Black Friday shows a maturing SA consumer, trading volumes spiked by 400 percent
JOHANNESBURG – DPO South Africa, a South African payment service provider, believes the numbers and trends of Black Friday 2019 point to a more mature market and an industry that was better prepared.
It is also expected that Black Friday will see significant growth in the rest of Africa, come 2020.
“It is clear that Black Friday and Cyber Monday are here to stay. South African shoppers have embraced the event and have planned well in advance this year. The buying patterns also show us that we are dealing with a more mature consumer,” says Peter Harvey, managing director of the DPO Group, Southern Africa, which comprises of payments solutions PayGate, PayFast and SiD Secure EFT.
Harvey says merchants kicked off the shopping holiday earlier this year, running specials from Sunday to Thursday night, ahead of the main event on Friday November 29.
PayGate numbers show that the daily transactional volume between Monday and Thursday was 50 percent greater than a normal trading day. Black Friday trading volumes spiked by 400 percent, compared to an average trading day.
Overall there was a 35 percent year-on-year transactional volume growth for the Black Friday and Cyber Monday shopping week.
The average transactional value per basket this year was R1 406, compared with R1 502 in 2018.
“This statistic speaks to the fact that the consumer went into the shopping extravaganza with a plan this year. Overall, we saw a more educated market who knew what they were doing. They picked up on the opportunities ahead of time, did their homework and worked the specials. The early start on the sale offerings also saw shoppers picking up on specials and not gambling on last minute deals that they may otherwise miss in the frenzy of Friday shopping,” he explains.
Harvey says the industry also benefited from better preparedness this year. “The industry as a whole was much more resilient and, bar a few glitches that could have been internet load related, there was no noticeable downtime.”
Harvey also says that the rest of Africa is showing significant interest in how Black Friday and Cyber Monday is playing out in South Africa and believes digital retailers to the north will be kicking off a sustained Black Friday drive in 2020. “African digital retailers are certainly paying attention, and the lessons learned from South Africa gives them a great head start when it comes to rolling out their own initiatives next year.”
Looking ahead Harvey believes that South African digital commerce in general and the payment industry in particular have hit their strides and says merchants can build on this resiliency over the next months.
“Overall the 2019 Black Friday experience has been a great success. The South African consumer has shown that they are savvy shoppers and our banking and payment industry is ready to meet the challenge as digital commerce continues to grow. Merchants can take heart knowing that there is still some fat in the market and should be planning now to ensure they capitalise on the upcoming festive season.”
2019 Black Friday PayGate numbers at a glance:
Year-on-year growth 2018 to 2019
- Monday through Thursday (25 to 28 November) volume – up 50%
- Black Friday (29 November) year-on-year volume growth – up 400%
- Eight-day Black Friday, Cyber Monday shopping event volume growth – up 35%
- Highest measured transactions per second (TPS) grows from 100 to 353 – up 253%
- Card transactions – up 35%
- Instant EFT transaction – up 30%
- First hour of Black Friday transactions (midnight to 1am 29 November) – up 33%
- The busiest hour of trade was 09h00 to 10h00 on Friday 29 November
- 61% of traffic came from mobile phones, according to DPO Group company, PayFast
Content supplied by DPO South Africa.