China, the People's Republic of Discounting

Cita: 

Lee, Justina y Vinicy Chan [2012], “China, the People's Republic of Discounting”, Business Week, New York, 9 de agosto, http://www.bloomberg.com/bw/articles/2012-08-09/china-the-peoples-republ...

Fuente: 
Business Week
Fecha de publicación: 
Jueves, Agosto 9, 2012
Idea principal: 

About a year ago, Chinese shoppers were in full-on conspicuous-consumption mode. This year's economic slowdown has crushed the market for high-end corporate swag and set off a wave of discounting across Chinese retailing. Executives are now choosing watches that cost 40% less, says William Li, CFO of Hong Kong jewelry retailer Luk Fook Holdings. China's per capita spending on Swiss timepieces is six times that of the US and double the level of France, according to research by Frankfurt-based investment bank MainFirst Bank. To lure increasingly price-sensitive shoppers, companies from electronics retailers to footwear makers are cutting prices even if that means driving down earnings. Retail sales grew 13.7% in June from the year before. That kind of discounting is what it takes these days to get the attention of budget-conscious consumers.