No cut in leisure spending during financial crisis
The economics crisis that is forcing to make the world drop into a deep hole seems nothing but distant rumblings to Zhao Yunan, a 27-year-old female sales executive who works at an exhibition organizer locating in Beijing.
Although she has read and heard much about the crisis that affects many people who live in some of the most developed countries around the world, yet she can’t see or feel much change happening around her, she thought the life is as usual as before.
At least for now, Zhao and many other young Chinese executives and professionals are making retailers and caterers from lots of major cities happily. A manager who is operating a bar called Red Moon club, which is located in Beijing’s Sanlitun entertainment district, said that although the business is not very easy to handle for him in winter, his business still goes well especially on weekends.
Of course, the Chinese economy is affected by the global financial crises. Although the mainland stock market currently goes up, yet it has dropped more than 50 percent compared to its peak in Oct 2007. The prices of goods in many developed and even the developing cities have been cut down and it has affected the corporate profits.
The worst news is that hundreds of thousands of staffs who work in Chinese manufacturing area in the Pearl River Delta region of southern China have been out of job because the factories can’t afford any more. Heavy equipment manufacturers and steel mills are declining export.
But till now, the financial crisis hasn’t affected middle-level jobs as the demand for managerial and professional experts is still needed, although the differences have surely shortened in the past 12 months. Affected by a high class of savings, the middle-level in the cities of China are not chasing for food, clothing and entertainment.
According to the newest survey, China’s retail sales in November dropped 20.8 percent compare to 979.08 billion RMB of last year, at the same time, sales of the hotel and catering field growing 25.1 percent, which is higher than 21.6 percent increase in November 2007.
Carol Jiang, who works for an IT company in Beijing, said that people won’t change their spending habits until they realize a serious threat to their lives.
She also said that currently she has a good job and a high salary, and then her life won’t be affected by the financial crisis. To the contrary, she will spend more energy on further education in order to find a better job after the economy improves.
Zhao doesn’t cut the spending on having parties and going out with friends on weekends. In her opinion, nothing will change with saving that money.
The business in Guijie, one of the most well-known dining streets in Beijing goes very well on Friday night as usual. In the hotpot restaurant Haidilao, customers waited patiently in the lobby for tables. No one gave up the an-hour wait which is common on weekend.
Although people seem not to cut their spending, Jiang and Zhao found that the companies they work for are reining in spending.
Zhao has stop customers at cafeterias, so that she will not need to get approvals for reimbursement of the expense which is becoming difficult.
The corporate cost-cutting measures have also been paid attention to by managers of up-scale hotels and restaurants that cater largely to business functions. It is hard to find new clients even with offers of high discounts and other incentives, according to a sales manager of Beijing Beichen InterContinental Hotel.
He said that many conferences and large events, especially those in the finance and IT sectors have been canceled by the clients in the past few months.
Sales strategy also changed in South Beauty restaurant with the focus shifting more to families instead of the business banquets before.
The restaurant are now launching special offers to attract individual customers with discount to its festive cardholders who reserve banquets for family gatherings on weekends and festive holidays.
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