Summary of Key Points
This summer, Shenzhen experienced 47 days of rainfall (from June to August), setting a new record for the same period in history. The extreme downpours have had a devastating impact on small businesses that rely on outdoor foot traffic, such as seaside homestays, food street vendors, and handmade craft sellers. Homestay bookings were halved, vendors failed to make enough to cover their costs, and their products were damaged by the rain. Additionally, factors like decreased consumer spending and fierce online competition have exacerbated these difficulties, leaving many small business owners in a precarious situation. The normalization of extreme weather (caused by climate change and El Niño) makes it even harder for these businesses that depend on the weather to survive.
1. Seaside Homestays
Rain means that tourists cancel their bookings, and even the rent revenue isn't enough to cover expenses.
Seaside businesses rely on the peak season (May to October), but this year, the amount of rain was so heavy that it became a real curse. As long as there were weather reports of rain online, even if it wasn't actually raining at the seaside, tourists would cancel their bookings.
- Difficult to make a profit even with one's own homestay: Li Shen's homestay, which is his own property (without rent), earned 170,000 yuan last summer but only 30,000 to 40,000 yuan this year. There were almost no guests from June to July.
- Renting a homestay is even worse: Lin Lin couldn't even make back the rent for her homestay this year. The rent price dropped from 300 to 400 yuan last year to 190 to 200 yuan, and no one would book it even for an additional 50 yuan.
- The only good time is during hot weather: On August 9th, when the temperature in Shenzhen reached 39.2°C, Li Shen's homestay was fully booked. “We're not afraid of the heat; people come even if they might get heatstroke, but we're afraid of the rain.”
2. Food Street Vendors
The heavy rain and the summer vacation season combined to severely impact business on the food streets.
- Lao Xie's pancake stand: He sells for 200 yuan from 6 am to 8:30 pm, but after deducting the 100 yuan rental fee, he doesn't even cover the cost of ingredients. He has to stay until dawn or throw away the leftover food.
- Da Yang from 366 Street: The monthly rent is 8,000 yuan, and in July, he barely made enough to cover it. This year, the number of customers was one-third less than in the previous two years. “The lottery shops are doing better; people's spending power has decreased.”
- Xiao Chen's barbecue stand: He relies on regular customers ordering through WeChat, but in July, his sales were also one-third less. The vendors around him change frequently, with many leaving after just 1 to 2 months.
3. Handmade Craft Sellers at Markets
Outdoor markets are a major source of income for these sellers, but the rain has caused significant losses.
- Disasters at outdoor markets: Xiao Wen set up an outdoor market in Shuwei, Futian, but it started raining as soon as he arrived, and his products (seeds and handmade crafts) got wet and moldy, forcing him to throw them away. A fellow seller, who sold bean pod figurines, also had all his products ruined by the rain. He tried to get compensation from the organizers but was blocked.
- No safety indoors: At the Guanlan Lake indoor market, people came despite the rain the previous week, but the next week, there were no customers at all. A friend's daily sales were only 200 yuan, despite a 200 yuan rental fee, meaning he worked for nothing.
- Long-term markets are even more problematic: At the Hongshan market, which lasts for 20 days, vendors pay in advance but find no business. They can't get a refund even if they leave early. Xiao Wen tried for three days before giving up, saying it was too frustrating.
4. Small Business Owners' Struggles
Despite trying various strategies, the effects have been limited.
- Lao Xie's transformation: He used to run four food delivery businesses, but after the pandemic, the platforms took high commissions (only 50 yuan out of every 100 orders), and the cost of attracting customers was high (15,000 to 20,000 yuan). He now sells from a stall and plans to move to a different location.
- Xiao Chen's persistence: He focuses on serving regular customers offline, without offering delivery or live streaming, and builds his customer base over time.
- Xiao Wen's hesitation: He wants to expand online, but the competition is fierce, and customers are hesitant to buy products they can't see in person. He's still at a loss, relying on the weather to determine his income.
5. Extreme Weather as the New Normal
This isn't just Shenzhen's issue; extreme weather (high temperatures and heavy rains) has been occurring globally this year, attributed to climate change and El Niño. For small businesses:
- The risk of relying on the weather is greater: Businesses that depend on the outdoors (homestays, vendors, markets) are more vulnerable.
- Preparation is necessary: For example, homestays could organize indoor events, vendors could prepare rain shelters, and handmade craft sellers could opt for indoor markets or switch to online sales (although online markets also have their challenges).
- Decreased consumer spending makes things worse: Even without rain, people are less willing to spend money, making it even harder for small businesses to survive.
This news highlights that extreme weather is no longer a rare event. Small business owners need to adapt their strategies or find new ways to operate that are not dependent on the weather. Otherwise, the next “long summer” could bring even more challenges.