The
knock-on effects of the Covid-19 pandemic lockdown are going to see a Black
Friday like never before in November this year, according to some major players
in ecommerce With retailers desperate to move unsold stock and resistance among
shoppers to gather in large numbers in shopping malls, there may be a
significantly greater variety of goods and even lower pricing than ever.
The
Friday following Thanksgiving Day in the USA has been regarded since the 1950s
as the beginning of that country’s annual Christmas shopping season. In South
Africa Black Friday has become synonymous with once-off retail sales deals, and
was responsible for a 2,6% year-on-year increase in retail sales last year.
“We’re
anticipating very high demand,” says Craig Lubbe, CEO of bidorbuy, South Africa’s
largest online shopping and auction marketplace. “South Africans became a lot
more conscious of their health and safety during lockdown, and footfall in the
malls has still not returned to pre-Covid levels, which suggests that consumers
are – understandably – still wary of visiting stores in large numbers.”
With
national government’s protocols under Lockdown Level 1, including social
distancing of 1,5 metres and mandatory face masks at all times, the in-store
experience this year will unlikely be enjoyable for many shoppers, or easy to
manage for retailers. E-commerce sites, on the other hand, are well positioned
to address these challenges by offering a safe, convenient shopping experience
which is becoming increasingly accessible for ordinary consumers.
“Black
Friday is one of the busiest periods of the year for us, and despite annual
traffic surges in late November, we’ve been able to avoid any downtime on our
site, which may give shoppers a level of comfort in knowing there’ll be minimal
disruptions,” says Lubbe.
And
as smartphone penetration among South Africans continues to increase, Lubbe
believes consumer demand for Black Friday will similarly rise. Last year the
number of smartphone users in the country increased to 91,2% up
from 81,7% in 2018, according to the 2020 State of the ICT Sector report.
Smartphone
usage means you can shop literally from anywhere, any time.
“There’s
been a remarkable change in consumer behaviour around this period, particularly
on Black Friday itself, with our best deals starting at 00h00 on Friday
morning, and this increases exponentially during the course of the day, with
shoppers using their phones or desktops to find deals.”
Lubbe
believes that, because of exceptional hardship for both people and brands in
2020, the day offers retailers, brands and manufacturers an opportunity to move
stock that they’ve been sitting on throughout lockdown. This, combined with the
safety and convenience factor of online shopping, as well as contactless
courier deliveries or pick-up services like Pargo, will likely see many more
consumers migrate from malls to e-commerce sites.
And retail isn’t the only sector looking to
trade in a whole new way this November. Leading aparthotel operator Totalstay’s James Woolley points out that the travel
industry is perfectly positioned to capitalise on Black Friday because of the
global popularity of online travel planning.
“We haven’t released our promotions yet, but
expect to see some deep discounts of up to 40%,” he says.
A pioneer in South Africa’s aparthotel and
luxury-villa industry, Totalstay is home to a collection of one-, two- and
three-bedroom apartments and villas in Seapoint, Camps Bay and Woodstock.
Focusing their efforts on attracting a greater domestic-tourism market while
still catering for international clientele as the country reopens to
international travel, Woolley says that South Africans’ chances of getting much
more choice at better prices and access to a broader variety of available dates
for accommodation couldn’t get better this Black Friday.
“Because international travel over
high-season periods like November to March is still limited, a lot more
accommodation inventory is now available for the coming summer than we normally
would have at this time of the year.”
Woolley believes that this year’s Black
Friday will be a record-setter. In the past, Totalstay’s sales have increased
by up to 750% over this period, and he points out that a combination of their
growing database, more accommodation available on the market because of
Covid-19 suppression, and Black Friday’s growing popularity, will likely spur
significant sales.
Lubbe
believes that the quest to offer greater value for minimal spend will play out
in retail goods as Woolley suggests it will in travel.
“It’ll
be a great opportunity for shoppers to find goods at terrific value, and this
may include big-ticket items that South Africans have avoided buying in the
hope of grabbing a Black Friday special,” he says.
Lubbe
doesn’t believe there will necessarily be any major shifts, given that people
have had time to adjust to the “new normal”. Demand for consumer electronics is
still high, and the company believes this will continue into Black Friday.
Where excellent specials or deals could be found are in categories where
products are regularly replaced by newer models, such as mobile phones and
consumer electronics with regular lifecycle updates. Seasonal goods such as
fashion could also represent great value.
Once
niche sector that’s showing a rising trend is online gaming: two major
games-console releases took place this year, and bidorbuy has seen an increased
demand in online gaming vouchers as people spend more of their leisure time at
home.
“I
think this lifestyle trend will continue, especially as new consoles and games
enter the market,” says Lubbe.
