Why do you get bumper discounts while shopping in December? Whether you shop offline or online, the real fun of shopping doubles when there’s a sale. Buying your favourite things at lower prices feels like achieving a victory. The sale season started from Diwali and will continue until the end of the year, with continuous sales from Black Friday onwards.
During this time, customers can enjoy various sales like Christmas or Year-End Sales. However, what’s the magic in words like sale, discount, or offer that makes people excited to shop? As soon as a sale begins, there’s a rush of customers in the stores. At home, people fill their online shopping carts while sitting on the sofa or bed and enjoy the sale by making one-time payments.
According to the National Retail Federation, during festive seasons like November and December, retail companies see an increase in sales by 20% to 40% compared to the rest of the year. These two months are considered the best for shopping because of the bumper sales during this time.
Shopping festival begins with Black Friday
In America, Thanksgiving is celebrated with a lot of excitement. It is believed that when farming became successful for the first time in America, everyone congratulated each other, had a party, and celebrated.
In 1789, George Washington declared this day as a National Festival, and since then, Thanksgiving Day has become popular worldwide.
A few days later, Black Friday started being celebrated in America. This day marks the beginning of Christmas shopping. In 1950, in Philadelphia, the police first used the term ‘Black Friday.’ At that time, there used to be an annual Army-Navy football match, attracting tourists and putting the city in a festive mood.
Businesses didn’t want to miss this opportunity, so they started having sales, and there would be so much crowd outside the shops that it became difficult for the police to control.
In 1961, businesses called it ‘Big Friday,’ but in 2013, this day became popular as ‘Black Friday.’
Coca-Cola introduced a discount trend
In 1887, America’s most famous businessman, Asa Candler, founded the Coca-Cola company. Candler wanted everyone to try his product, so he started a new marketing strategy with handwritten coupons. People could get a free glass of Coca-Cola with these coupons, even though the regular price for a glass was 5 cents, equivalent to 30 cents today. This coupon system became so popular that from 1894 to 1913, 1 in every 9 American citizens had tried Coca-Cola for free, meaning it became popular among 8 million people. Marketing experts consider this scheme as the real beginning of selling with coupons. After this, many companies adopted this method to create interest among customers.
Sales benefit both the company and the customer
The trend of sales events like Black Friday, Cyber Monday, and Super Sunday Sales has always been popular in foreign markets. With the onset of globalization, global brands have started using this trend in the Indian market to boost their sales and attract customers. Gradually, Indian companies have also adopted this strategy to retain their customers, ensuring they don’t lose them to global brands.
Companies often introduce products that are not selling well or have been in stock for a long time, clearing out old inventory before launching new products. This bumper sale benefits both the company and the customers. Companies gain new customers, and customers get their desired products at significantly lower prices than before, leading to substantial savings.
Companies celebrate festivals
Companies like to spend money during festivals such as Karva Chauth, Diwali, Raksha Bandhan, and Christmas because customers are in the mood to shop. During this time, a lot of shopping happens on e-commerce websites, and companies are willing to offer discounts of up to 90% to attract customers. Before offering discounts, each company sets a budget, with some spending on product advertisements and others on sales and promotional activities.
Why do people find sales attractive?
Mental health specialist Priyanka Srivastava says that everyone likes a good deal. Every person seeks ways to keep themselves happy because everyone wants pleasure, not pain. Paying too much for an item feels burdensome to customers. This message also reaches the subconscious mind. However, sales make customers happy. Companies, recognizing this mindset, plan to sell their products to the maximum extent possible. Meanwhile, odd numbers (3, 5, 7, 9) always seem smaller to humans than even numbers (2, 4, 6, 8).
AI has made shopping easy
Nowadays, Artificial Intelligence is everywhere, making life easier for shopping lovers. People often get confused while shopping, wondering what to buy, which product has a good discount, or what gift to purchase for family and friends during the festive season. For such individuals, AI is a blessing.
This technology has made shopping even easier. To use it, customers need to log in to ChatGPT or Bard. After that, they can ask questions in the chatbox, inquire about their budget and offers, and get immediate responses.
In a survey by the Morning Consult website, 84% of people found this AI tool very helpful for shopping. Similarly, according to a survey by HostingAdvice, 44% of men and 17% of women use this tool to find gifts.
Why doesn’t Gold go on sale?
You must have noticed sales on clothes, watches, shoes, home appliances, bags, and artificial jewellery but rarely on gold jewellery?
The primary reason is that gold is considered a commodity, and its prices consistently rise. Unlike other products, gold never goes out of date, and companies prefer not to clear their stock of gold jewellery.
Some companies might provide discounts on gold jewellery by reducing the making charge, typically by just 1%. Machine-made jewellery usually has a making charge of 6 to 8%, while for simple gold jewellery, it can be up to 4%. Handmade jewellery generally carries the highest making charge.
If someone offers a zero making charge on gold jewellery, it raises suspicions. Online jewellery, in particular, may not be pure gold, so it’s essential to be cautious of such tempting offers. Always opt for reliable hallmarked gold jewellery from trusted stores.