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.
photo credit: ian southwell