Black Friday Unwrapped
Musinsa, a leading online select shop in South Korea, launched the 2024 Mujinjang Summer Black Friday event this June, recording total sales of more than \200 billion. In recent years, Black Friday has evolved from a type of annual holiday to a hallmark of major discounts. With this year’s Black Friday set for November 29th, the Sungkyun Times (SKT) will delve into the significance of this highly anticipated shopping day.
Black Friday’s Colorful Story
-The Tradition that Transcends Borders
Black Friday is an unofficial holiday that originated in the United States (U.S.), which marks the beginning of the largest discount season of the year. In the U.S., Thanksgiving is observed on the fourth Thursday of November, and Black Friday falls on the following day. Traditionally, many U.S. citizens began their Christmas shopping immediately after Thanksgiving, and numerous companies granted their employees the Friday off as a part of Thanksgiving break, creating a prime opportunity for sellers to launch significant sales. The origin of the term Black Friday is widely debated, but the most accepted explanation traces back to Philadelphia, U.S., in the early 1960s. At the time, the crowds of post-Thanksgiving shoppers led to traffic congestion, theft, and physical fights, so local police began calling the chaotic day Black Friday. In the 1980s, salespeople aimed to get rid of the name’s negative connotation by suggesting that it symbolized businesses moving from deficit to surplus — or being in the black, a financial term for making a profit. Entering the 21st century, Black Friday expanded beyond its American roots and was adopted by companies in Europe and Asia. Nowadays, along with the rapid surge of e-commerce, Black Friday shopping has become noticeably popular online, gaining much interest from consumers all around the world.
-Seoul’s Shopping Spree
In South Korea, the culture of Black Friday has spread due to promotions of both the government and businesses. In 2015, the government launched the Korea Black Friday (KBF) project to boost consumption amidst the economic downturn caused by the MERS epidemic. Initially, this project was unsuccessful due to poor publicity and limited discounts. In 2016, however, it was renamed Korea Sale Festa (KSF), and by 2019, its organizing body shifted from the government to the private sector, actively incorporating industry feedback. Today, supported by the Ministry of Trade, Industry, and Energy (MOTIE), the KSF is a nationwide event that combines shopping, culture, and festivals. Participation has greatly increased, from 341 companies in 2016 to 2,539 in 2023, and consumers have especially enjoyed the discounts on domestic cars and electronics. From this year on, it will permanently be held from the second Saturday of November to the 30th annually. Alongside this trend, domestic companies have also individually embraced Black Friday, with online retailers being particularly active in using the term to capture consumer interest. For example, Musinsa joined the KBF project as early as 2015, and since then, it has made Black Friday its largest event of the year. It additionally launched the Mujinjang Summer Black Friday event in 2023, which set new sales records. Today, Black Friday is no longer an unfamiliar concept in Korea but rather a major commercial event.
Deal or No Deal?
-A Win-Win for All
Black Friday carries both social and economic benefits. For businesses, it presents an excellent opportunity to clear inventory, attract new customers, and effectively boost sales. In the U.S., because retailers typically operate in large warehouse-style stores, they must clear out the old stock at year-end to make room for new products. Black Friday allows them to do so by selling items at low prices, thus efficiently managing inventory and improving their financial position. This, in turn, provides a chance for consumers to shop cost-effectively and participate in the tradition of exchanging Christmas gifts. In contrast, most retailers in Korea operate as intermediaries between suppliers and consumers, so inventory clearance is less of a priority. However, Black Friday still proves beneficial for both domestic businesses and consumers. MOTIE estimated that major participating companies, including both manufacturers and retailers, generated approximately \5 trillion in sales during the 2022 KSF. Additionally, a survey conducted by the research panel Embrain in December 2023 found that around 70% of the 1,000 respondents from Korea agreed that “Black Friday is a great opportunity to purchase products at affordable prices.” As such, Black Friday creates a mutually beneficial relationship between producers and consumers, which helps stimulate the economy.
-The True Price of Black Friday
On the other hand, Black Friday has several drawbacks, with one of the most prominent being that it excessively stimulates consumer greed. In the past, when shopping was mainly done offline, consumers would rush to secure discounted products, often resulting in dangerous situations such as shootings and stampedes. For example, in 2021, a shopping mall in North Carolina, U.S. was shut down for the entire day after three people were shot during Black Friday shopping. Although the rise of e-commerce has partially reduced such incidents, Black Friday is still criticized for promoting overconsumption. In an interview with the SKT, a shopper in his twenties confessed, “During the Black Friday season, I always end up purchasing much more than I intended because of the irresistible advertisements.” This surge of consumerism also has environmental consequences. Often exacerbated by free shipping offers, the sharp increase in packaging and delivery during Black Friday leads to high carbon emissions. According to the European NGO Transport & Environment, deliveries during the Black Friday week in 2022 released about 1.2 million tons of carbon dioxide across Europe, which is nearly double the emissions of an average week. In Korea, Black Friday has shown additional limitations, as some domestic online retailers have been caught deceiving consumers. Reports of such corporate misconduct have increased, such as intentionally adjusting prices just before Black Friday or restricting coupon use at checkout. As these issues become increasingly spotlighted, Black Friday faces growing criticism for taking unjust advantage of consumers and the environment.
The Future of the Holiday
-Green is the New Black
In recent years, a movement known as Green Friday has emerged to counter the negative impacts of Black Friday and promote sustainable consumption. Green Friday seeks to raise awareness about the ecological consequences of shopping, encouraging consumers and businesses to prioritize environmental protection. Various companies are beginning to embrace the spirit of Green Friday — for instance, the British electronics retailer Currys focused its discounts primarily on energy-efficient devices during its 2023 Green Friday campaign. Similarly, IKEA Korea promoted sustainability during its 2022 Green Friday event, by purchasing and upcycling old furniture from consumers. These programs provided consumers with a fresh perspective on responsible consumption. Meanwhile, consumers can participate in the Green Friday movement as well, without necessarily boycotting Black Friday altogether. Even simple actions can contribute to the movement — such as carefully assessing the need for a new product or evaluating the sustainability of brands. In an interview with the SKT, climate energy campaigner Shin Min-ju of the NGO Greenpeace Korea explained, “Among the overwhelming flood of advertisements, consumers should take a moment to seriously reflect on the consequences of Black Friday.” Likewise, if both companies and consumers continue to practice responsibility, the future of Black Friday could become significantly greener.
-New Directions for Korea
Due to its distinct advantages and disadvantages, Black Friday has become a controversial issue around the world. Therefore, Korea must navigate the complexities of Black Friday carefully over the years to come. Currently, it is generally evaluated as having the potential to stimulate the economy during recession, as it has played a key role in boosting the growth of small and medium-sized businesses. According to the government news website Korea Policy Briefing, CEO Kang of De Marc, a small-sized fashion brand, reported a 20-30% increase in sales and higher brand awareness in November 2023, thanks to the KSF. Thus, for Black Friday to continue enhancing the Korean economy, it is essential to build on this positive momentum, while ensuring that companies uphold sales ethics. Musinsa, for instance, informed its partnering brands in June 2023 that it would strictly monitor discounts in order to prevent deceptive pricing tactics, which is a commendable act that other companies should follow. By strengthening transparency to regain consumer trust, Black Friday can surely be established as a meaningful event in Korea that benefits both the nation’s people and economy.
Black is the ultimate, unmatched color — even a single drop of it alters the entire palette. This year’s Black Friday will undoubtedly spill its share of black into the world, but whether it paints the economy, the hearts of consumers, or the Earth’s ecosystem depends entirely on the choices that follow. Kingos, consider carefully how to wield that black on the upcoming 29th.