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:
Welcome to China, a land that trusts what you have.
Any other thoughts?