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      Local brands short on value, appeal

      2014-10-09 10:28 Global Times Web Editor: Qin Dexing
      1

      Sales and prices of hairy crabs, a popular Mid-Autumn Festival delicacy, cracked this year under the weight of the Chinese government's ongoing fight against corruption and wasteful public spending.

      Of course, businesses in several areas are being squeezed by the government's continued campaign. Turnover is down significantly for moon cake makers, high-end restaurants and nightclubs as well as luxury goods sellers. As many are aware, government officials have been known to squander public money on extravagant items and services for their own consumption. Meanwhile, many outside of the government have lavished expensive gifts and luxuries on officials in pursuit of their own personal agendas.

      The government's crackdown isn't the only factor crimping demand in the consumer sector. Fundamentally, many of China's upmarket businesses are underdeveloped and suffering from their own lack of maturity.

      Many supposedly high-end items produced in China are overpriced and lack in quality and value. Furthermore, local consumer enterprises still pay little attention to brand building and bother little with efforts to differentiate themselves from their competitors. Businesses that once depended on profligate, unscrupulous officials need to enhance the value of their products for ordinary consumers.

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