In the topic of price there are four elements are necessary to talk: price strategy/policy,
price level, discounts and terms of payment (Savonia UAS Moodle material 2008).
8
Although the low price is a good price strategy for H&M Company to entry other
markets but now in Shijiazhuang market it cannot be the big advantage as the purchase
power of the native people is not very high. Make a general survey of the price of
commodities in Shijiazhuang city and concerning at question 3 to research the purchase
ability of native people living in Shijiazhuang and the result was 65.4% respondents
expense money for buying apparel under 30 Euros in one month, and in question 6 there
were 38.5% respondents going for one shopping in every three months. Combining
these two questions and these figures showed the purchase power is not in a high level,
the pricing strategy should basic on this principle at a low price level. The price level
should be adjusted by following the price of commodities. There could be discounts
during festivals, such as Spring Festival which is the most important holiday for
Chinese, Women‟s Day, International Labor Day, and Valentine‟s Day; even order a
sale for the H&M store‟s anniversary are all good ideas. It also can be seen as a good
idea for sales promotion.