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Shoppers at Silk Street get a sweetener

By Wang Qian (China Daily)
Updated: 2009-04-24 07:40

Beijing's Silk Street market has long been popular with foreigners for bargains.

But buyers are in for a surprise: A better bargain.

The eponymous shopping venue has started giving out discount coupons worth 20 million yuan ($2.9 million) as it battles the global downturn and sheds its image as a destination for cheap knock-offs.

Kate Miller and her boyfriend, who live in Russia, were the first lucky customers to use the coupons yesterday.

Miller, an economist, got her money's worth when she saved 145 yuan at Wuyutai teashop on her 10 percent-discount coupon.

"We will definitely come back for more we love the bargaining, and the discount on top of that is a bonus," Miller told China Daily.

This morning, many top-end hotels, travel agencies and airlines in the capital will begin giving out the coupons - which offer discounts of 10 or 20 percent depending on the shop - to their guests and customers.

And there's more to come.

Related readings:  'Silk Street' battles its reputation for bogus goods  More Silk Street shops shut down  Beijing's 'gold rush' at Silk Street  Silk Street satisfies shoppers

"We will soon issue cash coupons to foreigners with a face value of 50 yuan and 100 yuan," Wang Zili, general manager of the market, said yesterday. About nine in 10 customers in the market are foreigners.

Wang told China Daily that the incentives are being offered to overcome the sharp decrease of sales due to the financial crisis but would not give a figure, citing trade secrets.

From Jan 1 to Apr 21, about 3 million people came to the market, a year-on-year decrease of 6.7 percent, according to the figures from the market.

The shopping center is also trying to promote top Chinese brands such as Tongrentang (medicine), Ruifuxiang (silk), Quanjude (roast duck) and Wuyutai (tea).

Jin Wenbiao, manager of the Wuyutai teashop in the market, is pleased with the scheme. He said sales have fallen by at least 30 percent this year; and hopes the discounts and cash coupons lure more customers.

A 20-strong American tour group were also among those enjoying the bargaining and the discounts.

"It is fantastic, because the bargaining is exciting enough, and now you can enjoy an even lower price with discounts. Unbelievable," said Diane Scott, a teacher.

Clutching a handful of coupons, she rushed into a T-shirt store and started bargaining - once the deal was struck, she gleefully produced the coupons.

Saleswomen applauded the use of coupons, because "it is a win-win for both consumers and shop owners", said Xia Yulin, a 21-year-old who sells jackets.

To boost demand, many cities in the country are using discount and cash coupons.

Hangzhou distributed vouchers with a total value of more than 100 million yuan in February. Last week, a total of 186 cities kicked off a week-long promotion, giving out discount coupons to tourist attractions.