| I cannot say for sure how of a price decrease this promotion represents. However, there are several factors going on to make for lines like this.
1. Many in China are dirt poor. I live in Shanghai, and the one rmb buses are twice as crowded as the 2 rmb bus. It does make a difference. 2. The retail market for big box developments and malls is largely saturated, so the idea of a loss leader sale is catching on very fast. I have noticed several around town, in Carrefore and Hymall alike. 3. I saw several old women fighting over loss leader priced cabbage this winter. This was at a Hymall in QiBao town, near the Hongqiao airport. To honor the opening of the store and steal competition from another similar retailer only 500 meters down the road, the Hymall sold several staple vegetables at about half of their normal cost. Near riots ensued. Many people shoved and pushed to get at the product, and argued viciously with the stock clerks when the supply ran out, while the near estatic victors carried off their meager rations like loot from a temple. Ugh. It was an eye opener... |
Price Rules in China Market