Black Friday & Cyber Monday

14th November 2018 Social Berry

Normally when speaking to people about important dates in a calendar year, Christmas, Easter, Birthdays, Anniversaries and personal dates would come to mind. Recently, it seems like two dates have crept their way into the most important dates of the year. Black Friday and Cyber Monday. But what is the big fuss over these dates and why do people queue up for hours on end at stores for this?

The first Black Friday dates back to September 24th, 1869. Traditionally it is the day after Thanksgiving Day in America which marks the start of ‘Christmas Shopping’ for most people since 1952. The term ‘Black Friday’ was not used or known until the early 2000s, however the idea of the day has been in operation from long ago.

Anyway, enough of the history, that won’t change. What does the present hold for Black Friday and what could the future reveal about an ancient tradition? If you still don’t know what Black Friday is, imagine this. Your favourite retail store that you spend hours shopping at and spend more than you should, suddenly decides to discount all it’s goods. How would you react? Now you have the mindset of a Black Friday shopper.

In 2017, Black Friday marked a day where in total 137 million people visited stores over a four day black friday weekend. Sales registered at around 8 million USD , a rise of 18% from the previous year. A mix of both online and retail shoppers both helped push shares of companies such as Amazon to a record high of then 1172 USD. Alibaba was another stock that took advantage of buyers during 2017 Black Friday season. Rising by 9% till the end of the holiday season, registering an all time high at the time.

Cyber Monday is sometimes overlooked as many people know about Black Friday historically.

The term was first created on November 28th 2005 by Ellen Davis and Scott Silverman in a marketing attempt to persuade people to shop online.

The concept caught pace rapidly as many people found the convenience in online shopping and the attractive prices online brought millions of buyers into what is now known as ‘online shopping’.

Over the next 10 - 15 years ‘Cyber Monday’ became much more appealing as big online retail stores began to operate and get more fame such as ‘Amazon’ and ‘Alibaba’.

Year after year records were broken as expectations were exceeded in relation to numbers and statistics surrounding online shopping.

In 2017, over Cyber Monday, an all time record $6.59 billion was spent using online transactions according to Adobe Insights.

This marks a 16.8% increase from the 2016 figure of $3.45 billion.

In addition, mobile sales also surprised everyone as they reached $2 billion worth of sales over a 24-hour period!

Of course, the victors of Cyber Monday were the expected big companies such as Amazon and Alibaba as well as Samsung and Apple as they are two of the biggest technological companies out there.

Overall, the importance of ‘Black Friday and ‘Cyber Monday’ cannot be overlooked by any investor as the figures speak for themselves. With so much at stake, we can expect a lot to happen in the coming few days.

What can we expect from this year’s market and figures? Let’s wait and see. One thing is for sure, many investors will be biting their nails anticipating this major event…

Let us know what you think and how this year will pan out.

References:

https://www.cnbc.com/

https://finance.yahoo.com/

By Arad & Mehrad Minaei, Client Relationship Agents at trade.Berry

 

**The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policies or position of trade.Berry.

This content is intended for educational purposes only, and shouldn’t be considered investment advice.

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 Trading CFDs involves high risk of losing money 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money.