Worldwatch Institute reported, “Chinese purchases of high-end items—including designer handbags, perfumes, and watches—will grow by 25 percent annually over the next four years, and that by 2015 China will be the world’s largest luxury brand consumer, with a 29 percent global share.”
In addition, CNN Money says that America is the new destination for rich Chinese shoppers. Why? “Renee Hartmann, of China Luxury Advisors, said luxury merchandise in the U.S. tends to be around 35% cheaper than in China.”
There is another reason why many Chinese tourists buy “Made in China” in other countries.
While my Chinese father-in-law and his wife were visiting in the U.S. I learned why Chinese buy here — quality.
If you read the China Law Blog, you may know that in China there are several levels of quality that do not exist in the U.S. When buying anything in China, there is always a risk you might end up buying a fake or the real thing but of a lower quality. In fact, there is no way to tell what level of quality you are buying when in China.
That doesn’t mean “Made in China” is always of a poor quality. The language of the contract between the foreign buyer such as Apple and the Chinese manufacturer is important. If the contract between a U.S. corporation and a Chinese manufacturer specifics the quality, that’s what’s usually delivered to be shipped to the U.S. If the product is of a poor quality, then blame it on the contract the CEO of a U.S. corporation signed.
And most of the products Apple sells globally are assembled in China and many are manufactured there too (Apple has manufacturing facilities spread around the world but assembles most of its expensive electronic items such as the iPad in China).
Continued in Part 2 on October 21, 2015.
Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.
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