Black Friday: Is your brand cut out for it?
Ah, Black Friday. What started as a post-Thanksgiving American tradition has now gone global, with Australia eagerly adopting its frenzy-inducing sales. For many brands, Black Friday offers the perfect opportunity to hop on the bandwagon and serve up some juicy discounts to customers hungry for pre-holiday deals. But it isn’t all shiny profits and ecstatic customers. Black Friday, along with its sidekick Cyber Monday, comes with a few pitfalls that are worth thinking through.
Now, this isn’t one of those “all or nothing” blogs. As with any marketing decision, what’s right for your brand depends on a bunch of different things. But if you’re a brand owner, we hope this encourages you to think about Black Friday, Cyber Monday and sales in general with a fresh perspective.
When sales are good (and bad) for brands.
Sales can be a blessing for brands, especially if you need a short-term revenue bump or need to clear out some old stock. But discounting isn’t great for margins. That may be ok if you treat sales as a ‘sometimes snack’ - a little treat for your customers every now and then. However, if you start relying on them like a daily meal, you’ll only end up starving your profits. Even worse? Your customers will learn to wait for those discounts, holding off on buying anything until there’s a big, fat sale sign. Suddenly, you’re in a vicious cycle of constant promotions, and Black Friday? Well, it’s the most tempting of them all.
The ethics of Black Friday.
Here’s where Black Friday gets a little tricky. Increasingly, mass sale events are being criticised for promoting overconsumption and creating waste. People get caught up in the excitement, lured in by too-good-to-be-true deals, only to walk away with things they never needed (and perhaps couldn’t afford).
If your goal is simply to clear stock, that’s fine. But what happens when all those impulse buys get returned? Brands often find themselves swimming in logistics chaos post-Black Friday. Worse still, a lot of unwanted products end up in landfill because retailers just can’t keep up with the tidal wave of returns.
Beyond logistics, there’s also the brand alignment factor. If your brand is built on luxury, exclusivity, or thoughtful consumption, does Black Friday really make sense for you? If your ethos is all about scarcity, not commodity; about care, not convenience, then jumping into Black Friday might send the wrong message to your audience.
Avoiding the trap of constant discounting.
If Black Friday is one of the few times a year you drop your prices, it may not be an issue for your brand. But if you’re feeling the pressure to run sale after sale, it could be time to reassess. Sales should be a tactic - used sparingly and with purpose. The most successful brands balance occasional discounts and tactical marketing activity with significant investment in long-term brand building.
How is the perception of value created?
In short? Consistent, focused brand building. Here’s what that can look like:
Scarcity creates desire. Whether it’s real or just perceived, if your product feels exclusive, customers are more willing to pay a premium. Frequent discounting screams the opposite.
Live your brand values. What does your brand really stand for? Express it at every opportunity. From how your product looks in photos to the smallest detail on your packaging, all of these little ‘promises’ to your customers add up. Make sure you’re sending the right message at every opportunity.
Outsmart your competitors. When everyone starts out-discounting each other it becomes a race to the bottom. Rather than doing what every other brand in your category is doing, resist the FOMO and think about whether a delightfully fresh approach to customer service, product evolution or marketing might be the better answer.
Run smart sales. If you do run a sale, think of ways to keep it from devaluing your brand. Consider alternatives like referral bonuses or buy-one-get-one-free offers, which can feel less like a margin-killer and more like a clever win-win.
Yes or no to Black Friday?
Black Friday can feel like an irresistible opportunity, especially if you’re looking for a short-term sales boost. But it’s essential to weigh up the longer-term consequences of regular discounting. If you want your brand to thrive beyond just a single sales day, think about how you can play the long game and create a strategy that strengthens, rather than weakens, your brand.
Need to find the perfect balance of brand building and tactical marketing for your business? Let’s chat!