Brands in China: devalued or Déjà vu?

The last few years have seen intense competition among brands in many product and service categories in China.

Brands in China: Devalued or Déjà vu?

Nigel Hollis

Fierce price competition is the rule in China, making it tough for the brands of Multi-National Corporations (MNCs) to hold their own against goods produced by local companies. The average price of a compact car in China has fallen by 28 percent since 2000, with local manufacturers gaining share at the expense of MNCs. In some household goods categories, low-priced copies of foreign brands sell at 40 to 60 percent discounts, attracting Chinese consumers who prefer to save their money for more visible purchases such as mobile phones and watches. In...

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