Key takeaways on the Black Friday retail shifts that beauty brands must know about
- Black Friday is now primarily an online event, driven by AI and digital engagement.
- Flexible payment options and experiential retail are boosting consumer appeal.
- Sales are shifting from gifts to essentials, with extended discount periods replacing single-day events.
The last quarter of the year, also known as the ‘golden quarter’, is always the highlight of the sales calendar for beauty brands and retailers. Black Friday and Cyber Monday are particularly crucial days for sales and consumer engagement.
Global Lead Retail Analyst at EY Insights, Jon Copestake, has identified five key insights emerging from the start of this year’s shopping season.
1. Black Friday is now firmly an online event
As web traffic overshadows footfall growth, Copestake said that Black Friday has now firmly established itself as a predominantly online event.
“This year, we’ve continued to see a significant increase in web traffic, overshadowing traditional footfall growth,” he shared. “The role of AI in influencing purchase decisions is becoming increasingly evident.”
Copestake also said that in-house retail agents and AI-driven search functionalities have contributed to enhanced product discovery and improved conversion rates, but that this rapid growth comes from a relatively low baseline, currently influencing only around a quarter of online sales.
2. Flexible online payment options make shopping more appealing
Copestake highlighted that the ease of flexible payment options through online channels is also supporting retail growth, as more websites partner with fintech firms to take the friction out of Buy Now Pay Later schemes.
3. Experiences and exclusivity are more important than in-store discounts
“For physical stores, it seems that offering discounts to drive footfall is no longer enough,” said Copestake.
He explained that successful retailers are differentiating themselves through exclusive promotions, such as providing free gifts, hosting in-store events, or raffling off high-value items to customers.
4. Black Friday and Cyber Monday aren’t just for gifts – essentials are in demand
“Another trend influencing Black Friday sales is the shift from Christmas shopping to essential purchases,” Copestake continued.
“While sales still present an opportunity to stock up on seasonal gifts – as the rapid sell-out of discounted games consoles shows – there is also a significant increase in bulk-buying discounts on everyday items such as toilet paper and dishwasher tablets,” he said.
He has observed that consumers are increasingly looking to Black Friday for deals on necessities, alongside seeking savings on gifts.
5. Designated dates are being replaced with extended sales periods
Most importantly, there appears to be a growing redundancy of Black Friday as a specific sales date.
“Historically, Black Friday was primarily an in-store event, followed by Cyber Monday when sales shifted online. Now, these events have merged into an extended ‘Cyber-week’, where online discounts are available for longer durations,” Copestake said.
“Many Black Friday deals are now available long before the actual date, with discounts continuing through to the New Year through various discount periods, such as ‘Super Saturday’ and Boxing Day sales.”
As a final thought going forward, Copestake noted that retailers will need to be aware of the growing desensitisation of consumers to these events, as discounts are increasingly becoming more of an expectation than a novelty over the festive season. “This shift could impact their performance during other times of the year,” he said.
