March 12, 2014
Chinese goods not cheap at home
The premium prices aren't limited to foreign branded computers. Kobe Bryant's Nike sneakers with the Made in China label go for $165 nike air max in the United States. But at an official Nike store in China? $190. A flat screen Sony TV assembled by Chinese laborers runs about $800 at a Best Buy store in canada Nike Shox R6 the United States. But you would pay 30 percent more at the popular Chinese appliance chain air max canada Gome. The same goes for that Maclaren Techno XT infant stroller. It's also manufactured here, but you'll typically pay 40 percent more for one at a Beijing mall than you would in the United States.
Still, some foreign companies have made a conscious decision to raise their prices in China, or they've adopted a strategy of marketing their products as luxury items to make up for the higher cost of doing business. That might seem counterintuitive in a nation where the typical urban resident last year earned about $2,800. But high priced goods carry cachet here, while China's consumer class is burgeoning. High prices can boost the prestige of some products while fattening the manufacturer's bottom line.
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