One in four products has become more expensive due to Black Friday

Barcelona“Shop for 40% less this Black Friday”, “Get an extra €10 now” or “The best discounts of the year” are typical slogans that, like every year, we have seen in the last few days on the shop windows. But do you really save money by buying the famous one? black friday of trade?

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During the last six weeks the ARA has tracked the prices of a varied basket of 34 products typical of this time of year in order to analyze it. The amounts for these items have been noted every Wednesday, starting on October 19th and ending with Black Friday and Cyber ​​Monday (which takes place the following Monday, November 28th, and offers sales mostly on tech).

The truth is that one in four products not only did not become cheaper, but even became more expensive during the month of November, and consumers ended up paying more than they cost when this newspaper began its study . Video games, movies, household products and toys are the most affected sectors. This is basically explained by two factors. On the one hand, the season of discounts has coexisted with high inflation, the cost of energy and the supply crisis that have inevitably forced the amount to increase. On the other hand, some companies have taken advantage of the fact that people are more willing to buy to increase prices. “Within the sector there are practices that are not the most ethical”, says Xavier Rivera, expert in electronic commerce and professor at the Escodi University Business School, in statements to the ARA.

Price variation in the weeks before Black Friday

Index 100 = Prices on November 19. Variation in percentage, by sector

Videas and filmcules

Technology i

household appliances

Videas and filmcules

Technology i

household appliances

Videas

and pellíncules

Technology i

household appliances

Previous uploads

In the first week of November, product prices had already grown by 3.7%. Seven days later they were down again in video games, movies, appliances and technology. “There are companies that use bad practices and have a tendency to raise prices before Black Friday in order to offer more discounts later,” points out Rivera. This is to play with “the psychological effect that causes the consumer to think that he is buying a great offer”, explains Albert Vinyals, professor of consumer psychology at Escodi. And he adds: “Thus companies can say that the product has a 40% discount, otherwise they can only say that it has 5%”.

Price variation

Compared to November 19, in percentage

Less discount

Although some items have increased in price, more have decreased: two out of five products were cheaper on Cyber ​​Monday than in mid-October. The basket as a whole was almost 7% cheaper. Are there reductions, then? Yes, but they are less than in previous campaigns. One of the reasons for this is that the productions from China are late. According to Rivera, the Asian giant’s problems with covid have meant that many companies have lacked supply, and sometimes it has arrived weeks late. “If you’ve just received it and you discount it, it doesn’t count, that’s why the very big offers haven’t been seen as much this year,” points out Rivera. This, however, is not the only cause that explains the scarce promotions this year. Àlex Goñi, president of PimeComerç, assures that “the stores have eaten the profit margins in order not to raise prices, so they could offer few discounts”.

Small and medium enterprises

Smaller businesses are the ones that are most harmed. Goñi states that all these offers are unsustainable before the Christmas campaign and wonders what the benefits really are: “What’s the point of running a discount campaign before Christmas, the quintessential commercial event of the year? It is overwhelmingly logical that this is a contradiction”. Thus, the small trade sector wants to move away from this type of consumerism. “Black Friday looks like a hoax and we don’t want to play that game; if we give a discount it is for a product that we want to remove because the season is over”, he adds. Vinyals says in this line: “Our country is the one that spends the most at Christmas in all of Europe. There is no need for a sales campaign right before.”

‘Black Week’

One of the particularities that have marked this year’s campaign is anticipation. It is no longer Black Friday, but Black Week. Brands have used the whole week to do promotions. This is reflected in the ARA study, where most of the Friday discounts were already there two days earlier. In fact, Rivera points out that after two or three weeks, advertising campaigns were already being carried out, but “when the volume of sales was really noticed, it was on Thursday, Friday and the weekend”. Businesses want to advance sales because they know that users have a basket of a certain amount of money. “They have a tendency to think that if they are not the first to make the discounts, consumers will spend them in another company, and this fear of losing users makes them rush,” explains the Escodi professor. This fear suggests that Black Week is here to stay, explains Rivera.

The sectors with the most changes

The products with the most price fluctuations are household appliances and technology. They have been reduced progressively, until on Monday they reached the highest reductions of the last month and a half. According to Vinyals, the technological sector has much more room: “There are items where the production cost is 50 euros and, on the other hand, we pay a thousand. It’s a market that has a lot to offer and plays with supply and demand.” That is why the TV and headphones are included in the most discounted product package. At the same time, the price movement has made the washing machine one of the most expensive items. Kitchen appliances such as the microwave and air fryer are added.

The products that have varied the most

Regarding the price of November 19

Microwave

DVD ‘Jurassic World’

Washing machine

Building blocks

Air fryer

Rubber

television

Vambes

Capsule coffee maker

Earphones

Microwave

DVD ‘Jurassic World’

Washing machine

Building blocks

Air fryer

Rubber

television

Vambes

Capsule coffee maker

Earphones

Video games and movies

Video games and movies also dance in the price dance. It is the sector that has offered the biggest offers during the day on Friday, with reductions of 18% on average. Exceptionally, during Cyber ​​Monday they have increased considerably. As Rivera explains, the industry plays with prices taking into account competitors and available stock. So, if there is a lot of demand and little supply, the price goes up.

Specific products

Also noteworthy is the fact that stores have discounted a specific selection of items and not the entire collection. The sales have been accentuated in toys and clothes. In fact, in the case of the fashion sector “margins are super fair, but businesses have to make discounts because, if not, they don’t compete”, points out Vinyals. In addition, this is the only sector, along with sports, that has only varied prices during Black Week.

To save or not to save?

Black Friday has been the day that products have been cheaper in the last month and a half. Therefore, if the consumer has shopped strategically, they are likely to have saved. However, according to Vinyals, on this day many people buy unnecessary things mainly on impulse.

Amazon breaks a new record in the day of consumerism

Amazon broke a new record for sales during the strongest five days of Black Friday. From Thursday to Monday, online sales users spent $35 billion, up 4% from last year, and small businesses in the United States generated more than $1 billion. The list of best-selling items is topped by an Amazon-branded remote and smart speaker. The most popular categories after own products are fashion, beauty, toys and home products.


Source: Ara.cat – Portada by www.ara.cat.

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