Black Friday could look very different this year
E-commerce and domestic-tourism companies prepared for record sales
The knock-on effects of the Covid-19 pandemic lockdown are going to
see a Black Friday like never before in November this year, which is good news for South Africans saving
their depleted available spend for bargains that will yield great value. With retailers desperate to move
unsold stock and resistance among shoppers to gather in large numbers in shopping malls, there may be a
significantly greater variety of goods and even lower pricing than ever.
The Friday following Thanksgiving Day in the USA has been regarded since the 1950s as the beginning of that
country’s annual Christmas shopping season. In South Africa Black Friday has become synonymous with
once-off retail sales deals, and was responsible for a 2,6% year-on-year increase in retail sales last year.
“We’re anticipating very high demand,” says Craig Lubbe, CEO of bidorbuy, South Africa’s largest online
shopping and auction marketplace. “South Africans became a lot more conscious of their health and safety
during lockdown, and footfall in the malls has still not returned to pre-Covid levels, which suggests that
consumers are – understandably – still wary of visiting stores in large numbers.”
With national government’s protocols under Lockdown Level 1, including social distancing of 1,5 metres and
mandatory face masks at all times, the in-store experience this year will unlikely be enjoyable for many
shoppers, or easy to manage for retailers. E-commerce sites, on the other hand, are well positioned to
address these challenges by offering a safe, convenient shopping experience which is becoming increasingly
accessible for ordinary consumers.
“Black Friday is one of the busiest periods of the year for us, and despite annual traffic surges in late
November, we’ve been able to avoid any downtime on our site, which may give shoppers a level of comfort
in knowing there’ll be minimal disruptions,” says Lubbe.
And as smartphone penetration among South Africans continues to increase, Lubbe believes consumer
demand for Black Friday will similarly rise. Last year the number of smartphone users in the country
increased to 91,2% up from 81,7% in 2018, according to the 2020 State of the ICT Sector report.
Smartphone usage means you can shop literally from anywhere, any time. “There’s been a remarkable
change in consumer behaviour around this period, particularly on Black Friday itself, with our best deals
starting at 00h00 on Friday morning, and this increases exponentially during the course of the day, with
shoppers using their phones or desktops to find deals,” says Lubbe.
He believes that because of exceptional hardship for both people and brands in 2020, the day offers
retailers, brands and manufacturers an opportunity to move stock that they’ve been sitting on throughout
lockdown. This, combined with the safety and convenience factor of online shopping, as well as contactless
courier deliveries or pick-up services like Pargo, will likely see many more consumers migrate from malls to
e-commerce sites.
And retail isn’t the only sector looking to trade in a whole new way this November. Leading aparthotel
operator Totalstay’s James Woolley points out that the travel industry is perfectly positioned to capitalise on
Black Friday because of the global popularity of online travel planning. “We haven’t released our promotions
yet, but expect to see some deep discounts of up to 40%,” he says.
A pioneer in South Africa’s aparthotel and luxury-villa industry, Totalstay is home to a collection of one-,
two- and three-bedroom apartments and villas in Seapoint, Camps Bay and Woodstock. Focusing their
efforts on attracting a greater domestic-tourism market while still catering for international clientele as the
country reopens to international travel, Woolley says that South Africans’ chances of getting much more
choice at better prices and access to a broader variety of available dates for accommodation couldn’t get
better this Black Friday.
“Because international travel over high-season periods like November to March is still limited, a lot more
accommodation inventory is now available for the coming summer than we normally would have at this time
of the year.”
Woolley believes that this year’s Black Friday will be a record-setter – in the past, Totalstay’s sales have
increased by up to 750% over this period – and points out that a combination of their growing database,
more accommodation available on the market because of Covid-19 suppression, and Black Friday’s growing
popularity will likely spur significant sales.
Lubbe believes that the quest to offer greater value for minimal spend will play out in retail goods as
Woolley suggests it will in travel. “It’ll be a great opportunity for shoppers to find goods at terrific value, and
this may include big-ticket items that South Africans have avoided buying in the hope of grabbing a Black
Friday special.”
Commenting on which categories of goods could look different this year, Lubbe doesn’t believe there will
necessarily be any major shifts, given that people have had time to adjust to the “new normal”. Demand for
consumer electronics is still high, and the company believes this will continue into Black Friday. Where
excellent specials or deals could be found are in categories where products are regularly replaced by newer
models, such as mobile phones and consumer electronics with regular lifecycle updates. Seasonal goods
such as fashion could also represent great value.
Once niche sector that’s showing a rising trend is online gaming: two major games-console releases took
place this year, and bidorbuy has seen an increased demand in online gaming vouchers as people spend
more of their leisure time at home. “I think this lifestyle trend will continue, especially as new consoles and
games enter the market,” Lubbe says.