摘要
Rather like the ＂middle-income trap＂ encountered by emerging economies, Lmany enterprises are finding their sales stuck between 10 billion yuan （US$1.59 billion） and 100 billion yuan （US$15.9 billion）. A classic example is Li Ning Sports Products Ltd. One reason is that certain advantages once enjoyed by Chinese and foreign enterprises may have turned into disadvantages. The strength of Chinese enterprises lay in low manufacturing costs and a vast market, but they lacked any brand advantage. Assuming that they fail to make a breakthrough in brand building now, their survival will probably be under threat. Like their Chinese peers, some foreign companies, including supermarket giant Carrefour, have paid the price for over-expansion.
