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Why do the brands price higher for their products in China than in America?

 

 

Nowadays, a lot of world-wide branded goods in China are more expensive than the goods that are being sold in America and Canada. Charging differences in price vary from different markets for things such as Starbucks Coffee, Coach’s bags and even Jeep Cars become a phenomenon. Nike is one of these popular brands that charges higher prices in China than in other countries for their sportswear as well as footwear. This year, Nike Company fined about 770,000 dollars for deceptive advertising in China because there is one basketball shoes model sell 70 dollars higher compares to the price for same pair of shoes in the American market. Moreover, this particular basketball shoes model contained only one air cushion instead of two cushions, which means the quality of this basketball shoes model in China is unqualified. In fact, Nike is only one of the companies that have this problem.

The reason behind this phenomenon is that the European economy is at a downward stage, and a lot of greedy sellers want to regain their sales by targeting Chinese market with a relatively higher price for their branded goods. In another word, this is a new marketing strategy for the foreign sellers who want to earn back the profit that they lost from the markets in Europe or in USA.

 

http://www.chinadaily.com.cn/china/2012-10/26/content_15850820.htm

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