The changes described in business analyst Shaun Rein’s bestseller “The End of Cheap China: Economic and Cultural Trends that will Disrupt the World“, offers not only challenges, but also opportunities, writes Seeking Alpha in a review of the book.
A great example is Apple. Its sales in China during the first three months of this year were triple what they were during the same period in 2011. Apple took in $12.4 billion in China in the first half of the current fiscal year, putting the company easily on course to eclipse the $13.3 billion in Chinese sales it accrued in the prior 12-month period.
To own an iPhone is a status symbol in China. Status value could account for iPhone popularity in China, despite starting prices of about $800 without service contract subsidies. Chinese shoppers may take consolation from the fact that Apple gadgets are made in China, where the company has made a number of efforts to improve working conditions.
China has an enormous number of people moving into the middle class, which is creating demand for goods. China has become the second-largest luxury market. There is tremendous opportunity for companies that understand China. U.S. companies such as Yum Brands (YUM), Apple, Starbucks (SBUX), and Procter & Gamble (PG) are the ones that have learned their lessons through trial and error.
More on Shaun Rein and his book “The End of Cheap China: Economic and Cultural Trends that will Disrupt the World” at Storify.
- Pricing not an issue for Starbucks – Shaun Rein (chinaspeakersbureau.info)
- Rising wages disrupt supply chains – Shaun Rein (chinaherald.net)
- Apple could have done much better in China – Shaun Rein (chinaspeakersbureau.info)
- The End of Cheap China – USA Today review (chinaspeakersbureau.info)
- Why China’s middle class does not exist – Shaun Rein (chinaherald.net)