Deichman Shoe City Publicly Admitted Below Cost Price

According to the Beijing Youth Daily, "this shoe city should be sold at less than 10 yuan in cost."

A few days ago, Deichman shoe city, located at the bus terminal building of the zoo, saw that this sentence was printed on a small A4 paper and posted on the cashier's desk.

Ms. Yin, director of the shoe city planning department, also said that in order to become a "price killer", increasing passenger traffic will be sold at below cost.

He saw a "help letter" sent to the supplier by Deichman shoe city in August 18th. The above contents included: in order to attract passengers at low prices, it is still not enough to rely solely on the low price and 50% competitiveness. So Deichman decided to sell the 50 brands of shoes such as Satchi, Pierre Cardin, playboy, seven wolves, etc., and the retail price must be less than 10 yuan for sale.

Only by relying on suppliers' support and selling at below cost can the Beijing shoe market be blown up.

At half past two p.m. in the city of Dai man, he saw the whole store full of shelves, with 35 counters equipped with a salesperson, but the area of nearly 1000 square meters had only a dozen customers.

The shoe container is covered with a blue green tone "sticky tape", which says "fake double penalty ten pairs" and "expensive 1 yuan penalty 1000 yuan" slogan.

All the posts in the shop are posted on the same notice, explaining that due to the poor location of shoes city, in order to reverse the inferiority, consumers are forced to sell at low prices, hoping to understand their peers.

The Satchi counter is located in the corner of the store. The salesperson said to the salesperson, "this same shoe sells for at least 400 yuan in the Xidan shopping mall, which sells for only 201 yuan. We are all selling at below cost price and have just started sales promotion."

On the side of the cashier's desk, there were two printed sheets of white paper on the table, and one reads, "because POS is not in place yet, only cash is collected"; one is "this shoe city is sold at less than cost 10 yuan."

Consumer complaints.

"We are doing this in order to expand sales and attract customers," explains Yin, who is planning department of shoe city of Dai Shi man.

I don't know whether it is illegal to do so. I will check with the legal affairs department and answer you later.

As of the time of dispatch, Dai Shi man shoe city did not reply to this further.

Beijing Technology and Business University professor Hong Tao pointed out that in addition to two special cases, one is fresh products, the other two is off-season processing products, and "sales below cost" are all violations of the "price law" and "Anti Unfair Competition Act". They should be severely punished.

In an industry analysis, Dai Shi man shoe city does not exclude the idea of "hype" to earn "eye" benefits from consumers.

Professor Hong Tao said that marketing is a very important means in the market economy, but it should be prudent when choosing marketing strategies. If we get the "popularity" at the cost of breaking the law, it will be more harm than good.

Enterprises should pay more attention to "reputation" while gaining "popularity", otherwise they may only get short-term economic benefits. In the long run, they lose their trust and loyalty.

The Beijing Municipal Development and Reform Commission responsible person pointed out that if a businessman did not sell below the cost price, he might be suspected of false advertising; if he really sold below the cost price, and disrupted the normal order of production and operation and damaged the legitimate rights and interests of other operators, he would be suspected of price violation.

In addition, the government's regulation on the prevention of dumping at low prices stipulates that the producer price of the goods sold by a production enterprise is lower than its production cost or the selling price of the selling enterprise is lower than its purchase cost, which belongs to the dumping of goods at a cost below the cost.

For those cases where the price is illegal, the penalties of the government departments are as follows: they shall be ordered to make corrections, confiscate the illegal gains, and impose a fine of 5 times less than the illegal gains; if there is no illegal income, they may be given a warning and may be fined under 30 thousand yuan or more than 300 thousand yuan; if the circumstances are serious, they shall be ordered to suspend business for rectification or to be revoked by the administrative department for Industry and commerce.