Why Shouldn’t all Brands Participate in Black Friday Promotions?
During Black Friday (this year it will be on 11/29/2024), most brands are actively preparing to participate with aggressive promotions and sales. It marks the beginning of strong pre-Christmas sales and clearing warehouses for many retailers, in preparation for new collections and deliveries. However, is Black Friday suitable for all brands? Many online and offline retailers ask themselves these questions every year. Should I participate? What budget should I invest? What results should I expect?
Certainly, Black Friday is not suitable for every brand, and whether to participate depends mainly on several factors: what is the positioning, values, and audience expectations for the brand, are there sufficient stock levels, what is the delivery time for the goods, and what budget would be effective to invest in communication.
which Brands should not Engage in Aggressive Sales
Luxury Brands and Black Friday
These brands usually focus on exclusivity, high quality, and price. Their messages are often not in line with Black Friday messages, which contain many discounts and aggressive sales pushes. Participating in promotions can devalue the brand’s established value and prestige built over years.
What could be the alternative strategy for such brands? One approach is to focus on special events, direct sales, or loyalty rewards for existing customers. Luxury brands could promote craftsmanship, uniqueness, or the story behind their products. This way, they will differentiate themselves from mass market discounts.
Sustainable and Ethical Brands and Black Friday
The values of brands that emphasize sustainability, slow fashion, or ethical consumption will certainly conflict with the messages accompanying every Black Friday. Participating in Black Friday may seem hypocritical for them, even arrogant if the brand’s message encourages conscious consumerism.
An alternative strategy for such brands could be participation in campaigns against Black Friday, such as “Buy Nothing Day”, “Green Friday” or “Circular Friday”. [M1] These campaigns can educate consumers about sustainable practices, encourage mindful consumption, or offer recycling or repair services for their products.
Brands with Limited Stock and Black Friday
Small businesses or brands with limited stock often don’t have the capacity to handle the increased demand created by a campaign like Black Friday. Adequate stock levels, aligned with projected sales, are a must for participating in these types of sales. If interest in the products is high, but orders aren’t fulfilled on time, this can strain the company’s resources and lead to dissatisfied customers. For example: if you expect to sell 1,000 units during Black Friday, the stock in the warehouse should be at least double.
Additional quantities should also cover possible delivery delays around Christmas and New Year. Analysis of sales over the years and information about competitors and their activities are important. But don’t blindly follow others’ strategies. During active sales, it’s important to know how low you can drop prices and what ROAS (return on ad spend) you need to be profitable. The combination of big discounts and serious media investments can harm the business if not well thought out.
Ultimately, the goal of every brand is to be profitable. If you don’t have enough stock, it’s better to focus on strengthening the community on social networks and building brand loyalty. Promote new and unique products in limited quantities that won’t be put on mass sale.
B2b Companies
Companies that offer B2B services and solutions, especially those of high value, may not find sense in joining the consumer-oriented Black Friday frenzy. Their target audience may not be inclined to buy during this period. It would be better if they focus on providing additional information about their services or solutions during this time. This way, they will continue to reinforce customer loyalty.
Brands with Fixed Price Policies
Brands that have a strict pricing policy and want to maintain price integrity throughout the year should avoid large discounts. Communication during Black Friday would be confusing for them and disruptive to their established positioning.
These brands can enforce messages related to brand value and thus solidify their market position and highlight the benefits of purchasing from them throughout the year, such as quality, durability, and excellent customer service.
What Do We Recommend to those who Won’t Participate in Black Friday?
Brands that opt out of Black Friday can use this period to strengthen their position by focusing on what makes them unique. Whether it’s sustainability, craftsmanship, community, or innovation, they should create messages that align with their core values.
Organizing Special Events for Loyal Customers
where new products or special, exclusive offers are presented to them is a good approach. Brand activations that emphasize the brand’s history reinforce its heritage and experience. Charitable campaigns can support positioning and further communicate values.
Tell Compelling Brand Stories
Use digital platforms to tell stories about the brand’s journey, product creation, ethics, or relationships with your community of customers and followers. Storytelling can help build a stronger emotional connection with customers than a simple discount.
Improving Customer Experience
This is a good approach that brings long-term effect. Such activities include services like:
- free personalization,
- extended warranties,
- free gift wrapping.
Brands can also offer early access to new collections or special offers – as a way to reward loyal customers. If you have a large customer base, use direct communication to encourage alternative shopping initiatives – for example “Saturday Shopping Afternoon” and similar.
Brands that choose not to participate in Black Friday promotions should focus their efforts on communication that reflects their values. It should create a unique experience, especially for loyal customers. The content should engage the audience in a way that strengthens the brand identity.
This approach leaves a strong impression and simultaneously:
- maintains brand value,
- builds a sustainable image in consumers’ minds.
