iLounge

1

China is the largest market in the world but it is a tough market to be in. iPod may be too pricey for the Chinese, they look to price first and quality second. Yes it is true that the are Mercedes, BMWs but cars seem to be another matter. Chinese are prepared to spend 2 to 3 time more for a foreign car to maintain an image but home grown electronics are inexpensive and considered to be for function. I have seen a few Apple stores open in Shenzhen but soon they become Apple, Sony, Great Wall and digital camera stores. If they cannot turn a profit they will change a store over night. I have seen a restaurant molded after a European, classic restaurant with imported chair, antiques, paintings, carpets and an elegant interior design open and close in less than a year because they could not draw the traffic of a hot pot restaurant.  Stores that are successful in Hong Kong have little to no traffic in Shenzhen. I was surprised to see Starbuck move in and have relative success and this after a string of Chinese coffee house opening with more staff than customers. The big winner here is Kentucky Fried Chicken will line ups at the counter and the oversized restaurants are jam packed with customers.  Another big winner is Walmart, they have moved and are expanding rapidly with the customer base to support it. The architecture here is second to none and this I have also heard from many an American and European Business person who I have meet while crossing the border into Hong Kong.  Yes it is a good time and a bad time, to break into the market you may have to wait it out with deep pocket but the rewards are profits like you could never imagine. As the article says HP went in and backed out and will try it again. This market is tempting for any company.   

Posted by Lajo on March 11, 2004 at 3:27 AM (PST)

2

let’s just hope they’re color blind

Posted by dave on March 11, 2004 at 4:15 AM (PST)

3

LOL.  1.3 billion customers.  I love the number crunchers who predict success from their cubicle thousands of miles away from reality.

An iPod, even the $250 mini, represents the amount of money that the majority of these people earn in a year.

BTW, ####, mix in a paragraph break.

Posted by matthew on March 11, 2004 at 4:48 AM (PST)

4

The majority are poor by western standards, but the minority that can afford luxury items still represent a HUGE and growing market.

Posted by realistic on March 11, 2004 at 5:51 AM (PST)

5

There are about 100 to 150 million Chinese citizens that would be considered “middle class” and be in the market for personal electronics, according to chinaonline.com.

Posted by Mike on March 11, 2004 at 5:58 AM (PST)

6

Good luck to HP, Chinese is the biggest copycat in the world, who knows, in a few months someone in China may come up with an exact duplicate and more affordable of the Ipod and call it the IPOT.

Posted by High5 on March 11, 2004 at 8:03 AM (PST)

7

FFS who writes this crap news. That’s possibly the most boring and pointless thing I’ve done all day, other than using this website at all.

Posted by Dickwad on March 11, 2004 at 8:46 AM (PST)

8

Maybe HP should wait to return to China until China leaves Tibet.

Posted by gustafks in Minneapolis on March 11, 2004 at 9:04 AM (PST)

9

“That’s possibly the most boring and pointless thing I’ve done all day, other than using this website at all.”

then don’t

Posted by ACLeroK on March 11, 2004 at 9:31 AM (PST)

10

iPOT—Mmmwaahahaa

Posted by george dubya bush on March 11, 2004 at 10:17 AM (PST)

11

haha it totally figures

i heard that theres a benz-like car(but not benz) sold in china.
something more, a second-line brand in china called “SQNY” intimating “SONY”

oh my..

Posted by seriously on March 11, 2004 at 5:14 PM (PST)

12

The Benzs are real and so are the Sony’s, I have never seen knockoff Benz or Sony. On the other hand Nike knockoffs are a dime a dozen as are Rolex, Monte Blanc. I understand from some bar owners that beer can be fake as can some name brand products in stores. Your best bet is to go to a store that cannot afford to sell a knockoff or go to Hong Kong.

An Interesting story about Chinese cars, a friend of mine bought one and within a month the 1st gear was not working. I have bought phones in China and scrapped them within 2 days, brooms handles fall off, pens don’t work, batteries leak etc etc. But what this has done is open the door for foreign companies to step in and sell their products. Quality is now becoming an issue here and if you have something good to offer you have a chance to make it in the market. Let’s see what happens with iPod. If it is successful it will be in electronic malls and department stores. Sony has penitrated the market with the MCD and Walkman as has other mini music players.

Cell phones here are the latest and many of them are here before they hit the North American market and you can find more phone shops in Shenzhen in one block than you can find MacDonalds, Kentucky and Starbucks put together in one block in the USA. The reason for that is the people will have a cell phone or hand phone as they call them before they have a house phone.

Posted by Lajo on March 11, 2004 at 8:35 PM (PST)

13

hmm i’m chinese and i could afford to get 2 ipods when i went to america on holiday

Posted by ti on March 13, 2004 at 8:35 AM (PST)