Why Do Foreign Brands Enter Into The Chinese Market?

< p > < a href= > http://www.91se91.com/news/index_f.asp > foreign brand > /a > the phenomenon of high price difference is easy to attribute to the consumer psychology of domestic consumers.

However, if we combine the pricing of many domestic brands with the domestic market, we will find that the truth may not be so simple.

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< p > it is reported that a similar Paul Frank female short sleeved T-shirt is sold at a shopping mall in Beijing for 368.63 yuan, while the US Amazon website sells for only 26 dollars, or 162 yuan.

The big mouth monkey T-shirt buys one in the US, and the United States can buy three. Its brand price difference is so high that it leads to domestic tourists' Crazy "sweeping" and "purchasing" overseas.

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< p > the phenomenon of high price difference for foreign brands can easily be attributed to the consumption psychology of domestic consumers.

However, if combined with many domestic brands, the domestic a href= "http://www.91se91.com/news/index_s.asp" > market < /a > pricing is also far higher than the foreign market phenomenon, we will find that the truth may not be so simple. Xinhua reported in February 2011 that at that time, a bottle of 53 degree 375 milliliters of Moutai wine was sold in Washington, D.C., and the price in the Washington store was only 550 yuan, which was half of the domestic selling price (about 1050 yuan) at the same time. Besides, the overseas selling price of local brands including Wuliangye and China cigarette was also far lower than the domestic price of the same period.

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< p > although the central government has increased the restrictions on official consumption since last year, the price of high-end liquor such as Moutai and Wuliangye has dropped significantly in the past two years. However, the overseas selling price of local high-end cigarettes and alcoholic drinks including Moutai, Wuliangye and China cigarettes is still far below the domestic market price. Even the Lenovo computer, which is the general consumer electronics product, has a considerable price in its foreign market, which is far lower than that in the domestic market.

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(P) the price of foreign brands entering the domestic market is high, while the price of local brand goods abroad is low, which is really hard to understand for the vast majority of ordinary people who are not particularly prosperous.

To analyze the phenomenon of commodity price, which is called "pit father", we can start from two aspects: consumer psychology and brand choice.

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< p > in terms of consumption psychology, the consumption psychology of a country with a sudden and substantial material seems to have gone through the stage of "conspicuous consumption". More than 50 years ago, American economist Galbraith wrote the affluent society on the social phenomenon of the time.

With the rapid development of China's social economy, the phenomenon of "conspicuous consumption" has become more and more obvious in recent years in China. Quite a few consumers tend to buy expensive and do not buy high price performance in order to get some kind of identity.

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< p > what kind of consumer psychology is there? What kind of commodity pricing strategy will brand manufacturers have? In the case of "conspicuous consumption" phenomenon in China, whether it is foreign brand manufacturers or local brand manufacturers, they will naturally choose to set high prices in order to gain more profit margins.

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Compared to many brands in Europe and America, compared with the focus and refinement of individual industry, many brands of P tend to diversify in a certain way, resulting in the weakening of their brand positioning and the weakening of their production quality and production process.

Because of the relatively small number of local "reliable" brands, brand manufacturers have the initiative to set high prices.

For example, the red bean brand shirt, which was once popular in the 90s of last century, has successfully entered the fields of motorcycle, tyre and real estate after the success of brand positioning and brand influence. It not only causes the market influence of red bean brand shirts to drop in a straight line, but also the "a target=" _blank "href=" http://www.91se91.com/ "> /a" target= "_blank" href= "http://www.91se91.com/", "clothing less than" and "plate" is also increasingly dominated by processing.

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< p > we expect that after the current social pformation period, the price difference between the domestic and foreign brands of the same brand can be greatly reduced. Local brand manufacturers can focus on the main business and cast their own brands so that people can have more brand choices. The consumption psychology of the public can change from "conspicuous consumption" to "rational consumption" as soon as possible, and the pricing strategy of the brand will naturally return to the reasonable price difference.

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