In the old days when Mao suits were fashionable, sure. Not any more. The wealthy Chinese are not exactly lining up to buy Cadillacs these days. Quality and face (not necessarily in that order), more than anything, will drive the purchasing decision of products perceived to be high-end, not cost effectiveness, which is a western, and particularly American, concept. Believe me, those who can afford the product are not going to sit down and do a cost-benefits comparison. I'm not sure there's data on this topic, and I'm not an international expert, but I have a close family member who recently lived and taught in China, a couple of close business relationships with Chinese manufacturers (not electronics-related) that extends to their families on a personal level, and general first-hand familiarity with the culture and country by a couple other means. I couldn't disagree more strongly with you, even if you stick to the example of American machinery (be it autos, construction equipment, etc.) With the mainstream Chinese gaining unprecedented purchasing power, value decisions matter a lot, but the perception of American=cool that can override this, particularly with the wealthy. That's why I raised the question of durability. If the cool runs its course with the well-to-do and the value decision begins to take precedent, what will this do to smartphone purchasing trends over there? Companies like Xaiomi are no joke and are revered, not ridiculed, for their cost efficiency and value.
This phenomenon is not just limited to China, it's also an Asian thing. Agreed. Japan in particular, the cultural attraction is a driving force. It's not coincidental that Japan is a stronghold for Apple (albeit one that may have turned the tide in the last few months). |
