How the November $39b shopping frenzy rules are changing again
But as shoppers hunt for discounts, consumer watchdogs are on the hunt for deceptive ads, and scammers hope to exploit click-happy customers.
Here’s what you need to know about Black Friday this year and what to pay attention to.
Black Friday FOMO is real: Acting earlier might pay off
Many retailers are now canceling deals well before November 28, earning the shopping phenomenon the nickname “Black November.”
“This year the party started even earlier. Amazon lit the fuse, Prime launched Big Deal Days, and leading names like Myer, David Jones and Target quickly followed before mid-October,” said Shippit joint CEO Rob Hango-Zada.
For this month, the luggage brand’s July sales are 220 percent higher than normal. “Obviously we wanted these cases to continue through Black Friday and the peak period, and we will restock, but not until December,” Pitman said.
Meanwhile, customers’ demand for lower prices, fast delivery and excellent service is higher than ever, thanks to ultra-cheap e-commerce giants Shein and Temu’s low prices and Amazon’s same-day and next-day delivery times.
Hango-Zada believes that Generation Z, in particular, has grown up with the expectation of endless options on demand, and that those who meet the expectations of this demographic group, which will spend the most in retail by 2030, will achieve success.
“They learned they could buy a $12 outfit at midnight and have it delivered to their door the next day for free. The implication is that they expect the same level of convenience everywhere else,” the e-commerce executive said.
“Often the difference between booming retailers and struggling retailers is the extent to which they understand Gen Z customers and meet their needs.”
Geotargeted ads: Promotions are getting closer and more personal
July trunks placed an emphasis on sending more personalized, targeted ads to encourage customers to shop in-store instead of online.
From where? People interact with the physical product, interact with store staff, encounter other items they didn’t plan on purchasing, like bags or accessories.
July encourages in-person shopping, where customers tend to purchase more online.
“We see a real opportunity to upsell to customers,” Pitman said.
He confirmed that customers tend to spend more when they come to physical stores and can touch and feel the range of products. “It helps to see this in real life and test if the bag fits well in the bag.”
Loading
Meanwhile, some businesses have forgone sitewide sales to encourage customers to make multiple purchases from them throughout the sales season. For example, specialty sportswear store Pace Athletic runs daily November sales to keep customers coming back.
“Many brands have rolled out targeted offers early and are rotating them to encourage multiple purchasing opportunities,” said Carla Penn-Kahn, chief of e-commerce software platform ProfitPeak.
“This is a smart strategy; by encouraging repeat purchases over a short period of time, brands can build customer lifetime value more quickly and make customer acquisition costs more efficient.”
Small businesses are under pressure and going out of business
Discounts are great news for consumers; However, six in 10 small business owners say they feel pressure due to a period of promotions run predominantly by global and large retailers.
Just 39 per cent of 500 small business owners surveyed by Xero say they plan to continue their Black Friday sales this year, down from 50 per cent last year, while 30 per cent say they won’t be able to offer discounts.
“If you’re a small business, this discount directly affects your profitability and you don’t have the benefit of being a larger business with purchasing power,” Xero ANZ managing director Angad Soin said.
“There’s a daily reality of cash flow that big businesses don’t always have to feel, or don’t always feel as acutely as small businesses.”
‘Site-wide discount’, ‘20% off everything’: ACCC is watching
Loading
Jewelery chain Michael Hill, Webjet, MyHouse and Hairhouse Online were some of the businesses found to be unlawful and penalized in the Australian Competition and Consumer Commission’s Black Friday blitz last year.
Michael Hill, for example, actually held a “25 percent off sitewide” sale that excluded some items, while Webjet’s advertised airline tickets started at “$18” at checkout, which was actually three times more after undisclosed mandatory fees were added.
“We expect the ACCC to go a step further this year,” said Emily Booth, special counsel at law firm Holding Redlich.
Booth said “site-wide” claims, pricing lacking actual previous sales history and “up to So will bait-and-switch tactics, such as advertising images of clothing with a specific price tag, only to find that the item is not actually selling for the advertised price.
“Consumers would rather know that everything is 20 percent off than search to find what is 40 percent off.”
Many retailers are now canceling deals well before November 28, earning the shopping phenomenon the nickname “Black November.”Credit: Simon Schluter
If you spot a dodgy deal, the consumer police on duty ask citizens to report them and bring their receipts.
“We’re warning retailers,” ACCC deputy chair Catriona Lowe said, saying customers waiting for a Black Friday deal should note prices so they can check they’re making a legitimate saving.
“Consumers shopping during Black Friday sales are encouraged to report to the ACCC any promotions or advertising that raises concerns, including images of potential abuse.”
Scammers are hiding
Shopping sprees are fertile ground for scammers who will create fake websites, sponsored social media posts and ads for cloned websites that will harvest your payment data.
“In Australia we are seeing an increase in scam emails (peaking around November 5) and social media ads impersonating big brands and even luxury retailers,” said Alina Bizga, security analyst at cybersecurity software Bitdefender.
Scammers will exploit shoppers’ sense of urgency and trick them into moving quickly without verifying the legitimacy of the deal. “Australians may also face a wave of fake delivery notifications and smishing texts As November 28 approaches,” Bizga said.
Bizga recommended purchasing from legitimate websites rather than ads or spam, and to be wary of too-good-to-be-true promotions.
“It is safer to use credit when shopping online, especially for impulsive purchases The card often provides additional protection in the event of fraud or disputed payments.”
The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.
