Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Already and this is the daily This is the daily
ohs oh, now it makes sense.
Speaker 2 (00:14):
Good morning and welcome to the Daily OS. It's Thursday,
the twenty seventh of November. I'm Emma Gillespie, I'm Zara Seidler.
For most of the world, Australia included, tomorrow will be
the biggest shopping event of the year, Black Friday. Now,
if you have been feeling overwhelmed by sales targeted ads
(00:34):
once in a lifetime deals flooding your email inbox for weeks,
now you are definitely not alone. Today we are unpacking
the origins of Black Friday, how it became such a
massive phenomenon in Australia, and the sales tactics experts say
consumers need to know about.
Speaker 1 (00:56):
M We share an office with a retailer shout out
to we love your underwear. And I was in the
kitchen the other day asking how Black Friday was going.
I thought it had happened already, and the founder looked
at me and was like, nah, that's next week. And
I had no idea because it feels like it's been
going on for so long.
Speaker 2 (01:15):
I woke up on Saturday morning to more and more
emails and I thought, this is crazy because it was yesterday,
alas it was not.
Speaker 1 (01:22):
It was not, But that is the feeling that it
is omnipresent, It is everywhere all at once. How did
this happen? Because I don't remember this always being the
case in Australia.
Speaker 2 (01:33):
It wasn't always the case in Australia. But as with
so many pop culture phenomenons and everyday fixtures in our lives,
this is a US tradition. So Black Friday is traditionally
the day after Thanksgiving, the holiday in the US which
falls on the fourth Thursday of November so today. The
term itself, though, is believed to have been coined by
(01:56):
police in Philadelphia all the way back in the sixties.
They used Black Friday to describe the chaos of large
numbers who visited the city to watch this annual football
game and Army Navy Thanksgiving game. Right and retailers then
saw this massive influx of shoppers at the time, they
started offering discounts to capitalize on those crowds, and the
(02:17):
name and sales went national across the US from the
eighties onwards. Then, as we know it headed overseas as
brands started to tap into global markets. It's shifted exponentially
with the online shopping era. And I've also heard Black
Friday referred to black Friday because it's the day retailer's
bottom lines go from red to black.
Speaker 1 (02:38):
And that being because they get rid of so much stock,
there are so many sales. Yeah, it is insane to
me that its origins are in Philly at a game.
I don't even know what it is, and now it's
everywhere in Australia. How did it go from there to here?
How did it come to Australia in such force?
Speaker 2 (02:57):
It came to Australia in twenty thirteen when Apple, who
was a m twenty thirteen. Yeah, Apple was one of
the first major retailers to offer Black Friday deals here.
It's obviously only grown since then, and I think it's
no coincidence that online shopping has boomed since then. Two
but interestingly in Australia, and this could be why maybe
(03:19):
we were slower to the uptake. The term was actually
quite controversial because black Friday had long referred to these
devastating bushfires in Victoria in nineteen thirty eight and thirty nine,
which killed at least seventy one people destroyed more than
one thousand businesses, so people were quite sensitive about using
that term.
Speaker 1 (03:35):
Yeah, that's so interesting, and while there may have been
some hesitation, it certainly feels like it's here and it's
here to stay. Do you have any numbers on how
big it has actually become here in Australia?
Speaker 2 (03:48):
Big with a capital b zara. The sales that began
this week are projected to be worth a record six
point eight billion dollars for the Australian economy. That's an
increase of four from last year, and almost half of
Australian retailers now say that Black Friday has overtaken Boxing
Day as their biggest sales event of the year. That's
(04:10):
according to some survey data, by zero. And our expectations
are higher now too. So until recently, an average discount
of say twenty percent was enough to kind of draw
our attention, whereas now that's grown to thirty percent. So
we need to see a sale discount of about thirty
percent before we feel compelled to participate.
Speaker 1 (04:28):
I will not even look at it if it's under
thirty perce well, exactly, no wasting my time.
Speaker 2 (04:32):
It feels too underwhelming, and the demand has gotten so
big here that Australia Post has actually expanded its delivery
days to keep up. It's reintroduced seven day parcel deliveries
in metro cities to keep up with this current rush.
Speaker 1 (04:45):
Yeah, and I want to pick up on something you
just said before about the nature of the sales, because
off Mike, you and I were talking about the fact
that we've seen a lot of tiktoks, a lot of
chatter online about some companies that suggesting they've got really
big sales, but when you actually look at it, it's
perhaps not as big as it seems. What do we
(05:06):
know about what the nature of these sales actually are, Like,
are they as good as they see?
Speaker 2 (05:13):
Yeah, well, you are right to be skeptical. Consumer Group
Choice has actually done some digging into sales tactics this
Black Friday and then found some pretty concerning patterns. One
of them that I saw they were pushing was to
be very aware of when you see a big, flashy
graphic of say, sixty percent off, you might zoom in
(05:33):
and see there's very fine print inside that sixty that
says up to sixty percent off the implication sidewide, But
it's really not so. Choice also said that one of
the biggest issues is what it's called was slash now
pricing to make a discount look more impressive, So was
one hundred dollars now fifty dollars, for example. But Choice
(05:53):
is found that in many cases that that was price
is inflated, or the product was never sold at that
rice or was very temporarily sold at that price, so
the discount isn't really as good as it appears.
Speaker 1 (06:04):
I saw a girl on TikTok talking about the fact
that she had had her eye on this T shirt
for ages very expensive t shirt, i'll add, but she
said it was one hundred and twenty dollars and she
was waiting for it to go on sale, and then
in these Black Friday sales she says it went up
to or it was marked at one hundred and eighty
on discount on sale to one hundred and twenty. She's like,
(06:25):
I know it was one hundred and twenty. I see
through this, And there's so many comments of people saying, yeah,
I've seen this everywhere.
Speaker 2 (06:31):
I think it's a very common experience, which is frankly terrifying.
Speaker 1 (06:36):
Yeah.
Speaker 2 (06:36):
Choice also found examples of products that were cheaper at
other times of the year than during Black Friday sales,
which I think is an important note too.
Speaker 1 (06:46):
Yeah, that is really interesting, and so the idea that
these are the best deals you'll find all year might
not necessarily be.
Speaker 2 (06:53):
True exactly, And this isn't just happening in Australia. The
UK Consumer Watchdog tracked thousands of products last year and
found the majority with the same price or cheaper at
other times of the year. In fact, only two percent
of products they tracked were genuinely cheapest on Black Friday itself.
Speaker 1 (07:11):
Gosh, I think tracking behaviors here would be so interesting.
We've like been primed and conditioned to believe everything we
are sold.
Speaker 2 (07:20):
Oh, the consumer psychology of it all fascinating is a
whole other podcast.
Speaker 1 (07:24):
It really is. M That is obviously one side of
the coin. What else has Choice highlighted could be happening here?
Speaker 2 (07:31):
They highlighted this artificial urgency, which we've touched on a
little bit, but things like a countdown timer when you
see warnings of limited stock. You know, you put something
in your cart and it says only two left, hurry
or sale end soon. Those kinds of messages are really
designed to pressure you into buying something immediately without properly
comparing the prices or thinking about whether you actually need
(07:53):
the item. There's also this issue of what are called
doorbustered deals. Now, these are heavily advertised products at genuinely
low prices, but retailers will often have very limited stock,
so it creates this hype. But the point really isn't
for retailers to sell those items. They're trying to get
you in store or onto their websites where you'll hopefully
buy something else, or more than one thing. Another tactic
(08:16):
is the bundle deal. You might see, you know, buy
two get one free or similar offers, so you might
not actually need three of something. You're not saving any money,
you're spending more, but you feel like you're getting more.
Speaker 1 (08:28):
Goodness me, I'm just realizing how many of these tactics
I've fallen victim.
Speaker 2 (08:31):
Too, you and me both.
Speaker 1 (08:33):
Yeah. Anyway, we'll be back with the rest of today's
deep Dive after a short note from today's sponsor. Okay,
Sha m I've already highlighted my vulnerabilities here. I am
not a very savvy shofer, and I imagine that some
of our listeners might be feeling the same way. Yeah,
for anyone who is feeling just a bit overwhelmed by
(08:55):
everything that is going on around Black Friday. Do experts
have any advance for shoppers about what to do how
to navigate this period. Yeah.
Speaker 2 (09:03):
I think. First of all, it's not your fault. It's
not our fault that we are so enticed by these deals.
They are designed to get us excited and overwhelmed in
this way to spend money. But there are a few
practical steps from the experts, such as doing your research. Now.
That TikTok example you gave Zara is a perfect one,
because if there's something you're genuinely planning to buy and
(09:27):
you have tracked it and take a note of prices
leading up to the sales, you have more of a
real world sense of the value of the deal you
might or might not be getting. There are price tracking
websites or browser extensions that you can install where you
can see the price history of products, so do a
little bit of digging there. Second, I know this is hard,
(09:47):
but set a budget and stick to it. That's the
advice that comes up time and time again. The whole
point of these tactics is to get you to spend
more than you planned, but having a really clear budget
can help you stay focused and finally read the fine print.
There are often tricky returns policies around heavily discounted items.
Some retailers might make it harder to return sale items,
(10:09):
so you need to know what your rights are in
that case and ask yourself if you actually need it.
I know that this doesn't really align with the girl
math life that we live, but she asked, because something
is on sale, yeah, doesn't mean you need to buy it.
Speaker 1 (10:22):
Well, I now have a running list on No one
asks this, but I'm just going to share it. If
I have a running list on my phone of like
things I want, and I will just revisit it every month. Yeah,
the number of things I take off that list because
I have not thought about it since I first wrote
it down. Like I'll have a moment where I'm like, oh,
I need this, then I'll write it on the list,
and then I only revisit it on a monthly basis,
and then I realize, no, I in fact didn't need
(10:43):
that top in four colors. Smith's so funny because in
the moment, you feel like you need it and then
when a better time lapses, you realize.
Speaker 2 (10:52):
You actually don't that it is actually incredible advice.
Speaker 1 (10:54):
I'm going to stay it for my discipline and my willpower.
Speaker 2 (10:56):
Something that happens to me if I impulse by is
I will get something, and then a few months later
I'll find almost the same version of it somewhere in
my wardrobe. Like I'm often repeat purchasing and then realizing,
oh wait, you have basically this dress already. You just
forgot your own.
Speaker 1 (11:12):
There you go. We are all just the same at
the end of the day, aren't we am? I do
just want to end on I guess a local note.
We've highlighted the fact that it was a US centric
thing that has now spread globally, including here to Australia.
How have OZSI retailers responded to Black Friday this year?
Speaker 2 (11:30):
There is a really interesting divide here between major retailers
and small businesses. So overall, forty four percent of OUSSIE
retailers are taking part in Black Friday this year. That's
I thought, yeah, well, same, but it is up three
percent from last year according to Deloitte. But we've also
got this zero survey that found less than forty percent
(11:50):
of small businesses are participating in Black Friday this year.
That's down from twenty two percent last year, so a
massive drop for small businesses. Many say that it's because
they just can't compete with larger retailers who can offer
all these deep discounts because of their scale, because of
their inventory and stock. A lot of slow fashion retailers
(12:11):
you will hear them talking about that. You know, they
do their best to price their products fairly year round,
and they don't have the inventory and the resources to
match these kind of low low prices. So not every
business is jumping on the bandwagon. Some are quite vocal
about the pressure of these sales, and I think it's
it's up to you as an individual, what businesses do
you want to support and why. Before we wrap up, though,
(12:34):
I do have a bonus tip for Black Friday, how
to make lemonade out of your inbox being completely flooded.
This is the time of year when you can unsubscribe
from all the retailers you no longer care about. So
I've been going through as like a little bit of
a Black Friday mindfulness exercise.
Speaker 1 (12:50):
I have a culling, yeah, waking up every.
Speaker 2 (12:52):
Morning going unsubscribe, unsubscribed, unsubscribed.
Speaker 1 (12:55):
Yeah, and you've just I mean just a really clear
note tdaight not reachtailer. You stay subscribed to us. Hang
out however, everyone else gone, get rid of that. Gone,
And thank you so much for taking us through that,
and I guess adding some sense to the madness around us.
So helpful.
Speaker 2 (13:13):
Thank you, look after yourselves out there everyone the crazy world.
Speaker 1 (13:17):
Thank you for joining us for another episode of The
Daily oz. We'll be back later today with the headlines
as usual, but until then, have a great day. My
name is Lily Maddon and I'm a proud Dunda Bungelung
Caalcutin woman from Gadigol Country. The Daily oz acknowledges that
this podcast is recorded on the lands of the Gadighl
(13:38):
people and pays respect to all Aboriginal and Torres Strait
Island and nations. We pay our respects to the first
peoples of these countries, both past and present.