Unique promotions In the context of inflation discounts on price margins

Source: Internet
Author: User
Keywords Inflation in the context of
Every reporter Cai from Shenzhen December 23 morning 10, just opened the door of Shenzhen Huaqiang North Mao Industry department store an anti-usual deserted scene, a large number of guests excitedly influx, selection, inquiry, try to wear.  Businesses are also standing by, even setting up special cash registers at individual brands. This is just the beginning of the year-end discount season. "Daily economic news" reporter noted that, with the Christmas, New Year's Day approaching, Shenzhen Tianhong shopping malls, Wal-Mart and other major business super has been on the strength, changing the pattern ready to a variety of discounts "pry open" people cover tight money bag.  But in this year's inflationary climate, the discount war is destined to look different. A manufacturer who declined to be named said reluctantly to reporters: "The year-end funds need to return, everyone discounts, you do not discount means to lose market share." "Engaged in the FMCG industry for many years a senior personage also told the Reporter:" In fact, prices and discounts are not contradictory. Most of the cases are on the side of the price and discounts. Inflation is serious this year, and the price increase is certainly a big trend. But most manufacturers will choose to increase prices first and then discount. After discounting, although the margin is relatively low, but this is accidental behavior, in line with the long-term marketing strategy manufacturers. Who is paying for discounts in a wave of discounts? The FMCG industry said: "Discount concessions are most of the production enterprises to pay their own bills, promotional activities generally need to give businesses some promotional expenses." But the production enterprise has the pricing power, now the cost pressure is big, some supermarkets may accept the expense less. "In the interview, the reporter found that the current high inflation has become a chance for some businesses." For example, a head of the Mao department store said: "Inflation makes the price of goods rise, but increase our commission income." At the same time, since most of our department stores are owned properties and are not under the pressure of rent increases, the current inflationary environment is beneficial to the overall operation of the enterprises. ”
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