It’s almost that time again when retailers and customers get ready for the biggest shopping spree of the year when discounts reach as much as 50% or more and, as a result, sales go through the roof. It just “happens” to fall right before Christmas, making customers unable to look past the good deals, thus, unable to think rationally, getting them to spend much more than what they’ve had in mind.
This is why Black Friday belongs among the most popular mainstreams in the field of marketing. The name derives from the fact that accountants use red to show that there was a loss and use black to indicate profit. Having its origin in the United States, where it takes place the day after Thanksgiving, nowadays, Black Friday has become a global concept and tradition adopted by countless countries all over the world.
Despite the huge hype that builds around this event, just like any other marketing strategy, Black Friday can either make or break your business.
On the bright side…
Growing your customer network
The world’s most intense shopping spree can help businesses increase the number of regular purchasers. It is of great importance for companies to keep loyal consumers for their products. They are the ones that guarantee sales in the future.
Since Black Friday is immediately followed by another period of massive purchasing of products, this particular sale is a key opportunity for many retailers to attract customers by providing them with a great experience that will make them come back for the Christmas shopping splurge as well.
Making your brand known
Black Friday can be an essential method that can help new entrepreneurs grow their brand and generate more publicity around it. Before starting their shopping, customers usually make rigorous research on products they are interested in: checking out best prices, quality, and especially reviews and promotions. Collaborating with bloggers and media influencers is the best way to guarantee successful arousal of curiosity. It’s the perfect chance to launch a killer marketing campaign and start building a customer base.
Cleaning out your storage
Last but not least, through Black Friday businesses can get rid of items that sell slowly and unsuccessfully or even eliminate excess merchandise. Knowing that throughout this period people tend to spend a reckless amount of money on goods they don’t necessarily need, businesses might as well try their luck by offering them some of their failed products at discounted prices that no one will be able to resist.
On the downside…
Sales and violence often go together
The aggressiveness of customers in the course of Black Friday is one more prominent disadvantage that should be taken into account. Since people get into a highly competitive spirit during these sales, it is possible that someone can get hurt. Yes, your read correctly. Pushing against others, fighting over products, waiting in long lines at the cash register can be extremely annoying and, in some situations, can lead to injuries as people have a history of becoming quite hostile during such big sales. As a consequence, stores may receive negative publicity and suffer customer loss.
Discount products don’t always guarantee a sale
As much as people love a good bargain, not everything that is being sold half-price is a steal. During Black Friday customers come across incredibly low prices which do not always draw their attention. This depends mostly on the marketing positioning the brand occupies. For example, H&M offers well-made clothes at low costs. A similar position holds New Yorker, another fashion giant that sells its clothing lines at affordable prices yet impeccable quality. Thus, customers will be thrilled to buy their products amid Black Friday since they trust their quality and believe they are worth spending money on.
However, in the case when luxury brands, such as Chanel, Dior, Rolex, or Yves Saint Laurent, offer big discounts, customers may lose trust in the quality of the product. This is because these brands are not pressured to promote such huge sales. During the course of the years, they have built a strong reputation which is held alive by their exorbitant prices. When these stores market low prices with the target to attract new consumers, a Black Friday deal will only defame and revalue the brand’s products from deluxe to mediocre.
