Private entrepreneurs and small retailers alike are feeling the pinch of the government's drive to cut extravagance. Among the sectors being hard hit is the industry that has long relied on the annual exchange of calendars among government agencies and State enterprises.

Huang Wumei, a sales manager in Wenzhou, Zhejiang - a province known for small private businesses - said she didn't initially expect her company would feel any impact from the frugality campaign. But it did.

Sizhou Printing Co, the largest calendar manufacturer in Cangnan county, Wenzhou, is experiencing record losses after the cancellation of many big orders for desk calendars and postcards.