Black Friday, once only a North American marketing frenzy, has become a critical entry in the calendars of South African retail business owners.
Research published by Stats SA says that historically, the most important month of the year for retail trade is December, when many consumers are on holiday and go Christmas shopping. But December 2018 was a tough month for retail in South Africa with the volume of sales falling by 1,4% year-on-year.
The poor performance of retailers in December followed a fruitful November, when Black Friday boosted sales to 2,9% year-on-year.
Dov Girnun, CEO of Merchant Capital, an innovative fintech funder that provides working capital to retail SME’s across the country, says Black Friday presents a moment in time in the sales cycle, and business owners still need to consider whether the concept will make sense for their business’s growth.
“Small business growth is a delicate balance between doing what works and taking advantage of the right opportunities. Retail business owners should carefully weigh up the pros and cons before being swept away by the Black Friday wave,” says Girnun.
Girnun outlines the following pro’s and con’s that retailers should consider before jumping on the Black Friday bandwagon.
Pro: Savvy customers look forward to a good bargain. They actually plan their year-end spending around this one retail event. They believe that they will enjoy savings and great deals which will often prompt larger spending and additional ‘treats’ for themselves.
Con: There was a time when festive season shopping mainly occurred in December. Black Friday has changed this. What was normally a very good festive season trade, can now mean rapidly reduced December turnover. Retailers need to work this new spending habit into their projections and stock flow.
Pro: If you can deliver agile marketing messaging and have a tactical social and email marketing campaign behind you, you may well be able to fight the clutter and up your sales in a meaningful way.
Girnun says: “In our experience, small businesses use the funds we lend them for anything that will be additive to the growth of their business: to hire more employees; buy new equipment; refurbish their store; buy more stock – and even for marketing – they don’t necessarily have to be elaborate plans, but each funding step is crucial to the next.”
Con: As a small business you are up against the big guys: large retailers with huge marketing campaigns behind them. Certain larger retailers will even offer loss-leaders to draw in customers.
Shed old stock for small business growth
Pro: Small business growth is often the difference between sitting with old stock or shedding your load. Black Friday is a great way to encourage take-up of old redundant inventory. Making way for the new.
Con: On this day, over any other, customers are price-sensitive. They expect a good deal otherwise will gladly shop elsewhere. Heavy discounts might be the only way to win that sale over your competitor. But this is often a discount that isn’t worth the sale.
Scaling up for traffic
Pro: Black Friday is a marketing vehicle to assist in scaling up your customer traffic. It is a unique opportunity to attract new customers and satisfy existing ones. Just make sure that your store has the capability to restock quickly and check customers out efficiently.
Con: Sub-par in-store or online service can have a negative knock-on effect on your brand. So make sure you employ more staff and security on the day and upgrade your online systems so that they can carry an abnormal load should it arise.
Realising retailers’ eleventh-hour cash needs and taking the rapid evolution of technology into account, funders like Merchant Capital have the capability of assessing and approving a loan in just 24 – 48 hours, offering retailers an opportunity to scale up if need be at lower risk.
What are your competitors doing?
Pro: If your competitors are in the space, this may mean it’s good for your vertical. Simply being there may be a good way to claim your stake in some way.
Con: If you aren’t in the game, you can almost guarantee it will be a bad sales day. But FOMO alone (Fear Of Missing Out), is a dangerous hill to climb. So think clearly and make decisions that are right for your business!
Girnun says: “The jury is out as to whether Black Friday makes sense for all small businesses. But what is very clear is that retailers need to think long and hard about capacity, strategy, bottom-line, and long-term impact before committing to partake in Black Friday.”
GoFundMe hits R9bn in donations for people and causes
The world’s largest social fundraising platform has announced that Its community has made more than 120-million donations
GoFundMe this week released its annual Year in Giving report, revealing that its community has donated more than 120-million times, raising over $9-billion for people, causes, and organisations since the company’s founding in 2010.
In a letter to the GoFundMe community, CEO Rob Solomon emphasised how GoFundMe witnesses not only the good in people worldwide, but their generosity and their action every day.
“As we enter a new decade, GoFundMe is committed to spreading compassion and empathy through our platform,” said Solomon in the letter. “Together, we can bring more good into the world and unlock the power of global giving.”
The GoFundMe giving community continues to grow with both repeat donors and new donors. In fact, nearly 60% of donors were new this year. After someone makes a donation, they continue to engage with the community and give to multiple causes. In fact, one passionate individual donated 293 times to 234 different fundraisers in this past year alone. Donations are made every second, ranging from $5 to $50,000. This year, more than 40% of donations were under $50.
GoFundMe continues to be a mirror of current events across the globe. This year, young changemakers started the Fridays for Futuremovement to fight climate change, which led to a 60% increase in fundraiser descriptions mentioning ‘climate change’. Additionally, the community rallied together to support one another during natural disasters like Hurricane Dorian and the California wildfires, where thousands of fundraisers were started to help those in need.
The report includes a snapshot of giving trends from the year based on global GoFundMe data. It also includes company milestones from 2019, such as launching the company’s non-profit and advocacy arm, GoFundMe.org, and introducing GoFundMe Charity, which provides enterprise software with no subscription fees or contracts to charities of every size.
Highlights from GoFundMe’s 2019 Year in Giving report include:
- Global giving trends and data
- Top 10 most generous countries
- Top 10 most generous U.S. states and cities
- Biggest moments in 2019
To view the entire report, visit: www.gofundme.com/2019
For users, in-car touchscreens ever more useless
As touchscreens become more commonplace, the gulf of perceived differences in the performance of these features between cars and other devices (such as mobile and in-home) has become wider. A new report from the In-Vehicle UX (IVX) group at Strategy Analytics has investigated car owners’ satisfaction with their on-board touchscreens. Long hamstrung by poor UX and extended production cycles, in-car touchscreens are seen by car users and buyers as lagging behind the experience offered by touchscreens outside the car. As such, consumer satisfaction has continued to slide in China and Europe, while reaching historic lows in the US.
Surveying consumers in the US, Western Europe, and China via web-survey, key report findings include:
- Difficult text entry and excessive fingerprint smudging are common complaints among all car owners.
- Because touchscreens have reached market saturation in the US, satisfaction with in-car screens has tailed off significantly.
- However, touchscreens remain a relatively newer phenomenon in many car models in Western Europe (compared with the US) and thus their limitations are less prominent in the minds of car owners.
- Overall touchscreen satisfaction fell for the fifth straight year in China, indicating a growing impatience for in-car UX to match UX found elsewhere in the consumer electronics space.
Derek Viita, Senior Analyst and report author, says, “Part of the issue with fingerprint smudging is the angle at which in-car touchscreens are installed – they make every fingerprint increasingly visible.
“Fingerprint smudging is an issue across all touchscreen-based consumer electronics. But in most form factors and especially mobile devices, consumers can quite easily adjust their viewing angle. This is not always the case with fixed in-car screens.”
Says Chris Schreiner, Director, Syndicated Research UXIP, “Although hardware quality certainly figures in many of the usual complaints car owners have about their screens, it is not the sole factor. Cockpit layout and UI design can play important roles in mitigating some issues with in-car touchscreens.”