Order a child’s Halloween costume in China ($3.44 for pirate hat, eye patch and black cape) and it will arrive at your door the next day, with a mere $1.60 in shipping costs added. If the supplier is in your city, you get it the same day free.
This consumer bonanza is increasingly a problem for local and foreign companies selling in China, where rising energy, transport and labour costs are squeezing profits, not just for manufacturers but for the growing number of brands targeting Chinese consumers.
For years, the price of labour has been rising, especially for managers, but overall costs were still so low compared with the prices foreign customers would pay that its export industry thrived.
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