It's not all about labor cost, and labor cost is far from being a negligible parameter Every single manufacturing cost ends up attached to the final price, there's no secret Of course you have shipping cost and distribution cost ... One way or the other, between competitors with the same product (distribution/accessibility included), the one who fails to be as cheap if not cheaper as the other will go down. Because people aren't going to pay an extra 25% if not 50% for nothing