Doing business in China? Shrinkage

While fighting American companies Economic inflationThose in China oppose something differently: shrinkage.

Beyuan Grand Hotel in Beiyuan Grand created kiosks in the evening to serve the dishes for passers-by-where consumers and Chinese companies cut travel, banquets and events. Chef Wang cooks the specialized fried bathroom there, not in the hotel’s restaurant but on the sidewalk.

“When we sold fried bathroom inside the hotel’s restaurant, we used to sell only from 60 to 70 a day,” Wang said. “Now we sell about 200.”

But those sales come at a discount prices.

Before, it cost each fried pigeon $ 8. Today, they go for $ 5.30.

Low prices is a problem with the Chinese economy. This comes as consumers, not sure of the future, looking for value.

On his way home from work, Pin Chiang picked up a ducks, duck wings, and steamed cakes from beyuan for a little more than $ 4.

“The economy does not work well,” he said. “The food is very clean and the quality is good.”

Another factor that presses Chinese prices is the excessive capacity of everything from Electric vehicles And solar panels for food delivery services, which leads to what is described in China as “engagement” or competition from sweat to half.

Delivery of food is one of the most competitive battlefields. Market captain Meituan faces a Cutthroat competition from Alibaba and JD.com. They all presented discounts on the voucher for fighting for business that reduced prices.

The Chinese government, which is concerned about the deviation of shrinkage, has interfered with the warnings and revised regulations to control prices.

The country was appointed for publication Consumer price index And the producers’ price index data for August on Wednesday. Goldman Sachs expects to remain “very negative”, as the product price index has decreased by 2.9 % on an annual basis. The bank believes that the consumer price index is “moderate”, and it decreases by 0.2 % from last year.

In the environment, consumer patterns change.

Used luxury goods require this high online demand that the old online product seller Zhuanzhuan opened the financial Superstore this summer in downtown Beijing.

For Chinese consumers like Hao Wenli, it was socially unacceptable not to buy new.

This no longer carries the stigma.

“We hardly go to luxury stores anymore,” she said. “It is now time to earn money, so why don’t you shop in such places and save?”