The term Black Friday was created by the retail sector in the US and is designated to the Friday following the Thanksgiving holiday, which occurs on the fourth Thursday of November. It is a mega sales action to liquidate stocks, with offers that reach discounts of up to 70% of the normal value.
In Brazil, the first Black Friday took place in 2010. The first Brazilian editions generated a lot of distrust about the veracity of the promotions, as there were instability problems on the websites and some companies raised prices on the eve to charge “half double”, leading to the term “Black Fraud”.
Since then, Black Friday has increasingly gained the confidence of Brazilian consumers. Companies like Google do real-time consultations to help with operations. The consumer protection bodies are also more attentive, and are making guidance booklets and shifts in the face of the increase in complaints in the period.
According to the site Complain here, in 2018, 49% of consumers said they trust Black Friday promotions. Confidence increased to 57,27% in 2019 (survey carried out with more than 3,5 thousand consumers between October 16 and 30, 2019). Among the 5,6 complaints registered on the website Complain here during Black Friday 2018, misleading advertising and divergence of values still appeared as one of the main complaints.
Black Friday was created by the retail segment to clear its stocks and prepare for the reception of new merchants for the start of Christmas sales. It was an effective tool for correcting the year's inventory planning mistakes and preparing for the new sales cycle.
Consumption during this period, however, gained unforeseen proportions and today stores plan extra stocks to cover Black Friday sales. The event joined many other commemorative dates such as Christmas, Children's Day, Mother's Day, Father's Day, Consumer Day, Valentine's Day, Easter and Singles Day, making it one of the peak sales forecast throughout the year. What was once a means of rebalancing inventories is now one more variable to add complexity to planning.
Black Friday increases the complexity of planning by generating a concentration of demand by encouraging the postponement or anticipation of purchases. That is, the date makes it difficult not only to forecast sales for November, but also for the previous and following months. In addition, it increases the need for commercial structure and logistics on a temporary and punctual basis, which increases costs.
Therefore, Black Friday is a retail event that needs to be very well planned. Its reduced margins due to promotions that characterize it, associated with increased operational and planning complexity are explosive ingredients, which, if poorly handled, can generate losses for the company. In addition, a poorly planned Black Friday can lead to disruptions and delays in delivery, which causes customer dissatisfaction and even greater impacts on the company's bottom line.
Sources:
'https://ilos.com.br/web/para-o-varejo-o-foco-agora-sao-os-solteiros/
'https://veja.abril.com.br/economia/entenda-a-origem-da-black-friday-e-quanto-a-data-deve-movimentar/
'https://noticias.reclameaqui.com.br/noticias/black-friday-2019-57-dos-brasileiros-confiam-parcial-ou-tota_3809/
'https://noticias.reclameaqui.com.br/noticias/quer-aproveitar-bem-a-black-friday-2019-entao-aprenda-com-as_3800/
Beatris Huber
https://ilos.com.brManaging Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.
