The BIG Secret Behind The Low-Priced China Products

21 May, 2016 | Stef
The BIG Secret Behind The Low-Priced China Products

Low quality Chinese products? Well, we don't think so.

Are you wondering what is the secret behind China's products and their amazingly cheap prices?

In reality, most of the people think the prices in China are affected to the low wages. While this is not far from the truth, this answer is only one way to see it. Why?

Because labor is only one piece of the puzzle named total cost of product, and can affect a product - but only with 20% maximum. So, what is the real secret of China's booming eCommerce marketplace - and the amazingly affordable Chinese tech, clothing, beauty and sports products?

USA Vs. China In Prices - And The Marketing Boom

The United States is probably the largest and most capable shopping community driven by sales - but also marketing from the other side. A nation counting billions of people certainly has positive impacts when it comes to shopping, and amazing benefits when it comes to the shopping power of every citizen. 

But think about the marketing. Isn't it too oversaturated?

Yes - it is. In case you have missed our point, let the big advertisements behind Apple, GoPro and many other brands tell you the story again. Obviously, these aspects have a great impact on the US products' strategy and in terms of brand authority, yet the US marketplace tends to fall behind the Chinese one every year. Just look at the chart below. (source: ChartMogul)

Chinese products eCommerce sales

So, what's the actual point over here compared to the Chinese products and the manufacturing power of China?

Compared to the products 'born' in the US, the Chinese ones have ridiculously lower prices. But then again, we haven't even heard of them - while we hear the terms iPhone, GoPro, Victoria's Secret and many more every single day. So, is there a buzz?

There definitely is. And it is the power of the marketing - as the main driver of the US market to lead the marketplace with bigger prices.

A Final Example

Why is a GoPro camera three times more expensive than a Xiaomi model? Why is the iPhone 10 times more expensive than a Xiaomi model?

It's the price of marketing - one that every big brand pays in order to strike the marketplace with what we know as 'quality brands', and the one that the Chinese manufacturers don't have and therefore innovate their technologies at lower prices.

china products low price chinese
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