LIFESTYLE - IT’S likely that consumers will use this year’s Black Friday craze to top up on food and essentials rather than luxury items.
Experts believe that on the back of the effects of the Covid-19 pandemic on people’s wallets – through job losses and pay cuts, for instance – the average consumer will use the shopping day to hunt down bargains for essential items.
Shiv Ramsander, a financial adviser, said because we have endured the Covid-19 pandemic for almost two years, many people have tightened their budgets.
“Items that are required for daily use will likely be in big demand as everyone is looking to save money. These are things like food, groceries, toiletries, etc. Of course, you will get many people wanting to buy new TVs, fridges, etc., and these will be people who have been saving for these items or have extra savings on hand and can afford that. However, the general consensus is that people will be looking to spend on essentials and items that are for everyday use.”
Ramsander said consumers should ask themselves some key questions before going on a shopping spree:
* Do I have the money to spend?
“If you have to think twice about buying something due to affordability or other factors such as ‘do I really need it?’, then you generally should not buy it. With all the uncertainty that has been brought about due to Covid-19 and the impending fourth wave, I would advise consumers to avoid dipping into their savings until there is more certainty and financial stability in our country and the world as a whole. Spend according to your affordability and prioritise your needs ahead of your wants to ensure that Black Friday does not tamper with your month ahead.”
* If I am shopping online, what precautions should I take?
“Use reputable websites and brands. Create a strong password when logging in and avoid shopping using public wi-fi, especially in coffee shops and restaurants. Use online stores that have cellphone apps to ensure safety and security.
“Try using a credit card instead of a debit card when shopping online. A credit card doesn’t give a seller direct access to the money in your bank account. Second, most credit cards offer R0 liability for fraud, which means you are not put out of any money if a thief uses your account info to make a purchase.
"Your credit card company will ask questions, investigate the fraudulent activity and send you a new card. You can also use a virtual card for shopping online. Check with your bank if they offer these. A virtual card is a card similar to your original card with the last few digits at the end changed. It is used for online shopping and if you have been scammed, they don't have your original bank card to take out the funds."
* If I am going out to the shops, what safety precautions should I take?
“Follow the general Covid-19 safety guidelines such as wearing a mask that covers both your nose and mouth, sanitise and wash your hands regularly, practise social distancing and avoid crowded areas.”
* Is this really a sale or bargain?
“To ensure that the sale is actually a sale and not a marketing scheme, check the prices of the items you want to purchase on Black Friday well in advance to ensure that the store has not escalated the price of the item. Also, compare the prices of the item among different stores, and lastly compare the Black Friday sales with regular sales within the brand to ensure that it is indeed worth it.”
GROWTH
In a recent press release, Craig Lubbe, the CEO of South African internet auction and online marketplace bidorbuy, said the second year of the pandemic meant budgets would be tighter, but the annual shopping bonanza was still expected to attract millions of consumers.
Lubbe said household budgets remained tight, especially in light of the violence and looting in KwaZulu-Natal and Gauteng in July.
“Accordingly, South Africans will be seeking out deals like never before, especially since Christmas is only two months away. Citizens will be scouring the internet and retail advertisements in a bid to purchase affordable gifts well ahead of time...Many customers may be having to work with reduced budgets this year, and this could lead to a focus on core items, including groceries and household products,” said Lubbe.
SAFETY
Sbusiso Kumalo, chief marketing officer for African Bank, said in a statement that Black Friday had mostly changed from traditionally being only one day of specials, with retailers now extending their offers for much longer periods.
“A number of the larger retailers have been promoting Black Friday specials throughout November. A move towards online shopping has also brought a new dynamic to Black Friday with the trend showing a particularly sharp rise with the advent of Covid-19 last year.
“Black Friday is a perfect opportunity for criminals to target distracted shoppers in-store and eager bargain hunters online. This Black Friday, don’t let the special offers cloud your vigilance and be aware of the types of tricks criminals use,” he said.
He offered these golden rules for Black Friday shopping safety:
* Always get your card back after every purchase and ensure the credit card machine is swiped in front of you.
* Never write down your pin or disclose it to anyone and use different pins for different cards.
* Be aware of scam URLs – mobile users are often susceptible to this scam as they often do not check the full URL on their device. This is an easy way to trick people into thinking they are buying the real thing.
* While transacting, always keep an eye on the ATM card slot to ensure that your card is not taken out, skimmed and replaced without your knowledge.
* Subscribe to your bank's SMS notification services; this will inform you of any transactional activity on your account.
* If you are shopping online watch out for emails promising bargains. Rather than click on the link in an email or SMS, go to the site itself. Hackers can even spoof websites, so make sure you’re shopping on the actual site.
* Unsuspecting customers can be duped into thinking they are speaking to a credible source from their bank and disclose sensitive information, often under the pretence of a “security protocol”.
* Always use a secure and trusted wifi connection.
“If you plan to shop until you drop on Black Friday, remember the high won’t last if you spend money you shouldn’t have. The financial hangover from reckless spending can last a long time.
“Keep the dark financial clouds at bay by seeing this Black Friday through in a responsible manner that enables you to keep your transactions secure and your spending within your means,” said Kumalo.
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