In China, Haagen-Dazs is treated as a luxury brand that it costs people approximately $14 (84RMB) for 500ml in China, while, in Canada, it only costs $4.99, which is 35RMB after tax. Why is that happened?
I notice that, Haagen-Dazs, in China, mostly is sold in storefronts. However, in Canada, I just found out that it is sold in convenience store. Therefore, the business models of Haagen-Dazs in China and Canada are different that it is serves as high-end products in China and fast products in Canada.
Haagen-Dazs are located in prosperous area in China and it pricing highly so that it makes consumers feel that eating Haagen-Dazs can show their social status. Therefore, vanity from people helps it to promote sales of Haagen-Dazs in China.
From the analysis, I figure out that firm using different models in different countries can lead to great sales as well.
Exactly,same thing happens to Starbucks,who is being criticized for higher charge of coffer in China.The price of a medium cup of coffee in the US is one third of that in China.Too many people regard Starbucks and Haagen-Dazs as excellent foreign brands and often show off some foreign products they bought,thinking those products could somehow raise their social status reflect their wealth.But both Starbucks and Haagen-Dazs are just ordinary brands in North America,which generally everyone can afford.