Replies to post #119911 on Biotech Values

[jbog]

Linhdtu,

You make some good points. We just got done doing a Kraft job in Jarkata because they are making Ritz crakers there now. The normal package they sell there is 6 crackers at a cost 999 rp. That's 11 cents.

When you pick a consumer product company for the 'emerging market' you'd be better off picking a company that sells a superior product rather than one that depends on good advertising/marketing. Most of America's large consumer companies are marketers rather than quality producers.

[DewDiligence]

[OT]—#msg-61388094 speaks to this issue.

[oldberkeley]

OT: linhdtu- The rich class and the emerging middle class in China (where the money is) want Western consumer goods, genuine label/packaging/contents and all, not only for the quality of the goods themselves but also for very strong social/cultural reasons, and they are increasingly ready, willing, and now able to pay for them.

PG and other giants understand the globalization of consumerism quite well and know how to cater to it, as Dew's link points out, through both international and regional brands.

Please also see #msg-61384535 and #msg-61389016.

From the latter: My favorite book on the subject is from 1997: Golden Arches East: McDonald's in East Asia by Harvard professor James Watson:

It's maybe not for the older generation, but there is a feeling that if their child can eat at McDonald's then he can go out in the world and succeed.

Finally, if you don't trust "the sort of capitalism that exists in China," then why would you take the additional risk of directly investing in local companies?

Best of luck.