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Front. Hist.

China 2009, 4(3): 358–389


DOI 10.1007/s11462-009-0015-x

RESEARCH ARTICLE

LIEN Ling-ling

From the retailing revolution to the consumer


revolution: Department stores in modern
Shanghai
© Higher Education Press and Springer-Verlag 2009

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.

Keywords department store, modern Shanghai, consumption, entertainment

摘要 欧美工业革命以来,大量制造品涌入市场。为了更快地销售商品,强调“薄
利多销”的上海百货公司应运而生,商人降低价格以刺激人们的购买欲,利用销货
的速度与数量弥补所减少的利润。为了加速商品周转率,百货公司采取了包括密集
的媒体广告、舒适开放的销售空间、贴心的免费服务等在内的营销手段。这些新的
销售哲学与措施,不但带来零售商业的突破,也影响到消费生活及城市文化。上海
百货公司的建筑及内部设计、新科技的运用及商品展演活动等,彰显了消费的社会
文化意义,以百货公司为焦点的消费生活也重新形塑了上海社会。

关键词 百货公司,近代上海,消费,娱乐

Translated by Yang Kai-chien from Lishi Yanjiu 历史研究 (Historical Research), 2008, (5):
76–93
LIEN Ling-ling ( )
Institute of Modern History, Academia Sinica, Taipei, China
E-mail: mhllien@gate.sinica.edu.tw
From the retailing revolution to the consumer revolution 359

The department store was invented as a result of the Second Industrial


Revolution in Europe and the United States. Since the mid-nineteenth century,
manufacturing goods flooded the market, compelling retailers to develop new
ways of doing business. Among those innovations appeared the department store,
which stressed low profit and high volume. Sellers lowered prices to encourage
purchases, and used rapid and high volume turnover to make up for lower
profits. To promote sales, the department store also adopted marketing
strategies such as intensive advertising, comfortable and open shopping spaces,
free and attentive services, etc. These novel business tactics distinguished the
department store from traditional shopkeepers and proclaimed an age of the
“retailing revolution.”1
The department store not only represented a breakthrough in retailing, but also
changed quotidian life and the urban landscape. For example, in Chicago during
the 1860s and 1870s, the wholesale business came to dominate the Loop and
turned the street into a commercial thoroughfare rather than a promenade for
shoppers. This commercial district was full of dirty, laboring men and open vice,
so domestic consumers considered shopping there a trying experience. Not until
the expansion of retail business in the Loop did the city attain a new look. Such
department stores as Marshall Field Company and the Fair Store became
landmarks of Chicago.2 The sale techniques offered by the department store also
reshaped the cityscape—the shining neon lights and glamorous display window
transformed the image of the streets, which were no longer merely the pathways,
but destinations in themselves. In addition, affiliated businesses such as
restaurants and hotels provided the department store with new functions of
entertaining and socializing. In this sense, the department store redefined
shopping and set the “consumer revolution” in motion.3
Although the department store played a crucial role in the dual process of the
retailing and consumer revolutions, previous scholarship has concentrated on the
former. Wellington K. K. Chan, for instance, analyzes the features of Chinese
modern enterprises in terms of business organization, owners’ personalities, and
multinational expansion; since the department store was an imported idea, he
examines how these stores made adjustments to suit China’s particular social and

1
For the books on the retailing revolution brought by the department stores, see Benson, 1988;
Lancaster, 1995; Leach, 1993; Miller, 1981; Pasdermadjian, 1954.
2
Lewis, 39.
3
Scholars have different opinions about the time when the consumer revolution occurred.
Some argue that it took place in the sixteenth century while others believe that it happened
between WWI and WWII. The discrepancy lies in different definition of the consumer
revolution. Based on the idea of “mass consumption,” the department store greatly changed
shopping experiences and thus represented transformation in the history of consumption. See
Gennie, 164–203.
360 LIEN Ling-ling

economic circumstances.4 While those studies provide details of the development


of modern retail business pay little attention to the consumers’ point of view.
This article in turn investigates how the new retailing techniques used by
Shanghai department stores in the Republican era changed consumer life,
especially considering the features implied in the term “shopping.” As the
anthropologist Daniel Miller points out, shopping is not simply a behavior of
purchasing, but a complex process that involves decision-making and
justification. Social theorists Jean Baudrillard and Zygmunt Bauman particularly
consider “shopping as a form of seduction by the commodity calculus; empty
games for empty people.”5 From this perspective, all kinds of innovations in the
department store are designed to attract customers to buy goods whether they
need them. However, the purpose of consumption is ultimately to satisfy
customers’ material and psychological needs; hence they are by no means passive
in making decisions. Neither is shopping an action solely determined by personal
preferences, but reveals the dynamics of a customer’s larger network of social
relations. The rise of department stores, for example, led to an increasing number
of female clerks and female customers, thus altering gender relationships to some
extent. In other words, in light of shopping—an ordinary activity in daily
life—this article attempts to explore how the new business organization of
department stores reshaped the urban dweller’s mindset concerning modernity.

1 Architecture and interior design


The first department store in Shanghai, Hall & Holtz, was originally a bakery
which gradually developed into a store that sold international products. Besides
Hall & Holtz, Lane Crawford, Weeks, and Whiteaway Laidlaw also appeared in
Shanghai; these British stores dominated the business of department stores in
nineteenth century Shanghai. Only in the mid-1910s did the Chinese merchants
join the business. The four large department stores in the memory of old
Shanghai citizens (Sincere, Wing On, Sun Sun, and the Sun Company) were all
owned by Cantonese immigrants who first began with fruit wholesale trades in
Australia. After accumulating enough experience and capital, they returned to
China in the early twentieth century and developed department stores first in
Hong Kong, and then in Guangzhou and Shanghai. These four companies soon
took over the leading roles in the business of department stores from the British.
4
Wellington K. K. Chan, 1995, 1998, and 1982. In addition, Shanghai shehui kexueyuan jingji
yanjiusuo (The Institute of Economics, Shanghai Academy of Social Science) published
collaborative works on the history of department stores in modern Shanghai, which like Prof.
Chan, also takes a framework of modernization to interpret the management of these stores.
See Shanghai shehui kexueyuan jingji yanjiusuo eds., 1980, 1988.
5
Miller, Jackson, Thrift, Holbrook and Rowlands, 8.
From the retailing revolution to the consumer revolution 361

The major difference between department stores and ordinary shops that selling
imported goods was the size, which was especially reflected in the architecture of
the stores. The founders of Sincere and Wing On were all impressed by Sydney’s
largest department store, Anthony Hordern & Sons Company. They claimed that
“its floor space is dozens of acres and one can find any international product there.
This store is indeed grand and spectacular.”6 In contrast, “before the restriction of
overseas trading was lifted, the commerce in China was only operated by
individual merchants and small, private shops. They competed for small profit and
followed old, inflexible rules. The scale of their business could not even be
considered commerce.”7 As latecomers to the business of department stores, the
Chinese merchants had to implement special tactics to compete with foreigners.
Their first strategy was to build grand and luxurious store buildings.
Before the twentieth century, most shops and houses on the Nanjing Road
were of two or three floors. In 1901, Hall & Holtz’s four-floor premises was
newly completed and was reported as “the most notable features of the Nanjing
Road.”8 Several years later, Whiteaway Laidlaw erected a five-floor emporium,
which rewrote the record of the height of buildings.9 With the improvement of
architectural technology, the sizes of department stores built by the Chinese since
the 1910s far exceeded those of Hall & Holtz and Whiteaway Laidlaw.
Completed in 1917, the five-floor Sincere Company was the tallest building in
the western section of the Nanjing Road.10 In the following year, Wing On held a
grand opening and presented a six-floor emporium to the world. About the
competition of store buildings between the two companies, the Wing On’s
shareholder Guo Qiong gave an anecdote:

Before Wing On built their store in Shanghai, Sincere had finished the
construction of their store, but had not yet removed the wattled barricade that
surrounded the store. At that time, Sincere Company’s director Ma Yingbiao
asked Guo Le for the blueprint of Wing On Company, hoping to be able to
apply the design of Wing On Company to the arrangement of the Sincere
shopping space. Guo Le gave Ma a fake version. Ma was very proud for he
thought that Wing On’s design was not as good as Sincere’s. Only when Wing
On had its wattled barricade removed did Ma realize that he had been cheated,
for Wing On’s building was better than Sincere’s.11

6
“Xianshi gongsi ershiwunian jingguoshi” (The 25-years history of the Sincere Company), in
Xianggang Xianshi gongsi eds., 1.
7
Guo Quan, 24–25.
8
“Architecture in Shanghai,” 1901.
9
Chang Qing et al., ed., 58.
10
Huang Guoxin, Sheng Fuxu eds., 80.
11
Du Xuncheng.
362 LIEN Ling-ling

Although Sincere’s business continued to grow after its opening, the company
could not get over this incident. When Sincere celebrated its twenty-fifth
anniversary, the board of directors decided to add two floors in order to surpass
Wing On.12
Sun Sun Company was founded in 1926. Although its capital and store size
could not compete with the other two stores, it intended to impress people by
erecting a grand seven-floor edifice.13 In 1936, the Sun Company was opened in
Shanghai, and because its location was not close to the other three department
stores, the company paid much more attention to its architecture and increased
the height to ten floors. From the 1910s to 1930s, the four department stores
competed with each other for architectural grandeur and height, and created “a
bustling street phenomenon.”14
Besides the grandness of buildings, the attractions of department stores also
lay in its luxurious decoration. The architecture of Sincere and Wing On was
Baroque in style, with extended balconies, window decorations, iron fences, and
classical columns. Sun Sun built an arcade to provide shade for pedestrians and
to draw customers into the store. Sincere, Wing On and Sun Sun all accented
their buildings by erecting pavilions on their roofs. These towers elongated the
buildings and embellished the scenery for customers who visited the stores’ roof
garden. Wing On and Sincere named their towers as “Yiyun Pavilion” and
“Moxing Tower.” These poetic names indicated the stores’ competition for height,
for “Yiyun” means “leaning on the clouds” and “Moxing” means “touching the
stars.” 15 The Sun Company had a completely different architectural style,
eschewing roofs with decorative accents and balconies with wrought-iron fences
in favor of wall-to-wall glass windows with steel frame. The Sun Company did
not build a roof garden or towers. Instead, the owner preferred a modern
architectural style which stressed using building space practically.16
Glass windows were another major feature of the department store’s exterior.
Traditional Chinese stores lacked exhibition windows. Instead, they hung
illustrated banners at the door, called huangzi (幌子), which allowed customers to
identify what kind of products a store carried. To attract customers, stores
sometimes used bold colors, decorative objects, or certain symbols for an
advertising effect. However, traditional stores paid comparatively little attention
to the display of their merchandise.17 In the Republican era, people were still
complaining that small shops in Shanghai “usually stock their merchandise in the

12
“Huhang zhilüe” (The record of the Shanghai division), in Xianggang Xianshi gongsi eds., 13.
13
For how the Sun Sun Company chose its location, see Li Chengji, 121–132.
14
Chang Qing et al., ed., 66.
15
Chen Chunfang, 71.
16
Chen Congzhou, Zhang Ming eds., 62–66.
17
Gao Boshi, 3; Wang Xinggong, 13–23.
From the retailing revolution to the consumer revolution 363

display windows without any order; such merchandise is at best a pile of


good-looking garbage.” Some even said that the stores hid their merchandise,
and nothing was displayed at the counter. As a result, customers had little interest
in shopping there.18
In contrast to the traditional shops, which often “stored products of the best
quality in secret corners of the shop, as if there is no such product,” department
stores displayed merchandise as conspicuously as possible for customers. Large
glass exhibition windows were installed on the walls of the ground floor. Inside
the department stores were large numbers of display cabinets. For instance, Wing
On set up forty display windows on the walls and in the hallway. The goods and
the decorations were changed once every month. The windows facing Nanjing
Road were especially visible, so those displays were changed according to
seasonal and special events so as to attract customers. 19 Having conducted
research on contemporary commercial advertisements during the Republican era,
Xu Qiwen once commented, “When people visit department stores, they first
notice the large advertisements and window decorations, which are arranged
meticulously, and customers cannot help staying. Initially, people may not have
the intention to buy; however, after indulging themselves in front of the display
of merchandise and advertisements, their appetite for shopping emerges. The
reason is that people often have the desire to outshine others. Those without
discretionary income rarely enter department stores to inquire about the price of
merchandise. There are also some people who shop only for the desire to
outshine others.”20 The importance of window displays was also highlighted by
the following example. When the Sun Company began its construction in 1934, it
hired the American architect John Graham (1873–1955) who was famous for
designing department stores. Graham believed that windows were the most
valuable advertisement for department stores so he suggested that the company
install wall-to-wall windows on its exterior. This design could create better visual
effect, leveling the indoor wall and avoiding unusable, fragmented space. The
Sun’s owner Cai Chang accepted Graham’s advice and installed eighteen glass
windows on the outer wall of the Sun’s ground floor.21
To make advertisements effective, department stores were exacting about
window display. The style of decorating windows became increasingly
diversified. The early 1920s marked the initial stage of advertising for
department stores in Shanghai. The “single display” method showcased only one

18
Zhou Guoxian; Guang Jun.
19
Guo Guanchang, 43–44.
20
Xu Qiwen, 2.
21
Progress report from John Graham dated July 17–25, 1934, William Joseph Liu Personal
Files, in the State Library of New South Wales (hereafter SLNSW), ZML, Mss 6294/6 CY
Reel 4243.
364 LIEN Ling-ling

kind of merchandise, and “multiple display” method exhibited several different


kinds. In 1924, the main Sincere store in Hong Kong and its branch in
Guangzhou displayed merchandise in the same category or related products in
the same window and arranged them in geometric figures. 22 In the 1930s,
department stores developed “scenario display,” which used stories to add a
dramatic effect to the window displays, especially ones that explained gift giving
during holidays. For instance, for the Mid-Autumn Festival, Wing On installed a
large illustration of the story “Chang’e running to the Moon,” in which a maiden
clad in ancient garb walked around the harvest moon. Against this backdrop, the
store’s large selection of moon cakes was exhibited.23 For Christmas, Wing On
also ordered a large custom-made figurine of Santa Claus to stand in the center of
the window, surrounded by a plethora of toys. Due to the Western influence in
the foreign concessions, exchanging Christmas gifts became fashionable, even
among Shanghai citizens who did not attend church. To attract Shanghai’s
foreigners and Westernized Chinese, department stores would certainly use this
opportunity to advertise in their display windows. During the winter, department
stores would also decorate the windows like a winter fairyland, using
machine-blown cotton fibers to mimic the whirl of snowflakes—falling softly
against winter merchandise.24
The development of window decoration in Shanghai’s department stores
followed the American fashions, but only after about twenty years’ lag.
According to William Leach, in 1898 L. Frank Baum established the National
Association of Window Trimmers and published a monthly journal, The Show
Window, to help professionalize and promote the work of window decoration.
Baum himself loved the theater and had aspired to be a playwright when he was
young. He later applied the concept of drama to window decoration, creating a
flavor of “carnival,” because he believed that the most important purpose of
window decoration was to attract people to “look at the window.” Undoubtedly,
the effect of drama could draw attention to a window display. In the 1910s,
American department stores began to “dramatize the merchandise.”25 Professional
magazines also continued to introduce new methods and effects of window
decoration. These trends came to China during the 1920s and 1930s and became
the source of inspiration for designing the windows of Shanghai’s department
stores. Wing On was a long-term subscriber of foreign magazine such as Look,
Life, Window Display, and used them as reference of window decoration.

22
“Laopu menmiantu” (The plan of the old store), “Yuehang ji Dongya jiudian menmiantu”
(The plan of Guangdong division and the East-Asian Hotel), in Xianggang Xianshi gongsi eds.
23
Xu Qiwen, 2.
24
Guo Guanchang, 43–44.
25
Leach, 55–61, 67–70.
From the retailing revolution to the consumer revolution 365

Occasionally it also exchanged window trimmers with the Hong Kong store to
stimulate their creativity.26
From the viewpoint of the department store, glass windows were
advertisements that “invaded the street.” Passers who walked by the store only
had to look at the window to see the merchandise. Even without entering the
store, people could be tempted by the displayed merchandise and then lured to
shop in the store. In terms of space, glass windows assisted department stores to
stretch their boundaries and expanded their influence. Because window displays
were still visible after business hours ended, the merchandise could continuously
tempt passersby. Therefore, the window displays effectively prolonged the
opening hours of the store. In other words, glass windows were a strategic design
of “enlarging the area influenced by the department store.”
For the city, department-store windows also became a part of the street scene,
transforming the street into an interesting public space. “Shopping” became a
purpose in and of itself. Especially when weekend holidays began to accent the
rhythm of the urban life, “shopping” became a way to spend leisure time. In
response, department stores expanded their business hours to include Sunday
afternoons.27 Moreover, department stores also became famous tourist spots in
Shanghai. Published in 1935, Shanghai lüyou zhinan (The travelers’ guide of
Shanghai) suggested travel itineraries of three, seven, and ten days. No matter
how long a traveler planned to stay in Shanghai, the department stores on the
Nanjing Road were always the first places the tourists had to visit. Even when
the tourists did not have time for shopping, they should still choose one
department store to “know what the department store looks like.”28 To this
author, department stores were the symbol of modern cities and could satisfy
visitors’ curiosity about Shanghai. The grand, luxurious architecture and
eye-catching windows of department stores help visitors perceive modernity.
Given the power of window displays, the government sometimes used them
for political purposes. On Jan. 9, 1943, in order to persuade Wang Jingwei
Government to cooperate with the Japanese “Peace Movement,” the Japanese
Military Department signed the “Treaty of returning foreign concessions and
abolishing extraterritoriality” with Wang, promising to return the

26
“Guo Linshuang’s letter to Guo Le,” Mar. 30, 1946, in the Wing On Company Files,
Shanghai Municipal Archives, Q225-2-43.
27
Ma Yingbiao, the founder of the Sincere Department Store, was a Christian, so the store
originally closed on Sundays so that it could hold a church service for the store employees.
However, because corporate shareholders thought that Sundays were excellent opportunities,
they lobbied successfully to expand business hours to include Sunday afternoons, beginning
from 1 pm. Similar issues regarding business hours also happened in the Sun Sun Company.
For details, see Lian Lingling, 2007, 149–152.
28
Sun Zongfu, 195–202.
366 LIEN Ling-ling

Japanese-occupied concessions and to support the Chinese to negotiate the return


of foreign concessions with other foreign powers. As a result, on Aug. 1, 1943,
Wang Jingwei Government formally took back the foreign concessions
controlled by the Japanese, British, American, and French in Shanghai.29 To
celebrate, the Office of Publicity of the Shanghai Municipal Government
coordinated with the Chambers of Commerce in Shanghai to host a competition
of window advertisements. All the shops, restaurants, teahouses, and dancing
clubs which had display windows were encouraged to participate. According to
the rules, all the participating stores should decorate their windows to “fully
expose the vice of foreign concessions and the evil ambition of the Western
imperialism,” and to “underline sincere assistance provided by foreign allies and
urge genuine cooperation of Chinese people in order to achieve the victory of the
Great East Asian War.” Moreover, the design should “point out the meaningless
resistance of Chongqing government, in contrast with the accomplishments of
the Peace Movement to challenge the hypocritical propaganda of foreign powers,
strengthen the Shanghai citizens’ faith in the Peace Movement, and promote the
citizenry’s spirit.” 30 The competition lasted for seven days. Shanghai’s
department stores participated in this event, and Wing On even won a prize.
Whether the competitors sincerely supported the policies of the Japanese and
Wang Jingwei Government or were forced to participate, the coordinators of this
event achieved their political purposes. This competition highlighted the possible
political function of window advertisements and acknowledged its power to
shape the urban life.
Department stores not only stressed window decoration but also interior design,
which included the arrangement of merchandise and the establishment of
commodity departments. If the function of window displays was to attract people
to enter the store, the interior exhibition of products was to provoke the
customers to purchase. As some commentators argued, the arrangement and
exhibition of merchandise were highly influential to customers. “If the
merchandise were displayed with disregard for order, organization, and aesthetic
style, and the store clerks were lazy and careless, the whole store would look like
a chaotic place and the customers would lose interest in shopping.”31 Therefore,
the department stores always demanded their clerks “tidy the arrangement of
commodities and store space in their free time so that the store would remain
clean and pretty. They should also pay attention to display seasonal goods.”32

29
Shi Yuanhua, 117–125.
30
“The rules of the contest of window display to celebrate reclaiming of concession areas in
Shanghai,” July 22, 1943, in the Wing On Company Files, Shanghai Municipal Archives, Q225-2-2.
31
Li Wazhou, Ruan Yide, 20.
32
“The tentative rules of employees’ welfare,” in the Sun Sun Company Files, Shanghai
Municipal Archives, Q226-1-63.
From the retailing revolution to the consumer revolution 367

The interior design of Sincere in 1924 indicates that windows and cabinets
functioned as both display and storage. Displays allowed customers to shop
freely, examining goods without special permission or pressure from store clerks.
The latecomer Sun Company outspent its competitors by installing three
thousand meters of glass cabinets on its ground floor.33 Shenbao also reported,
“All the glass windows in the Sun Company were carefully designed. Each
connecting corners of cabinets were covered not by wooden materials, but by
delicate metals. When customers pass by the cabinets, they can have a clear view
of the displayed merchandise.”34 In addition, the department stores also reserved
space in the store for regular exhibitions or special activities. Inspired by
Mitsukoshi Department Store in Japan, the Sun Company set up an exhibition
hall for promoting national products.”35
The arrangement of product departments was more complicated and required
more detailed plans. Sincere established nineteen departments in 1924;36 Sun
Sun had thirty departments in 1926;37 Wing On had fifty departments in 1936.38
The change of numbers of the departments revealed two trends: the increase of
types of products and the smaller division of product categories. For example, in
1924 Sincere placed tobacco and stationery in the same department. In 1936,
Wing On divided tobacco and stationery into two departments. Moreover,
because of the popularity of Conkling pens, Wing On established a special
department for Conkling products. 39 Specialized divisions also required the
department stores to hire more employees.
To convenience the customers, merchandise was categorized according to its
function. Departments of products with similar functions were often set up in
the same area. For example, the department of Chinese and international
canned food was next to the department of candy and cookies. Socks,
handkerchiefs, sweaters, hats, and gloves were all displayed in the same section
of the store; foreign liquors and delicacies from South China were in another
section. Such arrangements could help facilitate communication among
different departments. When shopping for certain items, the customers would
also find related products and then purchase them all together. In addition, the

33
Jitai gongchengsi jianzhushi, 18.
34
Zhen Yi.
35
Ibid.; brief description of Mitsukoshi main store in Tokyo dated Apr. 16, 1934, SLNSW,
ZML MSS 6294/6 CY Reel 4243; report and general description of the new building of the
Sun Company dated Jan. 18, 1935, SLNSW, ZML MSS 6294/6 CY Reel 4243.
36
“Huhang zhilüe.”
37
“Xinxin gongsi neibu zhi gaikuang” (The internal condition of the Xinxin Company),
Shenbao, Jan. 1, 1926, 38.
38
Guo Guanchang, 37.
39
“Blueprint of Wing On Company,” in the Wing On Company Files, Shanghai Municipal
Archives, Q225-2-79.
368 LIEN Ling-ling

department stores often adjusted the location of each department or exhibited


merchandise in new ways to maintain the customers’ interest. According to
Wing On’s experience, sale figures increased when old stock was displayed in
different sections of the store.
The arrangement of each floor and the location of each department underwent
careful consideration. In the case of Wing On, the departments on the first floor
mostly sold low-priced daily necessities because customers would not bother to
climb to higher floors for those items. Customers usually grabbed their usual
brand, without wasting time on careful consideration and selection. On the
second floor, departments sold female merchandise, which included silk, yarn,
and underwear, etc. Due to women’s habit of carefully comparing prices, the
store housed seven departments on the second floor in order to provide a variety
of as many products as possible to female customers. The departments on the
third and fourth floors mostly sold oversized goods, such as furniture, luggage,
organs, gramophones, clocks, and lights. Purchasing those items required
forethought, so customers who shopped for them would be willing to take the
trouble of climbing the stairs.40 These arrangements revealed that the department
stores paid careful attention to their customers’ psychology and needs.
Occasionally, department stores would also set up “departments of low price.”
The representative example was the idea of “one-dollar item” that Whiteaway
Laidlaw first promoted. This idea was to bundle up several related items—such
as the toilet set of hair oil, a shaving mirror and a soap container, and the
stationery pack of letter paper and envelopes—and to place them at a special
counter on the second floor. Each product bundle was sold for one yuan.41 This
sales strategy met the customers’ psychological desire to buy cheaper products
conveniently. Together with the advertising tactic of limited time offer and
amount of products for sale, department stores attracted many customers to
purchase these bundled products. As Whiteaway Laidlaw’s former employee
recalled, the “one dollar item” department helped increase the company’s daily
sales figure from three or four thousand yuan to nearly ten thousand yuan.42
Whiteaway Laidlaw’s profits encouraged other department stores to follow suit.
In 1933, Sincere founded two “one dollar stores” in the French Concession. The
products in these two stores had only two kinds of prices, five jiao (1 jiao=0.1
yuan) or one yuan.43 The Sun Company also included a department of cheap

40
Guo Guanchang, 38.
41
“Huiluo gongsi guanggao” (The advertisement of the Whiteaway Laidlaw), Shenbao, Dec.
15, 1926, 6.
42
Anonymous, “Wo suo zhidao de Shanghai Yingshang huiluo gongsi shimo,” in Shanghaishi
zhengxie wenshi ziliao weiyuanhui eds., 173.
43
“Xianshi gongsi guanggao” (The advertisement of the Sincere Company), Shenbao, June 20,
1933, 2.
From the retailing revolution to the consumer revolution 369

items on its basement when designing the blueprint of the store.44


The emergence of special sales somewhat altered the distinguishing
characteristics of department stores. When Sincere and Wing On were founded,
their targeted customers were “wealthy merchants and people of high status.”
The stores provided merchandise and services that would meet the taste and
status of those customers. During the economic depression of the 1930s, however,
people’s discretionary income decreased, and their purchasing power declined.
Consequently, department stores had to stimulate consumption with continuous
sales events. The quality of merchandise declined along with the cost. The
customers of department stores were more likely to include the lower classes.
The “one-dollar item” gimmick further disrupted the impression that the
department store was “too expensive to visit.” Even a Shanghai monk was
attracted when the Chinese Native Products Company began its special sales.45
Therefore, although the department store in the 1930s could not be labeled as
catering to popular tastes, their business scope indeed began to expand beyond
the boundary of the upper and middle classes.
In this sense, the business strategies of department stores promoted the
“democratization of desire.” The window displays were one factor in this process.
Although department stores mainly served elites, ordinary people shared the
streets; therefore, there was no class differentiation among the targeted clientele
of window advertising, which cast its charm over anyone who passed by.
Department stores hoped that the charm of advertisements could change anyone
from “the passers to purchasers.” As a result, material desire was no longer the
privilege of the wealthy.
The department of low-price items further stimulated ordinary people’s desire
to consume. Despite its products of lower quality, the one-dollar stores allowed
customers to share shopping experiences in the fancy department stores. The
overall desire to consume not only increased, but also extended to lower social
classes. Moreover, the “democratization of desire” encouraged social imitation,
so some intellectuals began to worry about social ethics. One writer criticized the
phenomenon of imitating fashion in Shanghai:

Our society is degraded by wealthy people. They do not care about clothing
with endurable quality; rather, they buy new clothes every year, every month,
or even every day. What they have most is money, and what they care about
most is vanity. Yet, the life of poor people becomes bitter. They begin to
imitate the wealthy and care about their clothes being old or new. On the New

44
“Report and general description of the new building of the Sun Company,” Jan. 18, 1935,
SLNSW, ZML MSS 6294/6 CY Reel 4243.
45
Kuan Dao, 11.
370 LIEN Ling-ling

Year or special holiday, they will not be happy if they do not buy new clothes.
Without new clothes, they will not go to parties either. It is indeed surprising
how they care about new clothes. If they have extra money in hand, they will
spend it on new clothes, but not the necessity of life. Those who do not have
money but have strong material desire are even willing to borrow money to
purchase new clothes.46

What should be noted here is that while promoting the “democratization of


desire,” department stores did not abandon the market of high-end merchandise
and continuously acknowledged the customers’ demand of maintaining class
boundaries. This was why Sincere founded its “one dollar stores” in separate
location from the department store itself. In the 1930s, in order to keep business
growing despite the economic depression, department stores flexibly used
strategies of market expansion and market differentiation.

2 Modern technology of light, sound, and electricity


When depicting modernization in Shanghai, people would often describe
innovations in the technology of light, sound, and electricity. The department
store was the best place to demonstrate it. Before the electrical light mitigated the
limitation of daylight and restrictions in people’s schedules, most stores only
opened during the day. In fact, the high-rise architecture and glass roofs in the
first department stores were designed to capture more natural light. After the
electrical light was invented, department stores used this technology extensively
not only to create a bright and comfortable shopping environment, but also to
prolong their business hours. While Hall & Holtz and Whiteaway Laidlaw
maintained their tradition of closing the stores at 6 pm, others opened from 9 am
to 8 pm.
The electrical light was not only practical equipment, but also part of the
interior decoration. Hence, department stores in Shanghai competed for using
lighting fixtures with pretty appearance and modern style. For example, Wing
On and Sun Sun once vied with each other for the title of “the first store using
fluorescent lamp.” In 1941, Andersen, Meyer & Company imported fluorescent
lamps from America. This new invention was claimed to be energy-saving,
with bright light that could attract customers. At that time, Shanghai was
limiting the usage of electricity so department stores all wished to use
energy-efficient lamps. According to Li Chengji, Andersen, Meyer & Company
first approached Sun Sun to introduce the new product. “However, Wing On
snatched this opportunity from Sun Sun,” and signed the contract with
46
Dai Zhi, 34.
From the retailing revolution to the consumer revolution 371

Andersen, Meyer & Company. Sun Sun indeed regretted losing such an
opportunity.47
Department stores carefully designed not only indoor lighting, but also
exterior neon lighting. The history of neon light was not long. While the first
commercial neon light emerged in Paris in 1910, it was not until 1926 that the
new facilities appeared on the Nanjing Road, when Evans Book Company
installed an advertisement in neon lights for the Crown typewriter.48 In the 1930s,
department stores began adopting neon light for advertising. When Wing On
designed its new building, it had included considerations for outlining the outer
walls of the high floors with neon light. The walls could also be rented to other
manufacturers. Since Wing On’s new building was much taller than its
neighboring houses, its neon-light advertisements were eye-catching and
constantly leased by other companies. For example, in 1937 the Chinese-owned
car-rental company, Silver, set up a service counter in Wing On. Together with
the neon-light advertisement, the automobile company paid Wing On 100 yuan
per month. In 1940, the New Asiatic Chemical Works, Ltd. rented the
advertisement space of the nineteenth floor with a monthly rent of 500 yuan from
Wing On.49
Department stores’ neon-light advertising could also function as a public
service. In May 1946, in order to inspire interest in air navigation, the Shanghai
office of the Chinese Association of Constructing Air Navigation intended to rent
the advertisement space of Wing On’s new building. This association was
founded in 1932 and was originally a private institution with a goal to promote
the knowledge of air navigation. Later it became a semi-governmental
organization and launched fundraising campaigns for purchasing aircrafts,
training pilots, and establishing aviation schools. In 1945, the association
intended to set up a new office in Shanghai and recruit new members. To
advertise its agenda, the Shanghai office posted slogans around the city and
installed a neon light of “Developing Aviation” on the thirteenth floor of Wing
On’s new building. It also held an exhibition of aircraft models on the second
floor of the Sun Company. To show its support for the patriotic request, Wing On
generously waived the usual six-month rent and electricity fee. 50 In the

47
“Guo Lingshuang’s letter to Guo Le,” May 8, 1941, in the Wing On Company Files,
Shanghai Municipal Archives, Q225-3-23; Li Zhigang, 169.
48
Zhao Chen, 282.
49
“Wing On Company’s response to the Silver Car Rental Company,” July 9, 1937, in the
Wing On Company Files, Shanghai Municipal Archives, Q225-3-21; “Wing On Company’s
letter to the New Asiatic Chemical Works Ltd.,” Feb. 24, 1940, in the Wing On Company Files,
Shanghai Municipal Archives, Q225-3-23.
50
“Wing On Company’s response to the Chinese Association of Constructing Air Navigation,”
May 4, 1946, in the Wong On Company Files, Shanghai Municipal Archives, Q225-3-26.
372 LIEN Ling-ling

movement of constructing air navigation, department stores played the role of not
only the creditors of capital, but also the supporters of popular education.
In terms of its visual effect, the neon light was not just a mechanism that
conveyed commercial or political messages, but also a symbol of Shanghai’s
nightlife. Zhang Kebiao, a writer of Shenbao, even argued that all the tributes to
cities centered on their nightlife. However, when people spoke of Shanghai’s
nightlife, they were often “searching for the daylight in the evening.”51 In a
sense, such “evening daylight” was the effect of the neon light. The extensive use
of neon light also changed the appearance of the street. Under the glittering lights,
the evening was no longer of the dull black, and sunrise and sunset no longer
demarcated daytime and evening activities. The phrase “the evening was like the
day,” implied that the daytime activities could be continued in the evening.
“Nightlife,” “night market,” and “evening scenery” became common terms in
daily life. New activities emerged that could only be done in the evening. It was
the neon light that played an important role in giving the new meaning to these
terms.
In addition to using artificial light for visual effects, department stores also
used radio broadcast to create sound effects. In Jan. 1923, the American E. G.
Osborn founded the Radio Corporation of China and cooperated with the
Continental Daily to broadcast music and news. This was the beginning of the
radio business in China.52 Department stores quickly noticed the value of this
new technology and hoped to use it to attract customers. In May 1923, the Radio
Corporation of China experienced internecine strife, which made Osborn want to
start another business. His new partner A. T. Hughes rented a space in the roof
garden of Wing On and installed a radio station with 200-watt power on the
“Yiyun Pavilion.” The agreed monthly rent was 300 taels of silvers. Through the
American and British Consuls, Wing On cautiously submitted this plan to the
Shanghai office of foreign affairs for registration. This precautious move,
however, backfired. At that time the Chinese Government had not yet established
regulations for radio stations; in order to avoid further complications, the
officials simply declined Wing On’s proposal. Under these circumstances, Wing
On had to return the rent and remove the ratio station.53 Consequently, it also
lost the chance of using radio advertising.
Nonetheless, the department stores continued to search for opportunities to
use radio advertising before the government lifted its prohibition.54 When Sun

51
Zhang Kebiao, 17.
52
Shanghaishi dang’anguan eds., 1–2.
53
Cao Zhongyuan, 50.
54
On Dec. 13, 1928, the Nationalist government promulgated the rules of radio broadcast and
officially allowed the establishment of private radio stations.
From the retailing revolution to the consumer revolution 373

Sun first opened, its manager Liu Xiji intended to set up a broadcast station.
The company’s employee Kuang Zan had studied radio technology in San
Francisco and volunteered to design the station. By using the radio materials
sold in Sun Sun and the circuit diagram of the radio technology provided by
Kailuo Company, Kuang made a very simple broadcast machine with
“211-style” vacuum tubes and installed it on the top of the store. This was the
first privately run radio station in China. The station began on Mar. 8, 1927,
broadcasting news and music, and advertising merchandise sold in the store.55
Sometimes the station invited renowned singers or amateurs to perform on the
air.
The radio broadcast was certainly a new kind of auditory stimulus. Yet, Sun
Sun Company had more creative ideas in mind. When it renovated the roof
garden in 1939, the store established a radio station in the center of the newly
built restaurant. The radio station was surrounded by glass windows so that
customers could have a clear view of the announcers. As Li Chengji recalled,
some customers even visited the restaurant and reserved the same seats every
day to see their favorite singers. 56 Sun Sun’s strategy to “refresh the
customers’ ears and eyes” set the milestone of the department store’s
advertising.
The design of the department store should not only amaze people, but also
make customers feel comfortable enough to spend more time in the store and to
spend more money on purchases. These considerations led architects to consider
some seemingly unimportant details and develop the architecture and design of
the department store into a specialty. For instance, in the late 1890s, American
department stores began to remove the stairs at their front gates to clear the
customers’ pathway into the stores.57 Sincere and Wing On both followed this
architectural principle. When the Sun Company was under the construction, its
architect originally designed stairs at the front gate to protect the interior store
space from flooding caused by heavy rainfall. However, the store’s American
architect Graham suggested removing the stairs. After negotiation, the Chinese
and American architects decided to raise the base of the ground floor by 18
inches.58 In addition, department stores all built spacious hallways; the Sun
Company even had hallways as wide as eleven feet so the customers would not
be disturbed by the shopping crowds.59

55
Shanghai guangbo dianshizhi bianji weiyuanhui eds., 109.
56
Li Zhigang, 179–180.
57
Leach, 73.
58
“Letter of John Graham to Choy Chong,” June 30, 1934, SLNSW, ZML MSS 6294/6 CY
Reel 4243; Progress report from Mr. John Graham dated July 17–25, 1934, SLNSW, ZML
MSS 6294/6 CY Reel 4243.
59
Jitai gongchengsi jianzhushi, 18.
374 LIEN Ling-ling

Besides spatial features, department stores were also aware of the influence
of weather and temperature on customers. For instance, given that Shanghai’s
hot summer discouraged people from going out at noon, the Sun Sun Company
once declared changes to its store hours from 8:00 to 21:00 with a recess
between 12:30 and 14:00.60 Such considerations led the Sun Company to
install cold and warm radiators so that “the winter will not be bitterly cold, and
the summer will not be cruelly hot. The weather will be like spring all the
time.”61 When the air-conditioners were imported to China in 1941, Sun Sun
Company immediately decided to invest 200 000 US dollars on this new
equipment.62
The department store was also one of the first institutions to install
elevators, a technology that made the trip to the departments of higher floors
more convenient. Initially, Sincere and Wing On installed elevators to take
customers to their rooftop theatres with a price of 2 jiao per person.63 When
the Sun Sun Company was founded, elevator technology had improved. The
new elevators had a larger capacity, faster speed, and more stability than
previous models.64 The Sun Company installed two escalators in the middle
of the store. According to the architect’s estimate, the escalator could
transport about 4 000 people per hour, and was more effective and
energy-saving than elevators.65 The Sun Company’s escalators were not only
the facility to make the shopping more convenient; the escalators themselves
also became the attraction of the store. On the opening day, to control the
crowds, the Sun Company sold an admission ticket for riding the escalators.
Still, many people brought their family to give a trial. According to a news
report, the escalators were the most popular spot when the Sun Company was
first opened.66
The department store was the retailing business that invested the most on
modern technology. By continuously renewing their lighting and sound, the
stores surprised their customers and enriched the meaning of “going to the
department store.” What the department store provided was not only merchandise,
but also the experience of modern life.

60
“Xinxin gaiding yingye shijian” (Sun Sun Company changes the business hours), Dawanbao,
June 30, 1936, 6.
61
Jian Wen, 17.
62
Li Zhigang, 168–173.
63
“Xianshi leyuan ribao,” 1.
64
“Maosheng yanghang daizhuang shengjiangji” (The Maosheng Company supplying
elevator), Shenbao, Jan. 1, 1926, 38.
65
Report and general description of the new building of the Sun Company dated Jan. 18, 1935,
SLNSW, ZML MSS 6294/6 CY Reel 4243.
66
Tian Feng, 5.
From the retailing revolution to the consumer revolution 375

3 Consumption became entertainment and festival


Besides grand architecture and comfortable shopping environments,
department stores also held all kinds of events to attract more customers. Some
activities aimed to draw people to the store with certain new and unusual
amusement. Often, the customers had to make a purchase of certain amount
before they could participate in these special events. One example was the
hot-air balloon show held by Wing On in July 1919. When Wing On learned
that American hot-air balloon performers would be visiting Shanghai, the
company seized the opportunity to hold an event that would increase the
popularity of its newly opened store. Wing On advertised this event extensively
on Shenbao about a month before the show. The permission ticket was 5 jiao
each, but the customers could receive a free ticket with a receipt for a purchase
of at least 5 yuan. At that time, an entrance ticket to the roof theatre was 1 jiao
each, and the elevator ticket was 2 jiao. Hence, a show that required an
admission ticket of 5 jiao should be considered rather expensive and affordable
only to wealthy people who not only could afford the price of admission tickets,
but who were also interested in the foreign entertainment.67 Taking them as
targeted customers, the department stores were willing to spend large sums of
capital and designed entertainment for this group of people so to increase the
sales figures.
Another sale strategy was to “educate consumers,” which was best
demonstrated in the exhibition of “Wing On moisturizing soap.” In the late 1930s,
one of Wing On’s soap suppliers Yue Wah & Company encountered financial
difficulty and could not manufacture enough soap for Wing On’s needs. The two
companies reached an agreement that benefited both sides: on the one hand,
Wing On agreed to provide Yue Wah with soap made by the American Palmolive
Company, which could serve as the model of Yue Wah’s own production.68
Moreover, Wing On also promised to purchase all the dead stock of Yue Wah’s
“Longevity, Prosperity and Posterity Soap.” The agreement provided Yue Wah
with temporary financial relief, thus enabling it to produce soap of high quality
requested by Wing On. After Yue Wah received enough profit, it would purchase
back all the unmarketable stock. The condition was that the newly produced soap
would be labeled with Wing On’s brand name.69 The new “Wing On moisturizing
soap” became very popular in China as well as in Southeast Asia. This new
product was packed with golden packaging paper and black ribbons and was also

67
“Xianshi leyuan ribao,” 1.
68
Shanghai shehui kexueyuan jingji yanjiusuo eds., 137–138.
69
“Wing On Company’s letter to the Cosmetics Trade Association,” Sep. 7, 1938, in the Wing
On Company Files, Shanghai Municipal Archives, Q225-3-22.
376 LIEN Ling-ling

registered in Singapore.70 To promote the sale of this new product, Wing On set
up a counter in the cosmetics department to demonstrate its manufacturing
process. Such performances attracted many customers.
Essentially, the demonstrations of soap production amounted to an
advertisement for the new product that was managed by the department store
itself. Like the hot-air balloon show, the soap exhibition caught people’s
imagination and attracted them to enter the department store. The manufacturing
process included three steps. First, the fragmented pieces of soap and perfume
were mixed in the blender. Then the mix was ground into powder. Next, the
powder was pressed into soap sticks, which would be cut into smaller pieces.
These pieces would then be placed in a mould press for the proper shape and
imprints. Finally, the soap would be packed with beautiful paper and black
ribbons to become the finished product for sale.71 Since the department store did
not reveal any information about the ingredients, this kind of show was held, not
to encourage people to make soap by themselves, but rather, to attract more
customers and to introduce new products.
The popularity of soap demonstration not only reflected customers’ curiosity
about new products, but also specifically conveyed people’s imagination and
desire for scientific knowledge. Since the late nineteenth and early twentieth
centuries, under the Western impact, Chinese intellectuals’ attitude toward
Western science and technology changed from dismissing Western science as
exotic and trivial to admiring it as effective and esteemed. Moreover, many
magazines whose targeted readers were mostly middle school and college
students began to introduce “scientific knowledge of daily life.” Funü zazhi (The
Ladies’ Journal) published by the Commercial Press promoted Western home
economics and encouraged readers to do household chores with “scientific
methods.”72 During the 1930s, one after another, newspapers and magazines
established special columns to introduce new scientific knowledge. The famous
pictorial Liangyou even used illustrations to show the production of daily
necessities, such as toothbrushes, soda, and underwear. What was introduced by
the department store and print media was not only the knowledge of modern
products, but also the concept of positivistic science. From this perspective, the
department store-based capitalism represented a process of merchandise
production and economic exchange, on the one hand, and a force for shaping
new ideas, on the other.
One important aspect of the department store’s business strategy was to

70
“Yong’an gongsi runfu xiangzao biaoyan zhizaofa” (The show of soap production in the
Wing On Company), Shenbao, June 16, 1939.
71
Zhang Zhenshan.
72
You Jianming, 233–252.
From the retailing revolution to the consumer revolution 377

develop children’s market. It was closely connected with the change of the
attitudes toward children in the Republican era. According to Xiong Bingzhen,
traditional China valued “childhood” mainly as a transitional period to adulthood,
expecting to speed up this process of socialization so a child was taught to
“behave like an adult and speak like an elder” as early as possible.73 With the
intention to “strengthen the children to empower the nation,” children were
considered not only as important transmitters of the family bloodline, but also
as the future citizens of the Chinese nation. Therefore, from the late Qing to
the Republican era, nationalism began to influence discussions about children.
On the one hand, such discussions inspired many publications especially for
children; on the other hand, they further changed the image of women,
emphasizing that women played an important role in educating the future
citizens of the nation. The new attitude toward children also acknowledged
that their needs were special and advocated educating a child according to
his/her temperament. Children were no longer regarded as “the miniature of
adults.”74
Beside intellectual discourse, the new concept about the identity of children
was reflected in market differentiation. In 1931, through the advocacy work of
the Chinese Association of the Elderly and Children, the Nationalist government
marked Apr. 4 as Children’s Day and began to celebrate it after the following
year. On Aug. 1, 1935, the government promoted “the National Year of Children”
and implemented policies related to children’s welfare.75 For businessmen, the
social and governmental awareness of children’s issues meant new market
demand. Merchandise that targeted children appeared, and each department store
did its best to promote sales of products for children. For example, the China
Native Products Company set up a special event to showcase children’s products.
Noteworthy is that by calling the exhibition “ertong youle shi,” the designer
implicitly played upon the word “shi”—in Chinese, shi means the economic
market, so ertong youle shi denotes the market that children could have fun
through purchasing goods. The word shi also refers to an administrative unit
governed by officials and ertong youle shi stands for “an amusing city for
children.” To highlight the political sense as well as create an interesting episode,
the China Native Products Company elected Lin Zhifu as the mayor of the
children’s city, and Huang Suhui and Pan Shiwei as deputy mayors. Their fathers
Lin Kanghou, Huang Yanpei and Pan Yangyao were all famous for fully
supporting the movement of Chinese national products in Shanghai. By choosing
the children whose families had a reputation of “patriotic merchants,” this event

73
Xiong Bingzhen, 282–283.
74
Chen Heqin, reprint 1983, 1–8.
75
Shenbao, Aug. 1, 1935, 17.
378 LIEN Ling-ling

celebrated the promising nation and citizens through conscientious consumption.


Like a real city, the children’s city was also surrounded by several “avenues,” all
of which were named after the terms symbolizing nation building. For example,
the main street of the children’s city was called Zhongshan, the alias of the
founding father of the Republic of China—Sun Yat-sen, while the names of other
avenues signified healthy childhood. Some merchandise on display was packed
like military tanks, revealing a strong intention to develop children’s marshal
spirit and educate them with patriotic ideas.
The “children’s world” established by Sincere in the winter of 1936 was more
closely related to the contemporary incidents. After the Manchurian incident in
1931, Japan began invading North China and even instigated the self-governance
of the Inner Mongolia. In Nov. 1936, General Fu Zuoyi led his army to fight
against the Japanese troops and recovered the lost territory in northwestern China.
This news excited people greatly. Sincere even drew on this heroic battle to
design its children’s world of that year. A gate was installed in the exhibition hall.
When entering the gate, the customer would first see a huge picture of Bailing
Temple, a Tibetan Buddhist tower located in Guihua, Suiyuan, the battleground
where General Fu won a victory over Japan. The entire display consisted of three
themes. The first introduced the geographical and cultural environment of
northwestern China where the only means of transportation in the harsh winter
was camels. It also showed that a large number of refugees were forced to leave
their hometowns and fall into beggary for survival with a sharp contrast between
the harsh cruelty of the enemy and the brave resistance of the Chinese Army.
With an offending gesture that the Japanese flags flew over the Great Wall, this
scene highlighted Japan’s invasion of Chinese territory and wartime abuses of
Chinese citizens in order to provoke patriotic sentiment. The second theme was
to replay the battle at Bailing Temple, which was also the central part of this
exhibition. According to a newspaper report, all the miniatures houses, temples,
and army were made in proportion of the original ones so that the viewers felt as
if they were personally on the scene. The exhibition was then concluded by a
scene in which young students receiving military training in front of the Sun
Yat-sen Mausoleum.76 It is apparent that the consecutive arrangement of these
scenes was intended to excite visitors and to imply that China would finally
achieve victory only under the condition that young students (the main targeted
audience of this exhibition) answered the call of their country.
This diorama of northwestern China aimed to satisfy people’s curiosity and
interest about Suiyuan and also to construct an imagined community of the
Chinese nation by exhibiting the Chinese border area. According to Shen
Songqiao, after the Manchurian Incident, China experienced a national crisis that

76
Bing, 6.
From the retailing revolution to the consumer revolution 379

brought the people’s attention to the border areas and resulted in the
“northwestern rush.” Writing travel guides and travel literature about
northwestern China became popular among Chinese intellectuals. Through
tracing the history of “border areas,” these writers asserted China’s sovereignty
over northwestern China and claimed a consolidated nation. 77 In a sense,
Sincere’s exhibition was the product of the “northwestern rush.” It used visual
effects to stimulate patriotic feelings in both intellectuals and children. This
example also reflected the relationship between popular culture and the
construction of nationalism. On the one hand, the department store provided a
space to visualize the national crisis. Visual displays were more impressive than
the written word and could reach a broader audience. On the other hand, the
department stores used the language of nationalist politics to convey commercial
messages and appropriate people’s consumption. One visitor to the “children’s
city” mentioned that his son loved candy that was shaped like tanks because, the
boy boasted, “I want to use it to fight with the enemy.” The father purchased two
packages for the child and told him, “Do not forget about your ambition after you
finish the candy.”78 This example demonstrated that the appeal of nationalism
was an effective sales strategy.
However, nationalism was not always the most powerful tool for the
department stores that sold international goods. Sales events also celebrated
Hollywood cartoon characters. For example, when Walt Disney’s “Snow White”
opened in Shanghai movie theaters in Dec. 1938, Sincere used the story lines as
the theme of its “children’s world” to attract audiences and to promote products
related to the film.79 On the surface, the bloody war in northwestern China and
the fairy-tale of Snow White delivered completely different ideas about children.
The goal of the former was to inculcate nationalism and encourage children to
become soldiers, who would defend their fatherland in the future. The latter
emphasized the adorable but vulnerable image of romantic childhood. These two
views indicated how the urban middle class constructed the image of the “ideal
child” and shaped department stores’ sales strategy for the children’s market.
The hot-air balloon shows, soap-making demonstrations, and children’s world
were all sales strategies that department stores used to attract customers. Even
when customers were not interested in the products themselves, these shows
could excite people’s curiosity about new things and draw them to department
stores. In other words, the department store redefined the meaning of
consumption, which was now not only regarded as the exchange of goods and a
way to satisfy material needs, but also a form of entertainment that epitomized

77
Shen Songqiao, 162–163, 173–186.
78
Ke Dingan, 15.
79
Tan, 14.
380 LIEN Ling-ling

the experience and value of modern life. In 1924, the novelist Zhou Shoujuan
was asked to compose an essay to celebrate the twenty-fifth anniversary of
Sincere Company. In this fictitious piece entitled “The future of Sincere
Company,” Zhou imagined that Sincere would continue to prosper well into its
golden jubilee. The future Sincere might have a larger amount of merchandise,
better-trained employees, more fabulous exhibitions, and more magnificent
emporiums, but in terms of consumption in the department stores, the focal point
would always be seeking pleasure.80
To some extent, the shows and exhibitions also transformed consumption into
festivals. Department stores made use of every occasion such as the Chinese
New Year, the Dragon Boat Festival, Mid-Autumn Festival and Christmas to
advertise their merchandise and created a festive atmosphere. The
aforementioned “children’s city” was an example of this kind of promotion. In
addition, department stores also designed their own festive sales events. The best
example was the store anniversary. Originally, the anniversary commemorated
the hard work of department stores’ founders. Later it became a special sales
occasion, which invited the participation of the general public. In this sense, new
advertising strategies transformed shopping into a kind of urban adventure and
treasure hunting. More than a mere act of purchasing, consumption also included
the surprise of exploring new products and the pleasure of indulging uninhibited
desires.

4 Department stores and the movement of national products


The retailing revolution of the department stores indeed had enormous influence
on the urbanite daily life. Yet, the department store was by no means the major
force that shaped urban consumption. At certain crucial moments, the department
store had to readjust their policies in order to respond to consumers’ requests, as
seen in the movement of national products. From the beginning, department
stores viewed themselves as universal providers and carried goods from almost
all over the world, such as Britain, the United States, Germany, and France.
Before 1931, only two percent of the manufacturing goods sold in Wing On were
made in China. Even when the store added departments for special local products
and handicrafts, Chinese-made merchandise comprised only twenty-five percent
of the total.81 Sincere and Sun Sun had similar ratios. This purchasing policy ran
counter to the principle of the “national products movement” in the Republican
era. The movement began as a response to the “Chinese Exclusion Acts” passed

80
Zhou Shoujuan, “Weilai zhi xianshi” (The Sincere Company in the future), in Xianggang
Xianshi gongsi eds., 17.
81
Shanghai shehui kexueyuan jingji yanjiusuo eds., 132.
From the retailing revolution to the consumer revolution 381

by the Congress of the United States in 1905. After this law restricted Chinese
immigration to the United States, Chinese merchants and gentry boycotted
American-made products. Yet, the systematic promotion of national products
began with the founding of the National Products Preservation Association in
1911. The goal of the association was “to promote the national products; to
develop enterprises; to improve technology and crafts; to encourage trade.” Other
associations advocating national products emerged thereafter. This movement
reached two apexes in the Republican era. The first time was the May 4th
Movement in 1919; the second was after the Manchurian Incident in 1931. Both
were reactions to the Japanese infringement of Chinese sovereignty. Therefore,
the boycott of the Japanese goods was the main purpose of the movement for the
national products. Later, the boycott extended to other foreign products. The
movement not only called ordinary consumers to refuse foreign products, but
also demanded the stores remove foreign products from their shelves.82
During the boycotts, the department stores that were the largest carriers of
foreign products faced an embarrassing situation. Given the industrial conditions
of China at that time, the amount and quality of Chinese-made products would
not be able to satisfy the needs of their customers. If they continued selling
foreign products, however, negative public opinion would damage the reputation
of the stores. The department stores finally decided to replace Japanese products
temporarily with merchandise from China or other countries. Citing the May 4th
Movement as an example of Shanghai merchants’ response to the call of
boycotting Japanese goods, Sincere announced that the store would stop
importing Japanese goods. However, the store could not absorb the economic
loss of disposing the Japanese goods that it had already imported. Therefore,
Sincere would continue selling the stock.83 On May 16, Japanese products were
still available in Sincere. In addition, since Sincere registered its business under
British jurisdiction, its political status was in question, according to the public.
On May 18, the supporters of the movement openly challenged the hypocrisy of
Sincere and Wing On and demanded them to set the model of other business
enterprises by quickly removing all the Japanese products and selling only
Chinese ones. Under pressure from public opinion, the two department stores had
little choice but to adjust their policies. Two days later, they published another
statement, promising that from May 22, they would “stop selling the Japanese
products regardless of the financial loss as a demonstration of their resolution to
boycott Japanese products.”84 Meanwhile, to diminish the doubts of the public,
the two department stores also continued advertising that they intended to

82
For the details of the movement of the national products, see Pan Junxiang; Gerth.
83
Shenbao, May 16, 1919, 2.
84
Ibid., May 18 and 20, 1919, 2.
382 LIEN Ling-ling

purchase Chinese-made products.


When the national products movement subsided as political opposition
dwindled, department stores became less concerned about the national origin of
their products. In Aug., Sincere began to advertise newly-arrived American
textbooks and other foreign products again in Shenbao. In Wing On’s
advertisement for the store’s anniversary sale, it again emphasized that “Wing On
carries all kinds of Chinese and foreign products.”85 Obviously, the department
stores still maintained their identities as “universal providers.” This insight does
not indicate that the department stores did not sincerely support national products.
The purchase of Chinese-made products also depended on the conditions of
industry and production, which only gradually grew mature in China after the
1930s.
The Manchurian Incident of 1931 was another catalyst that prompted the
department stores’ support of Chinese-made products. When the puppet regime
Manchukuo was established with Japanese support, the movement to boycott
Japanese products surged again. The Shanghai Association of the Grocery
Businesses announced that Shanghai department stores would undertake the
following six actions: (1) Department stores would stop all the business with the
Japanese eternally. (2) Department stores would return all the Japanese products.
(3) The association would send out teams of inspectors to investigate Japanese
products. (4) Within three days of the publication of this statement, all
department stores and grocery shops should seal and store all their Japanese
products. The association would send out inspecting teams after the three days.
(5) The association would strictly investigate whether Japanese products were
repackaged as Chinese products. (6) On Sep. 26, all the stores should close to
lament the loss of Manchuria. In addition, the association also demanded all the
stores to post slogans on their doors to discourage customers from buying
Japanese products.86
After the Manchurian Incident, the pro-national-product groups became more
active. They not only used the media for advertising national products, but also
held all kinds of exhibitions to increase the customers’ knowledge and interest
about Chinese products. From 1932 onward, special events targeted certain
customers, such as “the year of national products,” “the women’s year of national
products,” and “the students’ year of national products.” With support from
Chinese bankers, industrialists and merchants, the national products advocates
launched department stores that exclusively sold national products like the
Shanghai Native Products Company founded in 1932 and the China Native
Products Company founded in 1933. The new department stores represented

85
Ibid., Aug. 31, 1919, 13; Sep. 17, 4, 1919.
86
Ibid., Sep. 25, 1931, 2; Sep. 24, 1931, 14.
From the retailing revolution to the consumer revolution 383

merchants’ patriotic actions under the national crisis. Meanwhile, merchants


could also use this opportunity to reshape their social image and promote the sale
of their products. Such business strategies significantly impacted the existing
department stores. Beginning in the 1930s, newspapers began to criticize
department stores that sold foreign goods. Facing the challenges, department
stores established special departments of Chinese products. For example, the
Sun Sun Company set up a department of the Chinese products on its fourth
floor in Nov., 1934. The Sun Company used the exhibition hall to promote
Chinese-made products. Wing On had a greater ambition: in 1933, it planned to
build a skyscraper adjacent to the current store so that it could devote the
building to new departments of national products. When the new building was
nearly completed in mid-1937, Wing On publicly sought suppliers of national
products and announced that the new store was scheduled to open on Sep. 1.
The eruption of the War of Resistance against Japan, however, interrupted this
plan; Japanese bombing that shattered the windows of the department stores on
Nanjing Road and killed dozens of customers and employees of Sincere and
Wing On. The war not only caused the stores to incur a great financial and
human loss, but also delayed Wing On’s opening of its department of Chinese
products.
Nevertheless, Wing On continued in the direction of promoting national
products. From 1934 to 1937, the ratio of the national products in its total stock
increased from 60 percent to 65 percent. One reason for this increase was the
boycott of Japanese products. The department stores began to replace the
Japanese products with the Chinese products of high quality. Moreover,
department stores experienced financial difficulties due to the global economic
depression in the 1930s. Compared to foreign suppliers, Chinese counterparts
were more flexible about the condition of payments, so department stores began
to purchase more Chinese products than foreign goods.87 Such changes in turn
affected the purchasing patterns and social background of customers in
department stores. In other words, with the rapid social and economic changes,
department stores had to adjust their sales strategies. Department stores that
initiated the retailing revolution was not always playing an active role in
determining what customers could or should buy; the national products movement
reveals consumers’ growing consciousness of their purchasing decisions.

5 Conclusion
The department store represented new ways to handle commercial trades. The

87
For the discussion on how the Wing On Department Store expanded its stock of Chinese
products, see Lian Lingling, 2005, 159–161.
384 LIEN Ling-ling

architecture, modern technology, and the display of merchandise discussed in this


article all aimed to place the customers in closer contact with the products so that
they would be more likely to purchase them. Creative promotions of the retailing
business not only provided capitalists with new tools for making profits, but also
endowed consumption new meanings in at least three aspects.
First involves the changes in the shopping environment, including the space
itself and its implication. Expansive size and large quantities and varieties of
products characterized the modern department stores. Because the large store
space was filled with employees, customers, and products, shopping in the
department stores felt like visiting a huge marketplace. Another space change
was the design from the customer’s perspective. Taking the display cabinets as an
example, merchants traditionally protected goods by storing them deep inside the
shop. Department stores, in contrast, used transparent cabinets to display
merchandise so that the customers could have clear view of the products. Such
different sale strategies resulted in a different consumer experience. Additionally,
department stores allowed customers to review the products freely, without any
pressure to purchase. This kind of freedom made the stores a relaxing site that
people could visit without any specific reason. Moreover, department stores were
a business compound that included restaurants, hotels, theatres, and dancing halls
where shoppers could enjoy delicious food, exciting dramas, sensational dance,
or hang around with friends and family. The functions of the shopping space
multiplied, and department stores became places where people could spend their
leisure time.
Second, the content of the consuming was also changed. Department stores
were places of economic exchange, and the customers came to the stores to
consume all kinds of products. In addition to the new products, the customers
also experienced a “consumption of senses,” for the marketing techniques
employed by the department stores appealed to the customers’ sensory organs.
They invited the customers to watch the hot-air balloon show, to listen to radio
broadcasts, and to ride the escalators. By stimulating the human senses of seeing,
hearing, and touching, the department stores titillated the customers’ desires.
Moreover, the department stores connected people’s sensational experience with
modern technology and transformed the “consumption of senses” into the pursuit
of modernity.
Finally, the characteristics of consumption were altered. From purchasing
products for practical purposes, consumption was transformed into the pursuit of
personal pleasure. This change resulted from not only the overlapping of spaces
for consumption and entertainment, but also from redefining the activity of
shopping as entertainment. To some extent, such transformations changed the
way people related to objects and other people. Scholars on consumer culture
From the retailing revolution to the consumer revolution 385

have pointed out that merchandise not only reflects the consumers’ taste but also
symbolizes their status, expressing their unique class, gender, ethnic identity and
ideology. The main purpose of consumption was no longer the acquisition of
products, but rather, the release of emotions. Certainly, it is not a strictly modern
phenomenon to use consumption as the tool for alleviating stress. For instance,
“drowning one’s sorrows in liquor” was already a common phenomenon of
emotional consumption in pre-modern China. Nonetheless, the department store
helped transform consumption into entertainment with a strong connection to
emotional experiences, which was particularly reflected in rhetoric differences
between the Chinese terms used to denote “shopping.” In Shanghai, people often
used the term “guang gongsi” (stroll around the company), instead of “gouwu”
(purchase goods), to describe their activities in the department stores. While the
latter conveys the purpose of obtaining products, the former captures the sense of
“purposelessness”—the excitement of viewing and being viewed served the goal
of visiting the department store. Such a goal also explains why the department
store had to produce various scenes of “sensational consumption.”
Yet, did the department store indeed completely change the modes of
consumption? After carefully researching the daily life of Shanghai citizens,
Professor Lu Hanchao argues that when foreign-style buildings were constructed
one after another in Shanghai, most local residents still led a life almost
untouched by Western civilization. Even on Nanjing Road, department stores
were outnumbered by small shops that still did their business in traditional ways
of bargaining, without regard for modern ways of displaying merchandise. Such
was the ordinary citizens’ culture of consumption.88 Nonetheless, many ordinary
people—such as the rickshaw pullers waiting for the ladies at the door of the
department store—could still observe the windows with delicate decorations and
enjoy free consumption of sensations and the imagination of modernity.
Therefore, despite the fact that the department store was a class-based business
and by no means replaced other types of retailing organizations, it presented a
new ideal of consumption and a new desire of pursuing products, beauty, and
pleasure.

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