In some industries this is true. But in some cases price is not the main driver. People still buy German cars for example. At the high end of the market of course there may be other factors, and people pay for the brand and lifestyle, and will sometimes gladly pay whatever the manufacturer charges. But the German car industry is not all about high end super expensive stuff for the spoilt kids of oil sheiks. Probably that's just a minuscule fraction of the total market. Germany still makes plenty of low end and even some somewhat tacky cars too, sold into segments that are competing head on with cars made in much cheaper countries.

It's all about decent engineering, building a reputation, taking care of your customers and having a long term strategy rather than following every new fad.