CSG: Owning the Problem of More Consumption

Posted on http://www.csg.co.uk/blog on November 25th 2019

https://www.csg.co.uk/blog/owning-the-problem-of-more-consumption

The countdown is on to another Black Friday, which for many retailers and e-tailers, is still the most frantic, most lucrative day of the year. Throughout its relatively short existence in the UK, it’s a date that has brought about opportunity and controversy in equal measure. And yet, despite the countless headlines generated, only now is its greatest controversy truly coming into focus.

How did we get here?

If you’re unaware of its provenance, “Black Friday” was once just one of many terms used in America to describe the day after Thanksgiving (held on the fourth Thursday of November). The following day became regarded as the official ‘start line’ of the pre-Christmas shopping binge – the point when retailers often began to make a profit for the rest of the year. In accounting, negative figures are entered in red and positive ones in black, and the expectation of profit explains the relevance of the word ‘Black’.

Before long, the day became a chance for competing retailers to gain custom, increase revenue and gather sales momentum. By the 1980s, the practice had become well-established in the Eastern states but was relatively unobserved elsewhere. As recently as the end of last decade, you could see bargain-hunters setting up camp on Thanksgiving Day in the parking lots of most malls and stores across the US but still the term ‘Black Friday’ was all but unknown in the rest of the world.

By 2010, the effect of the internet, and the ‘credit crunch’ on consumers and retailers meant that ‘Black Friday’ had become a fixture in the British retail calendar. With the loss of Woolworths, MFI and Kwik Save, it was viewed by many retailers as the right idea at the right time.

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In less than a decade, we in the UK have gone from knowing almost nothing about Black Friday to having very specific expectations about what it represents.

Significant ‘one day only’ discounts very quickly led to unseemly scrambles and even scuffles around the UK, as shoppers surged to claim genuine bargains before Christmas. Suddenly, Black Friday was considered a necessary fixture in the shopping landscape, but it didn’t take long for a backlash to occur. Principally, most retailers would prefer not to give away discounts before Christmas at all, if possible. To some, there was even concern that such naked November salechasing hinted at desperation, even a lack of liquidity – a suspicion no business wants to bring about.

Others were concerned about the additional operational effort and cost, even the health and safety overhead that came with the need to provide crowd control. Notably, Amazon felt they could do better by holding such an event on their terms at a more fallow time of year – ‘Amazon Prime Day’ in July.

Very low down the list of reasons not to participate in Black Friday was the sense that the whole thing might be harming us all by fuelling overconsumption. With such significant change, there is almost always a ‘law of unintended consequences’ to consider. The whole thing started merely as a competitive device to win sales from others. Within a year or two, as it became clear that the buzz generated by Black Friday was too big to leave unexploited, leading to a ‘mission creep’ of more products, cheaper variants and more frivolity. The addition of the adjacent ‘Cyber Monday’ extended the principle further. Retailers found themselves able to predict a planned orgy of purchasing – a phenomenon that people in Sales and Marketing spend most of their careers trying to bring about.

The problems started to occur with what happened next – the effect on consumption. The Black Friday vehicle would lead to consumers being urged to replace or upgrade more ‘stuff’ with more abandon. Prices plummeted – and so, it seems, did shoppers’ inhibitions.

More Sales = More Consumption

Where extra purchases led to knock-on effects in waste, it started to become clear there would be an environmental price to pay for all this extra acquisition. Electronics had become a particularly favoured category for discounters and shoppers alike, but with e-waste already becoming the fastest-growing waste stream in the world, clearly, the compulsion to throw away old tech to allow for a Black Friday purchase has hardly helped to arrest that problem.

There was a similar effect in the area of clothing, already threatening unsustainably high carbon and water footprints to make the product. Black Friday added to the pressures, increasing the amount of clothing added to landfill sites to 350,000 tonnes each year. With consumption bolstered by cheap product, not expected to last, the problem of ‘fast fashion’ became even harder to combat.

The growing debate about the wisdom of Black Friday became further complicated because, naturally, cheaper products offer a greater incentive to less wealthy people. There’s a danger that any concerns can sound a lot like better-off people telling less well-off people that they’re spending their money on the wrong things. Unsurprisingly, where that suspicion takes root, the urge for consumers to act sympathetically is often strongly resisted.

Reversing the Effect

Just when it began to seem futile to expect people to act against their short-term interest, a growing counter-narrative finally began to take effect. The effect of the BBC’s Blue Planet II on attitudes to single-use plastic was particularly notable. More recent activism by Greta Thunberg’s School Strike for the Climate and globally co-ordinated action by Extinction Rebellion further elevated the issue and this year, the Glastonbury Festival took steps to discourage disposable tents and dispensed with disposable water bottles.

As we in the UK look towards the second decade of Black Friday, we now seem to do so with a far greater level of environmental concern. It may not stop us buying, but even if it doesn’t, we’re likely to experience a little more guilt about that purchase than ever before. Does this extra consideration mean we give more thought to the product it replaces, with donating or other forms of re-use being more fully explored?

Until now, our choice between a tempting offer and a responsible attitude to the planet has always seemed to be one-sided. With extra encouragement to think longer-term, how far away are we from reaching a tipping point? Have you had cause to reconsider your company’s position on Black Friday, based on its environmental impact? As a shopper, have you changed your views about participating? Or is it still a fair way for savvy Christmas shoppers to get more value for money? Perhaps the responsibility should lie elsewhere: why should the shopper bear all the guilt from a process that offer such companies great benefits with little additional responsibility? Ultimately, is this all a symptom of a global problem that prizes economic growth over sustainability?

Unfortunately, only time will tell….

Archived: Fancy an early night? ;-)

First published on 15th December 2008 on www.robinsonsequestrian.com

If you’ve received your Sale Catalogue and you’ve found something you like, I invite you to go to bed early tonight, just like I’ll be doing. As you’ll no doubt already know, our Winter Sale starts online tomorrow morning at the less-than-Godly hour of 3am and we all need to be up and fresh in time for it. Why on earth do we put ourselves (and you) through this inconvenience?

The simple answer is that we’ve found over the years that it’s the safest – and fairest – time of day for us to start a sale. Here’s a little of what we’ve learned over the years: I’m afraid to say that starting an online Sale in working hours has proved to be a complete ‘no-no’. We tried it one Christmas Eve and it instantly killed all our systems. It meant that I had slightly depressed Christmas that year and I’m sure lots of customers were disappointed.

Unfortunately, the fact that it was so easy for everyone to access the Sale was precisely the reason it was so difficult for us to handle. We had to find a way of ‘frightening off’ some of the initial surge in demand. The obvious solution is, I’m afraid, unsociable hours – which is why we’ve started our Sales overnight for the last few years. In fact, midnight used to be our preferred time but even this could lead to problems. If the site still ran slowly over the first hour or so, customers who had planned to stay up until midnight to spend half an hour shopping online were still up at 2am and starting to complain that they hadn’t been to bed yet.

We felt that not only was 3am even more inconvenient (and therefore even safer), it also meant users are more likely to have had some sleep and therefore any delays (perish the thought) should be less troublesome – we hope… There’s also an inherent fairness in making things really awkward for everybody. It means that those who inconvenience themselves the most are most entitled to the deals which are least commonly available, so morally, it seems to work well. It’s the same ‘law of the jungle’ that governs other areas where demand hugely exceeds supply, like tickets for Cup Finals or Glastonbury.

It sounds like Customer Service heresy to say so, but it’s the simple fact that few retailers will admit – even though everybody knows it: If you want something enough, you’ll do what it takes to get it. There, I’ve said it. Please don’t think less of me. I’m just trying to be honest with you!

All Sales are naturally very busy times and to an extent, we as customers do with in reason accept that fact – don’t forget, we’re all somebody’s customer, so I feel I can say that. When Next (for example) hold their retail Sales (ususally from 5am), there are almost always long queues at every store. The thing about Sales at retail is that it’s obvious to all how many people are there – because you can see them all. While each person has made the effort to travel there, I’m sure that if the event was ridiculously over-subscribed, the fact that such a crowd would be obvious to others often serves to make some of them think again and drive straight back home. Retail Sales are therefore self-limiting to some extent.

On the web, it’s not that straightforward – for anyone. We have a good idea of the number of people who visited the site on the first day of each of our previous sales, so it would be inaccurate to say we don’t know what to expect, but that doesn’t mean to say our estimates will be right this time. It’s also a lot easier to join in as a customer, because you don’t even need to leave your bed, so even our best estimates could be way out. Of course, this has a bearing on the amount we invest in our systems to accommodate this expected demand.

From the customer’s viewpoint the unpredictability will be even more frustrating. Over-subscribed websites work slower (or fall over completely) and items sell out sooner, all things likely to frustrate people and understandably so. At least the company holding the online Sale will know why things are slow – or worse – because they can see the visitor stats. The poor customer may appreciate it’s busy but they won’t know the just how many people are also online’, so there’s a chance they’ll get even more frustrated. Unlike with retail, this self-limiting factor just isn’t there. I should pause here to point out that I appear to be painting a very negative picture about the process. That’s because we try wherever possible to bear in mind a ‘busiest day imaginable’ scenario – so we can prepare to handle it. I refer you to my earlier blog about store openings The Perils of Success, in which a similar theme is explored: being too busy can be worse than not being busy enough.

Yes we’ve had our moments over the years where our online Sales have sailed close to the wind of disappointment in some quarters and I’m also sure it’s impossible to impress all of the people all of the time – although we’ll never stop trying to do that. Over the last two years, I feel we have got a lot closer to the kind of infrastructure that allows us to deal with such a vastly inflated demand.

This year, I believe we’ve been able to improve our capability even more, so I’m optimistic (make that cautiously optimistic) that this Sale will be our best ever – for all of us! In recent years, we’ve been let down firstly by hardware (the boxes of physical kit we have) and then by bandwidth (the ‘speed’ of our web connection). Consequently, it’s required us to add more web servers and a load balancer to ensure that more people can interact with the site at the same time. We’ve also freed up our systems by removing functions like ‘WebChat’ and ‘Others also bought’ for the busiest times.

The other big difference this year is that we’ve been able to increase our bandwidth by a factor of 12. Does this mean we can handle 12 times the demand? In theory, yes but in practice, we’ll have to wait and see… Eventually, if our IT team have done all they can do and we’re still busier than expected, we will at some point run out of things to sell. In effect, our stock levels will have become the ‘weak link’ in the system. We buy and make available ever more stock for our Winter Sale each year and we’ve done that again this year but obviously no seller expects to hold significantly more than they believe they can sell.

Again, to the frustrated customer, a problem here may look like we don’t know what we’re doing – but that’s because they can’t possibly know how many other people are online – or what they are buying. To give you an idea of our online Sale stock this year, it’s more than we currently have at our Ashton and Cannock stores combined. Will that be enough, just right or too much? My answer today, the day before the Sale is that I think it will be about right – although I’m sure that some of the lines will sell out very quickly. I will however know a lot more by this time tomorrow – if I’m still awake!!

If you’re planning to go online tomorrow at 3am, good luck and email me with your comments either way.

Paul.