Friday, December 08, 2006

there's something about ..... china

During my stay in China, I've met many people doing various form of business.

I've seen so many expensive cars on the road and you immediately wonder how much these costs in Teochew, China. To my astonishment, a Toyota Camry costs approximately $400k RMB. That works out to be about $80k singapore dollars. Their BMW 3 series is only about $100k Sing, but their 5 series is about the same price as Singapore.

Their GEELY brand of car is about $75k RMB which is our $15k Sing.

Their mobile phones of International brands like Nokia, Motorola, Sony Ericsson cost the same price as those in Singapore, without contract. In China, they do not practice signing a long-term contract to lower the phone price and every phone you buy is at it's full price.

However, every guy on the street.. and I mean EVERY GUY.. is using a handphone with camera.

These acquaintances that I met are using top of the range Motorola Phones and Sony Ericsson. Some of them are pda phones.

These acquaintances told me that Chinese people do not trust chinese products and everyone are buying international brands as the quality is better.

But if every chinese guy is to earn about $2000 RMB a month and a phone cost about $3000 RMB, how to they afford to buy into these high end products?

And not only phones. Giordano brands cost the same as those in HK. Nike and addidas costs more than HK. Things are definitely not any cheaper in China and yet these low income group is able to afford expensive gadgets like computer and handphones. How did they do it?

This is when they finally revealed.

You see, the young chinese generation of the 20s are borned in the days where "1 is enough policy" is not established yet. Many of them are borned into big families of 4-5 siblings.

And since most of these siblings are working, their household incomes could range from $5000 to $8000 RMB a month. And since one high-end phone cost about $3000 RMB, what the siblings do is to combine their resources and take turn buying these gadgets until everyone of them own one of it.

Sometimes it's better to have more siblings. I think it's time I produce more offsprings.

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