Over the years, the holiday shopping tradition known as Black Friday has evolved from a single-day shopping extravaganza to a weeks-long retail phenomenon, marking the beginning of the holiday shopping season.
While traditionally associated with retailers, manufacturers can also leverage this mega shopping event to their advantage as, beyond the immediate boost in sales, Black Friday offers manufacturers valuable insights and opportunities for growth, providing an opportunity for smart industry leaders to strategically position themselves to reap the benefits of this annual shopping phenomenon.
… And as consumers increasingly turn to online platforms for their holiday shopping, manufacturers can glean valuable insights from this shift and harness the power of Industry 4.0 to their advantage.
Join us today as we take a closer look at the benefits and education today’s manufacturers can take away from this seemingly frivolous holiday shopping tradition and explore how manufacturers can strategically benefit from embracing digital transformation.
Industry 4.0, also known as the fourth industrial revolution, refers to the ongoing transformation of traditional manufacturing and industrial practices with the integration of modern smart technology.
This concept builds upon the previous industrial revolutions, which were marked by significant shifts in manufacturing processes.
The goal of Industry 4.0 is to create “smart factories” where machinery, processes, and products communicate with each other to optimize production, enhance efficiency, and enable more flexible manufacturing.
This paradigm shift has implications not only for manufacturing but also for various industries, including healthcare, logistics, and energy.
… And though beneficial at any time of the year, during the holidays, when purchases continue to mount and those holiday pressures continue to increase for producers and retailers, the importance of Industry 4.0 is even more prominent.
The ability to ship out a full truck on time to meet demand every time – a service that is now possible with the help of Industry 4.0 – is a skill that turns into a necessity when demand rises to such a high degree.
Industry 4.0 gives the workforce the ability to stay on track and make important decisions, no matter the rise in orders.
Through the magic of data collection, annual Black Friday statistics – standing in as a microcosm of the overall retail sector — have become an increasingly important way to measure consumer interest in production and allowing for retailers to adjust their overall orders for the following year and allowing for manufacturers to do the same in production.
As an example, the post-2023 Black Friday data states that online retail sales continued to climb this year, up another 7.5% when compared to the following years, with mobile devices accounting for 54% of online sales reported.
According to these reports, overall online retail sales accounted for $9.8 billion in purchases this year alone, showing yet again the value of utilizing, not just this type of data, but the technology that provides it to us.
You see, Black Friday data can reveal the details of, not only such shopping trends, but vulnerabilities or inefficiencies in a manufacturer’s supply chain.
By evaluating available performance data during this high-demand period, manufacturers can identify areas for improvement and enhance their supply chain efficiency.
By leveraging such data analytics tools to track and analyze sales performance during the Black Friday holiday event, manufacturers can harness this valuable information to gain insights into consumer behavior, preferences, and product performance, helping them make data-driven decisions for future sales strategies based on actual consumer demand.
In order to successfully accomplish this task, however, requires specific collaboration between manufacturers and retailers to implement the necessary changes required.
Collaborating with retailers to create exclusive deals or promotions can enhance the overall shopping experience for consumers while being mutually beneficial for both industries involved by driving traffic to both online and physical stores, helping both parties maximize their sales and create a win-win situation.
As the industry continues to be more and more reliant on data collection and technology in general, with operators and supervisors getting more and more used to receiving “alerts” when important data is available rather than writing things down, we are beginning to see that shoppers, along with the industry workforce, are becoming more tech savvy and dependent.
This is why today’s manufacturers can not afford to dismiss today’s digital transformation as a “passing fad.”
As the world continues to adapt to this technological revolution, any person or business that does not conform risks becoming an obsolete presence.
Black Friday is synonymous with discounts and promotions, and consumers actively seek out deals during this time of year.
Yet, in addition to building customer loyalty by preparing value saving opportunities for engaged, deal hungry shoppers, with the increasing trend of online shopping during Black Friday, manufacturers must adjust their traditional thinking and optimize their e-commerce channels to meet consumer expectations.
As such, Black Friday has become a great litmus test for the effectiveness of online platforms that provides the ultimate opportunities for the growth of brand awareness and, perhaps most importantly, adaptability and flexibility.
To help prepare for this event, manufacturers should ensure that their websites are user-friendly, mobile-responsive, and capable of handling increased traffic and transactions seamlessly.
Why is this important?
Because manufacturers with a well-built, capable website who can quickly adjust their strategies based on real-time data and feedback are more likely to thrive. Real time monitoring and analysis of sales data allow manufacturers to identify areas for improvement promptly.
Whether it’s adjusting pricing strategies, refining product offerings, or streamlining operations, the ability to adapt is a key takeaway from this high-demand period.
Once synonymous with bustling retail stores and long lines, Black Friday has undergone a profound transformation in the digital age.
Beyond the immediate boost in sales, the lessons learned during Black Friday can shape more informed and strategic decisions for both manufacturers and retailers throughout the rest of the year.
By capitalizing on increased consumer spending, leveraging data-driven insights, and fostering strong partnerships, businesses can turn Black Friday into a catalyst for sustained growth and success in today’s competitive manufacturing market.
P.S. If you’d like to learn more about how your business can adapt to the digital revolution this holiday season, then Rain Engineering is here for you…
Our team of skilled manufacturing and automation experts have the expertise and training required to help, not only educate you and your team on what the future looks like for a digitally transformed facility, but to help implement such changes within your business.
Give yourself the best gift of all this holiday season by preparing your facility to be even more profitable next year!