Impact of Black Friday Sales on the Stock Market and what Business Students can learn from it?
No one wants to miss those products that they want. But some products are out of the range. And customers can’t buy it at their original price. For that reason and many other reasons, sales organize. People get the benefit of getting their favorite product at a cheap and discounted price.
While the business owners can sell those products, which are not being sold. The market is not affected too much by these small sales. Until the biggest of all comes to conquer.
Don’t tell me that you don’t know about Black Friday! Okay, So, if you don’t know, let me give you a summary and it will be enough for you to understand everything about it.
What is Black Friday?
Black Friday is the biggest sale of the year in America. And it has been organized after the day of Thanksgiving. And in this black Friday sale all small and large businesses reduce their prices to attract customers.
Both online and physical businesses offer big discounts or promote deals to grab the attention of more viewers and sell more. Black Friday is beneficial for all like investors, Business owners, and of course customers.
Black Friday has a large impact on the market and it also carries a lot of information about the situation of the people of the country. By the buying power of them. So, let’s jump into how it affects the market.
Effect of Black Friday on the Market:
Like I just mentioned above, black Friday is beneficial for all. Because the customers get the products that they are waiting for the whole year that too in discounted pricing. The business owners sell both their most trending and hot products with the products that were not selling before black Friday.
And then the investors who invest in the big business come. The market at the time of black Friday mixed up with the spike in the share market. And the investors who choose the right stocks get a large amount of benefit due to their sale.
And not just in the stock market. Black Friday is a lot to look for in the economy of the country. After the sale the economists go through the data of sales and it shows the potential and the buying power of a normal citizen. Which determines a big part of the economy. Then the plans are created accordingly.
Black Friday stock market crash 1989:
The 1989 Black Friday stock market crash is also known as the Friday the 13th mini-clash. The cause of this crash is the breakdown of a story about losing the deal of $6.75 of the parent company of United Airlines which is UAL corporation.
The reason for the breakdown of the deal is that the Association of Flight Attendants has refused the deal due to the management and deal which is in the negotiations with ESOP (Employee Stock Ownership Plan). As it refuses the terms and to agree on those terms. This type of question usually comes from writing an essay on it. So, for that students should contact any essay writing service because of the depth of the topic. At the stock market crash, companies lost their stocks with large margins. Like some lost around 7% and some about 3%.
According to the survey that was done after the crash to ask from the market experts were asked when they found out about the UAL deal. And more than 30% said that they knew a bit before and more than 60% said that they knew after the market crashed.
The History and Importance of Black Friday:
So, let’s talk about the history of black Friday as it was more than 100 years ago. Because people back in the late 1800s many big stores opened their doors for customers on Thanksgiving day. And mostly common retailers start their holiday season at the end of Thanksgiving offers. Which is considered the start of the shopping season of the year.
Until the 1940s the sale began on the last Thursday of November. But then in 1939, November had 5 Thursdays in it. After the approval of the request from President Franklin. The retailers organize the sale on the fourth Thursday of November. So, the sale could close before December.
The History of the Name Black Friday:
The name Black Friday has come from Philadelphia. In the three decades of the 1950s till 70s a football match was held between the Navy and the army. But the match was held after the thanksgiving day on a Saturday. But the people arrived on Friday and it became a nightmare for the police to handle that many people and that is why they referred to this day as Black Friday.
And because of the Black Friday sales huge numbers of people arrived at the store. And it becomes a similar situation like that match. So, that is why the name Black Friday was used for this sale.
Some Stats About Black Friday:
- In 2016 100 million people physically shipped from the stores at the Black Friday sales.
- In 2016 more than $7.9 billion was spent on shopping at Black Friday
- $655 Billion is the number of spending for the whole holiday season in the year 2016.
- An Average of $935 was spent by every shopper in the year 2016 at the Black Friday Sale.
- Around 500k people were hired in the stores for the 2017 Black Friday and holiday season.
What Business Students Can Learn From Black Friday Sales?
Now, you know the history of Black Friday, Its impact on the market, and everything. So, let’s talk about what the students can learn from it. And most importantly business students.
If we see Black Friday from a learning perspective. So, the students learn about the marketing and business strategies that have been used to attract customers. And how the investors use it for their profit (Which I explained above). Also, what do the business owners get? And the students of businesses use this as an MBA project and explain everything in detail. Also presents new ideas to make the businesses more effective.
Like if we talk about the strategies to attract online customers nowadays and have been very effective in creating urgency. And that is what the online business is doing. They create promotions, deals, and discounts, and put it on their website a timer. And the timer is showing how much time is left in the sale.
This creates a feeling in the mind of the visitor that if he didn’t buy it they might lose it. And because of this sense of urgency, customers buy the products. And the sales of the businesses increase.
Likewise, the physical business strategies include advertising on billboards, or pasting the promotions in public places. But nowadays all types of advertising even for physical businesses online. The students can research about it and enhance their practical business knowledge with important tips and use it in their career and help businesses grow.