Local online retailers are expected to experience a lot of sustained Web site traffic as Black Friday sales start this week.
Black Friday is a US shopping tradition and marks the day when retailers move into profitable territory - the black. Although generally a bricks-and-mortar sale day, more and more online shops are getting in on the game, even though their sale day is usually the following week - Cyber Monday.
Major retailers in SA, like Dion Wired and Clicks, have jumped on the money-making opportunity, and are offering online-only sales that start on Friday.
Dion Chang, founder of Flux Trends, says: "We see a massive adoption of North American retail trends in South Africa - it is tested, it works and is already embedded in the minds of South Africans.
"Africa has an hour-glass economy - with the rich getting richer, the poor getting poorer and the middle-class being squeezed - people are going for deals just to make ends meet," says Chang.
"Black Friday in South Africa is an attempt to cash in on the hype surrounding the day in the US, where it is firmly associated with the Thanksgiving holiday [the day before]," says tech analyst and World Wide Worx MD Arthur Goldstuck.
"It is a classic example of self-inflicted cultural colonialism, except that here the motive is unashamedly commercial. That, in turn, means it represents blatant exploitation of the consumer at its worst.
"In many cases, Black Friday promotions are merely relabelled versions of existing promotions, daily discounts and your standard, every day, thinly disguised attempt to get rid of old stock," he warns.
Browse from home
The shift to online can be pinned on South Africans becoming more comfortable with shopping online and wanting to escape the festive madness that usually encapsulates shopping malls this time of year.
The Online Retail in SA 2016 report by World Wide Worx shows a steady and continual rise in online shopping, from 1996 through to the present, and well into the future, says Goldstuck.
"That is the nature of the beast, as consumers become more comfortable with the online environment; payment mechanisms become more streamlined, cost-effective and convenient; and online becomes a normal component of the shopping experience."
Goldstuck says online retailers will see increased traffic largely in proportion to their marketing efforts.
"The more energy and marketing they pump into special offers and deals, the more traffic they will generate. The increased traffic is only a result of Black Friday as far as they are leveraging Black Friday as an excuse to punt their promotions."
However, he says the real online traffic for holiday shopping in SA normally happens from mid-November to Christmas Day, with the bulk in December.
"The holiday season generates about 20% of South Africa's online retail revenue," says Goldstuck.
SME conundrum
The sales are expected to take place both in-store and online, across Africa, says Anton van Heerden, Sage AME executive VP.
"The large online e-commerce shops and the major retail chains in many parts of the continent will be splashing out with big promotions and marketing campaigns to get consumers to part with their cash."
This leaves small to medium enterprises (SME) in a muddle, says Van Heerden: "On the one hand, it's a great opportunity for them to build some hype around their business on a day that consumers are particularly receptive to spending money. On the other hand, promotions and marketing may be drowned out by the noise generated by retailers with massive budgets for promotions and advertising."
Van Heerden says Black Friday gives SMEs the potential to generate a lot of traffic to their Web sites with the right offer.
However, the business needs to be sure to have the capacity to serve the customers it attracts, he warns. "If the Web site falls over under the weight of thousands of visitors, or delivery logistics are not up to scratch, it could do brand damage."
Goldstuck points out that any South African business with a site that falls over due to Black Friday traffic shouldn't be in business.
"Sites do not have to worry about falling over because of this traffic unless they are giving away their merchandise."
Online caution
As festive sales shift more into the e-commerce space and customers become more comfortable making purchases online, there are some common human traits that make them vulnerable to cyber criminals.
Sophos, a provider of network and endpoint security, says these include: using an easy-to-remember simple password, using the same password for all accounts, failing to keep apps and software up to date, connecting to an unknown WiFi network, and believing deals that are too good to be true.
"There is no such thing as a free iPhone," says Sophos.
"We're all after a good bargain this Black Friday, but this also presents cyber criminals with an opportunity to steal your information by offering you the most competitive deals. Use your initiative to know what is real and what isn't, and if you aren't sure, don't take the risk."
This week, security research firm Kaspersky Lab released a report saying the number of financial phishing attacks is expected to rise during the holiday season. The report showed criminals exploit the Black Friday theme itself by creating phony Internet shop offering products at attractive prices.
Sophos also warns online shoppers to check each transaction on their bank account, to look out for any fraudulent activity and notify the bank if there are unidentifiable payments. The company says the festive season is the most important time to be doing this.
Share