Decoding E-commerce Sale Fests and why discounts reign supreme for Indian online shoppers.
The greatest of sales days that put an end to all sales is when almost every serious online shopper starts to plan out a strategy and makes a smart move. After all, this is about taking advantage of the limited-period deals and opportunities that come only once a year.
Marilyn Monroe said, “happiness is not money but in shopping”, and most shoppers will agree to this. It’s as if something ignites a spark in your soul and excites you to make the purchase decision.
Thanksgiving Day is a popular day in the United States which has begun to be celebrated since 1952. Mainly, it marks the start of the most awaited America’s Christmas shopping season. Just after Thanksgiving, which is recognized on the fourth Thursday of every November, the forthcoming day is celebrated as Black Friday.
On this day, almost every store offers lucrative sales for consumers and begin to operate from midnight or sometimes even on the previous day (Thanksgiving Day). Naturally, people look for the
Black Friday sale
much before, so that they can get their hands on some of the most wonderful objects at minimal prices.
Origin Of Black Friday
If we skim through the history, the origin of Black Friday finds its traces in Philadelphia. There used to be a lot of heavy and disruptive pedestrians and vehicles there just after Thanksgiving day. And this came to know as the Black Friday.
Now if we look into all those E-commerce trends in 2019 that we have witnessed in this year, then definitely this is one of the best one among other such events. Also known as the retail bonanza, Black Friday has become a quintessential part of numerous Thanksgiving celebrations all over the world.
Rise from the Fallen US Gold Market
However, this booming trend has deeper roots than anyone can ever imagine. The first recorded use of this term ‘Black Friday’ was not for any holiday or shopping festivities, it was actually used for a financial crisis. On September 24, 1869, the US gold market crashed, which was a Friday and this is where the term ‘Black Friday’ was first used.
As per the National Retail Federation (NRF), November and December are the holiday season. So, a majority of the shoppers purchase half of their requirements on Black Friday.
As per NRF,
- In 2008, the sales during the holiday season were 4.6% low as compared to the previous year. Generally, the sales increased by at least 3.4% every year due to the online discounts going on during Black Friday.
- In the year 2009, the sales witnessed a boost of 0.3%, which is around $373 on each black Friday. This constituted about $673 during the entire 2009 year.
- There was a continuous increase of 5.2% in the year 2010 soon after the recession got over. Thus, the sales touched $45 billion.
Pioneers and other Online Retailers
Interestingly, the best black Friday deals are not on the same day. The competition is so fierce now that a number of retailers such as Amazon open their E-commerce discounts way before this day. As per the research conducted, a majority of the deals that cover electronic items start from the beginning of November itself. People who are in the pursuit to purchase decor for Christmas festivities choose 22nd November for this. Similarly, if someone wants to purchase toys, then the day before Thanksgiving is the most preferable time for that.
It is a well-known fact that most of the Black Friday violence which takes place in the world occurs at Walmart (57.1%). It is obvious that being the largest U.S retailer, it would naturally have more locations. This is the primary reason why Walmart is known to have the best Black Friday deals every year.
…. from an Indian Perspective
Black Friday is one of the best E-commerce trends of 2019 even in India. Several brands such as Xiaomi, Nokia, Realme have also launched several lucrative discounts for customers. While Realme’s online discounts were valid only on the Black Friday, Xiaomi’s sale is still going on and will continue till December 2, 2019. There are several other brands as well who are offering the Black Friday sale.
Past Efforts In Indian E-Commerce
For the majority of the Indian customers, Black Friday sale is nothing but simply the gush of several sale events every year. For the companies, it has been a ruse to run discounts. This can also be referred to as the end of season sales in India.
No one buys clothes according to the seasons, but just as per these sales, isn’t it?
Initially, Indian brands weren’t expecting anything big to come out of Black Friday as it was not relevant in India, however, with the dedicated efforts of media, India has also launched discounts on this day.
Effect Of Online Sales On Traditional Business In India
There are mainly 3 impacts that online sales have had on traditional business in India. They are:
- Decreased the cost of labour
- Created innumerable employment options
- Helped in building sales channels
Government Policies And Inability To Monitor It
The draft Consumer Protection (e-Commerce) Rules, 2019, announced by the Ministry of Consumer Affairs on Monday, said e-commerce firms should not “directly or indirectly influence the price of the goods or services” they offer and should maintain a level playing field.
Basically, ‘Cyber Monday’ is a marketing term that is used for that Monday which falls right after Thanksgiving. This began to encourage consumers to explore the world of online shopping. Unlike Black Friday that is restricted to shopping, Cyber Monday is something that mostly focuses on online transactions.
The term ‘Cyber Monday’ was coined by two people. On 28 November 2005, Ellen Davis from the National Retail Federation and Scott Silverman brought out this term. It was opened up in a press release named “Cyber Monday”. Soon, this day became one of the biggest online shopping days of the year.
- Almost 25% of the total buyers on Cyber Monday purchase electronics or computers.
- In the year 2014, 42% traffic on Cyber Monday was due to the purchase of mobile or tablet.
- Peak sales occur between 11 am and 1 pm
- Marketers have literally trained the consumers that on this day, they will certainly find the biggest discounts on every product
- Cyber Monday has already hit a record of $6.6 billion in the US and has already broken the 720 million pound record in the UK.
- It always takes the lead as compared to Black Friday as the sales increase every year.
- The day offers more variety of online sales, which include items like electronics, cameras, video games, books, clothing, jewellery and accessories, toys and more.
For Amazon, Cyber Monday has proved to be the biggest shopping day worldwide. In spite of having their sales holiday known as the prime day, this Cyber Monday is the day when Amazon has gained the maximum profit.