Dusseldorf For Media Markt customers, Black Friday begins on a Monday. Four days before the actual bargain day on November 25, the electronics retailer advertised on posters in a Düsseldorf branch with the slogan: “Don’t wait until Black Friday. Start!”
But the Germans’ desire to buy seems to be stagnating this year. This is suggested by a study by the Boston Consulting Group. According to this, German consumers will probably only spend an average of 290 euros on Black Friday in 2022 – almost 15 percent less than in 2021.
Marketing expert Jan Bechler blames high inflation and energy prices for the misery of consumers. The managing director of the Hamburg marketing company Finc3 is not expecting record sales this year on Black Friday, a retail sales event that focuses on discounts and is intended to entice people to buy products.
Bechler explains: “In order to encourage customers to buy, I believe that retailers will have to grant large discounts.”
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Electronics and fashion could become cheaper
Bechler suspects that bargains could be found this year, especially in the product groups clothing and electronic devices such as televisions and mobile phones.
In the case of textiles, the warm weather in particular could prompt retailers to possible discounts. Bechler explains: Due to the high temperatures in autumn, many fashion retailers could not have sold collections and are now trying to empty their stocks with price discounts.
For any product that people don’t absolutely need, we will see a drop in demand. Marketing expert Jan Bechler
Televisions and other electronics have become significantly more expensive due to inflation. Consumers would therefore think twice about whether they really need a product, says expert Bechler: “For all products that people do not absolutely need, we will experience a drop in demand.” For this reason, many retailers would take customers with them want to encourage discounts to buy.
Discounts to fuel consumption
The market research institute GfK comes to similar conclusions. Because of the high inflation of just under ten percent recently, many customers were no longer so quick to reach for their wallets. The expert for technical consumer goods at GfK, Alexander Dehmel, says: “It is very likely that retailers will use Black Week this year to bring momentum to product groups with particularly high discounts that have seen little demand in the past few months.”
Products “in the entry and middle price range” as well as goods “in the premium range” could be significantly cheaper during Black Week, i.e. the week before Black Friday, due to discounts.
>> Read here: This is how dangerous flat-rate discounts on Black Friday are for retailers
It remains to be seen whether the high price reductions will increase the buying mood. The ECC Cologne’s Retail Trend Check comes to the conclusion that consumers are more closely monitoring their spending and at the same time are reducing impulse purchases. The Boston Consulting Group cites fears of persistent inflation and an impending recession in the economy as the main reasons for the slump. More than half of all Germans already have to spend their savings on everyday necessities. Nevertheless, 63 percent of the population want to go bargain hunting on Black Friday.
Trade Association maintains confidence
The German Retail Association is looking forward to the start of the Christmas business with optimism. The lobby association of German retailers, for example, expects sales of around 5.7 billion euros on Black Friday and Cyber Monday, the Monday after Black Friday, when online shops in particular grant discounts in 2022. This results in almost 22 percent more sales compared to 2021.
Stephan Tromp, Managing Director of the association, explains: “The growth story of Black Friday and Cyber Monday is continuing, even under the currently difficult general conditions and despite the poor consumer mood.” The lobbyist is convinced that the two days of action will continue to be successful due to their high profile will be.
Marketing professional Bechler gives lovers of discounts an insider tip: there is currently a large range of furniture. Because: Many Germans wanted to make themselves comfortable at home during the pandemic and therefore already bought sofas, chests of drawers and tables. The needs of the population are met. Now you could possibly strike at a bargain.
And who wants to save even more? Bechler says: On the Internet, customers would get even higher discounts than when shopping through the branches in the city center.
More: Inflation dampens consumer sentiment