Business in China? Deflation factor

While US companies were wrinkling inflationThey in China are very different against something: deflation.

High-End Beijing Hotel Beiiuan Grand sets stabila in the evening to serve dishes to passers – as Chinese consumers and companies cut on travel, banquets and events. Chef Wang cooks its specially fried pigeon, not at the hotel restaurant than on the sidewalk.

“When we sold fried pigeons inside the hotel in the restaurant, we sold only 60 to 70 a day,” Wang said. “Now we sell around 200.”

But that sales come in reduced prices.

Before, each fried pigeon costs $ 8. They go for $ 5.30 today.

Filed prices are a problem in the Chinese economy. It’s like consumers, insecure in the future, they hunted for the value.

On the way home from work, Van Kiang picked up a gourmet dinner for ducks, ducks and parićene Buns from Beiiiuja for slightly more than $ 4.

“The economy doesn’t do it well,” he said. “Food is very clean and quality is good.”

Another pressure factor on Chinese prices is excess capacity in everything Electric vehicles and solar panels to food delivery services, which leads to what is described in China as “involving” or competition at the bottom at the bottom.

Food delivery is one of the most favorable competing battlefields. Meituan market leader faces competition Cutthroat from Alibabe and JD.com. Everyone offered discounts of coupons to fight business by bringing prices down.

The Chinese government, concerned about the deflation that becomes stiff, assigned with warning and revised pricing control regulations.

The land is set to post Consumer price index and produced data on the price index for August on Wednesday. Goldman Sachs predicts wholesale price prices will remain “deeply negatively”, with an index of producer pricing that applies 2.9% of the year in the year. The bank sees the consumer price index as “moderately negative”, falling 0.2% from a year ago.

In the deflation environment, consumer forms are changing.

The used luxury goods are in such a large strip that Vintage Product Seller has opened the physical suzerore of this summer in the center of Beijing.

For the empty of Chinese consumers like Hao Venlia, it used to be that it was once socially unacceptable not to buy new.

It doesn’t wear a stigma anymore.

“We’re hard to go to luxury shops anymore,” she said. “It’s hard to make money now, so why not sell in places like this and save?”