Will Singles Day be the new Black Friday?

Although Black Friday is the biggest shopping day in Britain, Europe and the US, the biggest day for online shopping worldwide is ‘Singles day’ in China.

Singles Day was created in China to celebrate single people. It’s held every year on the 11th November, 11.11, with the number 1 symbolising the single individual. This day has gradually become one of the biggest online shopping events i.n the world.

Alibaba Group made Singles Day synonymous with people treating themselves to gifts and last year they recorded sales of £9.4 billion during the 24 hour event (The Guardian).

Alibaba’s Singles Day sales continue to climb every year, reaching this years record figure of $17.8 billion (£14 billion).

chinas_singles_day

In the last few years, several European brands have joined Singles Day. Dyson went on board in 2014 and Macy’s, Hugo Boss and United Biscuits joined the in 2015.

Waitrose entered the Chinese market in April this year, they said: “Singles Day is a big occasion for consumers and businesses in China and has the potential to give the products we offer more exposure and provide another opportunity to test demand for our brand.”

2016 Singles Day sales figure are four times that of worldwide Black Friday sales (source).

Interestingly, mobile devices play a large part in Singles Day’s success. Alibaba reported 82% of purchases had been made on mobile phones during Singles Day. “In contrast, many Black Friday opportunities are concentrated on the high street, which is not always convenient for those just wanting to shop from home, on their mobile or from more rural areas” Wing Chan, group marketing director of The Hut Group.

The exponential growth of mobile and the already observed shift online of British shoppers suggests that Black Friday will continue to grow online; this year 64% of purchases took place on mobile devices (22.7% on tablets, 41.7% on mobile), which is 16% more than the previous year (source).

This is a big opportunity for retailers in the UK and Europe. Investing and focusing your business growth on mobile clearly reflects customer’s current shopping behaviour and desires. Not only that but it can also convert more highly – on Black Friday, mobile optimised websites had a 30% increase in sales and a 25% higher average order value.

Need help optimising your website for mobile?

Let’s have a quick chat about what your first steps should be. Contact us now to arrange a convenient time.

Black Friday 2016: new trends and future opportunities


Image credit: Fenwick

In 4 days it will be Friday the 25th November, better known to the world as Black Friday.

Black Friday has become very popular in Europe, with retailers using it to kick start shoppers into buying their Christmas purchases. In fact, it’s now so popular that retailers have extended it to Black Friday week! With more sales than boxing day, it’s a huge event for retail.

However, fresh on it’s tail is a sales day that originates from China called Singles Day (there’ll be more about this in our next post out very soon, stay tuned!), first let’s take a look at this years Black Friday predictions.

Some figures…

The popularity of Black Friday is growing faster in Europe and sales have increased dramatically over the years.

Around 14 million English customers will join the 24 hour sale, spending £2.3 million a minute, according to vouchercodes.co.uk and the Centre for Retail Research.

Let’s look at this year’s predictions from IMRG:

  • £6.77 billion forecast to be spent over the Black Friday peak period (Monday 21 – Monday 28 November 2016)
  • £1.27 billion to be spent on Black Friday (+16% higher than 2015)
  • £3.45 billion (51%) of total sales will be completed through mobile devices (smartphones and tablets)

According to a survey by PwC (on 2000 adults), people intend to spend more on Electrical and Technology items and Christmas related products.

black_friday

Top 10 categories shoppers will spend the most money on (PwC)

Around three fifths (57%) of consumers that were planning a purchase said they were now holding off in anticipation of getting a better deal on Black Friday/Cyber Monday.

Your opportunity: Baby Boomers

Baby Boomers have the biggest increase in predicted spend for 2016’s Black Friday. Recent research we conducted with this audience showed they are really into deals and discounts so now they’re getting more aware of and familiar with Black Friday this is showing in their huge increased predicted spend for 2016. Looking at their predicted spending growth compared to other age groups, this is a big opportunity for retailers and we would advise keeping a close eye on baby boomers in 2017 if you aren’t already. As they become more tech savvy, more comfortable with online spending and familiar with events such as Black Friday, they will be a huge growing market for retail. Remember they have a lot of spare cash and are very brand loyal customers (trust and quality are very important to them).

baby_boomers_black_friday

Average predicted spend by age range (PwC)

Want to know about the results of our recent Baby Boomer Research? Send us a quick message and we’ll let you know when we publish the results so you can be the first to read all about them!

Black Friday extended

Black Friday started out as a single day of discounting activity, which then became a weekend in 2014, an extended period in 2015 and is now spanning an entire week in 2016.

Amazon and other online retailers have realised that spreading shipment of orders into early November will positively impact customers’ satisfaction. Amazon has extended it’s Black Friday promotions to almost two weeks. In 2015, on Black Friday, the retailer sold more than 7.4m items in the UK. This was a record for Amazon, and sales equated to 86 items a second! This year, it will offer double the number of deals compared to last year.

Many other retailers have followed Amazon. For example, Debenhams, Sharps, Boots, Feel Unique and more have extended their Black Friday to an entire week of discounts.

The shift to online

Shoppers are choosing to look for deals online instead of the high street (64% online vs 17% in store), to overcome the chaotic scenes seen in shops in previous years (for more insights about shopping behaviour on Black Friday, check out our blog post Black Friday: Consumer psychology of grabbing a bargain) and never-ending waiting times at the till.

Retailers are now trying to spread out consumer spending. In past years, Black Friday has been typified by crazy situations in stores with shoppers fighting to pick up discounts, and websites crashing due to the enormous number of visitors.

Last year, the technical difficulties forced some consumers to head to the high street, however a lot of them left very disappointed as they couldn’t get the deals they expected to find online, with some customers even finding it cheaper and more convenient to click and collect via their mobile in store rather than purchase at the till.

Courier companies are struggling to cope with the rush of online orders, with Hermes asking 5,000 staff to work up to 20 days without a break to deal with the amount of parcels. The couriers’ working conditions really worried the Health and Safety Executive that has been mobilised “to ensure the company’s actions do not put the safety of its couriers as well as road users at risk” (The Guardian, 20th Nov 2016).

Black Friday: Consumer psychology of grabbing a bargain

This year, online sales over the 24-hour Black Friday period are expected to surpass £1bn for the first time in UK history (last year they were £810m). £3.5bn in sales are expected over the whole weekend. For retailers, Black Friday is a huge sales opportunity but also creates pressure to keep up with the Joneses and discount items to an uncomfortable level. Combine this with the instore chaos we saw in the UK last year and it’s a pretty crazy time!

For Americans, Black Friday symbolises the start of the Christmas holiday shopping season. They take the Friday after Thanksgiving off from work, taking advantage of the long weekend to start their Christmas shopping.

Although Black Friday is still not very popular in Europe, in the UK it has very quickly become the biggest shopping day of the year, even beating Boxing Day.

The figures speak for themselves…

In 2014, UK consumers spent £810m online on Black Friday and they are expected to spend even more this year. According to IMRG & Experian, online sales will reach £1.07bn. If that prediction is correct, online sales will reach a record in the UK’s online retailing history, exceeding for the first time £1bn in just 24 hours.

The Centre for Retail Research estimates that in total (combining online and in store shopping) British people will spend £1.39Bn in just one day, this is 32% more than the previous year.

Black Friday Sales

Telegraph, 23 November 2015. http://www.telegraph.co.uk/finance/black-friday/12009461/Black-Friday-2015-the-best-bargains-and-deals-when-and-where.html

Who are Black Friday Shoppers?

First of all, let’s understand who are Black Friday typical shoppers: (IMRG 21 October 2015, http://www.imrg.org/-1bn-to-be-spent-by-uk-online-shoppers-this-black-friday)

  • Typically families with children
  • Aged between 35-55
  • Living in suburban or residential locations; they don’t have easy access to shops
  • Facebook users
  • Regular consumers of content on mobile devices

Compare this with Boxing Day shoppers who are more likely to be younger and live in urban city centres.

Their demographic profile has important implications for retailers. For example, considering that the most Black Friday shoppers don’t live in the city centre and don’t have easy access to shops, attention should be put in to planning and optimising the delivery service or in communicating details about deals, coupons, opening times, etc, through social media, to enable costumers to plan and organise their shopping.

How are Black Friday customers shopping?

(Simpson L., Taylor L., O’Rourke K. and Shaw K. (2011). An Analysis of Consumer Behaviour on Black Friday, American International Journal of Contemporary Research, Vol. 1 No.1)

  • They already have a specific product in mind
  • They buy particularly electronic media items
  • More willing to buy gift items rather then items for themselves

This year, consumers will be even more aware about the convenience of buying on Black Friday and shops will be even more crowded than last year, lines outside will be longer and tension will grow faster among the more competitive ones.

Last year, Black Friday was definitely a success, but retailers weren’t ready to deal with, quite frankly, the chaos that ensued amongst consumers, to the point that some of them have decided not to take part again this year. One of the most surprising retailers not taking part this year is American owned Asda, who will instead offer discounts spread across November and December.

Daily Mail, 28 November 2014, Manchester.
http://www.dailymail.co.uk/news/article-2852585/Mayhem-Black-Friday-begins-Shoppers-clash-supermarkets-trying-grab-bargains-Boots-Game-Curry-s-PC-world-websites-crash-thousands-start-hunt-Christmas-deals.html

Copyright LUKE MACGREGOR

Why is Black Friday more aggressive than other UK sales days

Last year, the situation got so chaotic that Telegraph renamed the day as “The Black and Blue Friday”. People queued in the cold outside shops for hours, then running and fighting their way to the product they wanted. But it’s not like this on Boxing Day or any other sale day in the UK…

So, what’s transformed the decent and respectable UK shopper into a merciless shopping, fighting machine?  Frustration can be a reasonable answer.

A lot of psychologists tried to find explanations and causes of aggressive behaviours and the Frustration-Aggression Theory (Dollard, Neal, Miller, at al. 1939; Berkowitz, 1969) is one of the hypothesis proposed to explain the phenomenon. The authors support the idea that when people perceive that they are being prevented from achieving a goal, their frustration is likely to turn to aggression and violence. The closer you get to a goal, the greater the excitement and expectation and consequently the more frustrated you get by being stopped.

The theory doesn’t suggest that frustration always lead to aggression, but in some particular circumstances can boost aggressive behaviours.

Black Friday might be one of those above mentioned circumstances.

Sales psychology: Why sales drive shoppers

Psychologists say that the allure of a bargain speaks to our human nature. Limited-time offers and last chance buys trigger the fear of scarcity and Fear of loss that drive us to buy. It makes us buy things we don’t really need, simply because we might not have the opportunity to buy them so cheaply again. IT’s how you end up with boxes of shoes in the cupboard that you never wear but you thought were an absolute bargain at the time you bought them with 70% off!

“People truly want to get a good deal, and so they might be less rational… when they can look in the environment and find different cues that make them think they’re getting a good deal, the decision-making is emotional” Kenneth Manning, professor at Colorado State University.

Did you know that sales drive our competitive spirit? We want to tell other about the great deal we got and we hope ours was better than theirs (even if we didn’t really need the item in the first place!). People treat it as a personal accomplishment to boast about.

Sales also have a positive affect our brain chemistry. In 2007, Stanford researchers discovered that when subjects shopping for clothes saw a sale price, the brain’s pleasure centre lit up. Sales, in other words, make us happy.

The sales environment also triggers consumers to part with their cash: “We are classically conditioned to hear this music, see these lights, even the experience of the shorter days and associate it with spending and shopping,” says Dr. Ramani Durvasula, a licensed clinical psychologist

So, be ready, 2015 Black Friday is just around the corner (27th November) and we hope and wish will be a good one, for both shoppers and retailers!