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Although not traditionally a Brazilian date, Black Friday was adopted by retailers some years ago. The strategy to boost sales in a month without much consumption historically has paid off.
Today, it is one of the main retail events in Brazil, comparable with Christmas. Buying intention for this year reached historic levels, with an overwhelming majority of Brazilians looking to make a purchase on November 29th.
Four major trends impacting the purchasing trends on Black Friday are discussed below.
Smartphones have become a status symbol. The popularity of social media and the development of mobile commerce have contributed to their increasing importance in any digital strategy.
Brazil had 138 million internet users in 2018, 76% of these exclusively via mobile internet subscription, according to Euromonitor International. Retail leaders have invested in multifunctionality and in-app shopping experiences, promoting channel-specific products and promotions. We expect in-app purchases relevance to increase this year during Black Friday. According to a survey promoted by Méliuz, the main Brazilian cashback company, this year, 43,2% of people intend to search and buy using notebook/desktop, while 27,2% should do the process by smartphone. Those who will search using the smartphone and finalize the purchase on the notebook reach 21,4% and 8,2% intend to do the opposite: do the search through computer and buy by mobile.
Each year, consumers are more demanding and knowledgeable and expect online retailers to offer the same discounts at physical stores. Channel integration, the focus of major players in 2018, should play a key role in Black Friday this year.
For the first time in the history of the event in the country, the number of consumers intending to buy in physical retail outlets should match the number of those who want to buy online. About 37% of respondents said they will buy only in physical stores and 38% only over the internet, according to a survey by Google research in Brazil.
According to Euromonitor’s 2018 Lifestyles Survey, 35% of consumers state that their greatest motivation for online shopping is the ability to shop anytime, anywhere. The shipping issue also weighs on the decision, with 45% of respondents placing free delivery highly, which can be resolved through click-and-collect.
The main products sought at Black Friday will be smartphones, electronics and media and home appliances, all usually high ticket priced throughout the year. Nonetheless, sales are expected to expand into other less typical product categories, such as clothing, shoes, cosmetics, and home decor, which will increase their share of online retailing both during Black Friday and throughout the year.
Tourism is also expected to stand out during Black Friday. The sector´s offerings will include tickets to events and accommodation and travel packages at lower prices than commonly advertised. This will allow companies to take advantage of an online tourism market that is expected to grow by 35% by 2019.
Delivery is another factor in the consumer´s purchasing decisions. Many clients abandon their carts because of shipping costs and delivery times, forcing retailers to think about more efficient logistics solutions. This includes the option to pick up at the store, which is increasingly gaining strength with consumers who do not want to pay for shipping, cannot receive the product at home or do not have their zip code met by delivery services.
Consumers are also concerned about retailers’ reputations. Product delivery failures and consumers becoming victims of frauds when buying online are giving a yellow light to those looking for offers. Whether or not retailers will have robust operations to support the high volume of simultaneous access to their websites and be able to carry out all deliveries within the time stipulated at the time of purchase, it will also be taken into consideration.
The perception of transaction reliability, the acceptance of various payment methods and the best cost-effective delivery, combined with aggressive discounts and lower prices, will be decisive for attracting and even retaining consumers on a date that is now firmly embedded in Brazil’s retail calendar.
To learn more about the retailing industry in Brazil, please access our report ‘Retailing in Brazil’.