How will the cost of living crisis impact Black Friday?
Despite cost of living concerns, three-quarters of Gen Z still plan to spend money this Black Friday – up 22% from the 60% who said they shopped last year.
In a recent survey, Student Beans and its brand partners have seen a 17% increase in the number of sales over the past 12 months, and a 22% increase in revenue from its student base, suggesting young people are relying on discounts more than ever.
Whilst excessive self-indulgence may see a dip amidst the cost of living crisis – two-thirds of those forgoing Black Friday are doing so due to financial concerns – Student Beans predicts an increase in reliance on sales periods like Cyber Week.
Compared to last year’s period, those in the entertainment, travel, events, and fashion industries will be pleased to see the increase in interest from Gen Z’s.
As costs continue to rise, young people are depending on brands to offer non-essential memory-making purchases at accessible prices.
The power of these exclusive deals will be evident this Black Friday – 99% of Gen Z say they will look to use student discounts during this period and 97% say a higher than usual discount will make them more likely to make a purchase.
Brands who boost their student incentives typically see a 20% increase in average order value, according to Student Beans’ own data.
When offering discounts, exclusivity is also key for Gen Z. Four-in-five would prefer to see offers just for them, applied on top of Cyber Week sale items, preferring to see heightened offers over free gifts or speedy delivery on Black Friday:
- Additional student discount applied on top of Cyber Week sale items – 84%
- Higher than usual student discounts – 79%
- Free delivery – 67%
- Free gift(s) with purchases – 67%
- Flash sales / time-limited sales – 53%
- Sneak peeks / early access to sales for email subscribers – 39%
- Extra fast delivery – 30%
Amie Edwards-McLean, Head of B2B Marketing at Student Beans, said: “Understandably, many brands will be unsure how the current financial climate will affect consumer decisions throughout the Black Friday and Cyber Week periods.
“Our insights reveal thrifty Gen Z shoppers are prioritising saving over spending, relying on discounts to help maintain their lifestyles. They’re excited to spend money, but primarily with brands who are offering genuine and heightened deals that are exclusive to students.
“After years of the pandemic affecting the infamous university experience, excited students do not want to miss out again. They are relying on discounts and offers to keep memory-making accessible, seeking out heightened deals on their favourite events and entertainment.”