BlogThe Black Friday Phenomenon: Origin, Evolution and Transformation to Black Week
What is Black Friday?
Black Friday is a day of sales and promotions held on the day after Thanksgiving Day in the United States, which takes place on the last Thursday in November. Traditionally, physical and online shops offer significant discounts on a wide variety of products, from electronics to fashion and toys.
Black Friday is one of the most anticipated shopping events of the year, marking the official start of the holiday shopping season. This global phenomenon, known for its deep discounts and exclusive offers, has evolved significantly since its beginnings in the United States from a single day to a full week of promotions known as Black Week. In this article, we will explore its origin, development and how this phenomenon has changed over the years.
This date has gained relevance globally, becoming an opportunity both for consumers looking to save money and for companies looking to increase their sales and liquidate inventories before the end of the year. In recent years, Black Friday has transcended borders and is celebrated in countries around the world, including Spain, the UK, Mexico and Brazil.
Origin of Black Friday: How did it come about?
The term Black Friday has an interesting background and a peculiar evolution. The following highlights the key stages of its origin:
1. Early uses of the term
The origin of the term dates back to the 1950s in Philadelphia, USA. The local police used ‘Black Friday’ to describe the chaos that ensued the day after Thanksgiving, when large crowds thronged the streets and shops in search of bargains.
2. Transition to commerce
During the 1960s and 1970s, retailers adopted the term and began to use it in a more positive sense. In accounting terms, ‘black’ refers to profits (as opposed to ‘red’, which symbolises losses). For many businesses, Black Friday represented the day when their balance sheets went from red to black, thanks to a massive increase in sales.
3. International expansion
In the 2000s, with the rise of online commerce and globalisation, Black Friday began to spread to other countries. Large chains such as Amazon and Apple were pioneers in exporting this phenomenon beyond the US borders, marking the beginning of a global shopping tradition.
From a single day to a whole week: The Transformation to Black Week
Black Friday has evolved dramatically over time. What was once an event limited to a single day now extends over an entire week, known as ‘Black Friday week’ or ‘Black Week’. This change is no coincidence; it is due to multiple factors that have shaped consumer behaviour and companies' marketing strategies.
1. Fierce competition
With the arrival of giants such as Amazon, Black Friday ceased to be exclusive to physical shops and expanded to online commerce. To compete, many companies began to extend their offers beyond Friday, launching early promotions from Monday of the same week or even earlier.
2. Changes in consumer habits
Modern consumers are looking for convenience and flexibility. By extending offers over several days, companies are responding to the needs of those who prefer to avoid the crowds of shopping centres and department stores and shop more leisurely.
3. Cyber Monday
In some cases, companies combine Black Friday with other commercial events such as Cyber Monday (the following Monday, dedicated to online-only offers). This strategy creates an extended period of promotions, significantly increasing shopping opportunities for consumers.
Benefits and challenges of Black Friday and Black Week
Black Friday and Black Week bring with them a combination of benefits and challenges for both consumers and businesses. For shoppers, they represent a unique opportunity to ‘save’ on high-demand products by taking advantage of the variety of offers spread throughout the week, allowing them to compare prices and make more informed decisions. In addition, global access through e-commerce democratises these promotions, benefiting consumers around the world. For their part, companies enjoy increased sales, take advantage of the opportunity to liquidate accumulated inventories, and strengthen their brands through strategic campaigns. However, these advantages are not without challenges: market saturation and competition squeeze profit margins for some SMEs, while high consumer expectations put pressure on brands to offer discounts. In addition, the logistical impact of this intense week can result in stock problems and delays, putting the operational efficiency of logistics companies to the test.
The impact of Black Friday in Spain
In Spain, Black Friday has experienced explosive growth over the last decade in Spain. According to data from the Spanish Association of the Digital Economy, sales during this week represent up to 25% of the annual revenue of many e-commerce companies.
- Most demanded sectors: Technology, fashion and household appliances are the most demanded categories.
- Online growth: It is estimated that 60% of Black Friday purchases in Spain are made online.
- SMEs and Black Friday: Small and medium-sized companies have also joined the phenomenon, taking advantage of platforms such as Amazon Marketplace to compete with large chains.
- The OCU has detected more price increases than decreases in the electronics range and that only 30% of the discounts are real.
Black Friday and Marketing
Price-cutting marketing techniques play a crucial role in increasing consumerism during Black Friday and similar events. Strategies such as limited-time discounts, exclusive offers and promotional packs create a perception of scarcity and urgency that drives consumers to buy impulsively. In addition, psychological pricing tactics, such as displaying products with prices ending in ‘99’ or highlighting percentage discounts rather than absolute discounts, make offers appear more attractive than they really are.
Digital marketing also amplifies this phenomenon. Social media has become a perfect channel for targeting consumers precisely, highlighting products that match their interests and increasing the temptation to buy. The combination of these strategies with a constant barrage of advertising during this time reinforces the idea that this is the best time to buy products, leading many to make unnecessary purchases. This not only encourages consumerism, but also reinforces the culture of wasteful spending, steering consumers away from more responsible and sustainable habits. The concept of Black Week allows companies to maximise their marketing campaigns, building anticipation weeks before the event.
Black Friday has evolved from a day of sales in the United States to a global Black Week that marks the start of the holiday season. This phenomenon reflects changes in consumer habits, advances in e-commerce and innovative marketing strategies. However, it also poses challenges related to sustainability and consumerism. The future of Black Friday will depend on how businesses and consumers find a balance between taking advantage of the deals and adopting more responsible practices.
Are you ready for this year's deals? Seize the opportunity, but remember to shop in moderation!
