Black Friday, the busiest shopping day of the year, has a dark side for the traditional retailers.
Happy Thanksgiving, or should I say Black Friday, to all U.S. fellows. Black Friday is around the corner and between the turkey and calm family intercourse, you are probably gearing up for a holiday weekend sale frenzy to make the purchase of the year.
The old traditional Black Friday will not be excluded in the shift pattern. This year we will probably remember as the year of the changes.
That the United Kingdom is leaving the European Union shouldn’t have been possible a few years ago. In the same way, not too many people actually believed that Donald Trump was going to be the next president of the most powerful nation in the world.
You can dive into any niche in the society, and the common keyword is “change.”
From that perspective, why shouldn’t a traditional multi-billion shopping day as Black Friday follow the same pattern?
There are different versions of how the name Black Friday became the name of this purchasing day. The latest one is about how bookkeepers use the black figures when a company is turning into a profit. It’s true that many business segments rely on the last quarter sales, starting with Halloween and ending with Christmas.
However, this story about Black Friday is a myth.
The modern term Black Friday actually started in Philadelphia in the 60ths. The day after Thanksgiving the city was flooded with tourists and shoppers from everywhere ahead of the big Army-Navy football game. Said game, traditionally takes place on the Saturday after Thanksgiving.
The police had an extra busy time with long shifts on the day; protecting people in general from no proper behaviors taking advantage of the huge crowds. It was an extraordinarily busy day for the authorities, and the corps in Philadelphia invented the term Black Friday.
Changes In The Black Friday Purchase Pattern
The most important shopping season, according to Kimberly Amadeo (blog post publishes at The Balance), occurs between Black Friday and Christmas. According to the same source, 30% of annual retail sales occur during this period.
The predicted sales the November and December sales starting with Black Friday 2016 is estimated to $655.8 billion (National Retail Federation, NFR). This is a 3.6% increase from last year. During the past decade, except for the difficult financial years of 2008 and 2009, the yearly increase has been around 3.5%.
In many cases, the online shop is the winner. They have lower costs and can afford lower selling prices.
The chart presented by NRF shows that online sellers and department stores now share the big Black Friday cake.
The 3.5% yearly increase in Black Friday sales should be compared to two digits annual increase the online sales stands for. With this trend, there is no doubt about towards where we are heading.
Black Friday vs. Cyber Monday
Since some years ago, and due to the increasing online purchase, the online market created its own “Black Friday” and is called Cyber Monday. It happens on the Monday after Black Friday.
As a lot of consumers use the Internet to check out prices and other conditions, traditional retailers are also going online. At the same time, there is no longer any fixed days, dates or hours on when to start. Both Black Friday and Cyber Monday are slowly (well, not that slowly to be honest) covering each other’s “game plan.”
Big retail players as Walmart, Costco, and some others, are working hard to seriously entering the online segment of their potential market. They know it’s important not to lose market shares.
No matter how you would like to view the whole commercial event during these multi-billion trading days around Thanksgiving. Again, we can clearly see how the online marketing is taking over the entire commerce.
To make it even more interesting and fascinating, calculations show that 15% of the online business is managed through affiliate marketing. (Source: BI Intelligence)
If you take a giant in the segment, like Amazon, the figure is reaching the impressive number of 40%, that is coming from affiliates.
This whole new commercial scenario taking form is an invitation to entrepreneur minded people around the world to grab your piece of the cake.
Indeed it’s much easier, and much, much cheaper as well, than starting a retail offline business.
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