Blog - Chinese New Year: Retailers Cash In, and So Do the Pawnshops

Chinese New Year: Retailers Cash In, and So Do the Pawnshops

January 24, 2012

Let''s just say that ''re-gifting'' is not just an age old American secret habit but rather a global one. Yesterday marked the start of the Chinese New Year and with the new year comes presents, presents not only given to family and friends but more commonly politicians and business executives. ''What does a business executive do with a sack full of gold watches and electronic trinkets?'' you might ask... he pawns them. Today''s featured article from blogs.ft.com discusses the pawn shop boom during the Chinese New Year. Read more below:

Pawn Shop Chinese New Year

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.

Every retailer wants a piece of Chinese New Year – especially when it comes with something as branding-friendly as a mighty dragon. From luxurious dragon-themed Rolls-Royce phantoms, to basic red and yellow flannels at Ikea, potential new year’s gifts are everywhere.

And among those most likely to benefit is the pawnbroker.

The traditional new year’s gift of renminbi stuffed into a red envelope has, in recent years, faced increased competition in China. Presents such as fine wine and jewellery are increasingly common. In fact, gold demand around spring festival has influenced the gold price globally.

Retailers of all stripes have responded.

Luxury watchmakers, like Blancpain and Piaget, have issued dragon watches, Shanghai Tang has its dragon-styled Nespresso machines and dinner plates, while special new year’s bottles of Diageo’s bai jiu and red wine can also be found on the shelves.

And what about the little emperor who has everything? Dragon Nike or New Balance shoes should fit the bill, or perhaps a New Year Swatch watch.

Even the US Treasury has something to offer (other than 10-year bills) – a year of the dragon “lucky” dollar bill, which, sadly for the latecomers, has already sold out.

China’s new love of gift-giving is by no means confined to loved ones. In fact, most presents are bought for business associates, or local party officials.

So what do those in positions of “influence” do when they get given a sack load of shiny new watches? Cash them in, according to this report from the Economic Observer.

READ THE FULL ARTICLE

< Back to Blog Home