People really like cheaper stuff from China
If Chinese brands can succeed abroad, established rivals may no longer be able to command the higher prices they’ve long taken for granted.
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Chinese companies have learnt to deliver more for less at home, where they have scale.
PHOTO: EPA
Juliana Liu
Many business empires have been built on the idea that a trusted name justifies charging considerably more than it costs to produce. But decades after “Made in China” became synonymous with shoddy workmanship, Chinese companies are starting to challenge the notion that quality must come at a hefty premium. If they can succeed abroad, established rivals may no longer be able to command the higher prices they’ve long taken for granted.
The auto industry is a conspicuous example, but the trend is gaining momentum in everything from high-end camera lenses to home appliances to luxury fashion, as my colleague Wes Kosova has written. With households in China reluctant to spend following the collapse of the property sector five years ago, domestic retailers have been forced to offer more for less.