Black Friday could look very different this year

The knock-on effects of the Covid-19 pandemic lockdown are going to see a Black Friday like never before in November this year, which is good news for South Africans saving their depleted available spend for bargains that will yield great value.

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.

Since the 1950s the Friday following Thanksgiving Day in the USA has been regarded 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 per cent year-on-year increase in retail sales last year.

“We’re anticipating very high demand,” said Craig Lubbe, CEO of online shopping and auction marketplace, bidorbuy.

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,” said Lubbe.

And as smartphone penetration among South Africans continues to increase, Lubbe believes consumer demand for Black Friday will rise accordingly.

Last year the number of smartphone users in the country increased to 91,2 per cent, up from 81,7 per cent 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,” said Lubbe.

He 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, will likely see many more consumers migrate from malls to e-commerce sites.

Commenting on which categories of goods could look different this year, 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. Excellent specials or deals are to be found 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.

One 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,” Lubbe said.