What to expect from Black Friday 2022?
The date, one of the most important retail events, raises doubts about its success this year, as the economic scenario of the country is not the best at the moment.
Inflation, unemployment, high dollar, shortage of goods and high interest rates, for example, reduce the purchasing power of consumers.
How will these issues affect this year’s Black Friday?
Faced with the problems that Brazil is facing, low numbers are most often expected in relation to the sale of products that are not part of the category of basic needs.
However, data such as those published by the Monthly Trade Survey, conducted by the Brazilian Institute of Geography and Statistics (IBGE), show just the opposite. The study reveals that the volume of retail sales in July reached 0.5 percent, practically at the same level as in February 2020, that is, better than in the period before the pandemic.
And, apart from this, there are other studies that show that the market is well heated:
- According to research by Neotrust, Brazilian e-commerce showed a growth of 4.3% in the number of orders in the second quarter of 2022, compared to the same period in 2021;
- Revenues from e-commerce in the first five months of this year were 785% higher than in the same period before the pandemic;
- Brazilian e-commerce closed the first half of 2022 with sales of R$ 118.6 billion, showing a growth of 6% compared to 2021.
Among the possible explanations for this positive scenario in e-commerce is the arrival of new consumers who, due to the pandemic, came to the world of online shopping and stayed.
Proof of this is the 27% increase in online purchases, according to research by Neotrust.
But despite these numbers revealing good expectations for Black Friday this year, there are still some challenges to be faced.
What global challenges could affect Black Friday 2022?
Black Friday 2022, like the previous two (2020 and 2021), faces some difficulties that may affect sales results: inflation, GDP growth forecast below 0.5%, dollar above R$5, unemployment and high SELIC rate.
In relation to inflation, today it is a consequence of many problems that we faced in 2021, such as the water and energy crisis, which put pressure on prices in different sectors.
The central bank’s expectations are that the index will fall from 10.06 percent to 7.1 percent by the end of the year, which will result in relief for the pockets of Brazilians.
And with the growth of inflation, it was expected that Selić’s basic interest rate would also increase. Unfortunately, it is expected to continue to rise as this is the Central Bank’s way of keeping prices from rising.
In this sense, sectors such as retail, which depend on credit in circulation, will be more affected as the purchasing power of consumers is reduced.
That, combined with unemployment and low incomes, should result in a weak Black Friday for 2022.
However, a survey conducted by Globo and published by Plataforma Gente shows that consumers are optimistic: 62% of them expect an improvement in the second half of the year.
This results in a greater desire to buy on Black Friday 2022.
In relation to what are the main interests of consumers this Black Friday and what they expect from the date, research conducted by the Instituto Reclame AQUI reveals that:
- 74.4% point out that the price will be definitive in the purchase decision;
- 73% prefer and want to see discounts on household appliances and small appliances, white goods and electronics;
- 38.2% intend to pay for high-value items in cash, as long as stores offer a good discount.
Thus, the willingness to buy exists, even amid a scenario of high product prices.
With this in mind, it is important for virtual store owners to create good payment terms and relevant discounts, which will be a challenge in conditions of inflation in production costs.
Another point that deserves attention is the shipping price. With high fuel prices, such as diesel, this can be one of the main reasons that can result in low sales volume on Black Friday 2022.
By comparison, in 2021, although 80% of consumers said they were satisfied or very satisfied with their purchase on that date, 39% said they stopped shopping because of the cost of shipping.
What to expect from Black Friday 2022?
Even despite the challenges and uncertain economic scenario, the Brazilian e-commerce market is optimistic and has high expectations for Black Friday 2022.
According to the Nuvemshop survey, almost half of the surveyed entrepreneurs expect a 30 percent increase in income in November compared to October.
It’s also important to consider that this year’s Black Friday could come in stronger than 2021 due to the FIFA World Cup also taking place in November.
According to ABV (Associação Brasileira do Varejo), these celebrations should increase sales by 12% compared to the first half, injecting more than R$20 billion into the economy.
According to the Brazilian Electronic Commerce Association (ABComm), Brazilian e-commerce revenue in the first half of the year was R$73.5 billion, while Neotrust predicts revenue growth of 9% compared to 2021, amounting to R$174 billion, due to dates such as Father’s Day, Black Friday and Christmas.
Furthermore, according to the same research by Neotrust, the number of online orders is expected to reach 379 million, representing a growth of 8%. The average ticket should be around R$ 460 per consumer, 1% more than in 2021.
Expectations for Black Friday 2022 sales are high, but what about consumers?
The same Globo poll, made available by Plataforma Gente, mentioned above, points out that 50% of Brazilian consumers intend to buy, a growth of 3% compared to 2021. In Class A, this number is even higher: 65% intend to make some acquisitions on date.
10 tips not to miss Black Friday 2022
Now that you’ve checked out the challenges and expectations for the date, let’s move on to ten essential tips to ensure your e-commerce business doesn’t fail on this year’s Black Friday. Check it out below.
Tip #1 – Plan ahead
In order for your online store to have a successful Black Friday 2022, planning is the most important factor, and ideally you should always do it in the first half of the year, no later than August.
This is because it is necessary to adjust many internal processes that must work well in order not to disappoint customers and lose sales, such as commercial, service, logistics, among others.
Also, you need to think about your Black Friday face. What will your store’s marketing, visual identity and communication be like in that period?
After all, the competition is fierce and you definitely don’t want to go unnoticed in the crowd.
And since it is very common here in Brazil to extend the date to the week of Black Week, create a calendar of promotions so that it is possible to offer different attractions and discounts every day.
Tip #2 – Set your goals
Success means something different to everyone. So take the time to define some key metrics and goals you’d like to achieve this Black Friday.
The idea behind the date is that it’s based on a sense of exaggeration, but you shouldn’t feel like you need to aim for a 400% increase in sales.
Set benchmarks from previous years or similar campaigns and aim for what you think should be a realistic and achievable goal.
Also don’t forget that the projections you make are the basis for convincing partner suppliers to go into this with you and offer higher discounts.
So calculate realistic expectations, pessimist and optimist, and work on those numbers.
Tip #3 – Choose the right products
While it’s easy to get carried away and lower your prices to get more sales, you shouldn’t lose control of your results.
Don’t sacrifice margin for a few extra sales. It will only cost you more in the long run.
Offer for sale and discounts only those items that are part of your commercial strategy, preferably with the support of suppliers, so that your offer is competitive.
Tip #4 – Optimize communication
There’s no point in making a good business plan for Black Friday 2022 if no one finds out, don’t you agree?
So, set aside a budget just for communication. This investment should cover costs with banners, social media ads and special content for the date.
When creating your communication plan, keep in mind that on Black Friday, people are looking for things to give away.
That being said, it’s a good idea to use mental triggers like “you deserve this gift” or similar to encourage the purchase.
Tip #5 – Train the sales team
Without a dedicated and highly trained team to handle the large volume of customers and such stiff competition, your Black Friday may not achieve the expected results.
So make sure they are very well prepared in advance, to prevent loss of sales or problems with customers during the event.
Tip #6 – Worry about logistics
All online stores will use delivery services during Black Friday. Therefore, it may happen that the carriers you already work with are simply not available.
Or, if you deliver via mail, you may face long queues and not be able to handle a large volume of orders, which will delay some deliveries.
Transport saturation is not something that is under your control, but there are some measures that can help you overcome it:
- Test ahead with other carriers to see if you can count on them in a pinch;
- Consider creating new working hours and hiring temporary staff;
- Anticipate the purchase of goods;
- Review, build and train your order picking and shipping team to be highly automated and know what to do in adverse situations.
Tip #7 – Pay attention to customer service
Black Friday order delays may cause an increase in contact requests for your customer service team. So make sure you have a good team and are fully informed.
Respond to emails in a timely manner with short and helpful responses and never delay responding to other channels such as WhatsApp and social media.
A Black Friday customer is concerned and wants to be informed about the status of their order. If something goes wrong, offer all the help you can, always keep it up to date and keep it safe.
Good service can make a big difference in the event of an unexpected situation and even increase the chances of customer loyalty.
Tip #8 – Make sure your site can handle the volume
Even if you don’t expect a huge spike in visitors, make sure you have a contingency plan with your hosting in case of a sudden spike in traffic to ensure your site doesn’t get taken down.
Tip #9 – Control your inventory
If you have a physical store as well as a virtual one, it is essential to implement a good inventory control to prevent the sale of an out-of-stock item, loss of sales and damage to the image of your business with customers.
If you find it difficult to control inventory, manage payments and purchasing, for example, consider purchasing an ERP before Black Friday.
An e-commerce ERP works to keep these controls automated and synchronized across departments and across integrations.
Upon receipt of the order, ERP with the team checks the inventory status, prints delivery notes, checks the order, issues a label and invoice, requests postage from the carrier and tracks delivery to the end customer.
Tip #10 – Expand your sales channels
Black Friday always brings a bigger wave of shoppers than you’re used to, significantly increasing sales.
So why settle for just one platform? You can expand your sales channels and make more money during holidays like BF.