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Q: Why is IKEA in China not any cheaper than in the West?
My first trip to IKEA in Beijing was a disappointment in terms of pricing. I was expecting it to cost half the price here since it's all made in China. But to my surprise, products cost the same, if not more. What's going on!
Most brand name products are no cheaper in China and in fact many are dearer.
Because you're in the land of the "showing off"....
Low price means that anybody can afford it.
In China, you don't want that "anybody", you want to select the kind of people who come to buy. It's also give the brand a certain standard among its competitors. So, the only way to control the consumer is by raising the price.
Why foreign brand are sometimes more expensive than in US or in Europe, even though they are produced locally (shoes, sportwear, etc), it's because if the price is not high, Chinese won't consider seriously the brand as an outstanding brand.
