For a long time, the American Black Friday sales tradition has been observed with a mixture of wonder and interest from afar. Stories of frenzied, but occasionally fatal, stampedes and astonishing discounts sparked lively debate. However, the Black Friday sales tradition has made its way to some of Africa’s major cities and local internet players in recent years, and it is beginning to take root.
What are the pros and cons of Black Friday Sales in an emerging economy like Nigeria?
Pros of Black Friday
Enhances traffic, sales, and revenue.
Demand is the most major advantage of the Black Friday sales period. The National Retail Federation estimates that 100 million consumers shopped online during the 2020 Black Friday weekend.
Customers are more open to new products and subscriptions on Black Friday. You can make your Black Friday sale a success if you capitalize on the demand.
Obtaining New Customers
Black Friday is an excellent opportunity to gain new clients. Some of these may potentially generate revenue that extends beyond Christmas shopping.
People who purchased memberships at a discount, for example, will renew them at a premium rate, assuring recurring revenue. This is especially important for subscription-based websites.
Creates Brand Presence
Black Friday is an excellent opportunity for your brand to gain recognition. Customers are actively exploring brands during the shopping weekend. Customers will notice you if your brand stands out.
Cons of Black Friday
Despite its advantages, Black Friday has a few drawbacks:
- Because significant discounts are the norm during Black Friday, you may feel pressured to offer deals you can’t afford.
- Even if your sales volume is high, your short-term profit margins will be low
- To gain attention on Black Friday, you may need a large marketing spend.
- Expect tight competition on Black Friday, especially from industry giants.
- You may attract a large number of consumers who are solely interested in the freebies. They may choose not to renew their membership.
Advertisements for Black Friday sales have also been popular in Nigeria, Africa’s most populous country and largest economy, throughout the previous month. Konga, one of Nigeria’s largest e-commerce platforms, is leading the charge. Konga, which was founded in 2012, launched its own version of Black Friday sales a year later. “Yakata”,a slang in local parlance for a big fall, provides items, ranging from mobile phones to household appliances at a discount.