South Africans urged to spend wisely this Black Friday - SABC News ...
Amid the excitement of Black Friday deals, South African consumers are flocking to malls to secure limited-time deals. With the rising cost of living and high unemployment rates, shoppers are being encouraged to carefully assess their affordability and make prudent spending decisions.
South African shoppers are bracing for the excitement of Black Friday today, though many stores have already been offering deals in the lead-up to this highly anticipated event.
Some retail stores participate in the annual popular shopping spree event, offering special deals and discounts.
Over R88 billion
According to Fintech Company Capital Connect, drawing on insights from the Bureau of Market Research, the Black Friday sales frenzy is projected to inject over R88 billion in additional economic value into November 2024.
Dr Azar Jammine, director and chief economist at Econometrix, looks at the financial implications of Black Friday shopping. He notes that while it can be wise to buy essential items at discounted prices, impulse buying can lead to financial strain.
Dr Jammine advises consumers to carefully consider their motivations before making a purchase to avoid overspending. He also offers practical advice for shoppers planning discounted purchases, advising them to factor in the interest costs when borrowing money for sales items.
Psychology behind Black Friday
Clinical Psychologist Professor Saths Cooper says Black Friday’s allure stems from heavy advertising, social influence, and the psychological thrill of finding discounts, creating a sense of beating the system.
Advertisers use subliminal campaigns and media to shape buying decisions, amplifying the hype around the event. However, Prof Cooper cautions shoppers to exercise discernment, as perceived discounts may lead to unnecessary spending.
The phenomenon shows the powerful role of advertising and psychology in influencing consumer behaviour during the sales frenzy. But business strategist Jon Cherry says consumers should be more concerned about their long-term financial stability.
“I think right in the beginning it was such a novelty and people would be reckless with the money that they spent but I do get a sense that people are just far more cautious than they are far more educated about what a real deal actually looks like. We have to give consumers some credit there. It’s a very tricky thing to get right as financially for a retailer. What happens is that consumers are in that mindset of buying, just let customers come shop because they are in that state of mind and those who do that are quite successful as a result because of the culture that has been created.”
‘Be aware of scammers’ The National Credit Regulator has also warned consumers to be aware of scammers and cyber criminals while making online purchases.
