No coffee mourning over expensive drinks

The starting price of an Apple iPhone 4S is 4,988 yuan ($790) in China and $649 in the US, where average personal income is about eight times higher. The price hasn't deterred Chinese consumers, even though they have easy access to domestic smartphones that cost about half but have similar functions and looks.

Why does 16-year-old Huang Junyi like iPhone in particular? "Because it's cool.

"Everybody wants an iPhone in our class. There is no reason for it," the Shanghai student said. "It will be big news if anybody in class gets an iPhone 4S, and you will be mocked if you use some copycat domestic smartphone."

'Badge of wealth'

Wang Haizhong, a professor studying brand strategy at Sun Yat-Sen University in Guangzhou, said the iPhone does have some advantages over other mobile phones but the advantages are not what Chinese consumers really want.

"It's mostly about vanity. Products like iPhone are seen as a badge of wealth and sophistication by young consumers in China. In fact, it's not just iPhone. Many Chinese consumers have a blind preference for brands in the US and other developed countries," he said.

Chinese consumers, he said, are highly brand-sensitive but price-insensitive, the opposite of consumers in developed countries. That explains why US consumers like cheap but high-quality Chinese products and Chinese consumers love US products.

Fudan University's Zou went deeper, saying that while consumers worldwide all tend to spend on vanity, the will is stronger in China, where "power distance" is longer.

Chinese people have a strong respect for power historically, he said, and it's hard for people to get power in society even if they are rich. So a lot of people turn to consuming to feel important and feel the dignity that is hard to obtain in daily life.

"For some consumers, no matter how their lives really are, they feel they are having a good time the moment they hold up a Starbucks coffee or show the latest version of iPhone to their friends," Zou said.

"In other words, they hope to go up a step in the social spectrum by consuming."

Free-market choice

Some scholars, including Qiu Baochang, head of the lawyers' group of the China Consumers' Association, feel that Chinese consumers should be educated to spend more rationally so no more students will want to sell their organs to buy anything. Campaigns, they believe, are urgently needed on campuses to help students understand the real value of money and what they really need.

But Zou disagreed. "There is no right or wrong about how people spend their money, as long as it's legal. In a free market, people have the right to buy what they like, no matter how irrational the choice is."

Write to gaochangxin@chinadaily.com.cn