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- A significant increase in average spending is expected during key sales days like Black Friday
- More than half of consumers are adjusting their shopping habits due to inflation
- Retailers must focus on relevant discounts and targeted advertising campaigns
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In the context of rising living costs, a study by Boston Consulting Group (BCG) shows that a record 74 percent of consumers will take advantage of offers during November sales this year, an increase of seven percent compared to 2022. It is particularly noted that spending for Black Friday, Cyber Monday, and Singles’ Day will peak in the USA, Switzerland, and Germany, with expectations that average spending will exceed last year’s by as much as 22 percent in some countries.
Jessica Distler, director of BCG, emphasizes that consumers are increasingly feeling pressure on their finances and are therefore focusing more intensively on promotional offers and discounts. This poses a key challenge for retailers: how to stand out in a sea of offers.
Targeted Marketing Campaigns
Inflation has led to more than half of consumers reducing everyday and unnecessary purchases, and nearly half regularly check and compare prices. As many as 41 percent of consumers primarily shop based on offers and promotions. This trend encourages consumers to make November a key month for shopping, not only for luxury products but also for basic necessities.
Globally, 74 percent of consumers familiar with November sales plan to participate in shopping, with a firm determination among 39 percent of shoppers, which is 11 percent higher than last year. This indicates significant room for targeted marketing campaigns that could encourage consumers to shop.
With a high awareness of the need to save, greater shopping activity is expected among residents of certain EU countries compared to consumers in the USA and Canada. Although Australia and Switzerland show the lowest intent to shop, still more than 50 percent of consumers are interested in participating in sales.
Lucija Vidiš Roić, Principal in Central Europe at BCG, adds that consumers in Croatia expect clear discounts, ranging from 30 to 40 percent off the regular price.
– And they will not be satisfied with free shipping, promotions like ‘Buy 3 pay for 2 products’, or additional perks. Black Friday, Cyber Monday, and Singles’ Day remain the most recognizable sales events. Ahead of these dates, more than 60 percent of consumers start researching offers as early as October, and most of them have not yet decided what exactly to buy, providing retailers with the opportunity to shape consumer decisions through relevant discounts and targeted ads – explains Vidiš Roić.
Shopping Mostly ‘Online’
Only ten percent of respondents intend to shop exclusively in physical stores during Black Friday. In contrast, a third of shoppers plan to spend exclusively online, while the majority, or 58 percent, opted for a combination of shopping in physical and online stores.
The research showed that among those who shop only online, 52 percent prefer online marketplaces. This is a significant increase of 15 percentage points compared to last year.
On the other hand, interest in official online stores of well-known brands has decreased by 3 percentage points and now stands at 18 percent. Additionally, platforms for selling used products recorded a drop of 6 percentage points, with only 4 percent of consumers expressing interest in purchasing at such places. Interestingly, 15 percent of respondents plan to take advantage of Black Friday on online marketplaces that offer products from various brands.
Social Media is Key
This BCG study highlights the importance of Black Friday 2023 not only in terms of spending but also as a key element of sales strategy and marketing approaches to attract consumer attention and meet their demands.
A significant number of shoppers, 68 percent, plan to use November for purchasing Christmas and holiday gifts, with most Black Friday purchases starting through online stores, with Amazon and Google continuing to dominate globally. With 30 percent of completely satisfied customers and the same share of dissatisfied customers in 2022, retailers and brands have room for improvement.
Social media plays a key role, with 49 percent of consumers using at least one channel, and among Generation Z and millennials, this share is even higher, providing retailers with an excellent opportunity to reach their target customers.
