In 2020 Black Friday was always going to be skewed toward shoppers who had access to the internet and mobile devices.
This raises several questions about equality of opportunities for all South Africans in a digital future, but it also raised the risk levels for lower-income earners who physically shopped for deals that may have eased their financial load in a difficult year.
Immediately preceding the festive season, many South Africans make use of Black Friday’s retail discounts to shop for gifts and necessities to see them through to the new year. This year, Covid-19 brought an extra dimension to Black Friday – beyond the usual concerns about credit and affordability.
Gig technology company M4Jam surveyed more than 2 000 South Africans about their experience of Black Friday in 2020, and the results throw up some interesting social issues.
Just 6% of those who shopped Black Friday did so exclusively online. Seventeen percent of shoppers used both online and in-store channels, while 36% shopped instore on Black Friday.
“There are many factors at play here, ranging from trust issues to the cost of data and internet access, but it is clear that with Covid-19 accelerating the world’s shift to digital, South Africa is lagging in preparation for the future,” says Georgie Midgley, CEO of M4Jam.
Of those surveyed, 56% said they did shop Black Friday, with 26% saying they felt the discounts were not as great as expected but still cheaper than regular retail pricing. Twenty-one percent of respondents said they saved a lot of money, while only 11% of respondents felt they scored a deal that could not be passed up.
Those who chose not to participate in Black Friday shopping this year were fairly evenly divided between not finding what they wanted on special, not finding attractive prices to lure them into buying or simply avoiding spending money at the tail end of a very difficult year, financially.
Ultimately, just 45% of those surveyed felt Black Friday was worth waiting for – a significant drop in usual enthusiasm for the year-end event and the combination of numerous factors. “Two-thirds (65%) of respondents didn’t feel the specials on offer were tempting enough, and we can read into that a variety of impacts of lockdown, such as retailers struggling to make ends meet and consumers’ wallets being under pressure,” says Midgley.
Of those who did shop Black Friday, 44% bought goods for themselves and their households, with shopping for kids down at 13% and spouses receiving just 6% of items bought. Clothing (22%) and groceries (19%) were the most sought-after items, with the usually popular electronics category dropping to just 9% of purchases, alongside beauty and fragrance products.
“This is the sign of a consumer market in austerity mode. Luxuries have taken a back seat, this year,” says Midgley.
Those spending more than R2 000 ranked as the largest category at 15% of shoppers, though 34% of shoppers reported savings of R500 or less. This is reflected in just 9% of those who shopped Black Friday claiming they were impressed by the specials on offer. The largest category – “Could have been better” – was selected by a fifth of shoppers (18%).
“It is clear everyone is simply waiting for things to improve next year. Only 4% of those surveyed said they would not shop Black Friday in 2021, but the maybe category was large, at 40% of respondents. It will take some time for shopper confidence to return,” says Midgley.