China has introduced policies to support certain bookstores with capital and tax exemptions in 12 cities, including Beijing, Shanghai and Hangzhou. CCTV reported that the initiative is designed to counteract the effect of online retailers like Amazon and Taobao on bricks-and-mortar operations.
Hangzhou Xiaofeng Bookstore, for example, has received 300,000 yuan (about US$50,000) in capital support from the city government over the past two years. Owner Jiang Aijun said the money "is actually like a government prize for innovation. We could use it to improve our business model."
"For many people, [a] bookstore is not only a shop or a business," CCTV wrote. "It represents the culture and spirit of the city. There will be changes of the business model. But there will always be people who want to read or just to spend some time in a bookstore."
Rui Shujun, a marketing manager for the bookstore chain Zilihangjian, told the Global Times that pricing remains a key issue: "We need more policies to support us, but the key one is to control the price of books, especially from online booksellers. I appreciate policies on store rental and other support, but they are hard to put into practice. We choose sites in shopping malls and downtown areas to gain more customers but the rental prices mainly depend on market rules."
