What is revenge shopping? Will it happen after corona pandemic?

Will revenge shopping happen once the pandemic loosens its grip on the world and relaxes the restrictions? It is expected though it is not certain since the coronavirus pandemic has also made people of the world poorer. But what exactly is revenge shopping?

What is revenge shopping? 

Revenge shopping is a term used to describe expenditure on luxury goods beyond demand after a period of lull due to any reason. The current pandemic could be taken as a time in everybody's lives when purchases are limited to demands. But once the pandemic is gone, people might resort to revenge shopping and splurge money on luxury items that may not necessarily need. People usually shop as per demand or to overcome stress or depression. Some may do it for status. But in revenge shopping, it is shopping after fate creates circumstances wherein one was unable to go out and shop.

 

What are its historical predecessors?

During the Cultural Revolution of China, their government closed its borders to the world. Many lost their lives and it was a period of unhappiness and gloom. The citizens had nothing to look forward to. Later, as things eased, in the 1970s the country began to better its economy. People started having means to purchase goods including foreign-manufactured products. In 1980s, this had become a regular feature. The Chinese coined the term baofuxing xiaofei for it which means Revenge Buying. The Chinese did this in April 2020 as well after the corona infection cases were slightly controlled. A Hermes store in China recorded sales amounting to $2.8 million worth of goods. The country's share in global luxury buying doubled to 20% at end of 2020. 

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Will there be such shopping after the pandemic?

There are reasons to believe that after the pandemic when people's travel freedom is restored, people worldwide might enter into the phase of revenge shopping. Bloomberg reports that Americans have saved a lot of money during this pandemic. The excess amount saved is as high as $1.7 trillion. The French Economic Observatory also found that the people of France saved approximately $ 66 billion in 2020. This would translate to revenge shopping once the pandemic ends. Lamborghini was sold out for most part of the year. This implies that people are ready and motivated to splurge money once restrictions are rolled back. 

In countries like India where poor, ill-thought reforms by the Central government led to more economical depression, revenge shopping might not be seen. A recent Pew Research report states:

"Prior to the pandemic, it was anticipated that 99 million people in India would belong in the global middle class in 2020. A year into the pandemic, this number is estimated to be have been 66 million, cut by a third. Meanwhile, the number of poor in India is projected to have reached 134 million, more than double the 59 million expected prior to the recession. The poverty rate in India likely rose to 9.7% in 2020, up sharply from the January 2020 forecast of 4.3%."