In Reply to: RE: Pretty much already happening... posted by Charles Hansen on November 6, 2017 at 23:20:40:
I'm not one who permits the outstanding to stand in the way of the merely excellent. I have the sense that we're at opposite poles on such a question.
Great Western manufacture may require high prices because of high labor cost, in which case they will always play to a small market. Think Maserati.
Great Western manufacturers with a low labor cost component, but higher capital and intellectual property, have a choice of lower prices for more sales and lower overall margins, or fewer sales and high margins. Some examples of the former do direct selling. Great Western products for small bucks? That's entirely up to the producers. I just examine all the options.
Mediocre Asian goods, priced right, will always do well. Eg., Oppo.
But quickly emerging are Asian entrepreneurs turning out excellent, if not (by some standards) outstanding, components.* They have less expensive labor and are quickly accruing the intellectual capital.** They can certainly outsell the high labor cost and high margin Western producers. Apparently, they can sometimes outperform them. At the moment they seem to be selling principally in Asia, but if they develop the desire and wherewithal to scale, watch out.
*Of course they get absolutely no coverage in Stereophile, for obvious reasons.
**According to Forbes, China produces 4.7 million STEM graduates each year. India produces 2.6 million. The US produces 0.57 million.
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Follow Ups
- RE: Pretty much already happening... - Mel 11/7/1708:47:31 11/7/17 (4)
- RE: Pretty much already happening... - Charles Hansen 02:09:00 11/8/17 (2)
- RE: Pretty much already happening... - Mel 06:04:09 11/8/17 (1)
- RE: Pretty much already happening... - Charles Hansen 21:02:32 11/8/17 (0)
- RE: Pretty much already happening... - BubbaMike 10:13:05 11/7/17 (0)