Black Friday: Origins, Global Adoption, and Impact on the Coffee Industry

Introduction

Black Friday, originating in the United States, has evolved into a global shopping phenomenon. Traditionally held the day after Thanksgiving, it marks the beginning of the holiday shopping season. Over the years, this retail event has been embraced by various countries, each adding its unique flavour. In this blog, we'll explore the origins of Black Friday, its current status across major economies, and its specific impact on the coffee industry. We'll also compare Australia's Black Friday sales with China's Double 11 and Double 12 events, providing insights into consumer behaviour and market trends.

Origins of Black Friday

The term "Black Friday" dates back to the 1960s in the United States. It was coined by Philadelphia police to describe the heavy pedestrian and vehicular traffic that occurred the day after Thanksgiving. Retailers later adopted the term, associating it with the point in the year when businesses move from operating at a loss ("in the red") to turning a profit ("in the black"). Over time, Black Friday has become synonymous with significant discounts and the unofficial start of the holiday shopping season.

Global Adoption and Sales Figures

Black Friday's appeal has transcended U.S. borders, with countries worldwide embracing the event. Here's a snapshot of its impact across major economies:

• United States:
  In 2023, Black Friday was the most popular day for in-store shopping, with 76.2 million shoppers visiting brick-and-mortar locations, up 4.5% from 72.9 million in 2022. Online shopping also saw a surge, with 90.6 million consumers participating, a 3.9% increase from 87.2 million in 2022. (capitaloneshopping.com)

• United Kingdom:
  Black Friday has gained significant traction, with UK shoppers spending £3.93 billion in brick-and-mortar stores over the Black Friday weekend in 2023. The total spending, including online sales, reached £7.50 billion. (capitaloneshopping.com)

• Australia:
  Black Friday has surpassed Boxing Day as the nation's biggest retail event. In 2024, Australians are expected to spend a record $12.7 billion during the Black Friday and Cyber Monday sales, reflecting the event's growing popularity. (news.com.au)

E-commerce vs. Brick-and-Mortar Sales

The rise of e-commerce has significantly influenced Black Friday sales. In the U.S., online spending during Black Friday 2023 reached $9.8 billion, a 7.5% increase from the previous year. Despite this, in-store shopping remains robust, with 61.9% of Black Friday spending occurring at brick-and-mortar locations. (capitaloneshopping.com)

Main Sectors Benefiting from Black Friday

Several sectors experience significant boosts during Black Friday:

• Electronics:
  Consumer electronics sales were up 30.1% year-over-year on Black Friday 2023, though the number of sales orders decreased. (capitaloneshopping.com)

• Apparel:
  First-time Black Friday shoppers were most likely to purchase apparel, with at least 9% of apparel shoppers identified as first-time buyers. Apparel saw the highest order volume increase on Black Friday 2023, up 24.8%. (capitaloneshopping.com)

• Home Goods:
  Household goods retailing rose 7.5% in November, boosted by Black Friday sales. (abs.gov.au)

Impact on the Coffee Industry

The coffee industry also capitalizes on Black Friday, with significant discounts on coffee machines, accessories, and beans. For instance, premium coffee brands and equipment makers often provide substantial discounts on brewing tools, grinders, and specialty beans. Nespresso, for example, has reported significant increases in sales during Black Friday and Cyber Monday deals as consumers seek to upgrade their coffee-making experiences.

Comparison with China's Double 11 and Double 12 Sales

China's Double 11 (Singles' Day) on November 11 and Double 12 on December 12 are massive shopping events, often surpassing Black Friday in sales volume. In 2023, Alibaba's Singles' Day sales reached $84.5 billion, highlighting the event's scale. While specific figures for the coffee sector during these events are scarce, the growing coffee culture in China suggests a significant market. International brands often offer substantial discounts on coffee products during these sales, mirroring Black Friday strategies.

Conclusion

Black Friday has evolved from a U.S.-centric event into a global retail phenomenon. Its impact spans various sectors, with both e-commerce and brick-and-mortar stores reaping benefits. The coffee industry, in particular, leverages this period to offer attractive deals, catering to both seasoned enthusiasts and new consumers. As global shopping events like China's Double 11 and Double 12 continue to grow, the landscape of retail sales is becoming increasingly interconnected, offering consumers worldwide more opportunities to engage in these retail festivities.