Sunday, November 25, 2018

Does it make sense economically to have Black Friday sales?

Black Friday is universally known as a day of mass sales and huge shopping trips. While most companies partake in the day, taking advantage of the most popular shopping time of the year, an increasing number of brands have bucked this trend in the past few years, changing their marketing tactics and business strategies to appeal to different demographics.
For example, REI has become famous for closing their in person stores on Black Friday, giving all their employees the day off and encouraging them to go outside. There aren’t any special sales in conjunction with the holidays, and the motivation behind the idea is to prioritize family. Other retailers, like men's’ clothing store Noah, even incorporate their stance against Black Friday into their marketing, advertising on their website their opinions about the harms of conspicuous consumption.
Other brands, especially ones that advocate for sustainable goods, aim to raise money for charities during the holidays. One company, Everlane, set a goal to take away 20,000 pounds of plastic from beaches, partnering with the Surfrider Foundation and having a real time progress bar at the top of their homepage. Another company, Cuyana, pledged to donate 10% of their sales to the California Wildfire Relief Funds. Rather than having sales, the brands are encouraging consumers to purchase their goods in order to further social activism.
Statistics show that these companies are likely losing out on revenue in the short run. Around 74 percent of Americans shop on Black Friday or Cyber Monday, and the average adult spends just under $500.00. These trends mean that companies are set to collectively make over 90 billion dollars. But, while many people shop during these times, a large portion of the population dislike the association of Thanksgiving — traditionally a time of gratitude and family — with the conspicuous consumption that comes along with the large shopping sales. A poll found that 65% of Americans disliked that stores were open on Thanksgiving.
But in the long run, the benefits of associating a brand with sustainability and anti-consumerism could bring economic benefits. A 2015 study found that 66% of consumers will spend more on a product if it comes from a sustainable brand. Despite not having any sale, Everlane met their goal of 20,000 pounds of plastic, essentially 20,000 orders. The marketing also means that these companies are well aware of the demographic of people they’re attracting. The people that purchase more expensive, sustainable goods tend to be wealthier, as the higher income brackets tend to value material items less than lower income brackets. They can afford to spend on luxury items, and afford to support causes they care about rather than only supporting themselves.

Brands will take advantage, using anti-Black Friday as a subversive way of increasing sales.
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