How Tiktok is driving Brits to spend local instead of luxury this golden quarter
Black Friday is known for being the one of the few days of the year when budget-conscious shoppers can flock to their favourite online retailer or high street shop and not feel (too) guilty with the price of their purchases.
High-priced, big-name brands have traditionally taken the lead in terms of ringing in the festive season sales. This year, however, could be the year for small businesses across the UK to shine.
Despite the ongoing cost-of-living crisis putting a damper on consumer spending habits, a recent survey of over 2,000 respondents by Godaddy revealed seven out of 10 Brits would prefer to spend their money – regardless of a tight budget – on small, independent retailers.
It comes as nearly two-thirds of respondents under the age of 24 and over half of millennials have said they also typically find some of the best festive deals online, utilising social media in particular.
Tiktok, for example, is anticipating one of the biggest years for retail yet, with a projected 58 per cent year-on-year increase in ad spend revenue from retail and ecommerce clients.
Entrepreneur Rachel Brennan is one of the many small business owners ready to cash in on the opportunity: “Social media is at the heart of our marketing strategy.”
Brennan, 30, owns an Essex-based floristry business, called Blossom and Grow, and is confident that maximising her social media presence over the next few weeks is crucial.
“For Black Friday, we’re using both social media and SEO optimisation to promote our deal and maximise visibility,” Brennan said,
“As a florist, the lead-up to peak periods is always a fine balancing act of overstocking versus not stocking enough. With a Black Friday deal, the early orders will enable us to plan ahead and inform purchasing decisions.”
The power – and challenge – of social media
With the increasing ease of switching between products on the internet, the challenges of brand loyalty have become more known. It is now more difficult for a number of brands to stand out, including with Tiktok.
“There’s going to be a lot of noise in the market [during the festive season]”, Google’s head of retail Sophie Neary said, adding that the tendency towards generic shopping queries makes it difficult for brands to get a foothold.
“People are becoming less loyal… [it’s] part and parcel of people becoming more price-conscious”, she added.
As a result, consumers have become more conscious of where to put their money, seeking out value and purpose with each purchase.
Former interim chief executive of Not On the High Street Ella d’Amato, who is now co-founder of social shopping platform i love it, believes this to be more powerful than any advertising campaign.
“The tide is turning and consumers are becoming more conscious of who they are shopping from and where their money is going. More and more people are shopping thoughtfully and are considerate when spending their money,” d’Amato says.
“Retail giants might have the technology and advertising power to lure customers into shopping with them, but consumers are much more aware of what’s genuine and authentic and are leaning into this more and more.”
“Retail giants might have the technology and advertising power to lure customers into shopping with them, but consumers are much more aware of what’s genuine and authentic and are leaning into this more and more.”
Small businesses have also been seen to have an advantage when it comes to social media branding, as the personal perspective often leads to more authentic and engaging content.
“The festive season has long become synonymous with gift giving, and we’re seeing that despite the cost-of-living pressures, Brits are happy to carry on with festive gift buying,” Andrew Gradon, head of Godaddy UK & Ireland, said.
“With consumers increasingly making purchasing decisions based on what they see on their daily scroll of social media, it’s never been more important for small businesses to be front of mind and top of the screen,” he added.
Supporting local this Black Friday
A number of initiatives come around every year to support local businesses – with one of the most monumental being Small Business Saturday, a campaign centred around just that.
Last year, Brits flocked to the high streets to support small businesses as part of the weekend, spending a collective £669m. Something Michelle Ovens, director of Small Business Saturday UK, hopes to see again.
“This year, the peak festive season will be crucial for the UK’s small businesses, especially after the host of challenges many have faced over recent years, such as the cost-of-living crisis, which business owners are still catching up from,” Ovens said.
She added: “This year’s Small Business Saturday campaign is fast approaching and will keep encouraging people to support their favourite independent businesses, both in person and online, where there is tremendous opportunity.
“Our research has shown significant adoption of AI among small business owners, who are often at the forefront of innovation in this space.”