The financial tsunami that has swept the world has made prudent shoppers tighten their wallets, leaving retailers struggling.
Of course, discounts are one of the most alluring ways to attract customers.
Since November, major shopping venues in Beijing including China Central Mall, Shinkong Place, Cuiwei Department Store and Seasons Place, have launched their sale campaigns or so-called "Shopping Festival".
With discounts of up to 70 percent, there are products of over 30 international brands on sale at China Central Mall, including Moschino, Brooks Brothers and Tommy Hilfiger.
Joyce Li, a Juicy Couture fan, was beside herself with joy as some of the brand's products have a 50 percent discount at the Seasons Place.
"It is not very common (to have a) sale of Juicy Couture in Beijing, so I have bought about 10,000 yuan of products here," she said.
China World Shopping Mall held a special discount event of up to 90 percent off at the end of November, in which there were over 50 brands involved, double the number of last year.
A manager from Scitech Plaza said that during its anniversary celebration in December, promotion would be intensified compared to previous years.
However, many retailers downplayed any impact of the financial crisis on their business. Xu Minyue, a manager with Sun Dong An Plaza, said: "So far, there haven't been any great discounts due to the financial crisis as all promotional events have been carried out smoothly like before.
"Besides, we expect better sales this year," she said.
Shang Bo, from Shinkong Place, said: "At present, there is no need for us to expand the promotion scale. We create good shopping surroundings and quality products, rather than cheap goods."
But a luxury saleswoman cited sales declines as some regular customers have become more cautious about their luxury spending due to an uncertain economic situation.
China Central Mall manager Li Bin said in a Beijing Business Daily report that the global economic meltdown hasn't harmed China's retail industry very much, but added that retailers would face more pressure next year.
He said many brands have been worried about their sales in 2009, and the shopping mall will discuss better solutions with them.
"With increasing difficulties even closure of some processing enterprises in Guangdong and some other coastal provinces, the crisis would exert more impact on brands which produce or process their products in China rather than exported brands," Li said.
Industry insiders said it would be wiser for retailers to introduce more competitive brands as well as more middle or lower-end products.
Shopping lovers
Zhang Chi, a 26-year-old shopaholic, is planning to go on a shopping spree during the Christmas season.
"The financial crisis hasn't seen any negative impact on my job and I will still keep buying things especially when the annual 'big sale' season is coming," said Zhang, who works for an entertainment broker company in Beijing.
Lots of consumers hold the same view as Zhang: They think life should keep going no matter how terrible the economy gets.
On www.55bbs.com, one of the most popular online community of shopping lovers in China, members engage in an animated discussion of their shopping plans at the end of the year, show photos of their trophies, and share information about discounts at hundreds of department stores in Beijing, Shanghai and Guangzhou.
A community member named Huo Wang posted pictures of a Hermes' brikin bag and some other luxuries she bought recently and led to over 53 page replies and discussion with much jealousy.
Of course, she is just one of the fashion amateurs active at the community, named "I Fancy Shopping".
China has vowed that it will help the global economy by maintaining strong domestic growth and recently launched a stimulus package with a headline price tag of 4 trillion yuan.
"I'm confident with Chinese economy and the stimulus plan," said Luo Hong, a secretary at an international company who strolled in China World Shopping Mall with her fianc. "Shopping is a way to contribute to the economy," she joked.
"In the longer term, individual private spending is more important because it is more sustainable," Peng Wensheng, an economist with Barclays Capital in Hong Kong, said in a media report.
According to the National Bureau of Statistics, China's annual growth in retail sales slowed to 22 percent in October, totaling 1,008 billion yuan, from 23.2 percent in September.
Statistics showed that spending on recreational goods was up 2.1 percent from October 2007, slowing from an 18 percent rise in the first nine months. Sales of mobile phones dropped 7 percent.
