The Knowledge to Decide

As ASEAN trade grows rapidly, so does its economic clout – the combined Gross Domestic Product (GDP) of the region is set to reach USD3 trillion by 2024, making it among the top ten economies in the world were it a single country. What key trends will emerge as ASEAN trade forges ahead? Leon Perera, Chief Executive Officer, of Spire Research and Consulting shared his insights in China Daily – Asia Weekly. The share of intra-ASEAN trade out of the region’s total trade has grown to over 27% in 2014 from 17% in 1990. The ASEAN region continues to be an export-oriented global manufacturing and services hub for thousands of multinationals. Economic growth has led to the rise of the upper and middle classes and an increase in the consumption of luxury goods. Perera noted that Southeast Asia still imports aircraft and industrial equipment from Europe and the U.S. Moreover, toys and consumer electronics continue to be heavily imported from China. So there is no question of ASEAN beco

In contrast with the US and Europe, bargaining over prices is the norm in China’s small consumer electronics retailers. Spire Research and Consulting posted a commentary on how Western brands should sell their consumer electronics products in China, published on the US Consumer Electronics Association’s blog. Chinese adults spend an average of USD917 on consumer electronics, compared to USD483 in the US. Over 60 per cent of China’s population will continue to spend more on this category. In Chinese computer and consumer electronics retailers, bargaining is a common practice. This stands in contrast to the American and European norm, where consumers are used to fixed prices, whether at large retailers or e-tailers. This is due to the saturation of retailers in the Chinese market. These retailers sell high-end consumer electronic items such as laptops, cameras, tablets, mobile phones and so forth at negotiable prices. So how do western vendors keep up with the competition?