BrazilBlack Friday sales to spike as retailers entice consumers with massive discounts
Sales on Black Friday are poised to see a major spike this year, expected to surpass last year’s mark by around 13%. That is according to market research from RedSeer Strategy Consultants, which points at digital channels as the key driver of growth.
Black Friday has over the years emerged as one of the most important retail events around the world, owing to the wide array of deals and discounts spread out over the 4 to 5 week festive period.
Last year, the Black Friday festive season (which also includes Cyber Monday, a day of sales that falls on the Monday after Thanksgiving) generated around $74 billion in revenues in the MENA region, according to RedSeer Strategy Consultants. Fast forward twelve months, and that number is forecasted to hit over $83 billion.
“We are seeing increased interest in broader segments such as grocery and beauty and personal care products, while fashion and electronics continue to lead,” said Sandeep Ganediwalla, a Dubai-based Partner at Redseer Strategy Consultants.
Around 9 in 10 shoppers surveyed by the consultancy said that they have an intent to buy fashion wearables and ancillary products, followed by beauty and personal care products (78%) and electronic items (75%). Grocery and home products also figure high in this Black Friday’s shopping list, with 69% and 59% of customers indicating keenness to shop for these products during the great promotion bonanza period.
“The impact of lower disposable income could be another factor driving demand for events such as Black Friday, as inflation, especially around real estate, has impacted customer pockets,” Ganediwalla said, adding that “we expect higher deal-seeking behaviour this cycle.”
Sparking growth
The report highlighted that brands, retailers and e-commerce players are smartly capitalizing on the opportunity. Brands are for example launching launch several new products during this year’s Black Friday period, adding the lure for customers. Retailers and e-commerce meanwhile are upping their promotions and discounts to draw customers into buying their products.
Leading online marketplaces such as Noon have announced deep discounts on a slew of products in fashion, electronics and home appliances during the last week of November, while leading electronic product dealers such as Sharaf DG are offering attractive deals on electronics, appliances, and more.
Leading Middle East sports retailers such as Sun & Sand Sports are upping the game with massive discount offers – offering up to 80% – on personal care products for online shopping through their website and mobile app.
A larger number of retailers are joining in on the festive season this year, said the report from RedSeer Strategy Consultants, and notably, retailers are also extending their discount period around Black Friday, which falls on Friday November 27. Lifestyle retailer Azadea for example, has dubbed its longer promotion period as ‘White November’, with offers available the full month.
Digital media
“This year, we observe a significant trend: digital media channels are playing an even more central role in energizing the shopping season. From driving awareness to brand visibility, these platforms are becoming key for retailers aiming to capture attention and drive conversion,” said Ganediwalla.
“Digital media has become the top inspiration and discovery channel for customers, expected to account for as high as 66% of searches, as against 58% clocked last year,” he added. “Both digital media influence and trust in the MENA region are at an all-time high.”
