Black Friday, observed on the fourth Friday of November (November 24 this year), is renowned for crowds rushing to big-box stores for doorbuster discounts after Thanksgiving. And retailers in the US, Europe, and many other western regions aim to capitalise on this excitement.
While Black Friday originated in the US and remains a major shopping event in America and Europe, its popularity has spread globally due to cultural influence and social media. In recent times, Black Friday deals have dominated internet searches not only in the US but also in other parts of the world.
India has particularly emerged as a highly lucrative market for Black Friday sales, driven by a significant rise in online shoppers in the country. It is on the back of this promising surge that Future Market Insights expects the Black Friday market to grow at a CAGR of 37.4% until 2032.
Moving on, the 24-hour shopping event, which will have significant savings on offer across various categories like electronics, groceries, mobiles, furnishings, and accessories, is all set to begin in India at 12.01 AM on November 24.
However, what’s interesting this year is that Indian ecommerce players will be seen extending the one-day sale event to a weekend-long fervour. Amid this, ecommerce companies and marketplaces such as Amazon, Flipkart, Nykaa, Myntra, and CRED will play an active role in promoting Black Friday Sale discounts.
“Last year, we received a great response for our Black Friday, Cyber Monday sales in India. This year it’s happening just two weeks after Diwali, which usually is the biggest sale time in India. However, we see it as an opportunity to reach out to consumers who might have missed out on the Diwali offers,” Bala Sarda, CEO and founder, VAHDAM India, told Inc42.
According to Admitad, last year, shoppers in India increased their orders by 65% and their spending by 64% during the sale week compared to the usual period. This year, we can expect a jump of 70% or more.
Black Friday Impact: Impressive GMV Growth On The Cards
Nearly a fortnight after the Diwali season sale, Indian D2C brands are now ready to capitalise on Black Friday. Worth noting is the fact that participating in events like Black Friday enables brands to meet the increasing shopper demand and give a boost to their GMVs.
“Last year, the majority of the orders came from Tier II and Tier III cities. This year, too, we can expect to see this trend. From a category standpoint, electronics led the pack last year. It will be interesting to see which category emerges as the winner this year. Based on our observation, it can be either fashion, beauty, health and nutrition or electronics,” Chirag Taneja, cofounder, GoKwik, told inc42.
Taneja added that Black Friday sales significantly surpassed Diwali sales in its network last year. Brands experienced a 63% increase in GMV in just three days, compared to the 10-day Diwali sale period. Additionally, it outperformed the pre-Dussehra sale by 43%, with 51% of the brands in their network seeing a minimum of 30% increase in order volume.
“This trend is expected to continue this year, too, as Black Friday continues to become popular among Indian online shoppers,” Taneja said.
However, Mamta Gupta, cofounder, Zariin, is of the view that pre-Diwali there’s a big surge in online shopping, which peaks until the festival day and then goes through a correction, which can also be described as shoppers’ detox.
“On the other hand, the Black Friday Sale is also a great opportunity to trigger rapid sales in a short time and clear off excess inventory build-up,” Gupta said.
Founded in 2010, Zariin is an Indian online jewellery store, which sells through its D2C ecommerce platform and is available at more than 200 multi-brand boutiques across 21 countries.
How Can D2C Brands Win The Black Friday Sale Frenzy?
Now that it has been established that the Black Friday sale would be the proverbial gold rush for marketplaces, how can D2C brands benefit from this frenzy?
According to industry experts, to boost conversions and drive higher average order value, D2C brands can deploy compelling offers by providing prepaid discounts, bundled offers, free gifts, and capped and quantity-based discounts, all while keeping a close eye on overall profitability.
Meanwhile, we were told that CRED store, a curated marketplace offering a platform to D2C, homegrown and established brands, is featuring a range of brands and products, mega jackpots, and exclusive member-only deals.
“Black Friday has become a major shopping event even in India. It is a great opportunity for brands to showcase their offerings. In addition, the Black Friday sale is the perfect time for shoppers to take stock of what they’ve ticked off their shopping list and what’s left to find a place under the Christmas tree,” a CRED spokesperson told inc42.
Moving on, in sync with the growing traction of Black Friday sales in India, CRED anticipates a 75-80% rise in the sales of electronic accessories, including earphones, smartwatches and auto accessories; a 60% increase in beauty and personal care sales, particularly perfumes and grooming products; and an 80-90% increase in the sale of F&B items, specifically nuts and dry fruits.
On a different note, however, the ZARIIN cofounder cautions that the retailers who will try to cash in on the Black Friday fervour early on may end up potentially denting the shoppers’ motivation to make purchases on the main Black Friday Sale Day.
“With the trend of early promotions, some shoppers complete their purchases before the official Black Friday date. Limited stock and the concern of missing out on deals generate a sense of urgency, driving impulsive buying behaviour. For this reason, countdown timers can be used strategically to emphasise urgency,” Gupta noted.
What Else To Expect?
As per Redseer, festive sales in 2023 have experienced a significant surge compared to the previous year, showcasing 19% YoY growth during the first week of October 2023.
The Indian market has demonstrated resilience and adaptability in recent times, and brands are optimistic about the sustained upward trend in consumer engagement in online shopping and participation in the Black Friday Sale.
According to the industry experts we spoke with, the impact of the Black Friday sale on FY24 growth numbers will likely be positive. As more and more digitally connected Indians enter the online shopping arena, the importance of Black Friday sales will continue to gain prominence. Interestingly, this is already being felt, and not just online.
Abhishek Shrivastava, vice-president & cluster head Delhi at DLF Avenue, sees this year’s Black Friday sale adding more heft to DLF Mall’s already surging revenue and footfall.
Not just this, industry trends estimate that brands and marketplaces during the Black Friday sale are projected to see a 70-80% increase in GMV compared to other months.
Meanwhile, the entry of newcomers like Tata Neu and JioMart, alongside established players like Myntra, Nykaa, and AJIO, will set the stage for intense competition.
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