Skip to main content

Black Friday is the first Friday following the American Thanksgiving, and it marks a special date for both businesses and consumers as prices on products drop dramatically. Naturally, this day is regarded as the busiest shopping day of the year and is also considered the start of the critical holiday shopping season. Taking its name from the 1869 stock market crash, the promotion first started in the U.S. but has quickly grown into a worldwide phenomenon.
With all the craze and anticipation surrounding it, how does Black Friday impact businesses? Here are a few ways how:

Increased Traffic

Black Friday is synonymous with great deals, and with great deals comes higher demand. One of the biggest advantages here is that people are looking for a bargain and to get the most bang for their buck, and since Black Friday is close to Christmas, customers are also looking to get their presents stocked up before the big day.

This will significantly increase traffic to your business, causing a large influx in sales. Customers will be more receptive to new products and subscriptions, and if you capitalize on the demand, you can turn your sales into a massive success.

Increased Sales

People already know Black Friday is coming, and they were most likely saving up for it to go on an all-out spending spree. The anticipation and increase in deals and discounts already have customers itching to make a purchase, and with this much buildup, you can certainly expect a massive increase in sales.

Customers would go on a shopping frenzy, and reports have also shown that about 20% of annual sales are accounted for during the holiday season, making it a critical day for the retail sector.

Customer Acquisition

Black Friday offers retailers a chance to acquire new customers at a key time of year, and some new customers can bring in revenue even after Christmas. With so many people looking to buy several items and gifts, increasing customer outreach and having great deals and sales will help attract new customers.

Customers who have purchased from you and are satisfied and happy with their purchases are more likely to stick around and shop at your business more frequently.

Brand Awareness

Happy customers, be they old or new, are great for building brand awareness. If new consumers are happy with their shopping experience and feel like they have found a great deal on their purchase, they are more likely to tell their friends and family about it, thus helping businesses attract even more potential customers and build brand awareness through word of mouth and social media.

Putting out great deals and sales during Black Friday will attract people’s attention, subsequently bringing more attention to the brand and the business.

Stock Clearing

Struggling with shifting inventory? No problem. Black Friday is a great way for businesses to clear out some of their old stock. By offering deals on items they are trying to clear out, customers are more likely to buy, and in return, not only will they have made a sale, but they will also have cleared out some of their pre-existing stock, and if played right, they might just be able to clear out all of it.

Many businesses try to clear old inventory in the hopes of introducing newer stock in time for Christmas, and the best way for them to do that is during Black Friday.

We have seen the benefits that Black Friday can bring to businesses; however, like all things, there can be some drawbacks such as:

Pressure to Discount

Since the whole idea behind Black Friday is big deals, sales, and discounts, businesses might feel pressured to offer deals they cannot afford. Customers expect big discounts and special offers, sometimes even during the days leading up to Black Friday. Smaller businesses can’t afford to discount as much as big brands do, but customer expectations often mean they have to.

Impact on Margins

Even with the high number of sales, short-term profit margins are going to be low. Since consumers expect a discount on products, opting out isn’t an option for some retailers, as this could lead to them being overlooked by shoppers and not getting a share of their spending.

In this situation, retailers need to carefully consider which products to discount and how much to discount them, as they can reduce margins on products they could’ve sold at a full price closer to Christmas.

Crowded and Competitive

When it comes to Black Friday, everyone is in on it; businesses all over are offering crazy discounts and sales, which can make it tough to stand out and can increase the competition significantly. Bigger companies can afford a larger marketing budget and can post their ads just about everywhere, ultimately drowning out smaller businesses.

It is tough for a small business to be noticed in situations like these, but with a proper marketing strategy and proper timing, it is possible to cut through the crowd and be visible.

Black Friday has risen in popularity over the years, and it doesn’t seem to be slowing down. Consumers are expecting it, and some even look forward to it. If properly managed, businesses can greatly benefit from it by increasing sales and gaining new customers, but they also have to consider the drawbacks of participating.

THE IMPACT OF BLACK FRIDAY THE IMPACT OF BLACK FRIDAY  

THE IMPACT OF BLACK FRIDAY THE IMPACT OF BLACK FRIDAY  

THE IMPACT OF BLACK FRIDAY THE IMPACT OF BLACK FRIDAY  

THE IMPACT OF BLACK FRIDAY THE IMPACT OF BLACK FRIDAY  

THE IMPACT OF BLACK FRIDAY THE IMPACT OF BLACK FRIDAY