transformation is particularly evident in South Africa, where the trend has gained momentum, prompting significant shifts in how businesses approach this critical sales period.
Black Friday has increasingly become a prolonged retail spike, often starting as early as October and extending through December. This shift allows retailers to engage consumers over a 10-week period rather than just focusing on one day. As consumer anticipation builds, brands are encouraged to maintain ongoing engagement through various promotional strategies, including teaser campaigns and early access deals.
The positive outlook for Black Friday 2024 indicates that the tide is turning for South African retailers after a long period of economic and retail stagnation. Among the factors that have helped to improve the economic outlook include vastly reduced load shedding, the introduction of the Two-Pot Retirement System, an interest rate cut, and lower inflation.
The average consumer’s experience has become more intricate, characterised by extensive online research and comparison shopping. Consumers now begin their Black Friday preparations months in advance, making it crucial for retailers to adapt their marketing strategies accordingly. Brands now need to engage with customers throughout this entire period to effectively influence their purchasing decisions.
South Africa’s wholesale, retail and fuel sectors are forecasted to generate more than R88 billion in additional economic value for the economy during November 2024, according to Capital Connect. The study, conducted by the Bureau of Market Research, showed that R28 billion in indirect economic impact will be generated by South African retailers from Black Friday sales this year[1]. The indirect economic impact refers to the additional sales value of retailers’ suppliers, manufacturers from which suppliers obtain their stock, producers of raw materials used by manufacturers, and courier services.
According to the Algorithm Agency, the Black Friday period can be dissected into 3 distinct phases:
– The build-up phase, which starts in early October, when consumers begin their Black Friday research, being open to suggestions and not yet committed to specific products or brands.
– The rush phase, during which consumer behaviour becomes more focused and deliberate, and where retailers highlight specific products, offer competitive pricing, and provide clear comparisons to similar products.
– The aftermath phase, where consumers shift focus towards the holiday season and retailers promote extended deals, gift guides and hassle-free return policies, all to attract shoppers.
The above trend seems to be reflected in the increased number of shipments courier companies are handling over this period. ‘We anticipate a marked increase in volumes this year thanks to the growing prominence of e-commerce in South Africa,’ commented Craig Pitchers, CEO of The Courier Guy. ‘Whilst volumes on Black Friday itself are still generally very large, we’re now starting to see a sustained spike in shipments throughout November right up until Christmas as businesses run specials for longer periods.’
Retailers that spread out promotions over the month generally see better engagement from customers and are able to track the return of investment related to these promotions. However, this approach does require careful management to maintain decent profit margins.
As the landscape continues to evolve, maintaining a balance between meeting consumer expectations and preserving profitability will be crucial for both retailers and logistics providers in South Africa’s dynamic e-commerce environment. The importance for retailers to secure a reliable courier service that can handle high volumes and offer good service could be the difference between a deal done or lost this Black Friday season.
THE COURIER GUY
https://www.thecourierguy.co.za/
