Black Friday 2024 is likely to see a frenzy this year amongst the mass-market, as retailers slash prices in a bid to appeal to customers battling the cost of living crisis. But before retailers start strategising and planning to participate in this year’s Black Friday chaos, it's worth asking: is slashing prices really the best move for your brand? Could discounting actually harm your brand’s image?
Luxury and premium brands often face pressure to join the sale bandwagon, boosting short-term sales. While this can spike revenue quickly, many luxury brands question if it’s worth the potential downside: devaluing their products. For higher-end brands, pricing reflects quality and exclusivity. Too frequent sales could make customers hesitant to buy at full price, knowing discounts are just around the corner. This devaluation can erode the perceived value of your products, making it harder to justify premium prices in the future. Maintaining the allure of exclusivity is therefore crucial for luxury brands.
Black Friday is a unique sales event, and participating doesn’t automatically devalue your brand. However, it’s important to assess whether constant markdowns are undermining your product’s perceived value or if you can use this opportunity to attract new customers and drive long-term growth.
Instead of discounting, another tactic we encourage our higher-end clients to consider is ‘Black Friday exclusive events’. Rather than cutting prices, you can enhance the customer experience with limited-edition items or exclusive offers. Our client, iCandy, is a famous brand amongst celebrity parents, selling high-end pushchairs and baby accessories to an affluent market. Last year, they decided to discount, but rather than simply promoting across the entire website, they created an event page and a sign-up form, so customers had to register their details in order to receive the special discount. This maintained their exclusive brand image whilst still allowing them to participate in Black Friday and make additional sales.
iCandy's Black Friday events page, 2023.
As a luxury or premium brand approaching Black Friday or any sales period, consider these key points:
Could this sale period be perceived as devaluing the product?
Are we frequently entering sales cycles that may impact the perception of our regular prices?
Can we offer added value instead of price markdowns?
Are we focusing on short-term sales goals at the expense of long-term brand value and customer perception?
Our client, Tom Dixon, went with a slightly different tack to iCandy, opting not to offer discounts, but instead promoting a special ‘freebie’ for spending over £500 during the Black Friday period; a complimentary Puck cocktail glass. This strategy created urgency without diminishing the brand’s value, encouraging purchases during the Black Friday period without a race to the bottom on prices.
Tom Dixon's Black Friday offer, 2023.
By carefully weighing these factors, you can navigate the Black Friday frenzy while preserving the integrity and value of your brand. But if you’re still struggling to implement a roadmap and campaign strategy around this key retail event, contact us today about how we can support.
