One of the most anticipated commercial events of the year, not only for consumers, but also for companies, is undoubtedly Black Friday. Although this event represents an opportunity to increase sales and visibility, it also highlights the specific limitations and challenges that SMEs face when competing in an environment dominated by e-commerce giants and large retailers with great capacity for discounts and logistics. But are small businesses really ready to compete on Black Friday?
The rise of online commerce has led SMEs to have to adapt their sales models, integrating a digital space to attract customers in this competitive environment, but without forgetting their capital advantage over large platforms: their physical presence, which allows them to deploy an omnichannel strategy and capitalize on direct contact with the customer. That is, having a hybrid approach that not only expands its reach, but also offers a personalized experience that large platforms can hardly replicate, explains Claudio Arós, professor at OBS Business School. «The concept of omnichannel is key for retailers: attracting customers through the internet, offering them the possibility of buying online and, at the same time, encouraging them to pick up the product in store. This ‘pick up in store’ strategy offers a double advantage: once in the store, the customer has a greater probability of making additional purchases, and transportation costs, which represent a considerable expense for the small merchant, are also eliminated.
Hybrid method
The data also confirms this. According to the study ‘The State of Shopping 2024’ by ShopFully, 8 out of 10 Europeans use digital to inform themselves before making purchases, but 92% prefer to buy in physical stores since they allow them to see, touch or try new products before buying them. Spain is positioned a little lower with 57% of the population preferring to shop exclusively in physical stores, while only 8% declare themselves an absolute fan of online shopping.
From the Communication, Advertising and Digital Marketing Association, IAB, in its Annual E-commerce Study 2024 highlight a significant change in consumer habits: the frequency of online purchases has decreased, going from 3.4 times a month in 2023 to 2.5 in 2024, the lowest figure since 2019. This phenomenon once again highlights the role of proximity commerce, whose deep knowledge of the clientele and their consumption patterns constitutes a competitive advantage over large platforms.
Although inflation and the increase in the cost of products can affect consumer spending and the strategy of large platforms, it is also true that this can work in favor of small businesses. These businesses typically have greater control over their prices and can adapt more quickly to market conditions, allowing them to be more competitive.
Adding to this advantage is growing concern about environmental impact, which is prompting many consumers to reevaluate their purchasing habits, especially among younger generations. According to the last GoDaddy survey, 83% of Spanish consumers between 18 and 24 years old prefer to make their purchases in small businesses, supporting local commerce, and 26% of them would even be willing to pay up to 10% more to support these businesses. This trend, indicates Rodrigo Pérez, the company’s international marketing director, reflects a clear change in consumer priorities. «There is support for the community by younger people, who now seek to support the local economy and entrepreneurs, leaving aside the large commercial platforms. A trend that tends to consolidate and that represents an advantage for local businesses that know adapt to your expectations.”
Professionalization
Retailers have heard for years that they need to adapt, but now change has become imperative primarily because consumer habits have evolved, influenced by remote working and the rise of online shopping. This forces the retailer to become professional. It is crucial that they design small marketing strategies that combine digital and in-person to take advantage of the strengths of each format. “The challenge is to find authentic differentiation and take advantage of deep knowledge of your own market,” says Arós. These businesses can mark certain peak days on their calendars and establish special campaigns around them.
With small online marketing actions, businesses can compete effectively and increase their visibility in today’s hybrid market. Having a defined strategy of how you want to ‘seasonalize’ your sales is important to create your own opportunities. Retailers can also design their own ‘special days’, aligned with their peak seasons. For example, a florist could focus on digital and in-person campaigns in spring, taking advantage of its natural sales peak. “With a well-developed hybrid strategy, these stores have the possibility of generating unique commercial events that attract their audience at strategic moments, demonstrating that there is ample room to compete effectively with the large platforms throughout the year.”
Along these lines, from the Spanish Chamber of Commerce, Julián López-Arenas, Director of Competitiveness, states that “to be competitive, SMEs must digitalize, have a plan and invest in it to have greater efficiency in the processes.” Contrary to what one might think, digitalization does not require a high investment. «There are innovation techniques that are affordable and can be implemented without large costs, such as investing in digital marketing with an implementation of personalized strategies, customer segmentation through artificial intelligence or using content marketing that allows you to reach an audience broader in an affordable way,” says López-Arenas. But it is also true that SMEs face a series of obstacles when applying this innovation. From limited financial resources, many do not have enough capital to finance innovation projects, the lack of qualified personnel as experts in emerging technologies or innovation management, the lack of time that leaves little room to think about innovation strategies. , limited access to technology due to not knowing how to access them or not having the appropriate infrastructure for their adoption, without forgetting the fear of the risk, financial or not, that innovating entails.
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