Why Would Chinese Pay So Much More For Foreign Brands?

on March 18 2013 | in Lifestyle Retail | by | with 3 Comments

McDonald's, China, foreign brands,

Inflation, high taxes, and increasing logistical costs have all resulted in higher good prices in China. However, better quality and higher status, perceived qualities commonly associated with foreign brands, allow such brands to have an even higher price premium that Chinese consumers are seemingly willing to accept. From coffee to automobiles, foreign products can cost as much as 3 times more in China than in their countries of origin. However, the average Chinese income level is still much, much lower.

Below is an interesting infographic from Sohu Business, translated by East West Connect, that demonstrates this price-disparity phenomenon.


Infographic: Why are prices for Western consumer prices so high in China?

[Infographic translated by East-West-Connect.com] [Original Chinese version by Sohu.com]


photo credit: ian southwell

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3 Responses to Why Would Chinese Pay So Much More For Foreign Brands?

  1. steven says:

    ..what a poor CHINA…PITY THESE CONSUMERS…IT IS NOT WORTH THE PRICE YOU PAYING FOR….IF OTHER people can purchased at a lower price,then why should Chinese purchased at a hinger price when the chinese are POORLER THAN THIER COUNTERPARTS.


  2. Ernie Diaz says:

    Rhetorical question which you failed to answer,”Because they’re way better.” Care to name a Chinese ice-cream in the same dimension as Haagen-Dazs? Baxi? And it’s “seemingly”, not “seemly”.

  3. Michael says:

    So the website is called Red Luxury, and you’re just now coming to grips with this contradiction? Yes, Chinese know that most stuff made in China is done as low prices, by people who can’t be f’d to go the extra mile, hence the quality suffers.

    Ask Shaun Rein about this and he’ll insist Huawei and Baidu are Luxury Brands, even though most Chinese avoid them at all costs.

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