Showing posts with label Black Friday. Show all posts
Showing posts with label Black Friday. Show all posts

Monday 16 November 2015

Black Friday: running the endgame numbers?

Whilst Black Friday presents a useful promotional and media sales surge, deep down business does not like spikes...

Asda's decision to pass on this occasion, indicates that retailers are beginning to check the numbers and are realising that Black Friday may not be worth the trouble (and cost...).

According to The Telegraph, bargain-hungry Britons are expected to spend £1.07bn on online shopping alone during Black Friday, up from £810m last year, quoting Experian-IMRG.

However, UK retailers stand to lose £130m just from handling returns of items bought on Black Friday, according to the retail intelligence company Clear Returns.

In addition, costs related to lost margins, cleaning and storing, oversupply of stock and the lost value of future custom from the shopper add a further £50m to the returns bill.

In other words, unless suppliers and retailer-partners have integrated Black Friday into a fully costed omnichannel strategy, that yields acceptable returns for the risk - think stock-shortages caused by returns-system lock-in, for a start - it is inevitable that next year other retailers will acknowledge Asda's financial pragmatism and sit this one out...

Time for suppliers to explore alternative initiatives aimed at spreading the promotional effect into a more manageable demand profile?

Monday 9 November 2015

How Singles Day eclipsed Black Friday and Cyber Monday

According to The Telegraph, an annual celebration known in China as “bare sticks holiday” – see appearance of date: 11.11 – Singles Day began as an anti-Valentine’s Day (1 child policy = male surplus) in the 1990s when students at Nanjing University started celebrating their single status, online.

The chart says it all, don’t you think?

                                                                                               Chart: via The Telegraph

Driven by Alibaba, in the 24 hours of Singles Day last year, and in spite of economic re-sets, Chinese consumers spent a record-breaking 57.1bn yuan (£5.86bn, or almost $9bn) across Alibaba’s platforms, more than double what American consumers spent online across the 48 combined hours of Black Friday and Cyber Monday.

Opportunities for suppliers?
  • A no-brainer for global brands
  • Scope for innovative niche brands, providing you can meet the demand..
  • Deep down, an incentive to seek out emerging trends and learn how to engage imaginatively, before the event become as obvious as Singles Day…

Worried about limited ‘singles potential’ following the recent abandonment of 1-child policy?  No worry, China will take a generation to begin to recover from that particular interference in the natural order, at least…