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Thread: Why do Chinese Consumers favor foreign brands?
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[quote=KATRINA,248523]Carlos, "There is a growing amount of people living in cities, people with a better incomes than average. Their income has rised more than living costs." It is undeniable that urbanization in China has brought more people into big cities, and city-dwellers do have a higher income than farmers. However, I doubt that the income has rised than living costs. In recent years, the living standard of average Chinese did enhance a lot, but not to the extent that you have imagined. Inflation is a big problem. This year, almost everything ranging from meat, to instant noodles to house price, has increased the prices in China. So it is not the rise of the real purchasing power that motivate Chinese consumers to buy the foreign-brand goods. Then why? Partly, it is due to that average Chinese holds such a mentality that foreign goods have a better quality.For some goods, it is the case, but for some, it may not be true.[/quote]
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