China has become a large market for luxury goods when it accounts more than 20 percent of global luxury consumption. The demand is still increasing not only among rich people, but also the middle class. It seems that possession of luxury goods is the symbols of status and wealth. People will do whatever they can to obtain a piece of luxury good. The article gives an example about a girl who willing to skip meals to only purchases a piece of Armani Jeans Jacket.

In the news “For U.S. Brands, There’s No Middle in China’s Middle Class”, it discusses the powerful consumer base in China.   The growing market demand helps foreign companies to profit in China. Some of the brands even have higher profits compared to profit in home country.

In my opinion, people are buying for the brand instead of its quality.  They also want to shop for the exclusive service that provides by these brands. Because these luxury brands caught the minds of Chinese consumers, they successfully established their brand in Greater China.  Even though the market is much more competitive, companies still willing to expand their market into China because of the high buying power.

Sources:
Cruz, Julie. “Hugo Boss Plays Catch-Up in China – Businessweek.” Businessweek – Business News, Stock Market & Financial Advice. N.p., 12 Apr. 2012. Web. 19 Nov. 2012. <http://www.businessweek.com/articles/2012-04-12/hugo-boss-plays-catch-up-in-china#r=lr-fst>.

Rein, Shaun. “For U.S. Brands, There’s No Middle in China’s Middle Class – Businessweek.” Businessweek – Business News, Stock Market & Financial Advice. N.p., 16 Apr. 2012. Web. 19 Nov. 2012. <http://www.businessweek.com/articles/2012-04-16/for-u-dot-s-dot-brands-theres-no-middle-in-chinas-middle-class#r=lr-fst>

Picture:
http://www.wantchinatimes.com/newsphoto/2011-12-27/450/C217N0030H_2010%E8%B3%87%E6%96%99%E7%85%A7%E7%89%87_A99F_N71_copy1.JPG

Apple products always bring a big hit in the technology industry, since the launch of iPhone. i-Products gradually becomes necessities for majority of people. In Wanda He’s blog, she mentioned that the new product, iPad Mini, will not be successful like other i-Product. And future apple products will not be successful if they maintain the similar design and functions, especially there are several subtitles in the market.

I agree with the opinion that it is difficult to maintain in the field with such competitive market. However, I argue the point that people will choose other brand over Apple.

Even though people may be disappointed with the similar design or the function, they will still purchase it.  The new product targets a new market when it has a lower price than iPad. The decrease in weight and smaller dimension will bring convenience.

Some people are criticizing Apple product, but it does not affect the sales. Apple has established image and high reputation in the industry since the introduction of iPhone. The company set a position in the industry that is hard for other to overtake. It confirms that it is important to position the brand once it enters the market.

Source:
Farber, Dan. “The logic of Apple’s premium-priced iPad Mini | Apple – CNET News.” Technology News – CNET News. N.p., 24 Oct. 2012. Web. 18 Nov. 2012. <http://news.cnet.com/8301-13579_3-57539257-37/the-logic-of-apples-premium-priced-ipad-mini/>.

Picture:
http://asset0.cbsistatic.com/cnwk.1d/i/tim/2012/10/24/iPad_mini_inHand_Wht_iOS6_PRINT_1_270x224.jpg

When a product enters a new market, the company needs to consider different aspects to promote its product. In recent news, it seems that nationality is an important factor that influences the sales of the product.

In Shawn Li’s blog, he discussed how nationality in China affects the sales of Japanese products in China. The possession of the island creates not only political, but also economic war between two countries. Chinese consumers were separated in two parties, one is boycotting Japanese product, and the other still purchasing as usual.This kind of conflict is not only occur between China and Japanese, but also many other countries.

In my opinion, boycotting will show one’s patriotism, but no one will gain any benefits from it.  Chinese people vandalize stores with Japanese brands will affect the Chinese employees who work in Japanese company. Also, Chinese companies or factories that have cooperation with Japanese companies will suffer in this conflict too.

In news that I read, Japanese government decided to sue China for the vandalism of Japanese stores in China. The Japanese government seeks compensation from China. This may cause a new tension, which may cause a economic war again.

Source:
“BBC News – Japan seeks payment from China over protest damages.”BBC – Homepage. N.p., 20 Sept. 2012. Web. 18 Nov. 2012. <http://www.bbc.co.uk/news/world-asia-19658724>.

Picture:
http://s1.reutersmedia.net/resources/r/?m=02&d=20121005&t=2&i=660158390&w=460&fh=&fw=&ll=&pl=&r=CBRE8940A2A00

It is hard to neglect the influence that Hallyu, Korean wave, has for the world, especially when it emerged its market into not only Asia, but also Europe and America. Even though people cannot understand the language, they still enjoy Korean songs and dramas.

Travel blog, Travelscope, mentioned how K-pop helps tourism industry. SM , one of the largest entertainment companies in Korea, smartly applies the popularity of their artists as parts of its marketing.

 In early 2012, it opened its own travel agency, SMTown Travel. Compared to other agencies, it features unique travel packages that introduce Korea with the aspect from k-pop and dramas. It also helps fans to plan trip for oversee concerts.  In order to expand its global market, the company had also acquired BT&I, the largest travel agency in Korea.

It is interesting to see how the Hallyu can influence the economy of Korea, when foreign travelers also contribute to the economy indirectly, especially when buying products that advertised by their favorite artists. Companies clearly know what fans expected, which helps introduce products and service that satisfied consumers’ needs.

Sources:
“Travel News: Top Reasons Why K-pop Is Helping Korea’s Tourism Industry.” Travel News: Top Reasons Why K-Pop Is Helping Korea’s Tourism Industry.  Web. 05 Nov. 2012. <http://www.travelscope.ca/post/view/travel-news-top-reasons-why-k-pop-is-helping-korea-s-tourism>.

Cha, Frances. “Harnessing K-Pop for Tourism.” CNNGo.com. N.p., 17 Apr. 2012. Web. 05 Nov. 2012. <http://www.cnngo.com/seoul/visit/harnessing-k-pop-tourism-386868>.

Pictures:
http://www.smtowntravel.com/image/common/main_visual.jpg
http://www.allkpop.com/wp-content/uploads/2012/10/20121015_yg_sm_jyp_family.jpg