Thursday, September 25, 2008

Navigating the markets


A couple of days ago, I went to the Fake Market in Pudong in search of a few general items. Rookie mistake #1...always go in with a plan and/or an itemized list of what you need. I've been to the fake market before, of course, but since moving here, I have either always had a specific item I was looking for OR I've been there with friends, flanked on either side by other girls who want or need something more than I do. This always helps when trying to avoid the vendors' desperate attempts to get you to follow them...your "pack" power.

I know that when we were visiting here in March, I wrote at length, about the Fake Market. All the markets here work pretty much the same...the flower market, the wet market, the fabric market, the fake market, etc. However, the Fake Market located near the Science and Technology Museum in Pudong is a subterranean labrinyth of corridors designed to suck you into their depths and could very well sustain you for days on end! No, really. There's everything you could possibly imagine wanting or needing to buy. And the way the market is set up...it seems limitless! This one, in particular, is located in a subway type environment. Above ground, it's the picture of serenity, with trees and water features and lots of clean space to walk around. Below, it's..."Lady! U want to buy bag?", "No? How 'bout watch?", "I show u!", "Lady!" They have food down there, so in case you get lost (and you will at some point) and can't find your way out immediately, they at least provide several food options to keep your energy up. ;) Being subterranean, the lack of sun helps [them] by obscuring the passage of time. So, my first bit of advice...bring a reliable time piece with you!

I swear, I tell myself I'll be quick...all of the time. The next thing I know, I'm walking back into the sunlight and it's considerably later. If you think you'll be an hour...give yourself 3 hours. If you think you might be awhile, double that.

Like I said, they have everything you can imagine to try and sell you. And if they don't, they have a sister or a cousin or an aunt or a friend who does...either in the market as well or on the outside, somewhere else in town. This fake market is where I go to get my nails done. If you can beleive this, it costs a lot of money to get your nails done (with color, especially) in any one of the "expat" plazas or areas. But, the place in the fake market is clean, they sanitize their instruments and they are very reasonably priced. The fake market has anything from luggage, to faux purses, to cell phone accessories, to hairclips, to backpacks, to faux sunglasses, to clothing to souveneirs, to jewlery, to chopstix, to scarves, etc, etc, etc! I really could go on and on and on. They also have a very nice and large "tailor-made" section.

I have noticed that shopping in Shanghai happens in three levels, pretty much across the board. First, globally. There are the high end retail shops, both foreign names and chinese names that you wouldn't even think about trying to bargain a lower price from. In fact, they really don't appreciate it if you try. Then, there are the shops within shops. Many times, the floors of bigger malls or stores will be set up by individual vendors. While, it's still not necessarily a place to hard core bargain...you CAN get a lower price or a discount sometimes...depending on the mall or store. Then, there are the markets and street vendors...which bargaining is not only acceptable, it's expected. It's this kind of market where you can really see the "dance" that happens between the people who live here. Like the driving...it's a road dance among drivers. The higher end stores are really for foreigners. Chinese people wouldn't normally pay those outrageous prices for anything. Although, some of the younger generation Chinese kids seek out fashion and in order to be fashionable, they go to the retail markets.

At the fake market and when shopping for a fake...whatever...be on the lookout for 3 levels of quality. Several of the stores are set up in a tri-level fashion, poorest quality at or near the entrance; you can find better quality walking towards the back and the best quality (for a fake whatever) that the vendor has to offer is usually in the very back of the store. This is where many of them have "secret" drawers or cabinets or even doors that pull out to show you their best stuff. The "best" stuff can be anything from better threading, to higher quality silk or material to exact replicas of higher-end name brand bags, purses, watches, etc.

Yes, the "secret" doors hold the good stuff. IF, that is what you're looking for, of course. I know I have mentioned this before, but the reason for the secret doors is because the government is trying to crack down on the really good, fake replicas of things. My very real and [relatively more] expensive Coach purse from the States has a leather label inside that indicates the purse was made in China, even IF the designer wants me to think it's from Italy. The fact is, most everything is made here in China (and now Malaysia) and these street sellers have *ahem* "opportunites" to get the very same material and make a replica of any item. It's an interesting experience to see, what you thought was a wall of shelves, actually become a door and you're shoved inside to see that they do, indeed, have MUCH better items than the store front originally indicated. That's when you're negotiating skills are truly put to the test. YOU know what they have...they know what you want...the fun begins.

The art of negotiation. I still feel very inept in this department. However, I have learned a few things and here are some guidelines that I have found to be more successful in the world of marketplace negotiations.

1) Know your product. I know this is difficult, but try and get a ball park figure on what you would pay for something in your home country. Do you really want to pay MORE for something here in China (where it is probably MADE) than you would pay in your home country...with all the import mark ups, etc? I know I don't. This can be tricky, though, with the currency conversions you have to do in your head, and quickly!
2) Shop around. When there are vendors in your face, trying to get you to buy their product, the last thing I really want to do is "encourage" more of them by shopping around. Also, it's not like you can walk into a vendor shop, see the price, and walk away. EVERYTHING has to be negotiated! It's exhausting. But, this is worth it for a couple of reasons. a)After the negotiations, you get a feel for the "real" price of things as you make your way through the shops, and b)Once you negotiate a price, the vendor REALLY hates to see a customer walk away. SO, more often than not, the vendor will keep coming down in price - if they can - to keep you in their store. If a vendor doesn't try and stop you from walking out, you really have undervalued their inital cost on the product. This, of course, also helps you gauge how much the product is truly worth.
3) Quality. Decide on the level of quality you are really after and look around. Some vendors are MUCH more, uh, skilled, than others...or have better quality material.
4) Shop where the locals shop. One day, I went to the fake market just as the vendors were opening their metal doors...about 10-10:30 in the morning. I was surprised to see so many locals gathering at one or another store, waiting for their doors to open. It was enlightening to see where the locals preferred to shop. They have an eye or nose for exceptional quality, as many of them, themselves, sell some kind of product. And since the locals don't generally make a ton of money, they especially have a keen sense to look for balance between reasonably priced items and better quality material. They don't want to spend their hard earned money on, well, crap.
5) Make "friends". The term "good friend" is used a lot when trying to bargain. The vendors "give u betta price 'cause you good friend." What this really means is that they will be willing to give you a (slightly) better price if they sense that you might come back or if you DO come back a second time...or even better, bring your own friends back to their store. It's all about relationship building here in China...even at this level of interaction.
6) Divide by 4. Now, this is not necessarily a scientific formula. However, this can be used as a very general guideline to begin the bargaining. The vendors will always start high...you will always want to pay low. Where do you start?? An example: If I want to buy something and the vendor starts at 400 RMB, I divide that number by 4 as a much more reasonable place to start...in RMB. I then double check in my head and quickly do the currency conversion and decide if that is really how much I want to spend in US dollars. Again, this is a very general guideline.
7) Don't wear expensive jewelry. The vendors can spot it a mile away. They already view expats as a $$$ symbol.
8) Consider NOT bringing your small children to the street markets. They provide just the distraction the vendors are waiting for. Also, many of these markets, whether it's the actual store or the walkways outside of it, which are not generally stroller friendly. If your small children are not strapped to the stroller, it is very easy for them to get distracted themselves with so many things to see. Just something to keep in mind.
9) Take a break. It's easy to get worn down and the vendors can sense it! Take a break if you have to, or shop the market in small doses.
10) Don't get emotional. It's a sign of weakness. This is a great place to try your "poker" face...if you have one. Maybe think about avoiding the markets if you're PMS-ing, etc.
11) Beware of the up-sell! The vendors will ALWAYS...and yes, I mean ALWAYS try to either up-sell you on the product you are interested in OR try to sell a variety of other items from their store that might "compliment" your product.
12) Don't get too attached. It's usually when you think you can't part with a particular product...that's when you're headed for trouble. You will probably end up paying WAY too much compared to what the product is actually worth and then you head down 'buyer's remorse' lane. Especially when you see the same or similar product for much less money just two doors down. If the bargaining isn't going your way...walk away. Look around. Then go back to re-negotiate if need be.

Wow! I didn't realize, until I wrote all of this down, that there is a lot I consider when shopping the local markets! And, yes, I usually keep all these things in mind whenever I go. And, YES, it IS exhausting! No wonder I'm so tired by mid-day. haha If you have never been in this type of environment before, it's very intimidating at first. However, after a few "great" buys...you get addicted to the rush of accomplishment you feel when you walk out with something you really love and paid a basement bargain price for it! Who doesn't love a great bargain?!

The most important thing to remember when navigating these markets, is that some days you win and some days you lose. That's just the nature of the beast. Also, you live and you learn. :)

No comments: