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TaimoorZ
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Supply Network Guru
Re: bang on
TaimoorZ   3/25/2012 7:44:23 AM
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@Ariella: You'd be surprised to see that there are actually brand-loyal consumers who are willing to spend twice or thrice the amount just because of the brand even when the features are same. Compare how Apple's products cost way more than other brands even when the hardware specifications are not much different. It's all about the brand name that gets them to pay more.

Ariella
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Supply Network Guru
Re: bang on
Ariella   3/24/2012 9:09:03 PM
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@TaimoorZ Yes, Chinese good are considered to be of inferior quality, but I'm not certain people would pay as much as 3x for a Western brand, though they may be willing to pay some premium. 

stochastic excursion
User Rank
Stock Keeper
Re: Far-sight
stochastic excursion   3/24/2012 6:29:05 PM
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I wonder how much of the rise in discretionary spending is a result, not of improved conditions for the rank-and-file laborer, but of the cash flow from all the incoming investment dollars and bureaucratic fee structure.  Also, China's managerial class is known to be of a caliber that rivals the West, so no doubt they know how to work the organization for wage incentives.

TaimoorZ
User Rank
Supply Network Guru
Re: bang on
TaimoorZ   3/24/2012 4:04:22 PM
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"They told me they would rather pay 3x for a Western brand as they see Chinese products as very poor quality, carrying little kudos"

I've seen this happening as well. Even if the product of the Western brand was also manufactured in China, people would still prefer the Western brand and pay the high price. I think the Chinese brands really have to establish quality standards to build up an image and gain recognition. A part of it would also be to change consumer perception through marketing.


TaimoorZ
User Rank
Supply Network Guru
Re: Far-sight
TaimoorZ   3/24/2012 3:36:30 PM
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The cost advantage from China will decline (if not disappear completely) in the coming years because of the growing wages. However, the increased income levels in the economy, as Barbara pointed out, will be a key attraction for companies to launch their new products in China and tailor them to suit the Chinese consumers.

WaqasAltaf
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Supply Network Guru
Far-sight
WaqasAltaf   3/24/2012 11:19:29 AM
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To add on to your blog's idea Barb, I think as the incomes of the Chinese people will increase, not only the demand for consumer electronics will increase but also the wage demands, which will in the long run, wipe out the low-cost labour advantages the Chinese economy benefits from. Also I have read on many places the ongoing debate about who will take the lead after Chinese and Indian markets saturate. The far-sighted manufacturers are already trying to explore opportunities in Africa so that they become the pioneers of the revolution.

syedzunair
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Supply Network Guru
Re: India is no different for manufacturing
syedzunair   3/24/2012 3:25:53 AM
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"Even though the per capita income and the middle class will grow in India and China, we should not expect much increase in spending per person"

I agree with you Himanshugupta, even if the income increases the buying pattern of the people in India and China is different from that of the West. I don't see middle class people in India buying expensive cellphones especially with a high rate of mugging. Instead, I believe that the low cost smartphones will prove to be a success.


nimantha.d
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Supply Network Guru
Re: India is no different for manufacturing
nimantha.d   3/24/2012 1:34:52 AM
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It was before but I dont see it ight now becasue China is much more developed and financially stonger than before.

Mr. Roques
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Supply Network Guru
Re: India is no different for manufacturing
Mr. Roques   3/23/2012 4:37:50 PM
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Do you think Apple will continue their high-end device only approach? What about the low-end iPhone I heard about a few months ago? I know 200US$ is not much, but maybe they could create really inexpensive smartphone that can compete with the other brands. 

I also think the iPad will have a smaller brother, at least eventually. A smaller screen tablet.

What do you think?

syedzunair
User Rank
Supply Network Guru
Re: India is no different for manufacturing
syedzunair   3/23/2012 1:31:16 PM
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Wale, 

I think China still has low cost labour as compared to other regions.

On the other hand, China still has the ability to produce different qualities of products depending upon the price consumers are willing to offer. So during my visit there I found different qualities A,B,C etc of the same product each fetching different price tag. 

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