From gadgets to skincare! India embraces Black Friday Sales as ecomm sees surge in sales

One of the major shifts this year has been the increased participation of tier 2 and tier 3 cities in Black Friday sales.

By
  • Yukta Raj,
| December 2, 2024 , 8:29 am
Reports indicate that Black Friday sales in India are expected to grow at a compound annual growth rate (CAGR) of 37.4 per cent by 2032.
Reports indicate that Black Friday sales in India are expected to grow at a compound annual growth rate (CAGR) of 37.4 per cent by 2032.

Black Friday, traditionally an American shopping event, is quickly becoming one of the most anticipated sales seasons in India as well, with e-commerce platforms witnessing a surge in traffic and purchases. While the day is known for steep discounts in the West, Indian retailers and online marketplaces are now jumping on the bandwagon, offering major price cuts on a wide range of products, from electronics to fashion. “The Black Friday sale is important and useful in the Indian context, as manufacturers build up huge inventories for Diwali. If Diwali sales are dampened, as they were this past Diwali, Black Friday becomes a rescue festival of its own. It helps clear inventories at a deeper discount,” Harish Bijoor, Business & Brand Strategy Specialist and Founder of Harish Bijoor Consults Inc., told Storyboard18.

The global Black Friday market is set to reach $278.6 billion in 2024, as per marketing intelligence platform, Future Market Insights. In India, the trend is rapidly gaining traction, with retailers forecasting sales growth ranging wildly from 10 to 200 per cent this year. Reports indicate that Black Friday sales in India are expected to grow at a compound annual growth rate (CAGR) of 37.4 per cent by 2032.

According to Smytten, an online shopping platform, Black Friday has evolved from being a niche, Western-inspired event to a marquee campaign with broad consumer appeal. Over the past 4-5 years, its popularity has risen due to the localization of the event, innovation in discovery-based shopping, increased digital adoption, and value-conscious consumers. These factors, combined with a strategic focus on moment marketing and innovative features, have made Black Friday a highly anticipated event in the Indian retail calendar.

This year, Black Friday sales in India have expanded beyond the usual electronics and gadget categories, with discounts also extended to home appliances, fashion, beauty products, and groceries. Leading e-commerce giants like Amazon India, Flipkart, and Snapdeal have hosted week-long sales, attracting millions of shoppers looking to cash in on the best deals. “The most significant growth is seen in active skincare and dermatologically recommended skincare products, largely driven by the winter season, especially in northern regions. Traditionally, gifting and lifestyle products dominated the event, but the demand has now shifted toward essential and premium skincare,” Swagat Sarangi, Co-founder of Smytten, explained.

Amazon India’s ‘Black Friday Week’ and Flipkart’s ‘Big Savings Days’ were some of the most prominent sales events this week. Discounts on smartphones, laptops, and consumer electronics have been particularly popular, with products from brands like Apple, Samsung, and Xiaomi flying off virtual shelves. In addition to massive price reductions, retailers are offering exciting bundled deals, no-cost EMI options, and exchange offers, making it easier for Indian shoppers to make big-ticket purchases.

Is the concept ‘Indianized’?

In India, Black Friday marks the start of the holiday shopping season, falling just ahead of the festive season of Christmas and New Year. Over the years, Indian consumers have embraced the idea of major discounts and flash sales, with Black Friday becoming a critical retail event for many brands. This year, reports indicate that e-commerce platforms experienced an uptick in demand, with some companies reporting up to a 30 percent increase in traffic compared to last year.

“To make Black Friday resonate even more with Indian consumers, the concept can certainly be ‘Indianized’ by leveraging local festivals or themes and collaborating with influencers who explain the relevance of these deals. Influencers play a pivotal role in bridging the gap between the global concept and Indian audiences by contextualizing deals, recommending products, and creating aspirational content. Retailers need to understand that Black Friday in India isn’t just about discounts; it’s about creating an experience. By combining strategic storytelling, local flavors, and the influencer ecosystem, brands can convert curiosity into conversions and establish Black Friday as a key shopping period in the Indian calendar,” Maddie Amrutkar, Founder & CEO of Glad U Came, said.

Industry experts believe that Indian shoppers, especially urban millennials and Gen Z, have become increasingly aware of this global shopping event. While Diwali sales remain a cornerstone for festive shopping, Black Friday sales cater to a different mindset – one driven by global trends, FOMO (fear of missing out), and year-end deals. Furthermore, the highest spending during Black Friday sales is being driven by millennials and Gen Z consumers, particularly those aged between 18 and 35 years.

One of the major shifts this year has been the increased participation of tier 2 and tier 3 cities in Black Friday sales. Ravi Goel, Chief Business Officer of RapidShyp, claimed that the platform has seen a surge in shipping demand of 60 percent from tier 2 and tier 3 cities, as mobile shopping and early promotions continue to drive Black Friday engagement across India.

“Black Friday Sales seem to be emerging as the latest heightened point in attempting to amp up consumer spending. Expect Thanksgiving shopping and holidays to trend in a year or two until they become a fixture in the FY forecasts of companies. While local brands try and build on existing culture, global brands set off new trends that eventually become an emerging cultural strain,” M.V.S. Murthy, Chief Marketing Officer of Federal Bank, shared on social media.

Analysts predict that Black Friday sales in India will only grow in size and scope in the coming years, making it a key event for both online and offline retailers. The growing popularity of online Black Friday sales has led to a decline in foot traffic to physical stores. Retailers who traditionally relied on in-store promotions are now having to pivot, adopting more digital-centric strategies. Several brick-and-mortar stores have also joined the Black Friday frenzy, offering special discounts both online and in their physical outlets.

Leave a comment