Quote:
Originally Posted by MrBaldBastard
You can't build a car in the USA then ship it 7000 miles by boat and hope to compete with a locally made car in China. If you want to sell cars in China, then they need to be made in China or neighbouring countries.
It's the 7000 mile journey that stops your American products from being competitive, that's the killer.
It's senseless to set up new factories in the USA because its an already oversaturated market, especially with cars, and despite Chinese market only targeting 15% of the population its already 2x the American market size. That Chinese market is forecast to grow from 15% to 35% in the next 20 years where as the American market will DECLINE.
If you want to make money from China don't try and sell them Soybeans, Cars or anything they can make themselves.
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Thats not entirely true.
If you have a strong brand in a niche market the Chinese will buy. BMW, Jaguar, Land Rover, Porsche, Ferrari etc China is their biggest market. It used to be the US.
However if your brand is not aspirational for the Chinese car buyer, and you are competing on price with local manufacturers, then you will need a cost of production and delivery at least as low as the local product.
The same applies in lots of product areas. The wealthy Chinese love luxury western brands. The Chinese who have to get value for money do not.
