7 things you must know about Black Friday in Brazil

Black Friday is already the second most important date in Brazilian retail, just behind Christmas. Local merchants start to prepare themselves months in advance, and consumers try to make the most of the discounts. In 2018, Google released a study called “Black Friday Season.” The data from this study is still valid for Black Friday 2019, which takes place on November 29th.

Black Friday opens the Brazilian fourth-quarter shopping season—when people receive their 13th salary and shop around for Christmas presents and New Year’s Eve celebrations. “Black Friday is gigantic in size and importance and opens a period full of purchasing intentions,” says Patricia Muratori, head of retail sales at Google Brazil.

“Brands should not see the date as an event that begins and ends, but as the beginning of a longer-lasting relationship with the consumer.”

Below we highlighted some of the most interesting conclusions from the Google study that can help to develop and implement the right strategy to boost sales.

As soon as it was introduced in Brazil, Black Friday faced a lot of consumer skepticism. Terms like “Black Fraud” were constantly used alluding to the date. But Google’s study made it clear that this image has already been changed in Brazil. The conclusion is based on an analysis in which people’s opinion about Black Friday was associated with hashtags. Among respondents, 55% used positive terms such as #discounttruth. Only 8% cited the term #blackfraud, and the other 37% used neutral expressions such as #blackfriday.

Black Friday has gained popularity among Brazilians, and it is attracting new consumers every year. Among those who already buy products online, 68% intend to make some purchase on the next Black Friday.

Of those surveyed by Google in 2017, 80% said they did both the search process and the shopping process online, that is, from their computers or mobile devices. Already 11% do Internet consultation and physical store purchases, while 4% do the reverse (online shopping and offline search). Finally, they also represent 4% of the total who perform both actions personally.

Black Friday (sum of sales on Thursday and Friday) was responsible for 4.9% of total e-commerce revenues in 2018. It is considered one of the most important dates of the year, concentrating sales of R$2.6 billion (US$630 million), with an average ticket of R$608 (US$148). In total, Black Friday’s sales volume from Thursday to Sunday represented a growth of 11.2% compared to the same period last year. In 2017, the growth was 8.8%, according to data from the Cielo do Extended Retail Index (ICVA). Considering only the volume purchased via e-commerce, this increase was even higher, 25.2%, when compared to 2017.

The event is especially important for online business sales as it represents about 4.5% of annual e-commerce revenue. As a reference, the 10 days before Christmas together represent 18% of revenues, according to XP Investments report. The electronics market is the most invoiced on date, responsible for 44% of purchases made in the period. Second are apparel and accessories, which account for 19% of sales, and third is beauty, games, and merchandise, tied at 9% each.

According to Ebit-Nielsen, the product categories with the largest volume of sales and orders are as follows:

Black Friday in Brazil always happens on the fourth Friday of November, but the impact on sales is much broader. Many stores take the opportunity to lower their prices during the week of the event—in the so-called Black Week.

The Google study points out that 16% of purchases take place before Black Friday (Monday thru Thursday) and another 5% are completed shortly after the date (Saturday, Sunday, and Monday). The average ticket is also, on average, 20% higher, reaching a level above R$1,400. (US$340).

The positive performance of the practice has led some retailers to extrapolate the offer period further: this is the case of Black Month. Those offers and promotions benefit both shoppers and merchants. The shopkeeper increases sales volume and, consequently, revenues, while the customer has more time to make the purchase decision. The chart below, with data from Google, shows these facts:

The main appeal for a consumer to purchase during Black Friday is still the price. A 2018 Google study about Black Friday in Brazil indicates that 49% of people evaluate this criterion before making a decision. But in recent years other factors have also gained relevance. Most (51%) of potential consumer-weighted aspects concern consumer confidence and experience, including freight cost, payment methods, and lead time. Another relevant element is loyalty; two-thirds of consumers made purchases at stores where they were already customers. This piece of data shows how important it is to go beyond price by offering advantageous freight terms, payment methods, and service.

Black Friday is already part of Brazilian culture and not a seasonal event anymore. Between 2012 and 2016, the number of physical stores present at the event doubled, breaking the barrier of 43,000 participants. The number of e-commerce participants in Black Friday grew by ten times over the same period. With this expansion, programs emerged to ensure the quality of participating stores, such as the Black Friday Legal Stamp.

The Google study says that 70% of Brazilian Internet users have already bought on Black Friday.

Although Black Friday is a date when many are organizing themselves financially to buy something for a lower price, 16% of people confessed that, despite not having planned to do so, they ended up buying products when they found a good opportunity. Most (33%), however, consider the period as an opportunity to buy an item or service they expected. Price still is a great motivation—23% of people say that low price makes them get something they always use.

Black Friday promotions are announced through different channels, and this is a strategy that works. However, 35% of people learn about the event when entering online commerce sites. Of those interviewed, 26% say that they were informed about the promotions when receiving email from the store or brand website, while 24% find out on search engines. Just behind, with 23%, are those who saw advertisements on TV, 19% when accessing the store/brand page, and 19% through social networks.

SOURCES
https://blog.olist.com/black-friday-2017-5-fatos-que-talvez-voce-ainda-nao-saiba/
https://www.proxxima.com.br/home/proxxima/noticias/2018/08/15/pesquisa-do-google-mostra-consolidacao-de-black-friday-no-brasil.html
https://exame.abril.com.br/negocios/os-resultados-dessa-black-friday-para-quem-comprou-e-quem-vendeu/
https://www.thinkwithgoogle.com/intl/pt-br/tendencias-de-consumo/temporada-black-friday-muito-alem-da-sexta-feira/
https://www.techtudo.com.br/listas/2018/11/oito-curiosidades-sobre-a-black-friday-no-brasil-segundo-o-google.ghtml