From the retailing revolution to the consumer revolution: Department stores in modern Shanghai

Abstract

Following the Industrial Revolution in Europe and America, the market was flooded with manufacturing goods. To promote sales, the department store that stressed a “low profit, high volume” model appeared in Shanghai. Sellers lowered prices to encourage purchases, and used rapid and high volume turnover to make up for lower profits. To speed up turnover, department stores invented various devices to increase sales, including intensive media advertising, open and comfortable store spaces, and free and attentive services. The new sales philosophy and tactics not only brought about a breakthrough in the retailing, but also reshaped consumer life and urban culture. The Shanghai department store evinced the social and cultural meaning of consumption in its building and inner design, its application of new technology, and its promotional activities and products display. A consumer lifestyle centering on the department store also remolded the Shanghai society.