"The quality here is not Swiss, but it’s high".....Sure

He makes watches, about 1.5 million pieces a year.

He makes sterling silver watches for the QVC home shopping network and watches with the famous crocodile emblem for Lacoste.
He makes Juicy Couture’s hot young line.

Leung was wearing a great hulk of a watch called a Bonja. It’s big in Gulf states, where it retails for about $4,000. Leung told me he’s paid $200 for this model and that leaves him a comfortable margin. For Juicy Couture watches that retail in New York for $95, he gets eight dollars. He’s still making money on that. In general he receives about 8 percent of the retail price, or about 40 bucks for a $495 Lacoste watch.

The quality here is not Swiss, but it’s high — “we are at 85 to 90 percent of the quality of Swiss made,” said Matthew She, the general manager. As a longtime U.S. resident of southern China put it: “Does America have a choice of a cheaper place for a quality product?”

Leung said his sales last year were down more than 20 percent over 2008, with the sharpest drop (over 40 percent) in January 2009. After a decade of smooth expansion, this was a shock. He’s had to slash costs. Labor and raw materials are becoming more expensive. Above all, Western consumers have taken a deep breath: “Now, you don’t just buy, you are looking for quality or real necessity, or you won’t spend.”

The low renminbi rate is about growth, jobs and exports. That’s the fundamental underpinning of the Chinese Communist Party’s hold on power. China came through the downturn but, as Dailywin’s difficulties suggest, it did not come through unscathed. Jobs were lost, painful adjustments made. I don’t see China risking its renewed growth to cool U.S. Congressional ire over high American unemployment.

A dollar at 6.83 yuan keeps Chinese-made global brands with their colossal mark-ups in the global mall. That’s an imperative even mighty America battles in vain. Which is why Eddie Leung’s time is not about to run out.

Full article:
http://www.nytimes.com/2010/02/09/opinion/09iht-edcohen.html?emc=eta1

sounds like lielow might have some competition.