Black Friday in Iran: A Showcase of Poverty

The past week saw a surge of Black Friday advertisements and discounts promising an exciting shopping experience for consumers in Iran. This initial excitement quickly turned into widespread disappointment. Many businesses exploited the daily struggles of poverty to sell dreams, advertising significant discounts that failed to materialize. Consumers encountered issues such as website crashes, failed purchases, and unchanged product prices at checkout.

Experts assert that these practices harm not only business reputations but also have broader social consequences. Corporate social responsibility, they say, goes beyond charitable actions. It includes maintaining public trust, a cornerstone of sustainable business practices.

Distorted Purpose and Eroded Trust

Globally, Black Friday serves as a way for businesses to clear inventory and reduce costs. In Iran, however, the event has devolved into a showcase for fake discounts. This shift has undermined its purpose and led to declining consumer confidence.

Amir Mohammad Tahamtan, head of insights at Digipay, explained the impact of Black Friday in Iran during an interview with Digiato. He stated that the event, originally rooted in foreign markets and cultures, does not align with the scale or practices of Iranian businesses. Despite this, it has gained traction. Unfortunately, even large companies are offering discounts that fail to deliver genuine value.

Tahamtan emphasized that unmet promises damage brands. He explained, "In branding, keeping promises is essential. Customers pay close attention to whether businesses fulfill their advertised commitments. Dissatisfaction is not solely about product quality, pricing, or service; unmet expectations, known as Brand Transgression, also play a role."

Social Consequences of Fake Discounts

The implications of deceptive discounts extend beyond branding. They have deeper social consequences in a nation grappling with high inflation. Many people face challenges purchasing essential items. False discounts create temporary hope, only to result in disappointment and dissatisfaction.

Tahamtan noted that some companies prioritize user traffic over trust. "Our society has faced years of inflation. People seek ways to enhance their purchasing power. Fake discounts erode public trust and reduce hope in businesses," he said. He added that businesses bear social responsibility, which includes avoiding practices that harm public trust.

Herd behavior, a concept in behavioral economics, exacerbates the issue. Tahamtan explained that individuals may impulsively buy products influenced by others, often leading to stress. He criticized businesses that exploit this behavior, especially during times of economic and social hardship.

The Need for Transparency and Innovation

Tahamtan concluded by contrasting Iran’s economic context with global markets. Black Friday abroad helps clear inventory and reduces storage costs, making economic sense. In Iran, however, inflation complicates this logic. Products purchased today are likely to be significantly more expensive next year. Businesses should consider alternative strategies tailored to Iran’s unique economic and social conditions.

This year’s Black Friday highlighted the erosion of public trust in Iranian markets. Unless businesses prioritize transparency, honesty, and strategies suited to Iran’s context, the cycle of consumer despair will persist.