Wednesday, October 13, 2010

What happens when you flood the US market?

Many of the Chinese factories that are now hurting are having a hard time because of their own actions. This is my case study to respond to many of the emails I've received including from my Motorcycle Product News article and the Scooter Scoop ( make sure to visit them the Scooter ) let's take a look at CF MOTO. The US management had the right idea all along about building a brand, but the Chinese management flooded the market with private label. What are the results? It just makes it more difficult for the company to compete when its competing with itself with Diamo, TNG, Qlink and others.... Markets don't have unlimited capacity they have demand that can be measured so the Chinese way of producing and supplying more than the market can take has lead to the US drop in sales and prices.

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