» Chinese Seek Quality From Multinationals
Many analysts argue that Chinese consumers are extremely price-sensitive and only want to buy the cheapest products available. This has led to price cutting in the China market by the likes of Dell and other multinationals. Many are trying to match the prices of domestic Chinese companies like Lenovo that are providing “good enough” products at discount prices.
However, multinationals should actually take the opposite tack when positioning their brands in China. They should position themselves as premium to domestic Chinese companies and emphasize their quality and safety. It is impossible for them to compete solely on price, and it is a shortsighted strategy that will erode long-term profitability and brand image.
