MarketRevenge buying
Company Profile

Revenge buying

Revenge buying refers to a sudden surge in the purchase of consumer goods after people are denied the opportunity to shop for extended periods of time. The revenge buying mechanism is thought to have evolved as a reaction to the frustration and psychological discomfort caused by restrictions in the freedom of movement and commerce. Unlike panic buying, revenge buying appears to involve the purchase of superfluous goods, such as bags and clothing, as well as decorative objects such as gems and jewellery. The industries revolving around the production of these objects, a major source of revenue for the retail sector, saw huge losses during the lockdowns induced by the COVID-19 pandemic.

Examples
In China, the Cultural Revolution during the 1960s and COVID-19 crisis nearly sixty years later are examples of collective traumas that resulted in revenge buying. It reoccurred in China in April 2020, when the lockdown was mostly lifted and markets reopened. At that time, the French luxury brand Hermès made US$2.7 million in sales in a single day. According to a March 2020 article in Business Insider, retail sales dropped 20.5 percent after the pandemic hit China—a percentage not seen since the 2008 financial crisis. The apparel industry suffered greatly during the pandemic; several notable retailers, including J. Crew, Neiman Marcus, J.C. Penney, Brooks Brothers, Ascena Retail Group, Debenhams, Arcadia Group, GNC, and Lord & Taylor, filed for bankruptcy. , the volume of total retail sales recovered to similar levels as before the COVID-19 pandemic. China was the first country hit by the COVID-19 pandemic; by the summer 2020, it had successfully contained community transmission and thereafter lifted significant restrictions. The term revenge buying entered popular consciousness with the immediate economic recovery of the French fashion company Hermès, which recorded $2.7 million in sales at its flagship store in Guangzhou, China, on the day it reopened in April 2020, setting a record for most single-day shopping at any luxury outlet in China. A similar level of consumer enthusiasm was observed by the press in the United States and Europe after their economies mostly reopened in April 2021. == Explanation ==
Explanation
According to sociologists, compulsive and impulsive buying behaviors, such as panic buying and revenge buying, are coping mechanisms that relieve negative feelings. == See also ==
tickerdossier.comtickerdossier.substack.com