Retailers set for a major Black Friday 2021 boost

Black Friday 2020 was a huge success, thanks in no small part to various coronavirus restrictions, and this year it is set to be even bigger.

According to research from Mention Me, consumers are expected to set a new record, spending 5% more on Black Friday this year compared to last.

The company also anticipates brands to acquire 9% more new customers through referral on Black Friday than on the day last year – and, it claims, these customers are more likely to return and spend more than those acquired through other channels.

New research from @imrgupdate flags #COVID19 pandemic powered Black Friday changes #BlackFriday #BlackFriday2021 #CyberMonday2021 #ecommerce #onlineshopping https://t.co/QJXGNCFYQL
— Retail Technology Innovation Hub (@RTIH_RetailTech) November 1, 2021

Its data indicates that fashion and health and beauty will retain their places as the top two sales categories, with 2% and 5% more sales expected on the day compared to 2020.

After increasing 80% year-on-year on Black Friday 2020, sales for home and garden brands are expected to fall in terms of growth, while retaining volumes that outperform pre-pandemic Black Fridays.

An up and coming category is online services and apps, like Music Magpie. These have been increasing in popularity each year with order volumes up 55% in 2020 compared to 2018, spurred on by people treating themselves and friends to subscription-based, online services.

Mention Me’s analysts expect this trend to continue in 2021 as more businesses move online and consumers become increasingly familiar with these online services.

After a tough 2020, travel and hospitality is expected to recover, with Mention Me anticipating these brands to at least double their 2020 volumes in 2021.

Meanwhile, recommendations from those we trust are increasingly influential on consumer buying decisions, with brands typically acquiring 4% more new customers through referral this year compared to last, after a surge in referrals in 2020.

Though not typically associated with Black Friday, food and drink brands are gaining momentum in driving sales and referrals during the event.

Last year, orders for this sector almost tripled year-on-year. With this dramatic rise in orders and referral increasingly successful as an acquisition channel, currently 29% more impactful than last year, it will be an interesting category to watch this Black Friday.

Subscription services are also seeing referral increased in importance as an acquisition channel this year, with referral anticipated to account for 4% of newly acquired customers.

Simon Dring, Head of Retail Insights at Mention Me, says: “While uncertainty continues to linger in 2021, there’s no doubt Black Friday is going to be a big opportunity for brands this year.”

“It’s about more than just posting big trading figures, this is a crucial moment to acquire new high quality customers and nurture existing ones. Our data around referrals demonstrates the compounding combination of referral and big ticket days.”

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