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Engage your Chinese Consumers Better

Buy Chinese Sneakers for $7,000?

Rising power of Chinese sport brands

Hello and greetings again from Shunyi for Tuesday 13th April. A little scary, we are half way through the month already. Well, nearly. Aim2D is a platform for cutting edge China business, Marketing, Technology and Social Media News. Yet we rarely feature China Social Media.
Why is that?

Well, mostly it is because social media topics tend to trend fairly fast. No where more so than China. What may be white hot and trending at breakfast is stone cold, old news, forgotten by lunch time. By the time we go to press, today’s topic will probably also be dead. But we will look at it as it does shine some light on the “weirdness” of the China market as a whole.

Now, when you think of sports brand, in particular sport shoes or sneakers, which one would you pay a premium for? Would you pay US$7000.00? What about a Chinese brand?
What ever your answer, that is exactly what is happening in China right now. Speculators are buying Chinese branded sport shoes for around 1,500 RMB and on selling them for 48,000 yuan.
Nice little earner Terry.

Would you Buy Chinese Sneakers for ¥48,000?

Would you buy any brand of sneakers at that price? There are several factors at work here. Firstly the abundance of money in China. There are, as me old mum would say, people with more money than sense. There is also this Chinese thing FACE, or the need to show off ones wealth. This is not as prevalent as it was a few years back. Those with money tend to be more discreet and tasteful. But as this shows, there are still some with cash to burn.

It is partially driven by the rising China National pride. Chinese consumers are now proud to buy and flaunt domestic products. Again partially in response to what many see as bully tactics by the US in trying to contain China’s expansion. However, overall, this is a too simplistic answer.
We only need to look at the sudden rise in popularity of Huawei back in 2018. That brand did not become the #1 smart phone in China simply because it was Chinese. Nor because of pricing. It became the device of choice because of quality. It offered better build, performance and specs than its I-phone competitor at around much the same price.

Back to sport shoes. Several Chinese sports brands are building on the China pride wagon and producing a quality product with minimum runs. They are essentially, creating limited quantity items. Or Limited Edition. This has led to many becoming “collectors items” and the scarcity drives up the price. But before you dash in a invest in a few pair, bear in mind that price manipulation along with pyramid selling is illegal in China. Caixin has a more detailed read.

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If you’re looking for guidance, tips, advice on any aspect of starting or growing a business in China or training, coaching your existing China marketing team for excellence, be sure to check out Uengager. Home page and base for Everlyne Yu. Read her short bio – opposite left – or contact her direct – below – for a free, heart to heart chat.

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