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    China Makes Cheap Domestic Prices Abroad, Spending Power Outflows.

    2011/3/15 17:29:00 83

    Manufacturing Consumption In China

    Why do Chinese people with GDP per capita only spend two or three times the price of Chinese 1/10 to buy the same Chinese made goods?


    A Chinese made "Italy fur" is only sold for $70 after the Buffalo discount in the United States.

    Market

    The same leather coat can be sold for 1500 yuan.

    Xu Dongming's deputy director and Associate Research Fellow of the Institute of international studies of the Guangzhou Academy of Social Sciences was somewhat surprised.


    Xu Dongming told the first Financial Daily reporters that when he went to the United States, he also paid close attention to the price differences at home and abroad. He found that the cheaper Chinese made abroad was mainly concentrated in clothing, shoes and hats and other durable consumer goods.


    He also said, for example, a Levi 's jeans would sell 15~30 dollars (about RMB 99~198 yuan) at the discount store in the United States, but the same pair of trousers exported to domestic sales should sell at least 700 yuan in the domestic specialty stores.

    A pair of Nike sports shoes, in the United States price of $33 (about RMB 217 yuan), export to Hongkong back to the mainland, it will be sold to nearly 700 yuan.


    The price of the same goods in the two countries is two or three times different.


    On the other hand, China's initial GDP per capita in 2010 was 29748 yuan.

    The average GDP per capita in the United States is about 309690 yuan, which is nearly 10 times the difference.


    For a long time, in the Chinese impression, cars, perfume,

    extravagant

    Products such as foreign goods sold at a much lower price than abroad.

    But now, why does even the ordinary consumer goods made in China become cheaper after export?


    Logistics channel costs are higher than export sales.


    In Xu Dongming's view, the reason is very complicated, first of all, it is related to the cost of circulation channels.

    Foreign channel circulation efficiency is higher, logistics cost is lower, bulk.

    Purchase

    More speaking, retail terminals can offer a lower discount than domestic ones, and do not lose money; and domestic circulation channels are too expensive and inefficient.


    In this regard, a shoe manufacturer in Guangdong also has deep feelings.

    He told our reporter that after the financial crisis, the company began to engage in the domestic market, "but not enter, do not know, jump into a panic", did not expect the domestic sales channels involved so much cost and cost.


    "In the past, when we were exporting, we talked directly with the US dealers. He even helped me spread the goods into more than half of the United States. I only had to pport the cost and push the goods to them."

    The person in charge said.


    In China, there are fewer large dealers, and businesses often have to go shopping for every business. It is also good to enter WAL-MART's centralized purchasing supermarket. Most supermarkets have to talk one by one. There are also bar code fees, entry fees, loading fees, festival fees, information processing fees and so on. A product will cost 60 thousand ~8 yuan for entering a supermarket.

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