Wuhan Merchants Sit and Wait for Demand to Rebound
Chen Rui | Wang He
DATE:  Jun 09 2020
/ SOURCE:  Yicai
Wuhan Merchants Sit and Wait for Demand to Rebound Wuhan Merchants Sit and Wait for Demand to Rebound

(Yicai Global) June 9 -- One of the most fitting places to examine the profound changes in consumer demand that the Covid-19 pandemic has caused is Wuhan's wholesale markets.

YiMagazine has interviewed Wuhan residents in an attempt to get a grip on how they move on with their lives after the city's lockdown. This is the sixth article in the series.

Wuhan's Hanzheng Street is one of China's earliest wholesale marketplaces. Jiang Lian's family has been running a store in the area for 25 years and now it's her turn to take care of the bedding business. Amid intensifying e-commerce rivalry, her sales had been stable.

Jiang had prepared herself for a sluggish start after the lockdown ended in April. She predicted to make about CNY2,000 (USD283) a day even after a month since the store reopened. But the reality is harder to accept as sales are basically non-existent. However, she has more than CNY1 million (USD141,283) worth of products in inventory.

Three salespersons used to stand by the door at Jiang's store to welcome clients. But now when Jiang walks around the market, most salespeople seem to be comfortably sitting down. "Bedding is not a consumer staple," Jiang says, adding that people are looking to reduce unnecessary expenses as much as possible because of their decreasing incomes.

That's why downsizing is unavoidable. Jiang cannot afford to pay the monthly CNY20,000 (USD2,826) store rent and CNY4,000 sales attendant salary to all her employees. She has already asked if the landlord could cut the rent for February and March because the store was forced to remain shut then. But the landlord did not agree.

Fortunately, Jiang's husband, who used to run the bedding store with her, decided to go and find another job last year. The husband is now working in the communications industry and earns a steady income, which has become so important for the family. It gives Jiang more time and space to remain optimistic.

Editor: Emmi Laine

 

Follow Yicai Global on
Keywords:   Wuhan,COVID-19