March 8 is
International Women's Day in China and many other countries around the world. Walking around local stores for women's clothing, signs showing "3.8 discount" representing the date 3/8 were everywhere. In China (and Chinatowns across the world), discounts are not calculated as how much off but the ending price percentage X 10. So "3.8 discount" means 62% off.
Shops of course were busy with the big discounts but perhaps the discounts aren't as big as suggested. One store we walked by had a summer dress for 442rmb as the regular price and after 62% was 168rmb. Now 442rmb is definitely beyond the price of the average Chinese worker who earns 2000rmb/mo. Even an middle class office worker earning 3000rmb/mo would think twice about 14% of their income on a single item of clothing. So in all likelihood, the sales clerks will start at 20% off just in case the customer is a naive overseas tourist but then go down to 40% to 50% off for locals. At 50% off, the price would be 221rmb which is still a very handsome amount -- none of my wife's friends here in China would consider buying a dress for that price. Even my wife, after reacquiring her local knowledge, would pass on it although $33 for a dress back in the USA would not have been out of the ordinary. It seems though at some number, the discount becomes too tempting and 3.8 looks to have triggered many to buy -- after all, 3/8 won't come again for another year.
(Filed in economics)
Sales Psychology
Posted by Mossy
March 8, 2010 6:03 AM
Shops of course were busy with the big discounts but perhaps the discounts aren't as big as suggested. One store we walked by had a summer dress for 442rmb as the regular price and after 62% was 168rmb. Now 442rmb is definitely beyond the price of the average Chinese worker who earns 2000rmb/mo. Even an middle class office worker earning 3000rmb/mo would think twice about 14% of their income on a single item of clothing. So in all likelihood, the sales clerks will start at 20% off just in case the customer is a naive overseas tourist but then go down to 40% to 50% off for locals. At 50% off, the price would be 221rmb which is still a very handsome amount -- none of my wife's friends here in China would consider buying a dress for that price. Even my wife, after reacquiring her local knowledge, would pass on it although $33 for a dress back in the USA would not have been out of the ordinary. It seems though at some number, the discount becomes too tempting and 3.8 looks to have triggered many to buy -- after all, 3/8 won't come again for another year.
(Filed in economics)
Leave a comment