China Marketing Blog

Infographic: Why Do Chinese Consumers Pay So Much for Foreign Brands?

Tait Lawton — Sat, 02/02/2013 - 04:24

I thought you might like this Chinese-language infographic about how expensive foreign brands are for Chinese consumers, so I translated it into English. Thanks to Rand for sharing this on the China Digital Marketing Linkedin group.

 

Infographic about why prices for Western consumer brands are so high in China.

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Comments

Logistic costs are phenomenally high here. The whole "go west" program for manufacturing is doomed to fail because of it. The main reasons for the high costs are road tolls and the fact that 80% of Chinese trucking companies are one guy and a truck.

As for the Lenovo Thinkpad (or any Chinese made electronics), they cost a lot because they are in fact "imported into China. They are produced in "export zones" and then "imported" into China when they leave the factory gate.paying at least an 18% "import" tax.

The highway tolls and import taxes are just the CCP skimming their unfair share off the top. They don't care about China's long term economics outlook or Chinese people's ability to enjoy the fruits of their labour. What they care about is filling their own pockets in as little time as possible because they don't care about Chinese people!

Thank you so much for sharing! This is very helpful!
I think that China now there is a lot of interesting things, and I also want to experience all. Whether clothes, food, travel and transportation there had been substantial change. You also mentioned the interesting part.
But China's development seems to lack something, something that I look at these interesting things feel a bit worried, even a little sad. I think they should be is not the only person to feel so.
In short, Thanks a lot!

I can see how this could be true for a lot of the products within the Chinese country itself. And I can see how the CCP is taking a cut out of it every time that they sell something from the factory. But it's just a fact of life for them-something that should change long term.

Hello,

I really don't understand your point about logistics, here in China, it cost me 6 CNY to ship something within the same day in the same city (like Shanghai) and 12 CNY to anywhere in China... In France, I pay 6.7 euros to ship a single package within 48H anywhere in the country (which is quite small) and that is a pro. price...

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