Crimped by the weakening of ringgit and the dramatic plunge in crude oil prices, local businesses are bracing for a tough Chinese New Year (CNY) season.
To cope with the economic slowdown, most businesses employ a “small profits, quick turnover” strategy to ramp up their CNY sales ahead of the Feb 19-20 festivities.
This is done by slashing prices, resulting in lower profit margin but bolstered by high volume sales.
Some of the small and medium-sized Chinese grocery stores have to absorb the extra cost instead of passing it on to their consumers.
A number of small wholesale stores have taken the initiative to reduce their stock purchases to avoid possible unsaleable items.
Nevertheless, big shopping malls are not expecting the pinch much and are upbeat in their CNY sales as they see themselves as the main venue for consumers to purchase their Lunar New Year necessities.
Read more here: http://www.malaysiakini.com/news/287577
Article by Yap Jia Hee
Photo by Lim Huey Teng
A bleak Chinese New Year for small businesses
Crimped by the weakening of ringgit and the dramatic plunge in crude oil prices, local businesses are bracing for a tough Chinese New Year (CNY) season. To cope with the economic slowdown, most businesses employ a “small profits, quick turnover” strategy to ramp up their CNY sales ahead of the Feb 19-20 festivities. This is done by slashing prices, resulting in lower profit margin but bolstered by high volume sales. Some of the small and medium-sized Chinese grocery stores have to absorb the extra cost instead of passing it on to their consumers. A number of small wholesale stores have taken the initiative to reduce their stock purchases to avoid possible unsaleable items. Nevertheless, big shopping malls are not expecting the pinch much and are upbeat in their CNY sales as they see themselves as the main venue for consumers to purchase their Lunar New Year necessities. Read more here: http://www.malaysiakini.com/news/287577 Article by Yap Jia Hee Photo by Lim Huey Teng
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