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With November around the corner, South African retailers and shoppers will be starting preparations for Black Friday – and there are notable trends from last year’s event, including the most popular products among South African shoppers.
According to data analytics firm GfK, attractive promotions are becoming essential to satisfying both loyal customers and those who are shopping around for the best deals, and South Africa is no exception.
Additionally, while Black Friday 2023 arrives at a time of low consumer confidence and spending, GfK research shows that 57% of South African consumers are postponing purchases until the product is on sale or there is a special offer, which bodes well for Black Friday.
Retail Lead for South Africa at GfK Nikki Quinn noted that, with South African consumers holding back on big purchases throughout 2023 in anticipation of sales and promotions, the Black Friday period offers technical goods retailers and manufacturers a golden opportunity to capture revenue growth following a difficult year.
Over the past five years, Black Friday has grown from a day or a week of promotions to encompass nearly a full month of specials over November.
“Indeed, with many retailers already starting to advertise Black Friday specials in October, Black Friday is at the heart of the golden quarter – the all-important fourth quarter that also includes the festive season and the start of back-to-school campaigns,” said Quinn.
According to GfK’s Market Intelligence and Sales Tracking, the technical consumer goods market saw sales for the Black Friday period climb 17% in 2022 compared to the same period in 2021.
Among the statistics collected on Black Friday, the firm highlighted the most popular items bought during the event last year, which were:
- Telecom products, including smartphones, were the hottest sellers last year, up 31% over the previous year.
- Consumer electronics items such as panel televisions and cameras also fared well, recording 9% year-over-year growth for the same period.
Worst selling items:
- Small domestic appliances – such as kettles, toasters, and microwave ovens – recorded negative growth (-20%).
- Sales of major domestic appliances – such as dishwashers, fridges, and washing machines – were down 2% for the period.
“Given that consumers are familiar with the cadence of promotional events over Black Friday, brands have the opportunity to create targeted promotional strategies.
“Personalised promotional strategies leveraging digital loyalty schemes will resonate with households that are struggling to make ends meet. As in every challenging period, brands that invest in innovation can expect to weather the storm better than others,” the firm said.
It added that ongoing economic volatility and low consumer confidence mean that brands will need to be agile and ready to pivot to address unpredictable consumer demand.
Read: Early warnings for Black Friday 2023
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