Should you discount or not for Black Friday?
Some retailers and brands are discounting heavily and others are not. Here are some interesting points to consider while getting or being ready for the holidays!
‘Transcend dealbuster culture’
According to Harley Finkelstein, president of Shopify, the e-commerce platform for many direct-to-consumer brands including sneaker maker Allbirds, "deals are just one of the things shoppers are paying attention to" during the holidays.
"This is the year that purchases with purpose will transcend dealbuster culture," he said. "More so than in any other year, consumers will vote with their wallets for merchants that align with their values — choosing to support Black-owned businesses, local merchants, and socially and environmentally conscious brands."
Information from NPD's poll of consumers
Sixty-three percent of consumers say they are "very likely" to compare Prime Day promotions with other retailers' deals before they make a purchase, according to The NPD Group, which tracks the receipts of more than 130,000 consumers. And this year, with a Prime Day being held in October rather than July, 18% of consumers told NPD they believe they'll find the best holiday deals around Prime Day, only slightly trailing the 20% of consumers who think that will come on Black Friday. Cyber Monday was the third most popular option in NPD's poll.According to Finkelstein, 55% of Shopify merchants believe consumers will start their holiday shopping even earlier this year.
The reason for a great brand story!
"I do think that, at the end of the day, if you're going to be promotional, a huge part of maintaining brand equity is the storytelling component," said Mark Chou, founder of Bradhurst Ventures, which advises consumer-facing brands.
"If you were to just discount and say nothing else, in some ways it's almost too obvious what you're doing," he said. "Consumers are not dumb, and they understand some industries are challenged. But if you're able to still tell a story around why you're doing something it can be brand assertive and not dilutive."
~ Article by Lauren Thomas - CNBC
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