“The competition has never been so fierce”

While the windows are plastered with discounts, the newsletters fill your email box. It must be said that the offensives have been launched for several weeks for the Black Friday period.

At Latulippe, we could save money from the beginning of November. The Quebec outdoor brand is adding discounted items every day, until November 29.

A way to attract consumers’ attention and create anticipation for D-Day, says President François Latulippe.

In his eyes, this period “has become the most important time of the year” for retail.

“If we’re not there, it’s not complicated, the consumer will go to my competitors,” points out the retailer, who prepares this event several months in advance.

“The month of November is busier than the month of December. Before, it was the Boxing Day. Now it’s the Black Friday.»

— François Latulippe, president of Latulippe

Black Friday generates mixed feelings among the founder of Souris Mini, Annie Bellavance.

“When there was no Black Fridayit was still a month that we were selling at full price,” suggests the one who offers discounts of up to 50% on certain children’s clothing.

However, the fashion designer does not hide the fact that it is now a must-have.

“We agree that the period of Black Friday and Christmas is the time when customers are the least loyal. We have to keep our customers, but we can also have new ones,” she says.

“It’s really a marketing strategy to successfully acquire other customers.”

— Annie Bellavance, founder of Souris Mini

The entrepreneur behind this brand celebrating its 35th anniversary is banking more on the notoriety of her company than on huge discounts. “We look at our competitors, but we make our own strategy,” she explains.

A perfect cocktail

The importance of discounts for consumers’ wallets as well as the growing competition between retailers form the perfect cocktail to guarantee the success of Black Friday, agree the marketing specialists who spoke with The Sun.

Despite budgetary constraints, holiday shopping must be done. “By having discounts, we try to maximize the spending capacity of each dollar,” explains JoAnne Labrecque, professor of marketing at HEC.

“Today, consumers are so price sensitive that retailers have no choice,” she adds.

To succeed, merchants will have to start early to offer discounts to their customers to ensure that credit cards are not already full.

“Every day that passes is one day less to sell products,” summarizes Luc Dupont, marketing expert and professor at the University of Ottawa.

“Suddenly everyone feels like they won’t get a second chance to make a good impression. That tells me that the competition has never been so fierce.”

— Luc Dupont, professor at the University of Ottawa

“There are more and more aggressive players. So much so that the SME must follow the flow at the risk of being overtaken by events,” he says.

An observation shared by Maryse Côté-Hamel, professor of consumer sciences at Laval University.

While each merchant pulls the cover on his side, potential customers examine the offers more. “We know that consumers will tend to make comparisons. There is less and less loyalty to a banner,” notes Ms. Côté-Hamel.

IN BURST

An early start to discounts does not always pay off for retailers.

Some retailers will take advantage of Black Friday to liquidate inventory that arrives out of season or dates from last year.

However, offering discounts over several weeks can be difficult. “It becomes difficult to the extent that it lowers their margin over a long period,” explains Maryse Côté-Hamel.

“It still comes at a price for retailers. […] It’s nice to pay the discounts. But there is a cost structure that the retailer must also cover,” raises Professor JoAnne Labrecque.

Not just holiday items are affected.

If Black Friday was intended for holiday shopping, this period has changed its purpose.

“People will buy for holiday gifts, but will increasingly buy everyday products for which they will have waited,” notes Ms. Côté-Hamel, targeting cell phone plans, household appliances and automobiles as options. ‘examples.

The tax holiday announced by the Trudeau government will have very little influence on purchasing behavior for Black Friday.

While the federal government has announced a two-month pause on the GST/HST starting December 14, experts do not expect to see consumers wait before making their purchases.

“It’s still 5%. For it to be worth it and for it to really influence consumer behavior, we agree that these must be substantial purchases,” responds Ms. Côté-Hamel straight away.

University of Ottawa professor Luc Dupont is of the same opinion although he emphasizes that this announcement is not negligible. “I am convinced that it will have an effect. But I wouldn’t say a major effect,” he suggests.

You have questions or suggestions for the Consumption section of Soleil? Write to us now at [email protected].