Jimmy Kim argues that Black Friday's race to deeper discounts backfires: shoppers trained to expect 70% off ignore early 30% deals, waiting for the biggest markdown. Retailers that win aren't those with the deepest cuts but those offering clear value beyond price.
the deepest discount doesn't win on Black Friday anymore. And brands competing on discount death are racing to the bottom. Every year I feel like pressure to discount deeper than last year. So maybe they did 30%, it becomes 40%, becomes 50%, becomes doorbusters at 70%. And the customers just kind of keep waiting for the deeper discount. It's that training that we're doing in the market. And that training each year, the discount seems to be steeper than the last. So customers don't buy until they are sure getting the deepest possible price.
Thoughts? Which signals that like customers don't buy at the start of your sale. They wait until the end. Exactly.
That's what I'm saying. The 30% off email on day 1 of BFCM gets ignored because the customer assumes there's probably a 40% one coming on Cyber Monday, which is what's happening. And the brands that actually win, they aren't the ones with the deepest discounts. To me, they're the ones with the clearest value proposition.
