This year, due to a more limited selection and the strengthening of traditional in-store shopping, the number of online orders is unlikely to increase significantly from last year’s record high, but sales may increase by as much as 20 percent year-on-year due to price increases. More than HUF 140 billion in online spending in November, according to the latest Online Retail Index report from ÁrukSearch.hu and GKI Digital.
Last year was the strongest month in Hungarian e-commerce, with online traffic exceeding HUF 118 billion due to the curfew and opening restrictions on Black Friday promotions, which was about 48 percent higher than the last November before the epidemic.
And for the whole year, it achieved an outstanding growth of 45 percent in Europe.
The holiday season is expected to be strong for the trade as a whole, and unlike last year, traditional stores can expect a bigger surge, of course, only if the viral situation, mandatory mask use and related restrictions do not take away or restrict shopping.
“Purchasing power is available this year, as the ongoing credit moratorium, the pension premium and next February’s PIT rebate will result in more free income for the population this season,” said Norbert Madar, senior consultant at GKI Digital, in the weeks ahead.
Many times throughout the weekend Black Friday promotions
The popularity of the Black Friday craze, which has been going on in Hungary since 2014, is indicated by the fact that more and more traders are announcing the promotion every year. According to the report, 64 percent of online stores hold (or have already held) Black Friday this year, and the majority don’t even trust it to chance:
- half of those who join the promotion will be promoted on Black Friday for at least one whole weekend, ie the discounted prices will be valid from Friday morning until Sunday evening;
- a further quarter of traders expect a one-week promotion, meaning they will be Black Friday week, with more thematic days;
- 9 percent of e-merchants act multiple times at separate times;
- And 13 percent plan just one Black Friday in 2021. It is interesting that in Hungary, even these one-day promotions will not be at the “original” time at the end of November: the majority will hold Black Friday on November 19, led by eMAG-Extreme Digital, the country’s largest e-retailer.
On average, the discount is only 17 percent
The research of ÁrukSearch.hu and GKI Digital also examined the extent of the price discounts to be provided in the framework of the promotions: during the Black Friday promotions in 2021, online retailers will receive an average discount of 17 percent.
Black Friday vs. Cyber Monday
In America, Black Friday always falls on the Friday following Thanksgiving on the last Thursday of the month. This Friday is also typically a public holiday, so Americans actually have the opportunity to shop all day. It is also due to this that overseas Black Friday is much more of a special day for traditional physical traders. E-merchants also avoid this day, as most shoppers go to the shops and malls.
Online promotions fall on the first Monday after a long weekend in what Americans – taking over Amazon’s initiative – are calling Cyber Monday. And this Monday’s promotion is already more often followed by additional week-long promotional periods. Cyber Monday, November 30 last year, was the strongest online trading day in U.S. history, with total online spending reaching $ 10.7 billion.
The subdued level of discounts is mainly due to the global shortage of goods and higher prices. This also affects the range and quantity of products promoted. The biggest challenge this year is to provide the right stock to serve the season.
“Summarizing the 20 million offers of 4,700 retailers this year, it can be seen that the Black Friday promotions are mostly about the special offers of small and medium-sized household appliances, technical items, mobile phones and games,” said László Baka, marketing manager of ÁrukSearch.hu.
Source: Napi.hu by www.napi.hu.
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