What is revenge buying and how did it come into existence?

What is Revenge Buying and how has it come into existence?

 

France recently began lifting its lockdown as its number of new coronavirus cases and deaths has decreased significantly. As a result, pictures and videos of people lining up outside high-street stores started circulating on social media. The store which seemed to have the most people lining up to get inside was Zara. Some people voiced their confusion in consumers’ choices to rush to Zara once lockdown has lifted. This to me however, was not surprising but reminded me of a phenomenon which took place in China when lockdown restrictions were lifted.

https://twitter.com/i/status/1259807539451043840

https://twitter.com/AnaVTG/status/1260514836691202050

This phenomenon is known as “revenge buying”.

Unlike panic buying - which we saw early in the coronavirus breakout where consumers tried to stock up on essential item such as toilet roll, hand sanitizer, and soaps as well foodstuffs – revenge buying is what happens when consumers start splurging money on inessential and or expensive goods such as luxury fashion. It seems once lockdown is lifted people rush to start buying all the things that they couldn’t buy when restrictions were put in place.

The day that it’s Flagship store in Guangzhou, reopened, luxury brand Hermès (known for its iconic and expensive Birkin bags), pulled in $2.7 million from wealthy Chinese consumers in a flurry of revenge buying.

If this phenomenon repeats itself worldwide, luxury and high fashion brands may not suffer financially as much as previously expected. This of course may however, result countries dealing with second waves of coronavirus cases which several news sources say China may be bracing for.

Revenge buying as a concept, very much represents consumers impulsive desire to buy goods that one does not need and post-pandemic it may be a chance to examine the reasons consumers are so drawn to invest in inessential goods.

K. Iruwa