Although the Indian festive season is over, there is still much to look forward to. As India gets fused with the western world financially and culturally, the festivities now continue till the New Year. While these are times to have fun and enjoy, the days are also eyed by businesses and marketers who run campaigns to maximize their sales.
And the next most anticipated event in the shopping calendar?
The Black Friday Sale
Originating from the United States, this day after Thanksgiving has evolved into a global phenomenon, marked by incredible deals and discounts that shoppers eagerly await.
Traditionally, Thanksgiving has been a celebration of the blessings of the year, including the harvest. It is celebrated on the fourth Thursday of November. Families usually unite on this day and celebrate the day with a meal together and then go on a shopping binge .
How did Black Friday originate?
The roots of “Black Friday” are traced back to Philadelphia in the 1960s. Originally, it described the bustling and chaotic pedestrian and vehicular traffic the day after Thanksgiving. Over time, its significance evolved, representing the shift in retailers’ finances from ‘in the red’ (signifying losses) to ‘in the black’ (representing profits) for the year. As stores commenced early openings and introduced significant discounts, it gained traction, drawing enormous crowds and laying the foundation for this massive consumer event.
Why is Black Friday considered to be important for the economy?
Everyone loves a ‘deal’ – consumers look forward to shopping on Black Friday as they can sometimes get products at a steal deal. Even if one doesn’t need something, the discounts are so tempting that one ends up spending.
Black Friday sales work as an indicator of the strength of the economy and the consumers’ spending power. If the expectations are low or the actual sales are below expectations, it’s deemed to be negative for the economy. Hence, the sales numbers are closely looked at by economists. The Black Friday weekend running up to Cyber Monday (the following Monday) clocked sales of upto $35.3 Bn in 2022.
Despite the US economy not at its strongest with high inflation and high interest rates, this years’ Black Friday is expected to hit record highs. If it indeed meets this expectation, it will be a boost to the overall economy.
What does it mean for us in India?
E-commerce and other big retail outlets have added this date to their marketing lists where you could see them doling out heavy discounts. Hence, you can be in for a nice deal.
My thoughts on the festive sale period and the offered discounts are pretty simple – I take deals offered on the products which I am looking to buy rather than buying something just because there is a deal on it .
On this note, I would like to share a Black Friday meme which I couldn’t resist.
Till the next time,
Happy Investing,
Vijay
CEO – InCred Money
