Some 92% of small business owners stated they felt their decision was correct, and appropriate and were not financially disadvantaged. Six percent did not respond to the question.

The reasons given for non-participation were insightful:

REASONS FOR NON-PARTICIPATION

1. Too expensive to promote/advertise.

2. Discounting (50%) is unprofitable.

3. Do not have ‘big ticket’ merchandise.

4. Lack of stock.

5. Does not attract new customers

6. Margins squeezed, turnover constant.

7. Event incompatible with business model (online, discount, delivery).

8. Inadequate online capabilities.

9. Excessive cost of delivery.

10. Limited resources (staff).

Ninety three percent of respondents did not participate in Cyber Monday, which was conducted on Monday, 28 November.

These are the research findings highlights of a national online study conducted among a panel of small business owners by Marketing Focus on Tuesday and Wednesday, 29, 30 November. A total 810 respondents participated.

Market research leader, Barry Urquhart said:

“Most participants identified Black Friday to be primarily an online event. Their sales in those channels ranged from 0% to 29%, averaging marginally less than 8% of total revenue.

There was no significant difference in responses between five mainland capital cities.

Upfront costs and lack of appropriate supportive infrastructure were major qualifiers in the appeal of, and capabilities needed for ‘Black Friday’ in particular.

The overall findings correspond closely to those among members of the British Independent Retailers Association. In that instance, participation in Black Friday was less this year than last.

Notably, in USA, “Black Friday” online sales declined marginally, in 2022, offset by increased foot traffic in bricks ‘n’ mortar stores.

Clearly, the owners of Australian small businesses recognise their limitations. An absence of more expensive ‘big ticket’ merchandise, a reluctance to promote 50% + discounts and the on-cost of deliveries weighed heavily in many of the decisions.

Significantly, non-participation in “Black Friday” was almost universally considered to be a correct and appropriate choice.

References were made about the compromising and commoditising of the “Black Friday” concept, with some retailers promoting “Black November,” “Black Week,” “Black Wednesday,” and extended event periods.

“Black Friday” remains the highest volume event in the annual retail calendar. However, it is obviously not for every Australian retail business.”

NEWSBRIEF: RECESSION

It is reasonable to conclude that currently recession

is a state of mind, rather than a state of the economy.

Recession is hot news.

However, governments, banks, finance regulatory authorities, economists and analysts can’t agree on what exactly constitutes a recession.

Despite consistently poor and negative statistics, calls of recession for the economies of Britain, USA and other leading OECD nations are rare.

There is no unanimity in the assessments of Australia.

Recession-like indicators, including falling foot-traffic in businesses, tightened cash-flows, rising costs of living, restricted trading hours, reduced inventories, and bare merchandise shelves abound.

Significantly higher interest rates, increasing evidence of “mortgage stress” and falling real estate prices are impacting on consumer sentiments, perceptions, and expenditure patterns.

RECESSION – A STATE OF MIND

Some consumers are noticeably adjusting consumption patterns.

There is a pronounced divide between older and younger Australians.

A 30 year-plus absence of recession in Australia means that two generations of individuals (aged under 45 years) have not experienced those conditions in their working lives.

Their expectations (and associated spending patterns) differ from those in the older aged cohort. The full impacts and consequences of a series of official interest rate increases have not yet materially impacted because of the economic lag.

That explains in part the continued strength in retail demand and revenue.

BACKGROUND INFORMATION

A series of attitudinal research sessions conducted in each mainland capital city by Marketing Focus has revealed younger Australians are sensitive to the prospect of a recession, but do not have consistent and comprehensive expectations of the impact a recession will have on their lifestyles and financial well-being. A relatively high percentage of “financial literacy” will compound the ultimate impact.

Older consumers (aged 45 years-plus) have lowered or slowed their intentions to downsize residences and lifestyles. Intended expenditures on vacations, interstate and international travel remain current. So too do outlays on entertainment and dining out.

RESEARCH ANALYSIS

Lead researcher, Barry Urquhart of Marketing Focus said:

“There is a noticeable divide between older and younger Australians about the nature and consequences of a recession.

Those age 45 years plus have greater expectations, based on past experiences, of a pending recession and the resultant need to contain expenditures. It is they who have already or are planning to reduce expenditure on everyday living items and discretionary purchases.

People aged less than 45 years have maintained recent purchase patterns. Real estate prices are the primary concern for this segment.

It is significant that the economic fundamentals relating to recession have not yet affected widespread and universal changes in consumer expenditure.

That reinforces the contention and conclusion that currently recession is a state of mind, rather than a state of the economy.”

COMMENTARY TEXTS

THE MOST FRIGHTENING HEADLINE EVER

Be scared… very scared, particularly if you’re in business.

“I’ll Redo Capitalism: Chalmers” is arguably the most petrifying headline statement ever of intent and possible reality in Australia’s relatively short history.

Greater government intervention, centralised control and increased intervention reeks of disturbing broadening socialism. Leading the charge is Federal Treasurer, Jim Chalmers, who personifies “unskilled labour” (possibly Labor). He is not an economist, a qualified or experienced financier or former business leader who has a record of success, growth, wealth creation or employment generation. His PHD is in political science. His thesis was on the Treasurership of Paul Keating.

Jim Chalmers was previously essentially a political party apparatchik.

A pledge of remaking and redesigning a faltering imperfect free-market economy should send shudders up the back of all Australians, including business leaders, owners, and managers.

The legacies and lessons of past Federal Labor financial and capital leadership are disturbing, and expensive.

ALP Senator, Stephen Conroy introduced NBN, with no evidence of a detailed or peer-reviewed cost-benefit analysis. The much delayed, under-performing, expensive and variably slow network cost some two and a half times the initial verbal estimate. Its current market value is much below the outlay.

Former Federal Treasurer, Wayne Swan was the nation’s own Black Swan event. A journalist once asked him what was the operating interest rate. He quoted the official interest rate. No business, Federal, State or local government, tax payer or individual ever pays the official rate on their debts. Little wonder his six consecutive projections of Federal budget surplus were consistently and increasingly wrong. They were deficits he left us all.

And who could forget Rex Connor from the Whitlam government and his proposal for borrowing some $4 billion, which was labelled the loans affair or the Khemlani Affair.

One could expect little more with John Kerin as Treasurer. He may have had difficulty spelling the words treasury, economics, and fiscal prudence.

WHO PAYS?

Accountability, transparency, authenticity and integrity are important benchmarks and measures in politics and commerce.

It seems amazing that a single Australian politician can have the belief that he alone has all the answers that allude the many active and engaged participants in a dynamic faltering, challenging free-market economy. Alas, a self-declared saviour.

Good intentions don’t guarantee good outcomes.

If this is first phase of an awakening of Australians to the true nature of the Albanese Federal Labor government, then the prospects of positive outcomes for the referendum on the Voice, a carbon neutral economy, improved aged care and upgraded health have been dealt a severe blow.

START A CONVERSATION

It is important that we each start a conversation on this important, vexed topic.

Don’t sit back.

Rather,

· STEP UP

· STAND UP

· SPEAK UP

And make sure that you share this text.

Barry Urquhart

Marketing Strategist

Marketing Focus

M: 041 983 5555

E: urquhart@marketingfocus.net.au

W: www.marketingfocus.net.au