Quote:
Originally Posted by kams
Hmmm there is difference. Products are priced according to the ability of the market to pay the price. Colonels Barbie will not cost equivalent of $200 in India, but will definately cost 10 times more than generics available in India. There is a huge price margin built in to any branded product, which companies use to adjust the prices.
Even in US, when a new design of clothing appears say in Macy's, it will cost say $50. Same item after 6 weeks in the same store is routinely sold at $10-15. You can bet that Macy's are making money even at $10.
I am not arguing for PPP.
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In the case of branded items, the high levels of disposable incomes amongst the youth nowadays mean that the same prices are demanded in many cases. This is a big issue for many folks, because after all, Indian salaries, despite all the hikes have not kept pace vis a vis the west in conversion terms. The prices are knocked down in retailers outlets, which is basically an euphemism for factory seconds and export rejects. I tried a Nike design in Bangalore (official shop etc), which was a full year out of date vs the US, but it was being sold at the same price. 3500 Rs/- for a pair, which was equivalent to its intro US price at then exchange rates. In the case of the PRC, their acting as the manufacturing house of the world, has meant that they produce a prodigious amount of local ripoffs at a fraction of the price; nodoubt this has helped their local population to increase their standard of living despite wage differentials.