Are Businesses Driving Consumerism? Or Are They Failing Themselves With Discounts
Welcome back to The Future State Podcast.
Nick and I return with a Black Friday Recording Special.
This week’s podcast we channel our inner Martin Lewis 👀 breaking down savings, discounts & the numerous savings days.
We dive into the world of discounts and savings and the bigger crisis we might be facing, from a green environmental POV and a business POV.
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The Podcast TLDR:
General savings for consumers
Often makes expensive seasonal gifts more affordable
The strain it places on logistics
The work environment in many businesses becomes more stressful, creates more issues with internal teams and many businesses actually lose money rather the traditional Black Friday where businesses started to make money
The cost of delivery on the environment
Material gifts at Xmas
Important Elements To Savings We Discuss
Black Friday has been undone in the UK - The biggest retailers are all doing it differently. It’s causing confusion and chaos for consumers
We saw ‘fake Black Friday’ a week early (19th) in the U.K. - devaluing what Black Friday and Cyber Monday was designed for
Many are pushing Black Friday week and Black Friday month.
We have seen huge year on year growth of sales for Black Friday
The West has adopted Single Day, which is traditionally an unoffical Chinese singles holiday. Singles Day in the UK is actually in March
Prime Day - The day(s) where Amazon drives savings across the marketplace - the biggest brands can drive attention and savings to their customers as part of their brand moat
Amazon are reportedly planning to open 260+ stores over the next few years aka they truly know UK are hybrid shoppers 80% in store - 20% online so shopping in the U.K. has to be considered to have retail presence + online.
We now have Prime expectations, subscription enables us to have: fair prices, quick delivery, free returns.
Brands using biases against us: Cashless Effect, Social Proof,
Brands that don’t discount might actually win the long game, brands include - Apple, Peloton, Chanel, LV, Tiffany & Co, Lululemon
Unsung Heroes - Forums and groups
Many saving related forums are super popular
Thousands of Facebook groups dedicated to it
The science behind why Aldi and Lidl surprise aisle
Many groups dedicated to how to gain an extra saving, use certain points schemes, leverage the best deals
Watch the Decarbonising The Art World Video Nick mentions.
The Future State Of Savings And Discounts
Personalised savings - generic savings will be phased out
Investors looking to change the way they invest and invest in environmentally positive and forward thinking startups, as well into hugely profitable companies
Brands going against the grain and not building huge savings campaigns - they create value and affinity to their customers, rewarding in smarter ways
Bigger shifts online - less IRL shopping and more online shopping (hopefully with greener delivery options)
Repackaging Science. We will see brands turn to positioning and rethinking sizes and quantities to influence our purchases
Nespresso comparing against your coffee priced at £3.
Red Bull positioning themselves vs Coffee vs Coke. How did they do this? Smaller cans higher price. Status in a can.
Mass savings being reduced down slowly, brands need to control their sales prices and their partners will be educated that their brand price is their brand price.
Many businesses will look to offer multi level discounts across the year vs big events and days
We see ride hailing, food delivery constantly discounting to drive usage - we are going to see some brands have to loss lead to get any traction in the noise of big saving days and events
Let us know what you think…
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