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Online grapevine

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Why you can trust SCMP

The sight of scores of Shanghai residents waving razor-sharp knives in the air and brandishing stainless steel cooking pots is convincing evidence of the power of the internet as a marketing tool.

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The scene was a discount sale under a tent on the factory grounds of the German kitchenware company Zwilling J.A. Henckels, in a distant Shanghai suburb. Thousands made the trip over a two-week period recently, to snap up goods at up to 40 per cent off. Many had taken their cues from the internet - more specifically, a consumer bulletin board - instead of the traditional word of mouth or advertising. The company had sent out an electronic invitation to a select few, but that was quickly posted on websites and forwarded to others.

News first emerged through the internet that the company had started an internal sale to employees of German companies a few days before opening to the public. Within hours, early visitors had posted digital photos of the goods on offer, prices and advice, on the website mpdaogou.com.

The 275-year-old brand has a good reputation in Shanghai through sales on the local shopping television network and displays at up-market department stores. So news of the sale - spread rapidly through the internet - quickly produced a shopping frenzy.

The scene was a marketer's dream but a crowd-control nightmare, as people literally fought over the prized cookware.

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Such events can backfire sometimes. When the domestic women's shoe company AEE recently launched a sale, organisers lost control of a mob of people who began pushing and shoving. Police were called and the sale was cancelled. Once again, the internet broke the news that the sale had been abruptly called off: photos showed AEE employees holding signs announcing the cancellation.

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