Market Analysis of Hawk

Market Analysis: High End Gaming Computers – Jesse Appell + Ariel Zommer

The Chinese market is one of great potential for electronics businesses in general. A nation of 1.3 billion represents an endless stream of potential customers. But when it comes to upper echelon products, the total population is not as important as the population that can afford luxury services. While it may not be as intuitively obvious, it is also apparent after an analysis of the Chinese market and consumer that China represents an excellent market for high end products as well.

Normally, we think of luxury products being purchased by high-income consumers. There is no doubt that in China a good deal of Falcon N-W’s customers will be these type of consumers, but Chinese consumers’ purchasing patterns suggest a custom computer company might be able to tap into yet another customer base. The pattern of middle and high-middle income consumers who wish to purchase high-end products should not be underestimated. Many Chinese have the idea that it is better to get one very quality product and save their money to buy the best of the best—skipping over the high-middle bracket entirely to reach the highest quality products. Once a product has been designated as the very best or among the very best, Chinese consumers will buy the top tier product they desire at the cost of not buying other products.

Interestingly, this pattern holds throughout all income brackets. Rich families in the countryside will buy clean, top tier tile and the best building materials at hand to build their houses, but have few knick-knacks and homey touches to put inside the house when completed. Urban consumers will buy a car that is “beyond their means,” but this car will be their major purchase, and they may have few other expensive products. Falcon needs to convince consumers it is worth sacrificing everything else in the computer room to get a Falcon computer. The amount of this type of consumer will rise as the...