The traditional sale “Black Friday” started with a decrease in purchases. According to OFD Platform, as of 12:00 Moscow time on November 25, sales decreased by 10-19% in all categories. Analysts attribute such results to reductions in advertising budgets and discounts, as well as the desire of consumers to save money. Trading platforms manage to show growth in turnover only due to the increase in the terms of shares. This year, not only traditional retail and online stores, but also many developers joined the sale, although usually only a few developers participated in the promotion. Discounts, for example, on the Cyan site reach up to 25%, and buyers can save up to 1 million rubles.
Advertising doesn’t drive sales
At the start of the Black Friday sale, which traditionally takes place at the end of November, most categories saw a decrease in purchases in physical terms.. According to the OFD Platform, which analyzes data from 1.1 million online cash registers, as of 12:00 Moscow time on November 25, sales of clothing and footwear, as well as perfumes and cosmetics, decreased by 10% compared to the same time last year, electronics and household appliances – by 11%, jewelry – by 13%, sporting goods – by 19%.
But if we take the period from November 1 to November 24, the sale of clothes and shoes increased by 8%. But for other categories, the OFD Platform recorded a decrease in demand, even if we take the results for an incomplete month: electronics and household appliances sold less by 2%, sporting goods – by 3%, perfumes and cosmetics, as well as jewelry – by 9%.
The reason may be lower advertising budgets., experts of the end-to-end analytics, call tracking and advertising management service Calltouch believe. According to their survey, 25% of companies did this. Many retailers have taken a wait-and-see attitude, especially in the matter of advertising and promotion, Calltouch noted.
Photo: TASS/Vladimir Gerdo
Besides, 23% of companies did not reduce prices on the days of traditional sales, and a little more than 9% completely reduced the number of promotional codes and the total amount of the discount, analysts calculated. 32.3% did not increase discounts compared to 2021, Calltouch estimated. Another reason was that consumer spends less this November than a year earlieranalysts of OFD Platform consider.
Sale round November
While analysts are recording a decrease in sales, representatives of trading platforms report an increase in turnover. According to the press service of Ozon, during the first night of the sale, which began on November 23 for premium customers, the number of orders increased by 2.9 times. compared to this month’s averages, and the marketplace received 2.3 times more new customers than the November average. The representative of the site told Izvestia that Compared to last year’s Black Friday, in the first hours of the action, the fastest growing demand for food, tourism goods, clothing, health and beauty products and stationery. Ozon did not disclose exact numbers by category.
Photo: RIA Novosti / Maxim Blinov
Yandex Market also announced an increase in sales and consumer activity in the early days of Black Friday, which began on the site on November 23. They stated that electronics and household appliances, household items and everyday goods are in the greatest demandbut the company also did not disclose exact data.
The Association of Online Commerce Companies (AKIT) expects this year’s Black Friday sales to be at least double last year’s record of $85.7 billion. rubles. As AKIT President Artem Sokolov explained, the increase in these volumes is not affected by changes in the country and the world. He pointed out that the results of the first sale – on November 11 – exceeded the results of 2021 by 2-4 times. The growth in the number of purchases on Black Friday this year will also be facilitated by the fact that retailers set their own promotional timings and shoppers have more time to chooseadded Artem Sokolov.
Black Friday this year is also unusual in that many developers took part in italthough usually only a few developers participated in the promotion and they were tied to the New Year holidays and discounts, said Vladimir Morebis, commercial director and partner of Est-a-Tet.
Photo: RIA Novosti / Maxim Blinov
40 residential complexes throughout Russia and more than 50 cottage settlements in the vicinity of Moscow and St. Petersburg are participating in the sale at Cyansaid the representative of the trading platform. Discounts reach up to 25%, and buyers can save up to 1 million rubles, he specified.
According to Mikhail Burmistrov, General Director of Infoline-Analytics, this year the buyer participates in Black Friday mainly through online rather than offline trading. In malls, aside from H&M’s liquidation sale and aggressive discounts by some fashion players, there’s not much demand, he said. An additional driver for the growth of online sales in the regions at the end of 2022 was the fact that settlements with a low level of average income began to receive funds received as payments to mobilized people. In the absence of developed retail, buyers in such places mainly spend money on marketplaces, the expert concluded.