Country of origin effect

If you are producing high quality products in China you will have a hard time beating the low cost low quality perception. This strong negative "country of origin" effect is shown in a research by Interbrand consultancy.

Chinese companies must improve their quality and brand image to gain a competitive edge in the global arena, according to a recent survey by London-based Interbrand Consultancy. The “Made-in-China” survey interviewed over 700 business professionals on their perceptions about products made in China and the potential for Chinese brands going overseas. The survey revealed that Chinese brands were unable to cash in on the Olympics goodwill largely due to the tainted milk powder scandal. “Products made in China continue to represent the image of cheap price but low quality with safety problems,” the survey said.

http://nation-branding.info/2009/01/14/made-in-china/