The End Of Cheap China
Shaun Rein 2012
Book Notes
- China has changed much in a decade
- Jobs plentiful, expectations high
- consumption skyrocketing, big demand for branded luxury goods
- Low cost moving to poorer inland, to Vietnam and Indonesia
- bad infrastructure and unmotivated workers in V. and I.
- Nike: $2.1B sales in China 2011, highest margins, doubling by 2015
- 17 million autos, Buick's biggest market
- most billionaires
- 1 million millionaires
- 350 million middle class
- constant job hopping
- US could lose $2T in chinese investment due to conflict rhetoric
US company China growth: 47% (2009) -> 87% (2010)
- Branding important, quality improving
- Chinese brands, local "flavoring" growing
- Real estate shoddiness often to hold land for future development
- Major lack of housing and good retail locations
- Three generations in 300 square feet
- Chinese resent delayed product releases
- Chinese support national government
- peaceful power transitions
- Examples of western press distortions
- Value stability after Cultural Revolution and Gang of Four
- Shaun Rein married granddaughter of Lili Li, rival of Jiang Qing
- Resent corrupt local officials
- 50 million chinese travelled abroad in 2010
- Younger people make buying decisions for limited-pension parents
- Women empowered
- "raised as little princesses"
- buy 55% of luxury items
- still major gender inequality in rural
- value cute, not sexy
- loyal to brand, not retailers
- Food supply corrupt
- Eat KFC, Subway for quality control
- Cross border traffic in baby food
- Africa - Chinese trying to invest
- perceived as imperialists
- Australia and Canada sell resources to China
- Pakistanis like China, more money less arrogance
- poor image marketing in the US
- Chinese buy US companies, retain management, unlike Japan
- American shops should have Chinese sales help
- Chinese education sucks
- rote memorization, not creativity
- few universities, no world-class ones
- Rich parents send kids abroad