This weekend we’re in the “Black Friday” and “Cyber Monday” sandwich with many businesses starting their “Black Friday” sales earlier this week.
Black Friday is the US event that has infiltrated Australia’s retail industry and grown in popularity each year.
Black Friday is officially held after thanksgiving on November 29th this year and is usually followed by Cyber Monday (this year on December 2nd) creating a four-day sales frenzy. There are also sales leading up to Christmas and of course, Boxing Day.
As per Retail.Org, “retailers are welcoming an expected $69.7 billion boost in retail sales during the six-week peak season lead up to Christmas, marking a 2.7% increase on last year’s figures.
This new research from Roy Morgan also reveals more Australians than ever will embrace the Black Friday/Cyber Monday sales window (29 November – 2 December) to capitalise on bargain gifts. Shoppers are set to spend a record $6.7 billion during the four days, an increase of 5.5% compared to the same time last year.” Read more here.
As a business owner here are some of our best practice tips for managing heavy sales periods:
Beware of Trade Mark Infringement
With any large marketing or sales event, it’s important that business owners don’t infringe on other business owner’s trade marked terms.
In 2020 fashion retailer, Factory X, which owns Gorman, Princess Highway and Dangerfield, reportedly contacted Australian fashion retailers about taking legal action over their use of the term ‘Black Friday’ — a term Factory X has registered as a trade mark.
At the time, IP experts weighed in on the situation stating it was questionable whether Factory X could pursue a case for trade mark infringement due to such common use of the word “Black Friday” for sales around this time of year.
For a trade mark to be registered it needs to be distinguishable. If a trade mark becomes too generic it can lose its protection and registration (we’ve written an informative article on generic trade marks in the past which you can access on our blog here).
‘Click Frenzy’ is an example of another trade marked term for a huge online sales event. It’s likely that all businesses participating in Click Frenzy have permission to use the term through a license agreement. Licensing your trade marks is a great way to monetise them, creating further revenue streams.
Did you know we have a License Agreement Contract Template you can purchase from our online store? Make your IP work for you! And check it out here.
Update Your Terms and Conditions
Ensure you have robust terms and conditions, especially for busier than normal periods, with clear details regarding refunds, returns and shipping (for example). A lot of businesses amend their returns policy for Christmas due to the amount of products purchased as gifts. As always, businesses must comply with Australian Consumer Law.
Focus on Customer Service
Maintaining a good reputation in the marketplace is a crucial component of successful businesses. Ensure staff are adequately trained for dealing with customers, returns, and any claims made by your business to avoid engaging in misleading or deceptive conduct. Consumer Watchdog ACCC has been cracking down on businesses engaging in false and misleading claims with sales promotions or discounts – the giant supermarkets are currently under investigation for doing just that with law firm Gerard Malouf and Partners having lodged two class action suits against the supermarket giants in the Federal Court, alleging they breached Australian consumer law through misleading promotional discounts on hundreds of items. The ACCC claims the retailers bumped up the price of products by 15 per cent for brief periods, placing them in Woolworths’ “Prices Dropped” promotion and Coles’ “Down Down” promotion.
Their prices were lower than during the price bump, but higher or the same as the regular price, the commission says.
While the consumer watchdog’s proceedings will focus on regulatory penalties, the class action seeks compensation including the difference between the advertised discount prices and the actual prices charged, for impacted customers.
Hire Extra Help
Hiring extra staff is common practice over holiday periods for businesses to meet increased demand. Many companies will hire casuals which may or may not lead to long term employment. Familiarise yourself with employment law standards and ensure you comply by the law at all times. Fair Work can be a fantastic free resource for business owners, check out their website here. And make sure you know the difference between an employee and contractor by checking out our article here.
