Black Friday and Singles’ Day Will Be Bigger than Christmas and January Sales
Sales in Black Friday week already top Christmas revenues in Great Britain, France, Germany, Italy, Spain, Poland and Brazil. In China, Singles’ Day is the most important promotion opportunity, generating tripled revenues compared to an average week. Moreover, GfK findings show that over the years, consumers were encouraged to ‘trade up’ to higher spec models rather than choose the cheapest models on offer.
This year Black Friday falls on the latest possible date, November 29. Not only is the date aligned with many people’s pay day, it’s also just three weeks before Christmas. As a result, GfK expects Black Friday 2019 to exceed all previous sales records. In China, Singles’ Day is the most important promotion opportunity, generating tripled revenues compared to an average week. The second most important promotion in China, called `618.JD`, delivered good results earlier this year, and GfK anticipates November’s Singles’ Day to enjoy a similarly solid performance.
“Both Black Friday and Singles’ Day are established events in the global retail calendar. Our research underlines that wherever they are based, people love a bargain and are keen to hunt out a deal. It’s important for shoppers that those deals are genuine” says Norbert Herzog, GfK expert for retail insights and adds, “Both events evolve from rush-to-grab bargains to buying the higher spec and better-quality branded items they aspire to at the best possible prices. Another commonality amongst consumers globally is the search for simplicity, so reducing the sheer volume of items on promotion is a real benefit for busy shoppers, helping them find the quality branded items they aspire to this November.”
GfK´s FutureBuy study results show that 42 percent of consumers in Europe agree with the statement that there are ‘Too many choices in many of the categories I shop’. In APAC the number is even higher at 67 percent. According to GfK, almost half (45 percent) of consumers in Europe say they compare prices more now than a year ago, with figures rising to 58 percent in Latin America and Turkey and 56 percent in Indonesia. With Black Friday in particular, negative media coverage in some markets in the past has made shoppers wary of sales, discounts and promotions, encouraging them to spend even more time comparing prices before committing to a purchase.
Retailers have had to ensure they don’t risk profit margins and cannibalize their most important sales period of the year, also known as the ‘golden quarter’. In markets where Black Friday rivals, or has overtaken Christmas spend, such as the Great Britain, Germany, France, Italy, Spain, Poland, Russia and Brazil, many manufacturers and retailers are focusing on a premiumization strategy. Consumers are encouraged to ‘trade up’ to higher spec models rather than choose the cheapest models on offer.