nationalistic feelings of the Chinese people, for
instance, Tianfu Cola, promoted as “the cola of
the Chinese people.”
As the underdog in the race, many local companies
have taken the peripheral position in
the market. Having realized the gap in product
quality and marketing support, most local
companies targeted their products at the
middle- and lower-class consumers. This strategy
is consistent with the fact that consumers in
transitional economies are value-conscious and
price-sensitive and pay close attention to product
attributes and functions. As a result, the ordinary
Chinese consumers increasingly favor domestic
products (Cui & Liu, 2001). As the quality
of local products improves over time, imported
goods gradually lose scarcity value, and markets
initially favoring global consumer marketing
may turn inward and favor local products,
leading to a backlash of global brands (Alden
et al., 1999; Arnold & Quelch, 1998). A recent
McKinsey study conducted in major Chinese
cities reveals that only 14% of buyers are willing
to pay a premium for imported goods over
locally made equivalents. This may reflect not
only the increasing quality of local brands but
also consumer characteristics such as an affinity
for local brands, patriotism, or a cultural predisposition
toward price in purchase decisions
(Dyer, 2007).