A sign of times

Chinese companies are good - they are cost efficient, and they produce products of appealing quality. The question is why would I want to buy a high-end product that lasts a long time for a high price, when I can buy a product that produces quality that is just about meeting my needs, but for a much lower price, and, because of that I can replace the product more often than ever before. And when I replace the product, I might be able to reap the benefits of new technological progress.

Why do I say that? Because more and more companies seem to realise that this is a new way how consumers operate. They get out of low-end, low-margin products that take away their focus from those consumers that still demand high-end product for all its benefits.

We first had IBM that exits the PC business by selling that division to Lenovo. Next, we had the rumour that Siemens is selling its money-losing mobile phone division to another Chinese company. Now Philips announced their exit from the low-end flat screen business group to TPV Technology of Taiwan as part of a strategic direction change. Okay, Taiwan is not really China, but you get the picture. What will come next? Any suggestion?

(By Asia Business Consulting)