The holiday season is fast approaching. In the United States, it is marked by the arrival of Black Friday. In México, people tend to mark Day of the Dead as the early start of the holiday season. Whenever it starts, this season is when people tend to buy the most.
And with the pandemic still at full effect, online sales are bound to peak.
Holiday season: an important economic thrive
Black Friday is one of the most grossing holidays for the United States. In 2019, American citizens spent $1,047.83 USD on average. This means that America as a whole spent a whopping $729.1 billion USD on that date.
It is second only to “Super Saturday” (the Saturday before Christmas), this is the day Americans spend the most money.
According to the American National Retail Federation (NRF), 84.2 million people bought in stores on Black Friday 2019. Plus, 37.8 million people shopped during Thanksgiving Day. This is a total of 189.6 million people shopping over that weekend in 2019, which is a 14% increase over 2018.
Mexico’s version of Black Friday is called “Buen Fin” (meaning “good weekend”), and is also economically relevant. It is estimated that 6 out of 10 Mexicans will be spending an average of $4,330 MX and up to $20,000 MX, 45% of which will be spent purely on electronics.
Due to the pandemic, this year’s holiday season will be different. It all seems that, contrary to popular belief, this year people plan to spend more on shopping than previous years. This is because travelling will not be an option as the world is still under the effects of covid.
For the past years, the entire Thanksgiving week sales (from monday before to cybermonday) have become a deals marathons. It is predicted that online Black Friday sales will begin earlier this year since the holiday season is crucial for retailers.
It has been a century since the world experienced a pandemic, we are still discovering how people will react. This begs the question on what shape could the holiday season take this year.
How black friday will be this year in Mexico?
This year, logistics will play a big part on Black Friday. The day will be on November 27. Mexico is having Buen Fin from November 9 to 20. As it seems, many of the major retailers in both countries will not be operating as usual those days.
In the United States, major retailers like Best Buy, Target, Sam’s Club, and Walmart will not be opened during Black Friday. The best way to get your goods and prevent the spread will be to shop online. It is guaranteed to pose a great trial for retailers logistics to cope with the demand.
Moreover, in Mexico, Buen Fin something similar will happen. This holiday usually only lasts for one weekend. In order to prevent mass gatherings in stores, the government has extended the shopping holiday. Plus, it is encouraged to do all shopping online to prevent more covid cases.
Moreover, e-commerce is crucial for this year’s holiday season. Black Friday will represent a formidable challenge for online retailers. This means that logistics departments will need to get all their rights in place by this day.
What are the seven rights of logistics?
Logistics will play a big role in this year’s Black Friday since most shopping will be happening online. Retailers must have a great warehouse central to their market and follow the seven “rights”. All this to ensure customers will be able to receive everything they buy. These rights are:
- Deliver the right product, crucial for full customer satisfaction.
- In the right quantity. While customers usually won’t mind when they recieve more, they will complain when getting less.
- In the right condition. Getting merchandise in bad condition is the gateway of losing a customer.
- To the right place.
- At the right time. Optimal delivery will make your business trustworthy in the eyes of the customer.
- For the right customer. Not mixing orders can be a challenge in the holiday season.
- At the right price. Even during sales, your company has to make a profit.
These highlights the importance of moving and storing merchandise in an efficient, timely, and reliable manner. This efficiency can be boosted by having the right storage in a strategic part of the country the retailer is residing.
Having Mexico as the base of operations can be beneficial through the whole year, not only during Black Friday. Thus, here at VYNMSA we would like to assist you in settling in this country.
We are one of the leading industrial real estate developers in Mexico. Plus, we have over 30 years of experience and have delivered over 500 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach.
We also are Broker Friendly and have around 20 inventory buildings ready for immediate occupancy. This is a total space of 2 million SqFt across Northeast and Central Mexico.
Source: SpringerLink, ETonline, The Balance, Black Friday, El Imparcial
