For this study, we focus on two broad product categories: durables and non durables (or consumables ). Within each category, we select four products: 1) detergent, beer, cola and cosmetics for nondurable goods, and 2) televisions, refrigerators, microwave ovens and personal computer for durable goods. In the nondurable goods category, detergent and beer represent the traditional staples while cola and cosmetics are the relatively new products that have become popular after China’s opening. In the durable goods category, televisions and refrigerators are considered the traditional categories, while microwave ovens and personal computers represent the relatively new product categories that were introduced in more recent years. Each product category included all the available foreign and local brands.