Black Friday’s big online moment in South Africa

2024 could be a massive year for online Black Friday sales in South Africa, thanks to the entry of several new major online stores, more developed e-commerce logistics, and enhanced delivery options.

That is according to Bob Group head of product Jaco Roux, who recently spoke to MyBroadband about his expectations for the annual sales promotion.

Roux acknowledged that Black Friday 2023 was described as a flop because of lower spending due to high interest rates putting pressure on consumers.

However, Roux said even though it seems total spending was lower, online sales grew in popularity compared to traditional brick-and-mortar sales.

That suggests more South Africans are getting comfortable or have become able to shop online during Black Friday instead of going to physical stores.

Roux expects this momentum to continue and year-on-year online sales growth to be even more significant in 2024.

“With interest rates forecasted to decrease by the end of the year, reduced load-shedding, and the potential for a more effective government, there are positive signs that consumer spending will be under less pressure, potentially boosting spending during Black Friday and Cyber Monday,” Roux said.

Roux speculated that developments in technology and logistics could also play a big role in South Africa’s online Black Friday sales in 2024.

“Enhanced delivery options and efficient logistics will give consumers more convenient ways to receive their purchases, potentially increasing online sales,” Roux said.

“Furthermore, improved user experiences on e-commerce platforms, driven by advancements in AI and personalisation, could significantly boost sales.”

Two other major developments in South Africa’s e-commerce space in the past few months have been the big surge in the popularity of Chinese e-commerce platforms Shein and Temu and the launch of Amazon’s local marketplace in early May 2024.

Shein and Temu have made a name for themselves by offering clothes, electronics, and other general items at a fraction of the prices charged by South African retailers.

Amazon has the advantage of being a significantly recognisable brand with a reputation for seamless and fast ordering and delivery.

Roux said that the potential participation of these newcomers in Black Friday could force incumbent retailers to lower their prices even further.

“It’s the basics of economics: the higher the supply, the more pressure it puts on prices,” Roux said.

Going beyond Black Friday

However, Bob Group’s marketplace head, Craig Lubbe, pointed out that Amazon has typically focussed on its Prime Day initiatives over Black Friday.

“We don’t know what their approach will be in South Africa with Prime not available yet in the country,” Lubbe said.

He added that Temu was already demonstrating aggressive pricing strategies across its offerings and may focus on offering deals on Singles Day, 11 November.

Singles Day is effectively China’s take on Black Friday but focuses more on encouraging single people to treat themselves by buying products or services.

Lubbe told MyBroadband another trend that has developed in recent years is retailers offering campaigns over the festive season in general, diluting Black Friday as a standalone event.

Nevertheless, he said Bob Shop would definitely be offering Black Friday deals in 2024.

“Through our community of sellers on the platform, we will offer discounts across all categories spanning consumer electronics, home, sporting goods and more,” said Lubbe.

“We will also feature some exhilarating R1 Auctions, which is a great opportunity for buyers to catch great deals.”

MyBroadband also asked Bash, Massmart, Takealot, Temu, and Shein about their plans for Black Friday 2024, but none had responded by the time of publication.