Not such a nice price

Many visitors to Beijing's tourist attractions including museums, temples, art galleries and historical landmarks are often lured into souvenir shops to seek a memorable gift that will remind them of their visit in years to come. However, finding the right souvenir is no easy task. Although they come in many shapes and sizes, most souvenirs in Beijing share a common attribute: a costly price tag. 

Pricing problems

A recent survey conducted by business news website China Economic Net showed nearly half of the respondents consider souvenirs priced between 50 and 100 yuan ($7.90-$15.85) to be "reasonable." While this might seem fair on a global scale, most attractions in China are visited by domestic tourists. Given that the average annual income for people living in urban centers in 2010 was 21,033 yuan and 5,919 yuan in rural areas, souvenir costs appear unfairly priced.

Liu Chenhao is familiar with how out of reach souvenirs are it comes to cost. Last month, the local white-collar worker visited the Beijing Auto Museum located on the South Fourth Ring Road with his eight-year-old son. After browsing the exhibitions on display, the pair visited the museum's souvenir shop and browsed model cars for sale. Though a model Mercedes caught the eye of Liu's son with its sharp design that gleamed in the light, its price tag sharply put the brakes on any possible purchase.

"My son loves these cars, but he's not that big of a fan," said Liu. "I suppose I could have bought the model Mercedes at 4,000 yuan, but I only earn 8,000 yuan per month. I can't blow half my month's salary on a toy car. I'd rather buy a more affordable souvenir that can be enjoyed and reminds us of our visit to the museum."

Staff at the museum's souvenir shop defended their high pricing of gifts, saying that customers are often happy to pay a little more for the peace of mind that they are buying quality gifts. "We are authorized to sell these products and they are sourced directly from the manufacturers. This means we have to follow the manufacturers' recommended retail pricing policy," said a sales attendant, who asked to remain unnamed.

Irrelevant souvenirs

Liu and his son browsed other items at the souvenir shop, but were disappointed to discover they appeared more like endorsements for prestigious luxury carmakers that lacked any connection to the museum. "Audi, Volkswagen and Mercedes Benz might be top carmakers, but I can buy their merchandise elsewhere. Why should I buy it here? All I wanted was something that reflected the experience we had at the museum," Liu explained. "In any case, the prices are outrageously expensive. Forty yuan for a souvenir key ring is crazy."

Among the few items at the Auto Museum's souvenir shop bearing the museum's logo was a badge and a postage stamp collection with the motto "My Low-Carbon Life."

Exorbitant prices of souvenirs that often lack any relevance to the museum or attraction they are sold at has fueled poor sales, according to a study conducted by the State Administration of Cultural Heritage. The study found that just over eight percent of museums nationwide recorded annual souvenir sales of more than 10 million yuan. Around 75 percent recorded annual souvenir sales of under five million yuan.

Strategies to rein in costs

Professor Chen Shaofeng, deputy director of the Institute for Cultural Industries at Peking University, argues that museums need to focus on marketing souvenirs with cultural relevance and unique designs that, most importantly, are reasonably priced.

"Souvenirs can be costly to produce, especially if museums depend on ordering souvenirs from manufacturers in small quantities. This is a major factor that results in souvenir shops passing on costs to customers," Professor Chen explained. "Buying in bulk lowers souvenir prices, but then souvenir shops risk being overstocked with gifts no one wants to buy."

One Chinese museum bucking the trend is the Shanghai Museum, one of the city's most visited attractions and home to more than 120,000 precious artworks. The museum markets reasonably priced souvenirs to its visitors, selling replicas of its artworks and other items that allow people to buy meaningful mementos at a cost that won't break the bank. There's a jewelry box shaped from a Qing Dynasty (1644-1911) bowl and a paperweight bearing an emperor's seal. Tout bags bear ancient calligraphy designs and paintings, and there are even cufflinks shaped in the design of a dragon to commemorate the upcoming Chinese New Year. The museum's souvenirs not only meet the demand of tourists, but their sales also form a considerable part of its annual income. Souvenir sales exceeded 30 million yuan in 2010, and have surpassed revenue sourced from visitors' admission since 2006.

Dependency on the State

The profit model adopted by Chinese museums lies at the root of the poor sales of souvenirs. Many museums overseas are privately run and receive minimal government financial support, meaning that they must sell souvenirs to help cover costs. China has more than 2,400 museums nationwide, the majority of which are State-owned and have waived admission fees over the past three years. Funding is stable, meaning management doesn't have to depend on sales of souvenirs to make ends meet and cover operating costs.

Professor Chen added that souvenirs play an important part of China's cultural industry and potentially have a promising future given the vast market and booming domestic tourism industry. "Museums should supply souvenirs for sale to a wide range of visitors with different purchasing power," he said.