BREAKING CHINESE BUYING HABITS.

(From Market - Asia Pacific)

China is quickly emerging as a major force in global consumption but deeply ingrained buying habits of the average citizen are slow to change

Only about 10 percent of China's 40 million households have a "Western" level of disposable income, but they represent a vast untapped market for major retail chains that are only now getting a foothold in that market. In the largest cities of the eastern delta region, retailers benefit from a relative openness to international retailing concepts but there are still a number of hurdles to be overcome before the expectations of international retail chains and local consumers begin to mesh

China's retail sector is highly specialized and consumers are only beginning to get accustomed to doing much of their shopping under one roof. Leading international home improvement chains are attempting to break the local habit of buying doorknobs, paint, and windows in shops that specialize in those items. Generally speaking, consumers in the delta region are more open to the "megastore" concept

One habit that is particularly hard for Western retail chains to overcome is haggling over prices. The habit of negotiating the final sales price is well established, and many consumers feel that they are not getting a good deal unless the can negotiate a discount at point of sale. One strategy that home improvement centers have developed for overcoming ...