Black Friday is undoubtedly one of the most exciting and busiest shopping days of the year. The promotional day can be a lucrative opportunity for manufacturers and retailers to sell their products and increase the visibility of their brands. This raises the question for many manufacturers and retailers: is it worth participating in Black Friday and offering their products at attractive prices? In this article, we will take a closer look at this question?

Black Friday: What? Where? How? When?

Black Friday originated in the USA and marks the start of the Christmas shopping season. This day falls on the Friday after Thanksgiving, which is celebrated in the USA on the fourth Thursday in November. This year, Black Friday will take place on November 24.

Originally started as a day with special sales offers, Black Friday has developed into a real shopping phenomenon over the years. Stores offer special discounts and often open early in the morning to attract customers.

Black Friday has long since transcended the borders of the USA and has become popular in many countries.

Although Black Friday originated in the USA, it is received with similar enthusiasm by European consumers. In the EMEA region (Europe, Middle East and Africa), Black Friday ranks first when it comes to special retail events during the holidays. More transactions are made on this day than on traditional holidays such as Christmas and Boxing Day. Black Friday has also gained in importance in Germany. In 2023, almost 13% of global search queries relating to Black Friday originated from Germany (source: Statista 2023). This shows that German consumers also want to benefit from the offers of this shopping event.

Why do consumers buy on Black Friday?

The main reason why consumers shop on Black Friday is the expectation of finding better deals and prices. But the shopping experience also plays a major role.

In 2022, around 74% of people in Germany said that they wanted to buy Christmas gifts at a better price on Black Friday. Around 56% of people were in a financial situation that made them reliant on Black Friday sales. In this survey, respondents in Germany were asked whether they agreed with six statements relating to Black Friday (source: Statista 2022).

What is the significance of Black Friday for manufacturers and retailers?

Black Friday has become one of the most important shopping events in recent years, not only for consumers but also for manufacturers and retailers. On this day, retailers and online stores offer significant discounts on a wide range of products. Because Black Friday is so popular, the competition among manufacturers and retailers is enormous. Everyone wants to attract the attention of shoppers and sell as many products as possible. Furthermore, participation in Black Friday leads to considerable price pressure. Manufacturers and retailers have to carefully calculate how to offer discounts without jeopardizing their profit margins.

The decision for or against Black Friday?

Participating in Black Friday can have both advantages and disadvantages. Manufacturers and retailers must carefully weigh up whether it is worthwhile for them to take part in this shopping event.

Advantages

• Increase in sales: Black Friday attracts a large number of shoppers, which can lead to an increase in sales.
• Visibility: Participation in Black Friday can increase the visibility of the brand and products.
• Customer loyalty: Customers appreciate discounts and special offers and may remain loyal to the brand.

Disadvantages

• Price pressure: Offering discounts can lead to significant price pressure and reduce profit margins.
• Competition: Competition is intense and it can be difficult to stand out from the competition.
• Preparation effort: Preparing for Black Friday requires time and resources.
  

Which insights does data-based market intelligence software offer retailers and manufacturers on Black Friday and during discount campaigns?

Black Friday has long since become one of the most important days in retail and marks the peak of the discount season. Every business owner must decide for themselves whether it is worth taking part by offering large discounts. Even without participating in Black Friday, sellers can gain relevant insights from their competitors' discount campaigns that can be used for their own corporate strategy.

Data-based market intelligence technologies offer retailers and manufacturers valuable insights that go beyond Black Friday. They make it possible to analyze the competitive situation, optimize prices and optimize corporate strategy. The use of market intelligence technologies can be particularly beneficial for companies operating in highly competitive markets, as it allows them to remain competitive without having to resort to discounts or coupons. Price management can also help you maintain your profit margins while passing on savings to your customers - something that no amount of discounting can do.

Discount promotions are a proven marketing tool to attract customers and increase sales. They are not only used on Black Friday, but all year round. Black Friday can be a lucrative opportunity for manufacturers and retailers to sell their products and increase the visibility of their brands. However, it is important to carefully weigh up the pros and cons of integrating discount promotions into your own pricing.

Nevertheless, it is worthwhile for retailers and manufacturers alike not to let Black Friday pass them by, but to use the day to observe the pricing of their competitors in order to create a direct comparison with their own pricing strategy. The use of market monitoring technologies can offer a decisive advantage here by providing data-based insights and increasing adaptability.