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It's a tough lesson to learn, but companies that fail to localize can expect to lose market share while their sales figures plunge and profits dwindle.
It is certainly no secret that the world's most populous country is also the biggest manufacturing base on the planet, but it is less known that China is also the top consumer of natural materials such as rubber and copper. The country has been the world's biggest rubber consumer for the past two years, with annual consumption exceeding 3.1 million tons.
The increasing number of audio and video products flooding the Chinese market are just the tip of the iceberg. South Korean manufacturers have captured the imagination of Chinese consumers with a wide range of colourful clothing and accessories, home appliances, and consumer electronics. The Korean wave has hit China with full force, and young women, housewives, and business executives across the nation have welcomed the deluge of stylish, quality products with open arms.
The Peugeot 206, made by PSA Peugeot Citroen's venture with Dongfeng Motor Corp, was launched last month. The Hatchback 206 has a 1.6-litre, 16-valve engine, and retails for between 86,800 yuan (US$10,700) and 108,800 yuan (US$13,400).