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Posts: 292

Governor

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Q: Why are international stores more expensive in China?

I thought China was supposed to be cheaper, but in the clothes department, I think not. Having just gone back home for a visit I realized that a lot of stores I go to eg H&M, Zara are actually more expensive in China. I didn't think they would be much cheaper but I didn't expect them to be way more expensive. Does anyone know why there is this massive mark up? Is it for all foreign goods? or just clothes?

 

 

10 years 24 weeks ago in  Shopping - China

 
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Posts: 200

Shifu

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I think it is a combination of high import taxes and the fact that anything foreign is highly coveted and looked highly upon even if it's a bad quality H&M sweater made in Bangladesh. But mainly it's the import tariffs. There is a very high import tariff and custom duties on almost all imports and China has even begun to slash the rates for some goods to boost imports and domestic consumption. These fees typically raise prices by up to 30%.

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10 years 24 weeks ago
 
Posts: 2878

Shifu

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China is a really expensive country, there isn't really any good values to be had. Cheap stuff is of such poor quality that it's not worth buying (Yes you can buy $10 jeans in china but they'll never fit right and last a year tops, 50 bucks in the US you can get a decent pair on sale) and decent stuff is much more expensive. Ditto food and housing too. The only way that china is cheap is that people's standards are lower. If you're just some drifter guy from the US you can live in an old disgusting apartment for 1000/month and eat Cooking Oil Soup served with Rice and Vegetable for 10 rmb/meal and not come off as too bummy to get a girlfriend. They COULD live like that in the US for about the same price (have to cook themselves though), it's just not socially acceptable. You might be paying very little for things, but they are objectively worse than the things you'd be getting back home and they aren't THAT much cheaper. 

diverdude1:

I tried cooking myself one time, hurt like hell; tasted damn good though!  bit of liver with some fava beans and a nice Chianti...

10 years 24 weeks ago
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expatlife26:

Ha! what I was getting at is that if you wanted to eat like that in the west, you'd have to boil your own rice and green vegetable in cooking oil because there just isn't a commercial demand for food that crappy.

10 years 24 weeks ago
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10 years 24 weeks ago
 
Posts: 2310

Shifu

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I realized that too, during my summer visit back in Czech. 

Although people who still have a little bit money for more than surviving life, are going shopping to Germany for better and cheaper food and household items, like washing powder, creams and so on. Even some czech beer is there cheaper than in czech shops. But still, here in china, many things i get for same price or even much more expensive than back home. Yeah, vegeatble, here is a bit cheaper, if you go to wholesale market. 

Take a bread loaf, in carefour the cheapest one is 3 USD here. I pay 1usd back home. And its not imported Tongue

Scandinavian:

Germany is dirt cheap. Really a good place to shop, I think for most type goods. 

10 years 24 weeks ago
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dom87:

eh germany cheap? i dont think so.

seriously in china i live with 2 people for pretty much ~300 euro a month very good. back home i spend that a week for me alone.

food / drinks are very expensive in germany. Gas for you car is terrible expensive (double price as in china)

clothes are ridicolus expensive. Levis jeans? yo 150€

not sure why you think germany is so cheap, germans dont even earn much anymore, higher position job is maybe 3500€ before tax so ~2000€ after tax.

10 years 24 weeks ago
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expatlife26:

Yeah normal stuff in developing countries become priced as high as luxury goods are in nice countries because they become aspirational. Makes sense, your average Joe (or Zhou) always buys the cheapest of anything out of necessity. Anybody buying something else is making a statement that they can afford it. It's only in places with a big middle class that you find good values. People with some money to burn but who are still price sensitive; that neither just buy whatever is the cheapest or buy expensive things to show off.

10 years 24 weeks ago
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dom87:

I am just not sure where you even go shopping.

its hard to find a t-shirt at h&m in germany below 20€

in china i can buy t-shirts for 50 rmb at h&m

 

luxory brands are more expensive here, that is true. But normal good are usually cheaper unless its an imported brand (even then not all).

Take snickers for example, i would never ever get a snickers for that price in germany

10 years 24 weeks ago
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Scandinavian:

@dom. You obviously never took your cheaply bought car for a drive up through Denmark, Sweden and Norway and bought a cucumber in Oslo. I'm not saying there isn't an easy way to get rid of your money by renting an apartment in the center of Berlin, or that a Maß has not gone up WAY too much so it has become a significant investment to get drunk in Munich during the last two weeks of September. 

China has cheap areas, but the more developed cities have the property bubble, soaring food prices etc. 

10 years 24 weeks ago
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10 years 24 weeks ago
 
Posts: 443

Shifu

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Of course they are more expensive because they are tailored (pun intended) to the higher salaried and second generation rich (fuerdai) who actually want to pay more because it shows they have face. In the UK if you tell someone you bought this and it was really cheap they will congratulate you and be please, in China if you do the same they will think you are poor and can't afford to pay the full price.

 

As for other foreign goods such as food import stores, they are naturally more expensive as they have to ship the items from overseas suppliers. A box of cereal can be $5-6 upwards. I only shop there if there is something I need for a recipe and I can't find a local alternative.

 

All said and done, if you shop at the international malls at the right time you can bag yourself a real bargain. My wife recently bought 5 or 6 things in Zara and it only cost her 250rmb. She got a jacket for less than 100rmb that usually retails at more than 900rmb! All about timing and not caring if you lose face by getting the discount!

expatlife26:

Yeah definitely,  I'm in the same boat as you, somebody asks how much I paid for something i'll lie the price down just on instinct because no one likes a showoff in our countries. Face to us is being inclusive even to our friends with less; we like to pretend we don't own a nicer house than them because we make twice as much, we just "bought at the right time" or some little white lie like that so we don't come off as elitist pricks to people we genuinely like and respect regardless of their income.

 

But then again...our lives are generally tolerable where the chinese's aren't. I mentioned in another comment how a rich guy and middle class guy in the US can talk as equals to each other about their respective holidays with neither trip being objectively "better" than the other. China rich guy holiday? Spending 200K shopping in Paris. Average guy? Dirty bus for 3 days to see his kids for one week a year.

 

Having lots of money here means a lot more because there is such a huge disparity in lifestyle so they are willing to pay for it. 

10 years 24 weeks ago
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Governor

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It also has to do with tariffs.  Tariffs are imposed to protect local industry.  I know a wine importer who told me he pays a 48% tariff.

Some companies from back home can ship stuff to China.  I get a box of vitamins for 50% of the price here.  The shipping is 4 to 10 dollars, depending on what you order.  But here is the but, you are limited to 3 kilos and 80 dollars.  I get a box every month.

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10 years 24 weeks ago
 
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