CAPE TOWN – Black Friday and Cyber Monday are a consumer sensation in South Africa with businesses giving enormous discounts.
Through this, they induce a weekend where there is a fever-pitched spending frenzy across shopping centres and online platforms countrywide. For businesses to benefit from these two days, there are certain considerations that must be made.
Black Friday and Cyber Monday have, since 2014, been a trend that is on an accelerated rise in South Africa. On these two days, the average spend per South African taking part is R1 600, with clothing; electronics; and entertainment making up a bulk of the purchases each year.
“What is important for businesses to consider at this time is that a sale is essentially a trade-off between volume and value. A business can increase sales by either selling more at the same price or by selling the same amount at a higher price. Therefore, the basic formula applied during Black Friday and Cyber Monday is the reduction of price to make up the deficit through increased volumes,” says Dr Yudhvir Seetharam, Head of Analytics at FNB Business.
Seetharam says that any form of promotional discounting should only be considered under the following circumstances: