The Huge Gap: The Price Differences of Branding Clothes Between the United States and China

摘要

Mid- to high-end branding clothes, whose trademarks originated in the United States of America, are often subsequently manufactured in China. This research intends to discover why the retail price in China is much higher than that in the United States. Previous studies discussed the price policy in chain retail store (Zhang, Guo, 2012), the relationship between distribution channels and retail price (Coughlan, 1992), and consumer behavior in China (Schutte, 1996; Giele, 2009). However, Chinese clothing market, as one of the most notable and profitable market that sells High End foreign brands, seldom has been discussed in academic studies. American brands that are made in China have much higher price in China than in United States-this phenomenon has aroused a heated discussion among Chinese people, mass media and academia in China in the past few years, but no creditable explanations-with sufficient evidence or with rigorous reasoning has been provided. In this study, it starts with discussing the problems in distribution channels through analyzing the first-handed information collected from band supplier and retailing stores. Then, it explains the causation of the significant price difference from three perspectives: brand supplier's strategy in oversea market, consumer culture and behavior, and Chinese government behavior.