The Yuan Revaluation Debate
Although this holiday season, like so many in the past, will be analyzed from the standpoint of cost vs. sales, an intriguing value proposition has been identified that will determine the course of consumer purchases throughout 2006 and 2007. With the advent of proportionally low cost HDTVs, the introduction of new Blue Laser formats to supplement and eventually replace DVD, and the constant capacity evolution achieved by USB and Flash devices consumer's will begin looking at a number of other factors determining purchasing decisions.
Furthermore, given the unique type of relationship embodied by U.S. based distribution companies and their foreign based "sister" manufacturing companies, unexpected new markets have emerged. For example in the case of Norcent, the Chinese consumer market itself has grown in significance. In this instance, the brand is seen as an American brand and therefore can command a premium in comparison to Chinese only brands. This, coupled with Norcent's U.S. based sales strategy has allowed them to build on their brand awareness—and even begin offering a highly stylized designer series of high definition LCD and plasma televisions.