While the cost of living in China is relatively low when compared with advanced economies like Hong Kong or London, the truth is Chinese consumers often pay a hefty premium for foreign brands.
Anyone who has been to China would have noticed how much more expensive foreign goods cost there. From Starbucks to Nike, Haagen Dazs to Prada, foreign brands are often sold at a hefty premium in the Mainland.
This infographic explains why this is so and sheds some light on why there are often throngs of Chinese shoppers queuing up outside a luxury store in Hong Kong or anywhere else around the world.
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Infographic via East-West-Connect.com and Sohu.com