Chinese getting tired of ‘Made in China’

[Korean]

Chinese getting tired of ?Made in China? - MarketWatch

Chinese getting tired of ‘Made in China’
Craig Stephen's This Week in China
Commentary: Multinationals press brand advantage
May 06, 2012|Craig Stephen

HONG KONG (MarketWatch) — It’s hardly news that ‘made in China’ products get bad press. But now, upwardly mobile mainland Chinese are starting to turn their nose up at home-grown brands of even low-end staples.

This could spell trouble for mainland consumer stocks that have been one of the most crowded trades in the China consumption growth story. Conversely, multinationals that have been patiently investing in their mainland Chinese business could find their fortunes are on the up.

In a new research report, Barclays Capital says that after continued double-digit wage hikes, many more mainland Chinese aren’t just getting wealthier, but also more discerning on how they spend. Increasingly, they are looking at premium products and often, foreign ones. This, they say, applies to both staples and discretionary consumers stocks.

Barclays warns that mainland companies who have neglected to invest in building strong brands, R&D and product development will be exposed to this shift in consumer tastes. Many local companies achieved dominance through cheap manufacturing and low pricing, as well as dominant local distribution. As the era of cheap products comes to an end, companies that are unable to upgrade are vulnerable.

The market appears to have already passed judgment that some mainland companies are not up to the task. At least 10 consumer stocks in Barclays mainland China consumer universe have lost between 35% and 85% of their market cap in the past two years, following earnings downgrades — this suggests something more serious than a cyclical slowdown. These include sportswear names such as Anta (HK:2020)(US:ANPDF), Li Ning (HK:2331) (US:LNNGF), and China Dongxiang (HK:3818) (US:CDGXF), as well as high-end fashion names such as Ports Design (HK:589) (USDESF)

Mainland Chinese corporates have been maligned before for their poor performance at brand-building, although it was often in the context of how this prevents them venturing overseas. Where mainland brands have made it onto leading-brand lists, it is typically due to a historical dominance in their home market, such as banking major ICBC (HK:1398) (US:IDCBF) (CN:601398) with its 16,000-plus branches.

The difference now is that this weakness in branding could come back to bite local companies in their own backyard.

And it is conceivable that foreign firms could make bigger inroads in retail, which has been substantially deregulated since China entered the World Trade Organization a decade ago, in comparison to more restricted industries like banking, telecom or insurance.

Meanwhile, foreign companies are ready to push home their advantage.

Barclay’s report also included some interesting updates on the progress of foreign multinationals penetrating deeper into China’s hinterlands as they make some sizable investments.

The world is tired of "Made In China" goods. Now Chinese are getting tired of "Made In China" too and are looking at imported better quality product too.

 

[epsilon]

China can make Everything as cheap duplicate except ur mom and dad.

 

[jbond197]

The problem is - even the premium and so called foreign ones are made in China..

 

[below_freezing]

In 1999, 80% of the cell phones in China were foreign brands.

As late as 2005, 50% of the cell phone market in China was foreign brands.

Today 72% of the cell phone market in China is local brands.

In 2005, international mobile phone makers occupied more than half of the Chinese market. But in 2011, China shipped 455 million mobile phones, among which domestic brands made up 72 percent.

The China market: Windows of opportunity

China warns domestic mobile phone makers of IP dangers ? The Register

China's smartphones risking patent disputes|Economy|chinadaily.com.cn

They're extrapolating a small fluctuation in clothing trends and hoping it would become a self fulfilling prophecy, but have failed

On the other hand, Korea still has a rocket launch success rate of 0%, but that's probably not important to the Indian poster. After all, he can cheer for India's amazing 50%.

 

[Abii]

ya'll are babooning around while China is making bank

You're so funny! China caters to all markets. If you're poor and you wanna spend 1% of what smtg actually costs to make in good quality, they have that. If you're willing to dish out more for good quality, they have that too.

I've bought clothing from Italian labels like Diesel that have been Made in China and I once even bought a Chinese brand watch that had carbon fiber incorporated in the design for a hundred something (a brand nobody on this planet has ever heard of). The watch is doing great right now.

They simply understand marketing. Everybody has a budget and they've got all the markets down. Other countries only cater to certain markets, but because China is a developing country with a large middle and rich class in its own country, it makes everything for every market.

Since we're on the topic, I recommend you guys to visit aliexpress.com
Bought a 32gb class 10 SD card for dirt cheap last month.

 

[sandy786]

what the bad think in this if china is capable to make Made in China every product.

if any other country is can do then nobody stop him.Coping is no easy we called copycat but still we want chinese product bcoz of cheaper.

Thanks to china that poor people can get cheaper mobile and they rise competition so we get more better product.
But every credit should be to Original person who do research

 

[kingkobra]

there is huge difference between made is china stuff which is copy of other original brands and stuff made in china by original brands like Apple and CISCO..

 

[Abii]

there is huge difference between made is china stuff which is copy of other original brands and stuff made in china by original brands like Apple and CISCO..

There are many Chinese brands that make fantastic products.

If you're buying fake products and expect quality, then the problem is with you. A fake product Made in Italy or Germany is just as CRAP as one Made in China. A Chinese brand that is made for people willing to dish out money is just as great as one made in a European country.

 

[sangsharma]

there is huge difference between made is china stuff which is copy of other original brands and stuff made in china by original brands like Apple and CISCO..

Agreed. For us Indians it will be better to learn quickly from China to evelate our masses. Even in defence, I remember not long ago some one said "Beg, Borrow or Steal."

 

[below_freezing]

The number of countries that have a complete semiconductor equipment supply chain can be counted on one hand.

1. Silicon Wafer: China devising 300-mm silicon wafers

2. Photoresist: ?????????????

3. Photolithography: Welcome To SMEE! Only US, Japan, Netherlands and China has this capability.

4. Etcher: AMEC

There's only 4 countries in the world that can manufacture all 4.

 

[somebozo]

Almost half the made in china stuff has really bad quality and many factories dont seem to have very good quality control so you would be getting a batch of goods with very good quality and then a second batch with an identical defect in the same products. This has led to many companies simply ban Made in China..

Quality issues with Chinese products especially in industrial goods is very very irritating.....

 

[Barrack-Obummer]

I try not to buy made in China. Cheap crap made of crap material, falls apart in 5 days 90% of the time.

 

[Zabaniyah]

Almost half the made in china stuff has really bad quality and many factories dont seem to have very good quality control so you would be getting a batch of goods with very good quality and then a second batch with an identical defect in the same products. This has led to many companies simply ban Made in China..

Quality issues with Chinese products especially in industrial goods is very very irritating.....

Depends.

Any company that sources production to China will already set quality standards of the company.

You'll need to provide sources as to what extent did international companies "ban" Made in China products.

 

[chinautumn]

you got what you paid for.Pay less for a high quality product,just keep dreaming.

 

[Zabaniyah]

I try not to buy made in China. Cheap crap made of crap material, falls apart in 5 days 90% of the time.

You get what you pay for