Black Friday: How do Israelis buy electrical products?
The appliance industry is preparing for Black Friday - a great reason to call importers and marketers for a conversation, and to ask what has changed in Israel's consumption habits in the field: how has the corona affected, how is environmental awareness expressed and of course - how do you prepare logistically for the big day?
I have Seville
Tuesday, 23 November 2021, 14:27 Updated: Wednesday, 24 November 2021, 12:24
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Under the influence of the corona and closures that required multiple stays in homes, have consumers become more pampered and in need of a higher level of service?
Are the expectations for fast, high-quality purchase and immediate delivery?
The stores, suppliers, importers and trade sites are already on high alert ahead of Black and Friday and Cyber Monday (Monday, November 29). .
So which electrical products would Israelis prefer to purchase in stores and what are the other reasons that bring them to the sales floor and sitting in front of a personal sales representative?
On the other hand, what would the Israeli consumer prefer to research online and even complete the purchase online without physically visiting the store?
This is what senior executives in the field of electrical products in Israel told us:
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Coming to stores or prefer to buy online?
Online sales: jump from 10% before the corona, up to 25%
Bolent-Sen, CEO of beko Israel
, referred to the period of closures and their impact on online sales and said that: “Purchases online in the pre-Corona period in the electrical products industry accounted for about 10% of total sales. The plague and the first closures that led to the closure of the stores, caused an increase in online purchases ranging from 20% to 25% and even more. Opening a new market, brought consumers to stores, and naturally occurred in a certain decline and the numbers have stabilized in the mid-15% increase in online sales compared to the period before the corona. "
Manny Dahan, director of customer experience and DIGITAL GROUP HY
importer super brand in the Korean LG Israel , Referring to the increase in online sales and says: "The Israeli consumer prefers to purchase the small products online and this is a trend that has grown dramatically in the last two years."
"The last two years have created a significant change in the Israeli consumer's approach to purchasing electrical products online. What was once considered a deterrent and distant platform has now become one accessible to more audiences," adds Assi Arbiv, owner of the Clinton Group, an importer of electrical brands TEKA, Normande, Küppersbusch and more.
"In accordance with the change in consumers' demand for online purchases, we have increased the sales array on the site and invested heavily in detailing the products in order to allow the consumer to gain more in-depth knowledge of the product despite the distance and screen limit," Arbiv concludes.
Avi Kornfeld, Shiomi Brand Manager, Hamilton Group
: It can be seen that among the entire industry and following the increase that began in the Corona period we see an increase in online sales, this is mainly due to the high availability of products and delivery speed. The fact that our site allows for safe and fast shopping has helped us a lot to provide customers with quality and fast service.
Erez Wesner, director of the electricity storage network
: "Black Friday, which started out as a marketing gimmick to promote electronics and gadgets on retail sites, has over the years become a shopping carnival, taking place throughout November in stores and featuring all imaginable consumer products."
The volume of online sales has increased significantly in the last two years (Photo: ShutterStock)
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The effect of the corona on screen size
If you ask Bolent Sen about changes that have taken place among consumers in the last two years, he finds one key consideration: "Corona closures have led consumers to search in depth for products online before they arrive at the store. Early online research brings consumers more focused to stores Shortened compared to what was previously known. "
On the impact of the corona in the television industry, for example, Manny Dahan says that the consumer now prefers a more pampering viewing experience, perhaps due to the prolonged stay in homes during the closure period: "Televisions have always been a must-have product in every home
, "Which increased greatly during the Corona period, from the transition to much larger and much higher quality televisions, to the point that the premium models are sold more than the basic models. The television has become the center of the house."
In the last two years, there has been a sharp shift to larger, higher-quality televisions (Photo: PR)
Shopping Month - November is characterized by "reality hunters"
Manny Dahan also commented on consumer behavior during the November sales days: "We recognize that customer behavior is similar to previous years, but we expect an increase of about 21% in the number of surfers entering all Israeli shopping sites on average each November, and an increase of 34% in the sites category. "Shopping that sells electrical appliances, electronics and gadgets, when in the week of Black Friday itself the increase is even more extreme."
Dahan adds: "During the month of November there are 'reality hunters' who are looking for interesting shopping opportunities even before the 'shopping holiday', but the vast majority of customers are waiting for Black Friday itself.
We see the big retailers abroad trying to deploy their promotions earlier, but you can learn from this already that they saved their 'heavy guns' for the festive day of Black Friday. "Only on the official day of Black Friday. In the online sales segment, sales shares will continue to grow and constitute a significant share of sales volumes in November."
The large electrical products are used by Israelis to buy in stores, photo courtesy of LG (Photo: Brimag)
Logistical preparations for Black Friday
What is Black Friday? Black Friday, meaning "Black Friday," marks the peak period for holiday shopping in most Christian-Western countries, especially the United States. Black Friday is characterized by an abundance of promotions and discounts, when in the past huge queues of shoppers, at the entrance to stores, have become one of the hallmarks of today. Over the years a "leak" began: of online sales promotions, when the corona plague greatly intensified the gradual process.
When does Black Friday apply? This day will always fall on the Friday of the fourth week of November (e.g., in 2021, it will be 26.11), after American Thanksgiving - and with the face towards Christmas. This is because some of the holiday vacations in the United States and other countries around the Christian world will begin in the coming days.
We asked Dahan to tell us about the preparations among a large importer of its kind for the explosion of shopping that is all concentrated in one day, which surely affects the logistics: "In principle, in November, a crazy shopping atmosphere is felt. the shopping cart.
most manufacturers are backing the official importers in the country facing transportation prices rose, to be able to perform real client would not have to absorb the shipping prices. "
Avi Kornfeld also addressed the issue of transportation and forwarding. According to him, the Israeli consumer needs a higher level of service than ever: "The impact of the Corona period has increased the need for a high level of service for Israeli consumers when purchasing online, so we continue to develop the platform all the time, for example within 24 hours."
At the same time, we see that the front stores still attract many customers who prefer to come to the stores and shop in the traditional way, and therefore, we continue to develop the areas of operation so that we are prepared and ready for Black Friday.
" Before, with preparatory meetings, sales forecast, orders for goods from the manufacturer, significant recruitment, doubling the manpower in service and logistics, "Dahan adds," As Black Friday approaches, there are Knesset meetings almost on a daily basis. "A little more because they work hard, under enormous pressure and at abnormal hours."
"Currently, there is no store or trade site in Israel that has not been prepared for Black Friday in terms of inventory and the creation of attractive value propositions for customers that sometimes reflect a discount of between 5% and 30% of its original price," says Wesner.
Dahan concludes: "Most customers are waiting for the special sales days of the shopping month and therefore, the online sales share is expected to reach 20% or more in a large part of the categories in November, and even double that on Black Friday itself. "We will finish the inventory by the end of the year."
Preparations for the sites and shops in preparation for Black Friday (Photo: ShutterStock)
The products in demand among Israelis
But what are the most sought-after products and brands among Israelis?
Here, too, Manny Dahan has a clear answer: "There is a sharp shift of customers to OLED TVs, with a focus on 77." Thanks to a large inventory and aggressive promotions that make the price accessible to most customers, along with a higher awareness of the customers for the viewing experience. The sales volume of this type of TV is disproportionate to everything we have seen and known so far, with an increase of more than 400% (!) Compared to a normal month. "
Regarding other sought-after products, Dahan adds that there is a dramatic increase in purchasing products that improve The customer's well-being in the home also includes larger refrigerators, more sophisticated ovens, small kitchen appliances, vacuum cleaners, sports equipment and the like. "
Erez Wesner says that the most sought-after products by the Israeli consumer according to the sales of the electricity storage chain are: cordless vacuum cleaners, ninja grills, large screens, mixers, washing machines and 4-door refrigerators, in descending order.
Refrigerator as a required must-have product, needs among customers vary (Photo: PR BEKO)
Come to the store to bargain for the price
Manny Dahan also notices a big difference between the different categories in the electrical industry: "In the world of refrigerators, for example, the product has different elements of design and storage efficiency. When it comes to refrigerators, needs vary between customers, and in most cases they visit 3-4 stores before they receive Purchase decision. " He says.
Unlike in the world of refrigerators, in the world of televisions, Dahan says that consumers have no problem buying online without visiting the store, but at the same time about 85% of them still prefer to see the screen physically and visit the store before purchasing, sometimes the reason to visit the store is to bargain The price. The Israeli customer hardly buys an electric product that costs thousands of shekels, before arguing about the price. "
Avi Kornfeld also emphasizes the consumer's advantage of physically arriving at stores and says:" There is another advantage to visiting stores in Israel when physical access to the store is simpler. Customers prefer to come to the store, talk to a representative,See and feel the product. "
One of the reasons for physically visiting stores is bargaining over the price (Photo: ShutterStock)
Visiting the store but closing a deal on the site?
"Purchasing online can be divided into two main categories: the category of small appliances, in which there has been a significant increase in the past year, since it is usually a small investment, Arbiv adds." Reaching the sales floor, seeing, feeling, measuring and examining the actual product. "
The Israeli consumer's behavior is perceived, when it comes to purchasing electrical products, as focused and prudent." Most customers take advantage of the carnival atmosphere to purchase small technology and electronics "Other customers who want to take advantage of the shopping atmosphere for the purchase of white products come to the physical store, most of them close the deal in the store and some return home, compare with other sites and close the deal on the chain's trading site," says Erez Wesner.
Asi Arbiv describes the opposite situation in which the consumer first checks online and then makes a physical purchase: "Online is sometimes used as a 'first step' towards a purchase - even if it will eventually be made in a store. Depending on the demand for information on the sites The group's brands when one of the significant challenges before us was to strengthen an online professional team with the help of long-term training that will accompany the customer while browsing the site and direct him to the exact products for him. "
Online rules and in-store buyers or vice versa?
(Photo: ShutterStock, Santiago Cornejo)
Arriving at a targeted store or less?
When asked if the consumer comes to the store focused for one particular product, Dahan answers that: "In the search for large / expensive products, the customer will usually purchase the product for which he came, perhaps with complementary or ancillary products. Sometimes he will buy another small product he did not design focused.
The reason lies in the two sides of the coin. even the shopkeeper, who managed to spend a large deal and mild, generally will not offer more products to not have a chance lost in the transaction for any reason, and the client, who had just made a decision not easy, feel a sense of relief and decline "Tension, and not looking for more" adventures ". In small products the story is different, and there is a high chance that the customer will go out with more products to the small product for which he came to the store."
On the other hand, a customer who moves apartment will prefer to buy everything in one centralized purchase, "Recently, following the boiling real estate market, there is a proliferation of apartment aisles, and most customers upgrade themselves mainly to size and home decor products, such as TV, refrigerator, dishwasher, oven, stove And the like. "
On the same subject, when moving house, there is a basic package that the Israeli consumer purchases together:" The kitchen is usually the most invested space in the house and by virtue of being such, the desire is always to maintain technological innovation.
"The basic package is an oven, stove, dishwasher and refrigerator, which in recent years have been joined by the cooker hood, built-in coffee maker and even the wine refrigerators that are becoming more common in the basket of buying a new home," says Arbiv.
When moving house, it is customary to purchase a basic package with reference to the design of the house (Photo: Yachz)
Warming up for the winter
November is not only a shopping month, but also a transition month ahead of the cold season. Bolent-San: "The coming winter is upon us for good, forcing consumers to prepare for the cold season, and beko has seen sales of tumble dryers increase since November. ", San concluded.
"Towards the winter, we are seeing a jump in the purchase of household products, including vacuum cleaners, humidifiers, air purifiers and televisions. We are also constantly launching new products in line with the growing demand in the areas of smart home, smart lighting and more," shares Kornfeld.
It turns out that cooking products are indeed more in demand for the winter: "Beyond the whole heating category that is gaining momentum with the cooling of the weather, the winter days bring with them renewed interest in advanced indoor cooking options. Home ovens that allow professional roasting of meat in the home Multi-purpose in one device, "concludes Arbiv.
A more sought-after cooking and baking category for winter (Photo: ShutterStock)
Is the environment a consideration?
Another trend that is rising on the consumer agenda in the field of electrical products is sustainability and the environment. Bolent-Sen: "In recent years, the beko brand has set itself the goal of developing environmentally friendly products that will help protect the planet. In surveys conducted by the brand in the past and even recently, it has been found that energy rating is among the first three most important things for consumers when purchasing electrical products."
Erez Wesner: "For the last two years there has been a buzzword around the term 'green energy'. Customers come to the store and their second question is what is its energy rating. Not rated A or B. "
"We feel that customers' awareness of the quality of the cause is higher than before and in light of this we were required to make adjustments to the mix of products we sell on the site and network.
Asi Arbiv focuses on the energy consumption of products, which has become a leading parameter in recent years: "The degree of energy rating of products has become one of the most common questions before purchasing - especially before purchasing large electrical products. "The brands themselves also recognized the trend years ago and in the last year we have witnessed the launch of developments that offer quite a few solutions in this niche."
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