By David Jenkin

This year saw a measurable upsurge in conversations about Black Friday leading up to Friday, 25 November, the traditionally American, post-Thanksgiving day of discounted retail goods and special promotions. Those conversations translated into long snaking queues of shoppers on the day, scenes of jostling and shoving in supermarkets, and overflowing trolleys.

Bigger than ever

Andre Steenekamp, CEO of digital marketing agency 25AM, states that in 2015, social media (primarily Twitter) saw around 4 719 mentions of Black Friday, compared to over 15 500 mentions in 2016. He writes, “The massive increase in conversation is likely due to higher social media adoption by South Africans, as well as the large number of new brands which have joined this annual shopping extravaganza.”

Black Friday has become a global phenomenon and South Africa is just one of the latest adopters, alongside Kenya and Nigeria where the day has also seen rapid growth in online presence. It’s known to be universally popular with retailers as an opportunity to clear old stock, and for consumers to stock up for the festive season with their last pay cheque before Christmas. It’s also commonly seen as the official commencement of the Christmas shopping season.   

Steenekamp adds, “The Black Friday phenomenon is likely a combination of the sluggish South African economy and the time of the year, as we find ourselves heading into the festive season and shoppers hope to get a bargain on food, presents or other items they may need for Christmas. The massive social media drive by many retailers certainly amplified the sales mania as this day continues to find increasing popularity in South Africa. However, it is yet to be established whether people actually save or end up buying things which they don’t need simply because it is on sale.”

Pros and cons

Business Tech spoke to Sage’s Anton van Heerden about what Black Friday really means for businesses in South Africa, and he warned that there are pros and cons for retailers taking part. For starters, consumers will expect bargains every year which may discourage them from spending in the weeks leading up to Black Friday.

“It can be hard to cut through the noise,” he adds, referring to the staunch competition to get people through the door. However, if a business is successful in bringing in that traffic, it also needs to have the capacity to handle it. “If your website falls over under the weight of thousands of visitors, your delivery logistics aren’t up to scratch or you don’t have stock to service demand, it could damage your brand,” he explains.

Van Heerden also notes that although shoppers tend to be more adventurous on Black Friday, thereby providing an opportunity to attract new business, “it’s open to question how loyal some of these customers will be – they could simply be bargain hunters”.

Tanya Petersen, writing for Independent Online, spoke to Stanlib’s chief economist, Kevin Lings, about this year’s record-breaking Black Friday. Lings said that consumer spending in general had slowed, and so retailers were grabbing the opportunity to boost sales. He noted that shoppers had brought their festive season shopping forward, which could result in a drop in December trading. He stated that Black Friday had given retailers a financial boost, but it was a short-term boost rather than a sustainable one.

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