As I read a series of great posts this late Wednesday, I thought I’d do a quick middle of the week links post. Let me begin by highlighting this article by Paul Krugman who talks very strongly about taking on China for its manipulation to keep its currency low.
Next up is a post in the Harvard Business Review, where they talk about companies over-pricing their stuff in China. Great stuff; here is an excerpt:
2. Consumers, increasingly, buy products that are status symbols. Starbucks has done well in China partly because of its snob appeal. Its audience is concerned less with the fact that buying a Starbucks latte is, by local standards, a luxury than they are with the prestige they gain by tapping at a laptop in a Starbucks cafe. Similarly, Haagen Dazs has thrived by adding elaborate desserts to its menu and creating an upscale ambience in its stores. In cities like Shanghai, teenagers often take their first dates to a Haagen Dazs parlor and they are willing to pay for the privilege.