Why Are Imported Cars So Lucrative?

- Dec 14, 2017 -

Suppliers that blindly pursue high profits take advantage of the severe asymmetry of information between producers and consumers.As a supplier, he knows the prices of his products in various parts of the world and knows the prices of other competitors in various markets around the world.

But for many consumers in China, they don't know how much overseas sales are going to sell overseas.They just know that the cars are coming in from abroad as if they should be worth it.


Many point to customs taxes and mislead many consumers, obscuring the supplier's motivation for pricing.All suppliers use the so-called brand image to cajole consumers, indicating high price represents high value, and the implication is that lower prices mean a decline in brand image and brand value.

If the supplier's claim is correct, then what about the lower market price of these products abroad?Does it mean that the brand value of similar products purchased by americans is lower than that of the Chinese market?


In fact, there is a question of consumer rights fairness.In the face of all consumers, the same products should be paid the same price.Buyers of Chinese imported cars are no doubt discriminated against by manufacturers compared to foreign manufacturers.This kind of discrimination is made by the supplier with its own information, which is deceptive.It is easier to understand why there are more and more American cars in the Chinese car market.

Why Chinese consumers no longer buy cars that meet China's standards from the Chinese import market because they are cheaper.The reasons for this difference is the same supplier in formulating the rules in the car or gauge car prices, ul car price is lower than rules in the car on many, almost the same configuration standards, but different price different, believe that if consumers after knowing this information, most will choose to buy the car.The growing number of cars in China's car market has proved the case.


One of the reasons for the increase in the number of cars is that more and more consumers are aware of the huge gap between the Chinese market and the U.S. market.The breakdown of the unbalance of information between suppliers and consumers will eventually burst the import car boom.And some of the multinational company prohibits giving ul car consumers equal after-sales service guarantee, means that the supplier of imported cars still attempt to maintain the current situation of China's imports market profits, to acquire higher profits.So, for now the imports of existing market profits, it is necessary to spread through public opinion and flay, cultivating market rational consumption concept at the same time, the separated Chinese consumers more rights to a fair and just.Pointing fingers at some of the unfair domestic market prices of products, including imported cars, is not only not stupid, but it is a smart move for the people.


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