In price storm, luxury items still selling well

While many families have to endure big hardships and think carefully before buying anything in the “price storm”, many others still can be lavish with their money.

The people cutting spending

A small merchant who sells vegetables at the wholesale market on Le Duc Tho Road in Cau Giay district said that the market gathers from 0 am to 6 am. Prior to 3 am, she mostly sells vegetables to retailers, who carry vegetables to resell at smaller markets. Meanwhile, after 3 am, she receives housewives, who travel a long distance to the wholesale market, hoping that they can buy vegetables at lower prices.

“Over the last month the food and vegetable prices have been increasing sharply, and local residents have to get up early to go to the market in order to choose fresh and cheap vegetables,” the merchant said.

Chu Anh Tuyet, a worker, who lives in a rent room in Cau Dien area, said that now she has to get up when it is still dark to go to the wholesale market. “I am a worker who makes hats and I earn only 1.7 million dong a month. Therefore, I have no other choice than to save my money. I have to go to the market because I can buy vegetables at more reasonable prices,” she said.

Nguyen Quoc Hung, a member of the management board of the market, also said that buying vegetables at wholesale markets is the top choice for low income earners.

Hanoians not only have been hunting for cheap vegetables, but also for cheap meat. A lot of people were seen queuing at Minh Anh butcher shop to purchase pork. Nguyen Van Cu, a worker here, said that previously, the workshop only sold retailers, but now, it also sells to individuals who come there to seek cheap meat.

The list of the customers of the workshop shows that most of the customers are working in industrial zones in Hanoi, and students from universities.

Talking about the consumption tendency in the difficult period, Professor John Quelch,said that poor people are biggest sufferers in price storm, who have to severely cut down or even stop purchasing.

The “comfortably well-off people”

They are financially secure, and therefore they do not change their spending habits.

At An Nam Food Shop in HCM City, oats water is priced at 200,000 dong, while a box of tea is priced at 300,000 dong and many other products also have high prices. However, the salesman here said that purchasing power remains very stable since Tet and he cannot see any signs showing that people intend to cut down on spending.

At big shopping malls like Diamond, Parkson and Vincom, luxurious cosmetics are still selling like they were before. A woman was seen purchasing three bottles of liquid used to polish nails at 630,000 dong per bottle at Diamond. At a beauty salon on Le Quy Don Road in HCM City, a businesswoman reportedly spent 14 million dong to buy a shower cream box which was advertised as an anti-aging treatment.

Meanwhile, a person with the monthly income of 10 million dong is considered “high income earner” in Vietnam.

The Cho Lon Home Appliance Center these days is still bustling and full of visitors. A salesman here said that air conditioners, LCD TVs and mobile phones are selling like it is Tet season.

B, the owner of a cosmetics company in Binh Chanh District in HCM City, spent nearly 10 billion dong purchasing a limousine even though he has 4-5 other cars already. “Limousines cannot go on the city’s streets, but I will drive it when I have to travel to other provinces,” he said.

The owner of SaigonLimo salon related that three days ago, he sold a Harley Davison at $40,000 or 840 million dong. – Vietnamnet

Tags: luxury items