How retailers can navigate the prolonged Black Friday shopping season

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This transformation is particularly evident in South Africa where the trend has gained momentum, prompting significant shifts in how businesses approach this critical sales period.

The positive outlook for Black Friday 2024 indicates that the tide is turning for South African retailers after a long period of economic and retail stagnation.

Among the factors that have helped to improve the economic outlook include vastly reduced load shedding, the introduction of the two-pot retirement system, an interest rate cut, and lower inflation.

Putting the customer first and providing value is crucial for Black Friday success

Peter Ludi  6 Nov 2024

Black Friday has increasingly become a prolonged retail spike, often starting as early as October and extending through December.

This shift allows retailers to engage consumers over a 10-week period rather than just focusing on one day.

As consumer anticipation builds, brands are encouraged to maintain ongoing engagement through various promotional strategies, including teaser campaigns and early access deals.

The average consumer’s experience has become more intricate, characterised by extensive online research and comparison shopping.

Consumers now begin their Black Friday preparations months in advance, making it crucial for retailers to adapt their marketing strategies accordingly.

Brands now need to engage with customers throughout this entire period to effectively influence their purchasing decisions.

Here’s how you should be preparing for Black Friday

Warren Hawkins  23 Oct 2024

According to the Algorithm Agency, the Black Friday period can be dissected into three distinct phases:

• The build-up phase, which starts in early October, when consumers begin their Black Friday research, being open to suggestions and not yet committed to specific products or brands.
  
• The rush phase, during which consumer behaviour becomes more focused and deliberate, and where retailers highlight specific products, offer competitive pricing, and provide clear comparisons to similar products.
  
• The aftermath phase, where consumers shift focus towards the holiday season and retailers promote extended deals, gift guides and hassle-free return policies, all to attract shoppers.

The above trend seems to be reflected in the increased number of shipments courier companies are handling over this period.

“We anticipate a marked increase in volumes this year thanks to the growing prominence of ECommerce in South Africa,” comments Craig Pitchers, CEO of The Courier Guy.

“Whilst volumes on Black Friday itself are still generally very large, we’re now starting to see a sustained spike in shipments throughout November right up until Christmas as businesses run specials for longer periods,” adds Pitchers.

Retailers that spread out promotions over the month generally see better engagement from customers and are able to track the return of investment related to these promotions. However, this approach does require careful management to maintain decent profit margins.

As the demand for delivery services surges along with high volumes during this extended shopping period, courier companies should adopt several strategies to ensure consistent service quality.

Planning begins two-three months in advance of the Black Friday season. The process starts with the operational teams analysing historical data to forecast growth trends. When it comes to route optimisation, they strategically split routes to ensure their drivers can efficiently manage the increased volume.

“Our clients are some of the largest e-commerce players in SA and we collaborate closely with them to gather projected numbers, which allows us to plan accordingly. Additionally, we apply a growth percentage to ensure we're fully prepared to manage the expected volumes. Our approach is to over-plan rather than risk being underprepared,” shares Pitchers.

Trends in the courier market

Speaking about the current trends in the courier market, Pitchers notes “Retailers are driven to make deliveries and returns for their customers as convenient, easy and as hassle-free as possible especially during busy periods.”

Courier services should prioritise maintaining high service standards, keeping both retailers and customers satisfied during this exceptionally busy time. This commitment to quality helps build long-term customer loyalty and trust.

For many couriers, same or next-day delivery are seen as special services, which often command a very high price.

As the landscape continues to evolve, maintaining a balance between meeting consumer expectations and preserving profitability will be crucial for both retailers and logistics providers in South Africa's dynamic e-commerce environment.

The importance for retailers of being able to secure a reliable courier service that can handle high volumes and offer good service could be the difference between a deal done or lost this Black Friday season.