Due to the strong interest and participation in Black Friday sale events seen in South Africa in years past, GeoPoll conducted a study on topics surrounding Black Friday to gather data on consumers’ perceptions, engagement, and purchases through the sales events. In this report, we will present the data collected in this study, which was run immediately following Black Friday 2019, and compare the findings to related GeoPoll studies from years past.

Black Friday Study Methodology

Black Friday was on November 29^th, 2019, and GeoPoll’s study on Black Friday ran through Mobile Web from November 30^th to December 1^st, 2019. A screener question was used to ensure all study participants were aware of Black Friday. There were 400 South African respondents that passed through the screener question and completed the survey. These respondents had a nationally representative location distribution, had a 50/50 gender split, and were all 15 years old or older.

In this post, we will compare results from the 2019 GeoPoll study with other GeoPoll studies on the same topic from 2017 and 2018.  Accurate year over year comparisons can be made between all three studies due to identical question wording used across studies and similar samples of respondents for each. For additional information on the methodologies and demographic information from these studies, contact us here.

Black Friday in South Africa

Black Friday Popularity in South Africa

Data from this year’s study on Black Friday shopping revealed that there has been a 16% increase in reported shopping from 2017 to 2019: 76% of respondents in 2019 indicated shopping on Black Friday this year, while 64% in 2018 and 60% in 2017 indicated the same. This shows that despite South Africa’s stagnant economy, consumers are still willing to spend money; on the other hand, the economic flatline could be further encouraging a hunt for deals before the holiday season.

Regardless of the reason for the increase, it is undeniable that there are more South African shoppers engaging in Black Friday sales events year over year. In 2018 and 2019, respondents were asked if they had shopped on Black Friday in years past. In 2018, 72% of respondents indicated shopping in years past, while 84% indicated the same in 2019—which is a 12% increase.

Black November in South Africa

Beyond the increase in shoppers participating, the Black Friday sales events themselves are growing as well. Black November is a term that has emerged to describe the phenomenon of retailers starting their Black Friday and Cyber Monday sales earlier each year. According to PwC, “retailers are extending their Black Friday offerings to a week or more leading up to the day and the days thereafter, including the ensuring weekend leading up to Cyber Monday.”

This year our study asked respondents about their Black November shopping. Respondents who participated in 2019’s Black Friday were asked if they shopped any Black Friday sales that ran before November 29^th; 78% of respondents indicated that they had, which shows that Black November sales were highly popular for both retailers and shoppers in 2019.

Items Purchased on Black Friday

In 2018 and 2019, respondents were asked identical select all that apply questions: “Which of the following items did you purchase during Black Friday this year? 1) household appliances 2) beauty accessories 3) clothing and footwear 4) electronics and accessories 5) food items 6) baby items 7) other.” From 2018 to 2019, all of the categories except for clothing and footwear had an increase in reported purchases. Most notably, beauty accessories saw a 15% increase, electronics and accessories increased by 13%, and food items increased by 16%. Keeping in mind that clothing and footwear only saw a 2% decrease and that this was a select all that apply style question, the data comparison from 2018 to 2019 shows that people are buying a more diverse selection of items during Black Friday sales overall.

Shopping Location

This year’s study asked respondents about the location of their Black Friday shopping to determine if shoppers were shopping more in-store, online, or a combination of the two. Results showed that the vast majority of Black Friday shoppers, 67%, shopped in stores only. A much smaller group of shoppers, 23%, indicated shopping both in-store and online, and only 11% of shoppers indicated shopping online only. Data also showed that 4% more men than women reported shopping exclusively in-store, 6% more women than men reported shopping both in-store and online, and the same number of men and women reported shopping exclusively online. The affinity for in-store shopping is likely due to poor user experience in online shopping in South Africa, which we explore further in the following sub-section.

Online shopping issues in South Africa

Respondents that had indicated shopping online in any capacity were asked a follow-up question about their user experience, “While online

shopping on Black Friday this year, did you experience any issues with webpages that negatively impacted your shopping experience?” 37% of the online shoppers reported that they did encounter issues while online shopping the Black Friday sales. The respondents with technical issues were concentrated in Northern Cape (50% of respondents in this location had issues), Gauteng (45%), and Limpopo (44%). Although the majority of online shopper respondents did not have technical issues, 37% is a significant portion of consumers to be negatively impacted by the online shopping platforms. In order for online shopping to gain more significant popularity in Black Friday sales events, the rate of users experiencing issues needs to decrease in the years to come.

Cyber Monday

Cyber Monday is an online shopping sale event used by retailers as a continuation of the Black Friday sale events. To determine Cyber Monday’s popularity in relation to Black Friday, all respondents were asked if they were aware of the shopping holiday. We found that 63% of respondents were aware of Cyber Monday, compared to 100% of respondents that were aware of Black Friday.

Out of the 63% of respondents aware of Cyber Monday, 65% had shopped Cyber Monday sales in years past. The highest rates were in KwaZulu Natal (76% of respondents in this location had shopped Cyber Monday in the past) and Mpumalanga (72%). Additionally, 6% more males than females indicated shopping Cyber Monday sales in years past.

This year, more males than females also plan to shop Cyber Monday sales. 81% of Cyber Monday aware males plan to shop on the holiday compared to 71% of aware females, which comes out to 10% more males than indicated planning to shop on Cyber Monday than females and a 76% average for all respondents.

Assuming those who indicated planning to shop on Cyber Monday followed through, participation in the sales events would see an 11% increase in 2019 over participation in years past and a 4% increase in male participation in 2019 over years past.

Takeaways

South Africans are interested and engaged with holiday shopping sales in November and December—whether the sales are promoted as early Black Friday sales, Black Friday sales, or Cyber Monday sales. Despite the growth in sales around Black Friday, regularly timed Black Friday sales are still the most popular time to shop. Additionally, the participation in Black Friday shopping is increasing rapidly year over year and even a flat economy in South Africa did not hinder the growth in shopping rates. In years to come, GeoPoll anticipates the growth momentum to carry over to even higher engagement rates in 2020.

In preparation for a busy 2020 holiday shopping season, GeoPoll can help your organization conduct a study of your own. Our team of research experts is a valuable resource for any consumer behavior evaluation study. To learn more about how GeoPoll can help your organization achieve your research goals, contact us today.

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This report displays survey respondent feedback from consumers in Ghana, South Africa, and Kenya. Comparisons are made between the preferences and behavior across the countries studied through this year’s survey, as well as 2017 survey results.

Survey Methodology

There were surveys conducted in three, key African markets: Ghana, Kenya, and South Africa. The surveys were completed in mid-December through SMS. Gender distribution was roughly equal between males and females. Respondents were spread across all age groups, with an average of 43% aged 35 years old and above.

Black Friday

2017 VS 2018

In 2017, GeoPoll dispatched a survey about Black Friday at this same time of year. Two of the countries surveyed overlapped, as well as two of the questions asked. The following results compare 2017’s survey responses to 2018’s survey responses surrounding Black Friday participation and product purchases.

QUESTION: “Did you shop on Black Friday this year?”

2018 RESULTS VS 2017 RESULTS:

According to the results, significantly more South Africans shopped Black Friday sales than Kenyans in both 2017 and 2018. Not only that, but also South Africans increased in reported participation in Black Friday shopping from 2017 to 2018, yet Kenyans drastically decreased. This shows that Black Friday sales incentivize shopping heavily in South Africa. In Kenya however, Black Friday sales are not as influential to consumer purchasing behavior.

Let’s take a deeper look at the purchases made by these consumers year-over-year during Black Friday. The consumers who did report shopping on Black Friday were asked the following question,

QUESTION: “Select all that apply. Which of the following items did you purchase during the Black Friday sale? 1) Household appliances 2) Beauty accessories 3) Clothing and footwear 4) Electronics and accessories 5) Food items 6) Baby items 7) Other”

2018 RESULTS VS 2017 RESULTS:

As you can see in the above graphs, there were significant shifts in the categories of products purchased most in both South Africa and Kenya. Although the majority of Kenyans did not participate in Black Friday shopping, those who did participate were quite interested in Electronics and technology accessories in both 2017 and 2018.

Trends in the data from the two above charts indicate that shoppers may be most interested in purchasing basic day-to-day items, like food, clothing, and electronics, during Black Friday sales rather than more extravagant items, like beauty accessories.

Also, it interesting to note that South Africans increased their purchases in every category from 2017 to 2018, while Kenyans decreased their purchases in 4 out of 7 categories. According to these results, South Africans seem to be more engaged in Black Friday as a whole. Business Insider confirms this in a recent article that explains that studies have shown that Black Friday has boomed in popularity more in South Africa than any other country in the world.

2018 Black Friday Ghana, Kenya, South Africa

We also examined participation in the 2018 Black Friday sales in Ghana, as well as South Africa and Kenya.

QUESTION: “Have you shopped on Black Friday in previous years?” 

RESULTS:

QUESTION: “Did you shop on Black Friday this year?”

RESULTS:

As shown above, Ghanaians and Kenyans were not as interested in Black Friday shopping this year or past years, while the majority of South Africans reported shopping on Black Friday both this year and in years past.

When asked why they did not shop on Black Friday, many reported that they were not able due to financial limitations, but in Kenya and Ghana 35% of respondents in each market did not know about the sales—while only 2% of South Africans reported not shopping on Black Friday for that reason.

QUESTION: “Why did you not shop on Black Friday this year?”

RESULTS:

Companies targeting Ghana and Kenya for Black Friday sales may benefit from more advertising surrounding the day of sales.

Holiday Spending

In terms of general holiday shopping, whether on Black Friday or not, most respondents (82% on average) prefer shopping for holiday gifts in-stores rather than online.

Interestingly, respondents typically spend the most money on entertaining guests over the holidays, as you can see below.

QUESTION: “What does the majority of your holiday spending go toward? 1) Food and drink for entertaining 2) Gifts for others 3) Gifts for self 4) Travel expenses 5) Socializing” 

RESULTS:

This data may indicate that in each of these three markets quality time spent with loved ones is more important to people than gifts during the holidays.

We then looked at the drivers for holiday purchasing for both oneself and others. We compare the results in the below graphs,

QUESTION: “Select all that apply. When shopping for others during the holidays what attribute is most important to you? 1) Price 2) Quality 3) Band name 4) Convenience”

QUESTION: “Select all that apply. When shopping for yourself during the holidays what attribute is most important to you? 1) Price 2) Quality 3) Band name 4) Convenience” 

PURCHASE CONSIDERATIONS FOR SELF VS PURCHASE CONSIDERATIONS FOR OTHERS RESULTS:

Quality is the primary consideration across all three markets, whether the product is for oneself or others. Out of the three markets, South Africa was the highest price-considering group, which is especially interesting because South Africans have reported much higher interest in Black Friday sales. It is apparent from these findings that South Africans have an affinity for bargains.

Finally, we asked respondents about impulse purchases that they made during holiday shopping to gain insight on how susceptible shoppers are to captivating in-store displays and stumbling upon holiday sales.

QUESTION: “Before holiday shopping for others do you? 1) Plan ahead 2) Plan most & make some impulse purchase 3) Plan some & make some impulse purchases 4) Don’t plan ahead”

QUESTION: “Before holiday shopping for yourself do you? 1) Plan ahead 2) Plan most & make some impulse purchase 3) Plan some & make some impulse purchases 4) Don’t plan ahead”

PURCHASES FOR SELF VS PURCHASES FOR OTHERS RESULTS:

Whether shopping for others or themselves, the majority of respondents in each of the markets report strictly planning ahead. The majority of respondents do not make impulse purchases when shopping for themselves or others. Although the majority do not make impulse purchases when holiday shopping, there are still quite a few shoppers who are influenced by their impulses while shopping. 8% on average do not plan ahead when they holiday shop for themselves or for others. 17% on average plan some and make some purchases on impulse for both themselves and others. And 19% on average plan most of their gifts ahead of time but do make impulse buys for themselves and others as well.

This information can indicate that stores may benefit more from advertising heavily before the holiday shopping season begins in order to influence purchase considerations in the planning period for holiday shopping. And although most respondents plan ahead, there are still consumers who do make impulse purchases, so in-store displays and pop-up sales may influence purchase decisions.

Conclusion

Overall, GeoPoll has found that South Africans are the most engaged in Black Friday shopping out of South Africa, Ghana, and Kenya, and are the most price-conscious consumers out of the three markets we analyzed.  Holiday shopping is primarily conducted in-stores rather than online. Consumers are planning focused when holiday shopping. And entertaining loved ones is of key importance during the holidays—even more important that gifts.

GeoPoll conducts regular research on consumer behavior, customer satisfaction, and advertising awareness. GeoPoll staff are experts in hard-to-reach areas of the world and can provide assistance through each step in the research process. Contact us today to inquire about your research needs.

The post Holiday Spending and Black Friday Shopping in Ghana, Kenya, and South Africa appeared first on GeoPoll.

According to our Black Friday Straw Poll, which ran in December 2017 among 2,031 respondents in Nigeria, South Africa, and Kenya, Jumia still remains the most preferred e-commerce vendor. Fifty-six percent of our poll respondents have shopped on Jumia before.

Interestingly, a significant number of online shoppers utilize Facebook groups. At 32%, Facebook is the second leading online retailer in the leading e-commerce regions. Through informal entrepreneurs who utilize this leading social media channel to either sell through their groups or similar interest groups, Facebook is proving to be a formidable albeit odd player in this space.

Mobile phones have become ubiquitous in Africa. The Sub-Saharan region is also home to some of the least internet connected nations in the world. Beyond the low internet penetration levels in some countries and the high data costs, e-commerce is portraying an opportunity for online retailers to reach the youthful African consumer population. Despite the numerous challenges that this nascent industry has faced in the region, there is a silver lining thanks to the expected rise in the use of technology in the content. Global e-commerce concepts such as the Black Friday sales are also picking pace in creating awareness among the target market as brick & mortar stores join in seeking a piece of this pie.

E-commerce Uptake

E-commerce in Africa is far from a success story. As experienced by the 4 major players, replicating the success of Amazon in Africa has been a pipe dream that many initial entrants realized as soon as they set shop. However, for those who stuck it out, the benefits are slowly trickling through.

Seventy-four percent of the 2031 unique respondents indicated they have purchased an item online before. Among the 74% of respondents who have purchased an item online before, a majority (22%) are those who buy something only once a month.

Amidst the slow growth, online retail outlets still grapple with their biggest challenge yet. Trust. Among the 26% (531) of respondents who indicated they had never purchased any items online, the top reasons cited were that they did not trust the site (29%), and they did not know how the sites worked (20%). This trend was also observed at the individual country level.

The low trust levels towards online retails can be demonstrated by the most preferred payment options. For respondents of our straw poll, when they shop online, a majority prefer to pay in cash upon delivery at 50%. Mobile money comes in a far second at 21% and debit cards a distant third at 14%. In Kenya and Nigeria, 52% and 51% respectively, of respondents indicated they preferred cash on delivery.

Black Friday Sale

Only 49% of the respondents who took the Poll had participated in the Black Friday sale month which ran from Nov 13th to Dec 13th for most online retailers.

The most effective channel for creating awareness among online consumers is social media. 55% of respondents who participated in the Black Friday sale month said they first found out about it through that medium. Websites and TV ads were the second and third common mediums of awareness at 15% and 13% respectively.

The sale is now attracting brick & mortar retail stores with many hoping to cash in on the new craze. According to the respondents who participated in the Black Friday sale month, 70% indicated they visited an e-commerce website while 30% indicated they went to an offline store/outlet. In Kenya and Nigeria, 75% and 73% respectively went to an e-commerce website to do their Black Friday shopping. In South Africa, clothing and footwear was more popular among online shoppers.

The most sought-after items during this sales promotion were electronics and accessories at 34%, household appliances (21%), and clothing and footwear (19%). In Kenya, electronics and accessories ranked the highest at 46%. In Nigeria, the most sought-after item was electronics and accessories at 29%.

Previous Black Friday Poll

In 2016, we carried out a similar straw poll among 1,251 respondents in Kenya, Uganda, South Africa, Ghana and Nigeria aimed at analyzing the impact of the Black Friday sales promotion on the uptake of e-commerce in the region.

Based on this past poll, there has been a significant change in awareness, however, trust is still a huge hurdle that online retailers in Africa are yet to overcome. The industry still holds a lot of promise both for consumers and retailers.

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According to a recent KPMG report, in seven Sub-Saharan countries, e-commerce makes up one to three percent of GDP, and is predicted to make up 10 percent of total retail sales in key markets by 2025, with 40 percent annual growth over the next 10 years. The total retail economy is projected to grow rapidly, along with the population as a whole and its spending power per capita

In November this year, the words ‘Black Friday’ were trending keywords on Google in Kenya, Nigeria & South Africa in the last week of the month just before the American Thanksgiving holiday.

For a long time, the American Black Friday sale has often been viewed in Africa as a very foreign concept. On 17^th November, a week before Black Friday, we conducted a Rapid Poll using the GeoPoll mobile application asking Kenyan respondents if they knew about the Black Friday Sale and if they would be participating.

Many were not aware and the few that were did not have disposable money to spend. This short poll among Kenyans led us to conduct this survey among Africans in the Sub-Saharan countries that have exhibited some growth of ecommerce. We sought to find out if, by adopting the Black Friday sale concept, African E-commerce business have managed to somehow overcome the numerous challenges facing the nascent industry.

Experience with online shopping
South Africa, Nigeria & Kenya are the leading countries in online shopping in Sub-Saharan Africa. According to our survey, In South Africa, a majority (60%) buy items online every few months. This is the same in Kenya (45%) and Nigeria (66%)

70% of Kenyans and Nigerians, and 60% of South Africans have at one time tried to buy something online, however, most Ghanaians (55%) and Ugandans (51%) have never bought anything online. According to the NextWeb, there is a direct co-relation between access to the internet and the rise of online shopping.  South Africa, Nigeria and Kenya have the highest levels of internet and smartphone penetration in Sub-Saharan Africa according a 2015 Pew Global research survey titled Cellphones in Africa: Communication lifeline

Although many have tried online shopping, in all other countries except South Africa, a majority only tried it once. Among the top reasons sighted why many in these 5 African countries do not frequently use online shopping sites are; lack of trust, shipping costs, unsupported payment methods and because a friend had a bad experience. Other reasons filled were lack or reliability of some sites in delivery and the purchase process. Others feel that there is no need as the items are readily available at their local store.

Jumia not the King in SA
According to the survey, Jumia is one of the most known online shopping sites in sub-Saharan Africa. It is however not as popular in South Africa and Ghana as it is in other countries. Most South Africans shop online either at Bid or buy, Takealot, Zando or Spree.  In Ghana, Jumia competes for the top spot with Amazon with Alibaba coming in a close 2^nd. In Nigeria, the number two site after Jumia is Alibaba. In Kenya, the number two site is Kilimall.

Payment Methods
The change of tact by online shops on payment methods has seen a significant impact in the space. According to our survey, a majority of shoppers in Kenya, Nigeria and Uganda paid on delivery for items bought online. However, in South Africa, most shoppers (50%) prefer to pay using their debit card and a further 26% use their debit card for online purchases. Cash on delivery in S.A is also the preferred mode of payment at 20% compared to mobile money.

In Kenya where mobile money is hugely popular, it is the next preferred payment option (42%) after cash on delivery. This underscores the distrust most shoppers have with online stores. Most would rather pay once they have actually received the item.

Logistics & customer satisfaction
According to a New Yorker article on e-commerce in Africa, Motor bikes have made a huge impact on the on delivery of goods by ecommerce sites. Due to this, many online shoppers are happy with delivery speeds in all the 5 countries.

Of all the things customers liked about their shopping experience, delivery and quality ranked among the top reasons for customer satisfaction. This is closely followed by cost.

The Concept of Black Friday
Last month, major African ecommerce sites such as Jumia, as well as some brick and motor stores participated in the American Black Friday sale. According to our survey, many Africans now understand the concept of Black Friday although it’s a concept that is yet to pick due to the challenges that ecommerce generally faces in Africa, namely, addressing, payment methods and trust as seen in our survey. There was some interest for this year’s sale. The term Black Friday was among the top Google trends in Kenya, Nigeria and South Africa around the American Thanksgiving holiday with many Africans in these countries searching online for stores that had offers.

Black Friday & Cyber Monday Sale by Country
In Kenya, 55% of respondents participated in the Black Friday & Cyber Monday Sale with most buying mobile phones.  The most popular online store for Kenyans for the sale was Jumia which took 55% of online shoppers. In Nigeria, 60% participated in the online sale with 54% buying phones on Jumia.

In Ghana where the concept of Black Friday sale is yet to catch on, a majority (61%) did not participate in the sale. Although most online shopping sites were keen to sell beauty and accessories, clothing & footwear and TV sets, the items did not pique the interest of many online shoppers except in South Africa where most online shoppers went for Clothing (31%), beauty & accessories (24%) and household items at 24%.

Although most of the popular online stores in Africa focused mostly on electronics in their last sale, items like bicycles, power adapters, games, wedding gowns and manual sewing machines made it to the list of items bought during this period.

Black Friday sale timing
According to our survey, a majority of the African’s in the 5 countries did not have enough money to spend during the Black Friday sale which happens on the fourth Thursday of November and this year round it started on November 27^th. Of those who did not participate in the sale, a majority said they did not have enough money. The other reasons given for not participating was lack of awareness and lack of time to actually check out what the stores had on sale.

Due to the lack of awareness and the bad timing, most did not spend more than 100 USD in purchases

Black Friday Vs Christmas
Christmas shopping in December is still the most popular holiday activity in Sub-Saharan Africa. Most of the respondents we asked, (75%) said they would shop more if Black Friday sales were during the Christmas period.

When we asked where they would prefer to shop if physical outlets participated in the black Friday Sale, a majority said they would prefer to shop online.

According to Quartz, E-commerce businesses are simply fighting to stay afloat right now. As seen in our survey, there is still prevalent lack of trust in ecommerce sites. As noted by Quartz, even Amazon took years to turn a profit. The serious questions being raised however are on exactly how quickly Africa’s consumer class is actually growing.

The GeoPoll survey was conducted using the GeoPoll mobile application to 1,251 respondents in Kenya, Uganda, South Africa, Ghana and Nigeria.

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On 17^th November 2016, GeoPoll  conducted a Rapid survey on Black Friday using the GeoPoll mobile application. A sample  of 103 men and 137 women filled the questionnaires on their spending habits during the Black Friday period which occurs in the month of November before the Thanksgiving US holiday.

From the rapid survey, these were the insights.

Black Friday Advertisements
The data showed that the dynamic ads most marketers use to re-target their audiences may not work with regard to black Friday deals advertisements.  Different target audiences change their shopping habits during this period from the normal wants to needs.

Online Shopping budget
Respondents were asked how they had prepared for the shopping experience and 44% said that they have saved towards it. What most marketers should still take notice of before counting  their chickens, is 77% said that they were willing to spend between 10K -20K while 100K and above spenders  accounted for only 2% which means most of the users are still not willing to spend on high end items although the prices will be quite reasonable. This is despite the fact that 36% of the respondents are looking to buy electroincs.

Online Shopping trends among women and Men
The shopping spend of the respondents also highlighted that the 25% of the female demographic is looking to spend on electronics while a good 24% will also be spending on male fashion items. Naturally, marketers would decide to market household items to women who are assumed to be the main household shoppers but should not be the case as only 17% are looking forward to household shopping.

50% of men unsurprisingly, will be looking to get electronics with men’s fashion closely following with 32%. A twist of events came in when only a mere 2% said that they are willing to get women’s fashion which is a massive contrast to 24% of women who are looking to  indulge in shopping for men’s fashion. Surprising enough is the fact that 9% of the male respondents mentioned that household items would be their priority. Notice how household items are a priority to men as compared to women’s  fashion?

Kenya’s Leading online shopping site

Jumia is  the king of online malls in Kenya with 72% of the respondents stating that that would be their ideal site. Killimall comes in with 23% bragging rights of the online stake while Rupu had 5% of the respondents backing it. Ultimately, the site that will wear the crown will still be the site that has the highest number of last click attribution to sale other than just consumer’s presumptuous shopping tendencies.

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