Suning Appliance Co said Tuesday it will team up with suppliers to lower prices by up to 30 percent in Shanghai during the holiday season as part of its move to boost sales.
Suning, the country's No. 2 electronics retailer after Gome, also said that it has tied up with 12 local banks to offer consumers who pay by installment zero down payment.
''Suning aims to ride on the festive peak season to boost weak market confidence on hopes of reviving the consumer market in the long run with the help of lenders and suppliers,'' Lin Guosheng, group vice president of Sunning Appliance Co, said.
Sales in China's home appliance industry have dropped a gear as the lackluster stock market has eaten into consumer incomes and the sluggish property market has dented the demand for home appliances. Sales of household products grew at a record low of 0.8 percent in October.
''The (Suning) price cut is likely to lead to others doing the same in the household market in Shanghai and would bring a surge'' in sales, said Guan Zhigang, senior manager of audio-visual products at Samsung Electronics Shanghai Sales Co.
Some appliance firms such as Philips (China) Investment Co, LG Electronics and Skyworth Group (China) cut prices by an average of 20 percent.
Suning is also dangling a carrot for credit card users in Shanghai with a zero down payment when they buy appliance products in a 50-day promotion starting on Sunday.
Suning hopes to generate credit sales of 300 million yuan (US$44 million) to meet its full year target of 6 billion yuan.
(Shanghai Daily December 24, 2008)