Deflation in Japan and $9 Jeans
Despite some recent positive rumblings, the recession continues to be hard on the Japanese economy, pushing the unemployment rate here all the way up to 5.4%, very high by local standards. As I've written before, the two recessions Japan endured during its post-bubble "lost decade" have made the Japanese quite good at dealing with economic hard times, and it's interesting to see how companies deftly switch gears, lowering prices and offering new and innovative products to attract customers. The latest product to make headlines is a $9 pair of jeans that mammoth department store chain Aeon is hawking, no doubt hoping to entice buyers curious about how good a pair of $9 jeans could actually be in order to get them into the store. Unfortunately all the price-slashing has raised the threat of deflation, and a benchmark that tracks wholesale prices fell 8.9% in the month of July alone.
Would you like a pair of $9 jeans? Some prices in Japan are falling fast.
posted by Peter in Japan at 8:03 PM
11 Comments:
Heck yeah! Give me some of those "reduced denim" jeans. I'm pretty sure people will be taking advantge of this. Especially with winter approaching and all.
9:33 PM
I'll go check the quality. Pretty sure they'd offer only a few sizes, and not "large gaijin size" for me ^_^
Other than stores going out of business (RIP Mervyns), are prices going down in the U.S. that you can see? (If you are in the U.S.) It was hard to tell when I was there a month ago.
10:15 PM
Here in the Midwest, unemployment caused by automotive layoff made the unemployment statistics crazy high. However, there's a strange upside in that local gas prices went down because there was such a dive in regular commuting!
1:29 AM
Yes, definitely, there are benefits to the recession. In 2007 I flew to Baltimore for $1300, and in 2009 it cost $300.
2:14 AM
It depends what prices you are talking about. Real estate has gone way down especially in California, but here in Oklahoma the price of real estate has gone up! We vacationed in California to see family for spring break and we teased our family that we were going to bring a UHAUL because there were so many foreclosures that Goodwill wasn't excepting any more items. Most of the stuff was thrown away! We also saw a lot of tent cities in California and more homeless people. It is weird for me to see a homless because there are very little in Oklahoma. The first homeless person that I had ever seen was in San Diego when I was ten. My mom told me that the press is saying that the recession is over, but the government won't say it.
2:27 AM
That stuff usually has me wondering under what circumstances these products were made in order to be that cheap.
Cheap outsourced labor and materials or subsidized by Aeon to attract people to their stores and make them buy other items?
In the US, I see the same price ranges at the stores. Just people go to different kinds of stores now.
3:35 AM
I think those low-priced Jeans are what they call a "loss leader", meaning an item a store loses money on, only to draw folks into stores to buy other things. A common practice in the American marketplace, anyway.
4:44 AM
in pa, we only get to see inflation.. NEVER deflation.. :(
5:02 AM
Can't recall which popular store chain it was, but the other day i heard a tv advertisement mention $10 jeans in the US.
7:31 AM
To answer you're question from earlier, Peter:(It was seven in the morning when I posted that and I was running for work.)I can't really say that I have noticed major reductions in stuff like clothes and what-have-you. It actually seems like some basic commidities cost MORE than normal. However, energy prices have had a 28.1% decline since June of '08. Oh, and yeah, I'm in the good ol' states, New Orleans, to be exact. Though, hopefully, Santa Barbara next year(and Japan by atleast 2012^_^)
10:19 AM
Timo, yes, they are likely just there to make headlines and get people in the store. I'd be impressed if they were making a profit. If they're not it's kind of stupid.
11:42 PM
Post a Comment
<< Home