Black Friday is considered the beginning of shopping before Christmas: according to a recent survey, almost eight out of ten Austrians know about Black Friday. Like the following Cyber Monday, Black Friday already has a permanent place in the shopping calendar.
About a third of consumers plan to shop on one of the two days. This happens mainly on the Internet: 80 percent use offers from online stores on Black Friday, and 83 percent on Cyber Monday.
50 million minus total expenditure
Compared to 2023, the total expected expenditure will decrease significantly. After planned expenses of 215 euros last year, it is 195 euros this year. Extrapolated to the total population, this means a reduction in the total expected expenditure from 480 million euros (2023) to 430 million euros (2024).
“Trade is under pressure”
According to the broadcast, Rainer Trefelik, chairman of the Federal Trade Division, sees a reflection of the depressed consumer mood: “It seems that past price increases are embedded in the minds of consumers: If even big promotional days with attractive discounts are not possible . improve the buying mood, this is a sign of “How much pressure there is on retail right now.”
Sales have just been postponed
According to Kearney’s German study, days of activity generally mean no reason to celebrate for retailers. This leads to the conclusion that although there is a boom in sales around Black Friday, retailers make fewer sales in the period before and after. “This means that customers focus their purchases on the promotion days, which ultimately results in sales shifting,” says Trefelik
Negative for profitability
And Black Friday even has a negative impact on companies’ profitability: the bottom line is that Black Friday means loss. In fact, the main motivation to shop these days is low prices, especially for branded products: According to a survey by KMU Research Austria, the amount of discounts is the most important reason to buy 83 percent hundred (Black Friday) and 80 percent. (Cyber Monday).
Consumers are warned
The European Consumer Center (EVZ) warns consumers: Deep discounts or constantly falling quantities in online retail may tempt them to make impulse purchases. “We assume that these claims are mostly wrong and are therefore prohibited and are only intended to increase the psychological pressure to buy,” explains Johanna Pichler, a lawyer at EVZ. She advises to “stay calm and think if you really want the thing. If so, it is advisable to compare prices through comparison platforms to determine if it is really a good offer.”
Online trading gambling
The best-selling products on Black Friday and Cyber Monday include clothing, electronics, shoes and cosmetics. Consumers who primarily shop online should be “beware”. There are many dangers associated with the online shopping experience. Be especially careful with fake shops. Fraudulent online stores take advantage of the “buying window days” and lure people with alleged deals. Johanna Pichler suggests clarifying the following questions before buying: “Who will I really sign a contract with? Does this company have a track record? Where is the company based? And what experiences are there about this?”.
The payment method offered can also be an indication of the seller’s reliability. “If only advance payment is offered, it is better to stay away! We generally recommend using a payment method that may allow a refund, such as PayPal or a credit card,” continued Pichler.
Right of withdrawal
If all warnings were in vain, the purchase was made and we regret having settled in, consumers would still have some room for maneuver: “When buying online, you have the right to withdraw from the contract within 14 days of receiving discounted goods. . However, the right to withdraw does not cover all products, such as departure or flight tickets,” emphasizes Pichler. “Some retailers also offer the opportunity to voluntarily exchange or return items in store.”
Four percent savings
However, reduced goods are usually excluded from this. It is important to avoid “impulse” purchases on Black Friday or Cyber Monday. An industry-independent average savings of four percent on Black Friday shows that the cost-benefit analysis of these promotional days is not in consumers’ favor.
How is Black Friday impacting the spending habits of consumers in Austria this year compared to previous years?
Title: Navigating the Black Friday Landscape: An Interview with Retail Expert Rainer Trefelik
Editor, Time.news: Welcome, Rainer Trefelik! Thank you for joining us to discuss the fascinating and often controversial world of Black Friday and Cyber Monday shopping. With a recent survey indicating that about eight out of ten Austrians are aware of Black Friday, how do you see its role evolving in the shopping calendar?
Rainer Trefelik: Thank you for having me! Black Friday has undoubtedly carved out a significant place in our shopping culture, especially as it signals the start of the holiday shopping season. However, it’s essential to recognize that while consumer awareness is high, actual spending seems to be declining.
Editor: Yes, you mentioned that typical expenditures are down from 215 euros last year to an expected 195 euros this year. What do you think is driving this decline?
Rainer Trefelik: It’s a reflection of the current economic climate. Consumers are feeling the pressure from previous price increases, and this dampens their overall mood. It shows that even with large discount events, people are holding back. The 50 million euros drop in total expenditure signals that these promotional days aren’t as enticing as they once were.
Editor: You also mentioned that while Black Friday might appear to be a sales boom, it often results in postponed purchases rather than an actual increase in overall sales. Could you elaborate on that?
Rainer Trefelik: Certainly! Retailers observe this concerning trend where customers concentrate their purchasing on promotional days like Black Friday and Cyber Monday. This focus shifts sales away from the weeks leading up to these events, which ultimately could result in lower total sales for retailers. This pattern emphasizes the need for businesses to rethink their strategies surrounding these promotional periods.
Editor: It seems like this poses a challenge for profitability as well. How does that impact retailers, particularly smaller businesses?
Rainer Trefelik: Absolutely—Black Friday can be detrimental to the bottom line. Many consumers chase low prices, particularly on branded products. The focus is primarily on discounts rather than quality or brand loyalty. For smaller retailers, who may have less margin to work with, the pressure of discounted pricing can be even more significant, leading to potential losses.
Editor: Speaking of savings and discounts, there are warnings from the European Consumer Center about being cautious with impulse purchases during this time. What advice would you give to consumers navigating these sales?
Rainer Trefelik: Consumers should definitely remain vigilant. It’s easy to get swept up in the excitement of deep discounts and limited quantities, which often drive impulsive purchasing. My advice is to take a step back and assess whether you genuinely need the item. Use price comparison platforms to ensure you are indeed getting a good deal, rather than falling for marketing tactics that create a false sense of urgency.
Editor: Great advice! Lastly, what do you see as the future of shopping events like Black Friday and Cyber Monday? Will they continue to hold their place in consumers’ minds, or do you foresee a shift?
Rainer Trefelik: I believe they will remain relevant but will need to evolve. Retailers must adapt to changing consumer attitudes and spending habits. If discounts become the only draw to get customers through the door, we might see a decline in participation over time. It’s crucial for retailers to find a balance between offering attractive deals and maintaining their profitability to ensure a sustainable shopping environment moving forward.
Editor: Thank you, Rainer, for your insights! It’s clear that while Black Friday and Cyber Monday offer opportunities for both consumers and retailers, cautious navigation is essential for a positive experience on both sides.
Rainer Trefelik: Thank you for having me. It’s been a pleasure discussing these important topics with you!
