A BMW X6 is around 75,000€ in Austria but 250,000€ in China. Some reports say that the profit margin of BMW is over 40% while in developed world it is only 10% or so. However, in terms of economic strength, the disposable income of a Beijing resident is only 6,600€ annually, only 1/5 of the average income of Austria. Don’t forget that Beijing is one of the best cities in China! The average income of the urban area in China is merely 3,500€ indeed! But why those merchandises are sold even more expensive in such a poor country?
It is well-known that “Made in China” is not in good quality. Every year, the goods manufactured with the best quality are transported and sold in developed countries but the ones with bad quality are sold in China. As a matter of fact, almost all of the goods with Chinese own brands are in bad quality or bad design in China. However, these domestic goods can be still expensive here! It means even the most common commodity in Chinese markets can still have high prices. Thus, those commodity imported from developed countries, which have far better quality than Chinese goods, have the right to set their own even higher prices. Because prices in market is always related to comparison among merchandises. In China, if you want to buy something with a quality not too bad (attention please, it is the quality “not too bad”, rather than “good”), the cost you should pay can be timed or even several timed.
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