Consumers to Spend More on Black Friday Despite Economic Downturn

[Pokapoka124]

Despite the crash in economy, shoppers still look forward to the Black Friday sales, It’s believed one is saving cost when shopping on Black Friday it’s a psychological thing because the prices aren’t actually discounted in all products, the prices are reduced by a little fraction yet shoppers wait patiently for months to buy on Black Friday. Another thing to note is Black Friday deals aren’t necessities or things that people really need, they are mostly gadgets and fashion items. For months before D-day a lot of shoppers already have a list of items they want to buy on Black Friday.

[DrBeer]

does it really surprise you? This is how the market is formed, this is how network players manipulate buyers. This is how consumers try to save money. This is a full-fledged example of an unreasonable, but prudent symbiosis
Producers - produce as much as possible in order to capture the market, drive out competitors, etc.
Retail chains - although getting a profit, and for them the number of buyers per day is a very important indicator!
But there is also a "third side of the coin" - a simple, primitive deception

When you know that once a year, many things will be sold at a discount of 30-50 and even 75%, this does not mean that the network or the manufacturer is selling at a loss! In any case, they will get theirs, even if a little less ... For we pay for everything! Those who go on sale

The meaning of this process, in fact, is the following - retailers, by the end of the season (do not apply only to clothing), accumulate large stocks of unsold goods. Because the manufacturer has a financial director who plans and says - so that we all eat, drink, live sweetly - we need to produce - 100500700 units of sneakers (it doesn’t matter), with our price of $ 15, taking into account all costs, premiums, fines.
The retailer has rented warehouses that are filled with LAST season products for a year. And the retailer can't make room for new collections, and has to pay huge sums in warehouse rent and stuff.
which exit ? CORRECT - sell at a 50% discount, fulfill the production and sales plans of the manufacturer, fulfill the sales indicators in retail, and .... where to put the stale leftovers so as not to pay for their storage and disposal ... Voila - and here we are, " consumers". Which with our own money we pay for the solution of FOREIGN problems

[Gyfts]

I'd like to see the actual numbers on how much consumers spend rather that polling data but in any event -- the economy is "down" in the sense that inflation is high, but the GDP numbers don't *yet* indicate a recession. Consumers generally won't presumptively react to a poor economy until it's already already has reached fruition, the market is reactionary with immediate proximity to economic events (you could tell people the economy is geared towards recession by Q2 2023 and they wouldn't adjust accordingly until Q2 2023).

Companies react the same way - they will usually wait until the economy is in such dire shape that they can't retain employees.

The world doesn't stop spending money during economic downturns, they only stop spending as much.

[kawetsriyanto]

Despite the crash in economy, shoppers still look forward to the Black Friday sales, It’s believed one is saving cost when shopping on Black Friday it’s a psychological thing because the prices aren’t actually discounted in all products, the prices are reduced by a little fraction yet shoppers wait patiently for months to buy on Black Friday. Another thing to note is Black Friday deals aren’t necessities or things that people really need, they are mostly gadgets and fashion items. For months before D-day a lot of shoppers already have a list of items they want to buy on Black Friday.

Sometimes people are aware that they don't need the stuff/goods, but they are difficult to avoid the desire to spend money when they are looking at discounts. Sure, discounts don't mean to drop drastically the prices of stuff/goods, mostly it is only a way to attract consumers by decreasing a bit the initial prices. However, if people still spend their money on Black Friday, we can assume that they are confident to survive during the recession. Or they may not really believe that the recession to happen. But it is also possible that the level of consumption of people today beats the realistic mind to prioritize more urgent things.

[Quidat]

Despite the crash in economy, shoppers still look forward to the Black Friday sales, It’s believed one is saving cost when shopping on Black Friday it’s a psychological thing because the prices aren’t actually discounted in all products, the prices are reduced by a little fraction yet shoppers wait patiently for months to buy on Black Friday. Another thing to note is Black Friday deals aren’t necessities or things that people really need, they are mostly gadgets and fashion items. For months before D-day a lot of shoppers already have a list of items they want to buy on Black Friday.

Sometimes people are aware that they don't need the stuff/goods, but they are difficult to avoid the desire to spend money when they are looking at discounts. Sure, discounts don't mean to drop drastically the prices of stuff/goods, mostly it is only a way to attract consumers by decreasing a bit the initial prices. However, if people still spend their money on Black Friday, we can assume that they are confident to survive during the recession. Or they may not really believe that the recession to happen. But it is also possible that the level of consumption of people today beats the realistic mind to prioritize more urgent things.

Specially when you are really that materialistic on which it is really hard to resist on buying something which you do able to see and do able to interest you.Its really hard to resist on things specially if you do know that you do have money to spent or have something on your pocket.You cant really stop people on not to buy on what they do have desired on their mind.
Doesnt matter if they would neglect or ignore other priorities as long they would be able to buy on something that they do like, then it should be fine.
This wont really be just limited on black friday but also in other holidays or events as well.

[2stout]

Unfortunately we live in a consumer economy where GDP is measured by how much is spent as opposed to how much is produced.  In turn, this contributes to why the economy and markets are viewed in myopic terms, i.e., focus on quarter to quarter as opposed to the long term.

[The Sceptical Chymist]

save that money to buy Bitcoin while it's still available for cheap.

Probably even cheaper since you wrote that post.  Woke up this morning and my eyes nearly popped out of my head when I checked bitcoin's price which at the time was somewhere around $17.5k--and as I write this, it's even lower.  I'm not sure if this is a dip being caused by the FTX/Binance fucking disaster or the start of something worse, but I have a feeling that you're right if you compare bitcoin to fiat.

And why do people do most of their shopping (as they claim to in the poll) on Black Friday?  I get that that's when you can get all the good bargains, but dealing with all of the lines in the stores and the crazy people and the chaos....ugh.  Anyway, we'll see what really happened once the numbers come in after the day itself.  People would indeed be smart to cut back on all the gift-giving, even if they're the most generous individuals on the face of the earth. 

I get the feeling that economic armageddon is coming, and you might be right about it being worse than 2008.  I remember that crash very well, and I didn't see it coming at all (probably because I was never into real estate).  Right now I think we all see it coming; it's just a matter of when and to what extent things collapse.  Good times.

[savetheFORUM]

According to a new survey of 3,006 shoppers by Emarsys revealed that one in five (21%) U.S. consumers will do most of their holiday shopping on Black Friday — with over a third (35%) increasing their spend from 2021. Isn't this surprising? Why is this so? The reason is because consumers are spending more discerningly to maximize the value they get for their spending. In short, value is the topmost thing on the minds of the consumers. Interesting findings, isn't it? Lemme know what you think? Are you spending more or less on Black Friday deals?

Now we know the real reason on why they are delaying their purchases earlier. They do that because they are saving their money for a better deal and one of it would be the black Friday. This was a once a year event and stores would came up with big discounts. No wonder why many people are tempted to shop even if some of them are in tight budget.

As a consumer, it is true that we want more value with our money. It can be in the quality of the product and we don't mind paying more but some will pick up a cheap price but they often disregarded if the product that they bought is a quality one or not. This isn't wise because they will end up spending more.

[wiss19]

save that money to buy Bitcoin while it's still available for cheap.

Probably even cheaper since you wrote that post.  Woke up this morning and my eyes nearly popped out of my head when I checked bitcoin's price which at the time was somewhere around $17.5k--and as I write this, it's even lower.  I'm not sure if this is a dip being caused by the FTX/Binance fucking disaster or the start of something worse, but I have a feeling that you're right if you compare bitcoin to fiat.

And why do people do most of their shopping (as they claim to in the poll) on Black Friday?  I get that that's when you can get all the good bargains, but dealing with all of the lines in the stores and the crazy people and the chaos....ugh.  Anyway, we'll see what really happened once the numbers come in after the day itself.  People would indeed be smart to cut back on all the gift-giving, even if they're the most generous individuals on the face of the earth. 

I get the feeling that economic armageddon is coming, and you might be right about it being worse than 2008.  I remember that crash very well, and I didn't see it coming at all (probably because I was never into real estate).  Right now I think we all see it coming; it's just a matter of when and to what extent things collapse.  Good times.

I would assume online is the way to go? I mean sure black Friday does happen in shops as well and you can go in there and battle with people and try to get it. But if you look at amazon for example (and million other e-commerce websites) you could see that there are discounts there too, which means you could just stay at home and get stuff cheaper.

Considering the huge size of the online shopping world, there could be billions spent in a single day all around the world, just because things are cheaper, and nobody leaving their houses. Isn't that what we did during covid lockdown period? Just ordered things to our house, same logic I assume if you don't want that chaos.

[Lucius]

I think that these surveys are very dubious and may even be created to influence public change at a time when the authorities just want to encourage ever-greater consumption, and what is more ideal than Black Friday or the upcoming Christmas and New Year holidays. However, it does not seem to me that consumption (globally) could exceed the pandemic years when mass shopping was done online, although perhaps the US will be an exception despite inflation and all these layoffs that we have been reading about in recent days.

I personally will not spend a lot of money, and maybe I won't even spend anything if the discounts are not at least 30% or more on some things that I would like to buy. That's why I follow the prices now, because I know that the sellers manipulate the prices, raise them slightly upwards, and then they will offer discounts that will actually be much lower than what they will present to us.

[Viscore]

There is no explanation for the high demand for buying during Black Friday other than that the prices are very low. This has nothing to do with the economic situation of the country in general, but rather with individuals who seize the opportunity of Black Friday. In the end, not all people accept the purchase, whether on the occasion or without it.
Personally, I don't recall having acquired things on this occasion or perhaps because I am not a demanding person by nature.

This is more of an individual’s preference whether to avail the low and bargain prices or just ignore the sale happening. While some prefer not to make a purchase because they believe this will only break their budget, others have intentionally saved for this and when this time has finally come, they are all ready to buy and grab the chance while they can maximize their purchase even at a minimal budget.

[TimeTeller]

I think that these surveys are very dubious and may even be created to influence public change at a time when the authorities just want to encourage ever-greater consumption, and what is more ideal than Black Friday or the upcoming Christmas and New Year holidays. However, it does not seem to me that consumption (globally) could exceed the pandemic years when mass shopping was done online, although perhaps the US will be an exception despite inflation and all these layoffs that we have been reading about in recent days.

I personally will not spend a lot of money, and maybe I won't even spend anything if the discounts are not at least 30% or more on some things that I would like to buy. That's why I follow the prices now, because I know that the sellers manipulate the prices, raise them slightly upwards, and then they will offer discounts that will actually be much lower than what they will present to us.

We also don't know if the sample size truly represents the public's sentiments as they conducted only for shoppers.
Anyway, it is just a survey, it doesn't mean that will be the case here. The reality may deviate from this survey more or less.
When pandemic hit us, we realized our priorities and new preferences in our lifestyles. So it is understandable if the need of people also change.
A lot of people cut down their luxuries in life. And dedicate on what to do to survive in any crisis. Black Friday or Christmas, people will surely spend but is according to their own priorities.