-
(单词翻译:双击或拖选)
Foreign brands are becoming cheaper in China as a result of their pursuit for consumers in lower-tier cities along with competition from the e-commerce market.
However some consumers still think their goods are more expensive than the same ones sold overseas even after the price reduction.
Meanwhile, others are still happy to see the price cut on high quality goods.
"For me, I think the quality is always high here, and with the price adjustment, it makes it more attractive to purchase more products."
Recently, popular Japanese lifestyle brand MUJI and Australia UGG have re-priced products on the Chinese mainland.
外国品牌争夺二三线城市消费者
This is the third adjustment that MUJI has made in the past year. It cuts some one hundred products by an average of some 20 percent.
Wang Ziheng, a student, visited the store to check out the cheaper items.
"I am a student, my budget is limited. So I am more interested in stationery1 and food, but there don't seem to be many discounts on these."
In a written response, MUJI says that sales in stores went up by nearly 160 percent in the past two weeks, and that the purpose of price adjustments is to close price gaps among different countries.
Another lifestyle brand, UGG Australia, also made similar moves last month.
However, even after the price changes, products on the Chinese mainland are still some 30 percent to 40 percent higher than in other countries.
Ken2 Chen, Managing Director of consulting firm L.E.K., says customs duties are one factor contributing to higher prices on the Chinese mainland.
"At least a few years ago when there was less information that signaled what the brand stands for, that price is a strong signal of product premiumness, of safety, of quality. Brands using agents, or even they do it on their own. The percentage (of consumers) might be small of high income earners, but the absolute numbers are just huge. So that they see a ready and able to buy consumer base for their higher-priced products, so why not go for the higher margin3?
He also said, as consumers become more sophisticated and exposed to additional product offers on the Internet, they will increasingly be on the lookout4 for more offers and value for money goods.
In addition, the market has recently become more competitive on the Chinese mainland.
Fast fashion brands such as ZARA and H&M have all brought their home furnishing lines to the market.
Ni Renxia, Marketing5 Manager of the China Retail6 Group, says with intensified7 competition, the brands have to lower prices to capture a broader market.
"The consumption market in first-tier cities has already been saturated8, with brands having enough influence. But for the second and third tier cities, such prices are probably a little bit too high. Lower prices may more conform to the purchasing power of these cities, where the markets are still driven by price. If the price is attractive and the quality is not poor, people would be more open to try other brands."
According to research by L.E.K. Consulting, despite the increasing use of e-commerce platforms in purchasing foreign brands, people in lower-tier cities visit and make purchases in physical stores more frequently than those in upper-tier cities.
Economist9 predicts that by 2020, 66 percent of China's mid-income consumers will come from medium-sized or small cities.
For CRI, I'm Min Rui.
点击收听单词发音
1 stationery | |
n.文具;(配套的)信笺信封 | |
参考例句: |
|
|
2 ken | |
n.视野,知识领域 | |
参考例句: |
|
|
3 margin | |
n.页边空白;差额;余地,余裕;边,边缘 | |
参考例句: |
|
|
4 lookout | |
n.注意,前途,瞭望台 | |
参考例句: |
|
|
5 marketing | |
n.行销,在市场的买卖,买东西 | |
参考例句: |
|
|
6 retail | |
v./n.零售;adv.以零售价格 | |
参考例句: |
|
|
7 intensified | |
v.(使)增强, (使)加剧( intensify的过去式和过去分词 ) | |
参考例句: |
|
|
8 saturated | |
a.饱和的,充满的 | |
参考例句: |
|
|
9 economist | |
n.经济学家,经济专家,节俭的人 | |
参考例句: |
|
|