Foreign Brands Arise

All Roads to China has a few articles posted recently on food in China. You can find them here and here.

Inside one Richard had a link to Market Watch in an article titled Chinese Getting Tired of  ‘Made in China’

Market Watch had a very stock price sense of the present turn in the Chinese market toward foreign brands.

I paste a small portion of the article here:

In a new research report, Barclays Capital says that after continued double-digit wage hikes, many more mainland Chinese aren’t just getting wealthier, but also more discerning on how they spend. Increasingly, they are looking at premium products and often, foreign ones. This, they say, applies to both staples and discretionary consumers stocks.

Barclays warns that mainland companies who have neglected to invest in building strong brands, R&D and product development will be exposed to this shift in consumer tastes. Many local companies achieved dominance through cheap manufacturing and low pricing, as well as dominant local distribution. As the era of cheap products comes to an end, companies that are unable to upgrade are vulnerable.

The whole post is worth a read. If you are sourcing in China, great.  Now you can start to mature how you use your sourcing in China. If you are not yet selling or bringing service to China, then the time is now. Come and do it well and smart. Never forget that you are not in Kansas anymore, but come.    For more on this market opportunity,  take a look at my previous posts on this dynamic:

Yes, Chinese People and Businesses Will Buy More and More From the West

Japan and China in Quick Historical Comparison and Contrast

Increasing Opportunity, Increasing Pace

Hurray! The Chinese Consumer is Ready to Buy!

China Import Growth

Yes, Chinese People and Businesses Will Buy More and More From the West

Foreign Brands in China

Welcome to China, a land that trusts what you have.

Any other thoughts?

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Posted in: China, Chinese Culture, Customers, Market Entry, Sourcing

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