OBS Report: Black Friday 2023
This Black Friday Is Expected to See a 35% Increase in Spending Compared to Last Year
- A more selective and price-sensitive shopper is expected
- Despite inflation, an estimated spending of €284 per household is forecast, 35% more than last year
- Spain is the second-best performing country in Europe for Cyber Monday sales
- The report warns manufacturers and retailers about the need to emphasize environmental issues
November 2023. OBS Business School has published the Black Friday 2023 report, led by the school’s professor Claudio Arós. The report analyzes last year's figures and trends, as well as forecasts for this season, covering days (Black Friday and Cyber Monday) that have spread worldwide thanks to the globalization of commerce, the rise of e-commerce, and increasing acceptance of various cultures and traditions.
Overall, the report predicts a positive campaign with continued global sales growth during Black Friday and Cyber Monday. The so-called Black Week continues to capture the interest of consumers each year, who expect substantial discounts during this period. One major factor that could influence consumer behavior (and potentially reduce spending this year) is inflation. However, based on 2022 data, the report speaks of a resilient consumer, suggesting that the season will remain healthy.
An estimated household spending of €284 is projected for this campaign, which would mean a 35% increase over last year. However, a more price-sensitive and selective shopper is expected, prioritizing essential products over luxury or non-essential items. This may shift preferences compared to previous years. In light of this, retailers will need to offer more substantial discounts to attract customers amidst intense competition between stores.
The rise of e-commerce continues, though physical stores are also fighting for sales. Numerous initiatives are already in place to reclaim their space, using creative approaches, hybrid sales models, and social media presence to attract more customers (especially through TikTok). A competition between these two sales channels has already begun. Spain stands out as the second country in Europe, only behind the UK, where Cyber Monday sales perform best.
Key Data from the 2022 Campaign
The UK was the third-highest-grossing country worldwide in the 2022 campaign, behind only the United States and Canada, where these sales originated. The global figure reached €4 billion. In Spain, sales figures for this period were the highest of the year, surpassing the January sales, Valentine's Day, and even the holiday season. Each Spanish household spent an average of €210. Electronic products made up 54.3% of purchases, followed by fashion (37.4%), cosmetics and fragrances (15.9%), and leisure and travel (12.5%).
In 2022, there was a slight shift back to physical stores, but online sales still reached $65.3 billion worldwide, a year-on-year increase of 3.5%. Amazon recorded the highest sales, with a 434% increase in Spain during that period, followed by El Corte Inglés, which has expanded to 35 international markets using different models, and MediaMarkt. Other popular e-commerce platforms included Carrefour, Apple, Mango, Zara, H&M, and Adidas. Of all online purchases, 73% were made using mobile phones.
The Dark Side of Black Friday
Despite Black Friday’s tremendous success worldwide, it has also drawn criticism for its consumerism and environmental impact. The report indicates that manufacturers and retailers must gradually shift their focus to environmental issues. “It’s an opportunity to show a commitment to sustainability and encourage consumers to make more conscious purchasing decisions,” says Claudio Arós, a professor at OBS Business School.
Criticism also arises concerning potential labor exploitation and the working conditions of many employees hired temporarily for this period, often facing extremely long shifts, as well as safety concerns given the chaotic crowds fighting for discounted products.
Some critics argue that Black Friday detracts from more meaningful values such as gratitude and solidarity, traditionally associated with the Thanksgiving and Christmas seasons. Additionally, Black Friday has fostered a culture of constant discounts and deals, which may make consumers more hesitant to pay fair prices for products and services at other times of the year, potentially harming small businesses and artisans. In response, anti-consumerism movements such as Green Friday are emerging worldwide. Green Friday takes place on the same date as Black Friday and promotes responsible, sustainable consumption practices, including recycling, supporting small businesses, buying handcrafted items, and purchasing second-hand goods.
In any case, those who wish to take advantage of this period for shopping should note that not all discounts are genuine. The Organization of Consumers and Users, after comparing 12,000 products, found that 40% remained the same price, 25% had increased in price, and only 35% were actual discounts. Additionally, it is essential to verify that the quality of discounted products meets expectations, as it often varies significantly.
Content written by:
Carmen García-Trevijano
OBS Business School's Press Office