Black Friday's Origins: From Chaos to Commerce
Picture chaotic streets filled with eager shoppers and tourists, an eclectic atmosphere with charming deals. This scene unfolds on one of the most significant shopping days of the year – the celebrated holiday known as Black Friday, typically falling on November 24th. The origins of this day trace back to the chaotic post-Thanksgiving shopping rush in 1960s Philadelphia,USA as streets were filled with shoppers and tourists. The term “Black Friday” was initially used by the police to describe the chaotic and congested streets filled with both shoppers and tourists.
However, the term gained popularity due to the accounting shift from “red to black.” Traditionally, losses were recorded in red ink, while profits were in black.
Retailers viewed the holiday shopping season as an opportunity to transition from losses to profits and clear out inventory in preparation for the upcoming holiday season.
Black Friday, now, is synonymous with the day after thanksgiving and is one of the busiest shopping days of the year in the retail calendar.
Global Phenomenon: Black Friday Takes on India
Black Friday has transcended borders to become a global shopping phenomenon. Nowhere is this more evident than in India, where the festivities of Black Friday have exploded, capturing the Indian retail landscape.
The surge of Black Friday in India is not merely a reflection of Western influence but also a testament to the adaptability and openness of the Indian consumer market.
Retail giants like Amazon, Nykaa, and Myntra, having caught their breath after the Diwali season sale and geared up for a second wave of consumer enthusiasm for Black Friday.
The timing of Black Friday in India, occurring nearly a fortnight after the Diwali season sale, provides retailers with a strategic opportunity to lure in customers who have missed out on diwali sales.
Beauty Beyond Discounts
Nykaa’s recent promotional campaign made waves as it unveiled massive discounts of up to 50% on an impressive lineup of over 2,100 brands. This retail extravaganza didn’t spare premium brands, featuring renowned names like M.A.C, Giorgio Armani, Versace, and YSL, with some items receiving discounts as high as 30%.
We focused our analysis on four of the most coveted names in the beauty industry. M.A.C, Giorgio Armani, Versace, and YSL underwent scrutiny to gauge the level of discount each brand extended to its customers.
The findings revealed a weighted average index (WAI) across these four premium brands settling at approximately 15.62%.
This provides insights into how some of the most prestigious beauty brands strategically positioned themselves during this high-profile sales event.
Strategic Impact of Discounts (Non luxury brands)
As part of a comprehensive study, we undertook a meticulous analysis of 2390 products spanning the Black Friday weekend—from November 23rd to Cyber Monday on November 27th.
The objective was to underscore the importance of agility in the competitive market during this shopping extravaganza.
In a focused examination of 34 products strategically discounted from Black Friday to Cyber Monday, a compelling narrative emerged. There was a notable improvement in their rankings, effectively capturing consumer attention.
This showcased the magnetic pull of discounts during peak shopping periods.
Static Pricing Pitfalls
Contrastingly, our analysis also included observing a group of 41 products that maintained consistent prices throughout the Black Friday weekend.
The pattern revealed was a noticeable decline in their rankings.
This dichotomy emphasises the crucial role of brands in remaining attuned to market dynamics and adjusting strategies accordingly.
With one eye on the competition and the other on consumer behaviour, retailers have the potential to capitalise on these sale periods and ensure not only consumer satisfaction but also favourable profit margins.
The resilience and adaptability of the Indian market, evident in recent times, inspires optimism among brands for sustained upward trends in consumer engagement, particularly in online shopping and events like the Black Friday Sale.
As India continues to redefine its shopping landscape, the ability to read and respond to market dynamics becomes the linchpin for retail success.
Navigating the Peak Sales Period with BRIO
These insights showcase how brands must possess a heightened sense of agility and awareness during peak sales periods. During sale seasons, where demand deviates from the norm, product promotions, accurate listings, optimal inventory levels, and tracking customer lifetime value become the prerequisites for success.
Yet, amidst this one element reigns supreme – the price.
Setting the right price is an art, demanding synchronization with competitors along with a nuanced understanding of the ever-shifting market dynamics.
The ability to adapt prices in real-time does not just become an advantage but a necessity in the face of such pressures.
Feeling the weight of these demands? Enter BRIO, the AI dynamic pricing engine, designed to alleviate this pressure.
With its unparalleled ability to track real time market factors, events and players, you can ensure the price you set is perfect for the season!
With BRIO, the perfection of pricing ceases to be an aspiration – it becomes a certainty.