Business Case Studies & Business Publications

The Xiangyang Market

Li, Wei, Yuan, Jea...

Case

The Xiangyang Market

Li, Wei; Yuan, Jean

BP-0487 | Published October 4, 2005 | 10 pages Case

Collection: Darden School of Business

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Xiangyang Market, located at the center of the shopping district in the trendy former French concession in Shanghai, is one of the city's prime shopping venues and a must-see tourist destination. Considered a shoppers' paradise by many foreign visitors, this open-air bazaar is known for the incredible deals on quality knockoffs of designer products. This case first describes the history that led to its development. It then gives an account of the shopping experience of a couple of American tourists, giving details of their discoveries and bargaining sessions in the market. It concludes with a description of the future of the market, highlighting the concerns about protection of intellectual property rights as well as competition from traditional retailers in Shanghai. The case can be used to teach the economics of markets under asymmetric information, bargaining and negotiation, and intellectual property rights. It can also be used in finance to teach market efficiency or in consumer marketing.