Christmas shopping: 6 tips to help small businesses compete with big brands

Every year, when Black Friday hits, the UK goes into full shopping mode. This year alone, shoppers were expected to spend around £6.4bn, most of which ends up with the big online retailers.

But that doesn’t mean small businesses are out of the running. In fact, this is exactly the moment when the things that make independents special can shine.

Small businesses don’t win by trying to beat big companies at their game. They win by leaning into what makes them unique: personal service, flexibility, genuine connections and real stories.

Here are six ways to grab a share of the spend this December (and the rest of the year, too).

1 - Don’t compete on price, compete on value

Small businesses can’t compete on price – and you wouldn’t want to. So don’t undervalue your hard work and stress yourself out trying. 

Instead, compete on value. Whether it’s a dedication to craftsmanship, a commitment to sustainability, offering personalisation, nurturing local talent or putting cash back into the local economy – and it’s often all five – this is the value your business brings. And it can be more powerful than price when communicated effectively. 

2 - Focus on what makes you unique   

Overwhelmingly, people want to support independent businesses. The latest research shows that 47% of people prefer to buy gifts from small businesses – great news for you at this time of year. 

Give people a reason to buy from you. Help both existing and potential new customers connect with you by sharing your story, your values and what makes you different. 

Highlight your customer service by providing a personal touch, whether that’s product recommendations, virtual shopping help, handwritten notes or free consultations. 

3 - Reward your existing customers first

You may not have the quantity of customers, but you definitely have quality. Reward the people who already believe in your brand and make them feel special.

Give them early access, exclusive deals, VIP perks or a simple thank-you offer. A timely reminder email may encourage them to spend with you instead of a big name.    

4 - Start early (and finish late) 

While Black Friday is fast becoming Black November, people begin Christmas shopping even earlier and continue right up until Christmas Eve. 

Maximise sales by advertising the value you offer from September right through the period. You could offer early-bird deals, a Small Business Saturday discount or added extras. 

This takes pressure off customers and means you’re not competing directly at the peak moment. It will help you spread out the orders, better forecast what’s needed and keep cash flow ticking over, rather than everything happening all in one weekend.

5 - Use agility to your advantage

A huge benefit of running your own small business is that you’re the boss. You can pivot fast, without having to get decisions signed off by numerous different departments. 

Observing consumer trends and customer feedback in real time means you can change your offers quickly, decide what products you should restock, and create new bundles or promotions in response to demand. This flexibility gives you a competitive edge.   

6 - Make it easy to buy from you

For busy customers, a smooth buying experience will often beat big discounts. A fast, mobile-friendly and easy-to-navigate website is non-negotiable. Make sure the checkout process is simple and that you offer multiple payment and delivery options.

But also offer what the big brands can’t – local delivery right up to the last minute; sustainable packaging and significantly less mileage for eco-conscious customers; or gift wrapping options. You could also consider extending your opening hours so customers can pop in and collect after work or at a time that suits. 

If you’re considering investing to make your business more competitive, check if you’re eligible for finance in 30 seconds and apply online in 7 minutes.

01/12/25: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.