Archive for the 'Retail Business' Category

The Start of 2008 with Bargain Sales - Sign of Pessimistic Outlook of the Economy?

“Bargain sales start January 1!” “Winter Bargain Sales!!”

There are many hanging posters on Tokyo’s trains and subways advertising winter bargain sales. When you turn on TV programs, you see commercials about bargain sales at least once a day.

Boosting consumer consumption by bargain sales
It was not that way a couple of years ago. Department stores and shopping centres were closed for the first three days of the New Year. The department stores held bargain sales in February.

One of the main reasons for the bargain sales now is that retail stores are trying to stimulate consumers’ appetites to purchase items during the New Year holidays. Boosting sales is particularly important this year; consumer consumption confidence in November was a record low since April 2003, according to the consumer confidence survey by the Cabinet Office.

Yes, winter bargain sales attract people
Regardless of the volume of sales, these bargains attract people. For example, I saw a large crowd at the Makuhari Gargen Walk Outlet Mall in Chiba on the morning of January 1! (I was one of them, of course.) As you can imagine, the majority of customers at the shopping malls and department stores were females. Men and children accompanied their wives or girlfriends.

INSIGHTS OUT –

Price sensitivity increases
Along with economic concerns, Japanese consumers have become more sensitive to prices even for clothes. According to consumer surveys in 2005 by the Japan Apparel Industry Council, more women considered reasonable prices were important for selecting clothes than in 1999. Conversely, good quality in clothes became less important for the purchase.

Bargain sales are part of the New Year events
Almost all of the shopping malls and department stores hold the New Year events for the first three days of the new year. Main New Year attractions include sales of “Fukubukuro” (lucky bag) and traditional performances such as “Shishimai” (Lion dance), and “Mochi tuki” (Mochi pounding). Husbands walk around the stores while their wives shop for clothes for themselves and their children; they also dine together at restaurants.

The bargain sales are held at most shopping centres for at least the first three days of the New Year. I am curious about how many people shop around the bargain sales. I admire the power of customers (probably women) who do so. I would also like to say “Otukare sama” (good job) for the husband who accompanies his wife for all of her shopping…

 


January 04 2008 | Retail Business | No Comments »