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    Foreign Brands Sell Twice As Much In China, And Popular Goods Become Famous Brands

    2013/10/22 22:44:00 158

    Popular ProductsFamous BrandsChinese Market

    A bottle of Evian mineral water is twice as expensive in Wuhan as in Europe, an Armani suit is 14000 yuan more expensive than the foreign official website, an iPhone 5S is 1000 yuan more expensive in Wuhan than in the United States, and a Mercedes Benz S350 is 828000 yuan more expensive in Wuhan than in the United States... Statistics show that the price of luxury goods in China is on average 51% higher than that in the United States and 72% higher than that in the French market. Not only luxury goods, but also consumer goods, imported cars and many other foreign brand goods have huge pricing differences at home and abroad. In response to this situation, the reporter of Chutian Gold News recently selected four major foreign brands in food and clothing industry to investigate the price difference between China and foreign countries.


       eat


    Foreign fast food turns into "petty bourgeoisie" ordinary drinks into high-end


    Some beverage stores and fast food restaurants, which are too common in foreign countries, have changed their roles as soon as they enter China. They have taken a high-end route and become a mecca for "petty bourgeoisie".


    Yesterday, the reporter connected Mr. Liu who was in Berlin, Germany. According to his introduction, in a German supermarket, a bottle of Evian 1.5L mineral water costs 0.89 euros (equivalent to 7.4 yuan), while in a supermarket in Wuhan, the price is 24.9 yuan, twice as expensive as in Germany.


    Mr. Yang, a Canadian from Wuhan, told reporters that in foreign countries, Haagen Dazs is clustered in dozens of brands of ice cream and sold in supermarket freezers, "Many of them are also used as desserts in university canteens, which is not as grand as Haagen Dazs stores in China. It is hard to imagine that a glass of Haagen Dazs ice cream, which sells for $5 (equivalent to 30 yuan) abroad, can sell for as much as 88 yuan in China."


       Wear


    The price difference of luxury goods exceeds ten thousand, and popular goods become famous brands


    An Armani man 's suit In a shopping mall in Wuhan, the price is 28999 yuan, and the price of the same item on foreign official websites is only about 15000 yuan, which is nearly half cheaper. "Our products are uniformly priced by the general agent in China." A salesperson from Burberry told the reporter that a block decorated Napapigo Ochard handbag of the brand sold for 1150 pounds (about 11000 yuan) in the UK and 16000 yuan in China. A 100ml perfume from Burberry London costs 64 pounds (631 yuan) in the UK and 955 yuan in China.


    Samsonite's small travel bag is about 27 dollars in the United States, which is about 165 yuan, but the price in major domestic stores is close to 1000 yuan.


    There are many famous brands that attract domestic consumers. In fact, they are ordinary consumer goods abroad.


    The reporter saw from the American Amazon website that in the United States, a POLO autumn coat is only 29 dollars, and a pair of Clark sandals is only 23 dollars. In New York, a GAP logo solid hoodie costs 34.95 dollars (213 yuan), while in Wuhan it costs 399 yuan, nearly twice as much.


       use


    IPhone costs 1000 yuan, Muji is nearly twice as expensive


    Take Apple's iPhone 5s as an example. The prices of 16G, 32G, and 64G products in the U.S. are $649, $749, and $849, respectively, equivalent to about 3957 yuan, 4567 yuan, and 5176 yuan.


    Even with 10% import tariff on electronic products, it is only 4352 yuan, 5023 yuan and 5694 yuan. In contrast, the corresponding bare metal prices in China are 5288 yuan, 6088 yuan, 6888 yuan, and each model is about 20% more expensive.


    The same is true for the newly launched Samsung Note III. In the United States, the Verizon version sells for $699 (about 4300 yuan), while the AT&T version sells for $724 (about 4430 yuan). The price of the Note III in China ranges from 5399 to 5799, about 1000 yuan higher than the overseas price.


    In terms of daily necessities, the difference between domestic and foreign prices of imported goods is also large.


    Yesterday, the reporter saw in Hankou Muji boutique that a manual picture book sold in Japan for 1000 yen (about 62 yuan) costs 100 yuan in Wuhan; 36 color pencils priced 840 yen (equivalent to 52 yuan) in Japan cost 85 yuan in Wuhan.


       that 's ok


    The price difference of luxury car "China's most expensive" Mercedes Benz reached 800000 yuan


    In recent years, luxury cars and imported cars have become more and more popular in Wuhan market. But what some people may not know is that China's luxury cars can be called "the most expensive in the world", and some models are hundreds of thousands or even millions of yuan more expensive than foreign models.


     {page_break}


    The sales price of BMW Z4 2013 sDrive20i leading 2.0L automated manual integration is 583000 yuan, and the sales price of the same model in the United States is only about 200000 yuan; In the United States, a BMW X6 costs US $59461 (equivalent to about 360000 yuan), while the same model costs 857300 yuan in Wuhan; The 2013 Audi A8 sells for US $86095 (equivalent to about 530000 yuan) in the United States and 928000 yuan in Wuhan; The price difference of Mercedes Benz S350 is even greater. The price in the United States is $93000 (equivalent to about 570000 yuan), and the domestic official guidance price is 1.398 million yuan, 828000 yuan more expensive


       Comparison of domestic and overseas prices of some foreign brand products


    Evian mineral water 1.5L: Germany: 0.89 euro (about 7.4 yuan); China: 24.9 yuan


    Haagen Dazs ice cream 392g package: US $5 (about 30 yuan); China: 88 yuan


    Burberry Bullock decorated Napapigo Ochard handbag: UK: 1150 pounds (about 11000 yuan); China: 16000 yuan


    Burberry London perfume 100ml: UK: 64 pounds (about 631 yuan); China: 955 yuan


    GAP logo solid hoodie: US $34.95 (about 213 yuan); China: 399 yuan


    GAP solid color woolen coarse knitted cloak: US $69.95 (about 426 yuan); China: 499 yuan


    GAP logo wide stripe round neck sweater: US $39.95 (about 243 yuan); China: 299 yuan


    IPhone 5S 16G: US $649 (about 3957 yuan); China: 5288 yuan


    IPhone 5S 32G: US $749 (about 4567 yuan); China: 6088 yuan


    IPhone 5S 64G: US $849 (about 5176 yuan); China: 6888 yuan


    Muji handmade picture books: Japan: 1000 yen (about 62 yuan); China: 100 yuan


    Muji aluminum card box: Japan: 500 yen (about 31 yuan); China: 53 yuan


    Muji good 36 color color pencil: Japan: 840 yen (about 52 yuan); China: 85 yuan


    Muji good 3-layer aluminum skirt hanger: Japan: 1050 yen (about 65.5 yuan); China: 100 yuan


    Muji fine polycarbonate smooth oily ball pen: Japan: 120 yen (about 7.4 yuan); China: 12 yuan


    BMW X6: US $59461 (about 360000 yuan); China: 857300 yuan (Wuhan)


    2013 Audi A8: US $86095 (about 530000 yuan); China: 928000 yuan (Wuhan)


    Mercedes Benz S350: US $93000 (about 570000 yuan); China: 1.398 million yuan (Wuhan)


       The high price of foreign brands is not tariff Misery caused


    Why do some ordinary foreign brands become popular products pursued by many consumers as soon as they enter the country? Is it necessary to supervise the double price standards of foreign brands? How long will their high price last? Many experts believe that the price difference between domestic and foreign products of the same product is very wide, which really needs supervision. To truly resolve the pricing power of foreign brands, it needs to strengthen the role of the market and the competitiveness of domestic enterprises.


       awkward


    Foreign brands are expensive but not worried about selling


    The reporter found that while questioning the high price of foreign brands, some Chinese consumers still choose to pay for such high prices. This has to be said to be an embarrassment. "Prefer to pay high prices for foreign brand products, to some extent, it reflects consumers' distrust of the quality of domestic products." Xu Changsheng, dean of the School of Economics of Huazhong University of Science and Technology, analyzed that some products, domestic products are not necessarily inferior to foreign brands, and even can be said to be good quality and cheap. However, in recent years, domestic food safety and product quality problems have occurred frequently, which has caused great damage to consumer confidence, so that "only buying expensive products rather than buying the right ones" has become the starting point for many people to buy foreign brands.


    Wang Tao, a scholar in the field of consumption and circulation at Wuhan University, said that the high prestige of foreign brands is mainly due to the following reasons. First, because of the difference in tariffs, trade, transportation, channels, marketing and other costs, there will be a certain price difference between foreign brands. Second, the distribution system and pricing system of multinational companies for different markets will be different. There are fewer brands entering China, consumers have limited choices, and some foreign brand goods are priced very high; Third, domestic consumers' worship of foreign countries makes these high priced goods "not worry about selling". Since high prices do not worry about selling, why should they sell at low prices?


       appeal


    Supervision should be strengthened in case of excessive profits


    Foreign brands have a long history of high pricing in China. Yao Jian, spokesman of the Ministry of Commerce, said at the press conference in 2011 that the high pricing of foreign brands needs a comprehensive solution, including further creating a good domestic distribution and operation environment for foreign-invested enterprises and improving the domestic policy system. At the same time, foreign brand enterprises should also give a fair and reasonable price positioning to the Chinese market.


     {page_break}


    Experts believe that Yao Jian's "fair and reasonable price positioning" refers to the extent of the price gap between Chinese and foreign brands, which obviously violates the principle of market fairness and has been suspected of profiteering.


    According to Lu Xianxiang, an expert from Zhongnan University of Economics and Law, in the context of economic globalization, the high price and double standards of foreign brands in China are price discrimination. The market supervision system for foreign brands is not in place. If there is a big unexplained price difference between foreign brands and foreign brands except for normal taxes, logistics costs, and the cost of establishing sales channels, it is suspected of profiteering. The National Development and Reform Commission and other relevant departments can supervise them with the Anti monopoly Law and other laws and regulations.


    Wang Tao also believes that due to weak domestic supervision, some foreign brands can sometimes get away with it even if they implement "double standards" in China.


       reflection


    Make "Mr. Market" more powerful


    Experts interviewed Foreign brands High price sales and how to avoid this situation also give another perspective.


    Xu Changsheng believes that behind the high price of foreign brands, on the one hand, it reflects the limited degree of market opening in our country. In the case that some foreign brands are dominant, the pricing power naturally lies in the hands of merchants; On the other hand, it also shows that the brand competitiveness of domestic related enterprises is not strong. After all, in a healthy market economy environment, the only criterion for the reasonable pricing of products and services in highly competitive industries is consumer acceptance. As long as the enterprise does not involve administrative or policy monopoly, consumers can "vote" with money. What enterprises need to do is to win the "vote" of consumers on the premise of fair competition in the market.


    In view of the high price of foreign brands, the boss of a textile enterprise in Zhejiang once reflected on this: "LV bag, which is actually made of artificial leather, can sell more than 10000 yuan? If there is no brand and no technical gold content, it will soon be over." After in-depth consideration of the LV case, Chinese entrepreneurs need to do more is how to improve their competitiveness and product quality, Strive to achieve economic transformation and upgrading and occupy the upper reaches of the value chain.

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