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).

Are fashion brands losing their identities online? A research study by Keep It Usable

Have you noticed how similar websites look these days? Cover up the logo and can you really tell one from the other? How effective and identifiable is their brand once you cover up the logo? Is their identity getting lost online?

Walk down the high street and each brand has a clearly identifiable shop front. They each have their own unique style. So why is it that these very distinguishable brands have websites that all look very similar?

Of course this could just be our opinion so we decided to put 11 female fashion brands to the test to see if their target consumers (young females aged 18-24 in this case) could correctly identify online websites with their brand (logos removed and provided separately). We used a mix of well known and lesser known brands, high street and online brands. We also tested both desktop and mobile versions.

Try it for yourself…

Have a look at the following brands (notice how similar a lot of these look already?)

fashion brands

Which brand do you think the following website belongs to?

Desktop Brand

To make it a little easier, we’ll give you a clue, it’s either Topshop or River Island. Here’s a photo of their high street shop fronts to help you even more.

River Island / Top Shop

If you think the answer is River Island we can understand why. The website looks more consistent with the high street River Island shop front doesn’t it. However, the correct answer is actually Topshop.

Did you find that difficult? Well, unsurprisingly, so did the people we interviewed. The Topshop logo was correctly matched to the website just 21% of the time (so only 1 in 5 attempted matches were correct).

“I don’t know why I don’t recognise Topshop, I’m confused.”

Everyone found matching the brands to the websites much more difficult than they anticipated (they thought it was going to be really easy) and they struggled to match the brand with the correct website, even if they were a regular shopper and therefore very familiar with the brand.

And the winner is… Very

Very was the winner of our online brand identity research, closely followed by Asos and Zara. Look at their websites and you’ll see why. They each have a very distinct look and feel, their brand identity is carried through the whole user interface through the font, use of colour, imagery used, layout and style.

Very website

Findings

Those brands with the lowest scores included Forever 21, Missguided, Miss Selfridge and Glamorous. Interestingly, three of these brands scored higher on mobile than desktop which could be a sign of their younger audience being very mobile heavy consumers.

The research confirmed the initial hypothesis that brand identity is being diluted online and that as far as consumers are concerned, the brands are easy to confuse with one another and are relying too heavily on their logo as their sole differentiator against their competitors.

An interesting association that we discovered was that participants viewed websites with similar layouts as selling cheaper and poorer quality products. The layout affected their impression about the quality and the uniqueness of the product sold.

For the target consumers of brands tested in this research, quality is one of the most important factors for making the decision to buy an item online. A poor and cheaply perceived layout or bad usability of the website can affect the impression of the product’s quality and undermine the overall image of the brand.

Brands that scored the more correct matches tended to have a stronger identity on desktop than mobile. The market predictions for 2016 forecast that mobile will play a bigger and bigger role in the e-commerce market and fashion brands should be aware that the income of mobile traffic will have a strong impact on their business.

Moreover, the 2016 trend in retail will be the omnichannel approach to shopping; that is a continuous and smooth shopping journey through different channels, online and offline. It is crucial that high street brands create a strong brand identity on all their digital platforms to create a consistent customer experience across all touchpoints. The aim will be to provide costumers with a frictionless, continuous shopping experience.

Discover even more insights in the presentation below and if you need to improve or test your fashion website in order to increase your conversion, we can help! Contact us

View on Slideshare

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!

Mobile shopping to soar this christmas

mobile christmas shoppingHow are you planning to do your christmas shopping this year? Online from your favourite comfy chair, nice and toasty by the fire? Will you take to the high streets in search of the perfect gift, taking in the christmas atmosphere with a mulled wine? Or will you combine the two, preferring to find the perfect gift then check on your mobile to see if you can buy it online and save money?

The latter of these options is called ‘showrooming’ and has become more popular in recent years as consumers seek out the best product by reading reviews and the best price for their intended purchase. Research by IAB shows people are also taking photos of products (22% did this) and posting them to social networks.

A whopping 76% of people now use their mobiles whilst shopping. The canny consumer, rather than walking from store to store to find the best price can now quickly use that mini computer in their pocket, to check prices on the whole of the internet. That’s some consumer power!

As retailers prepare for the big christmas spend, expectations by analysts are that mobile shopping (frequently referred to as m-commerce) will become the preferred platform for many consumers, especially with the rise of mobile apps.

Mobile purchases accounted for just over 8% of online purchases in the first three months of the year and this figure is predicted to increase to 20% by christmas. The IMRG Capgemini eRetail Sales Index forecasts that £920 million will be spent via m-commerce, which equates to one fifth of the £4.6 billion total online sales expected.

The big online stores are also expecting to see significant sales growth via mobile. Ebay expects mobile sales to account for 30% of all sales over christmas.

With more consumers turning to mobile shopping, ensuring you offer the best user experience is now more important than ever before. In the busy bustle of christmas, if your mobile visitors can’t find the items they want quickly, if the product details and reviews are too difficult to get to, if the path to purchase doesn’t offer a persuasive, engaging experience, they’ll spend their hard earned money with your competitors instead.

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