Luxury Brands Take Turns In The Chinese Market

Chanel, who never discounted and raised its price every year, suddenly issued a statement: in April 8th, the price of handbags, leather goods and clothing was cut by 20% in the Chinese market. The price cut started from 2.55, Le Boy and 11.12 three classic handbags.

At the same time, Chanel also announced a total increase of 20% in the European market.

Between the rise and fall, the price difference between Chanel and China's European market has been significantly reduced. 11.12 the price of classic handbags in Europe has risen from 3550 euros to 4260 euros, and the selling price in mainland China will be reduced from 38200 yuan to 30000 yuan. The price difference between the two places has shrunk from 1800 yuan to 1800 yuan. The price of Le Boy handbags in Europe has risen from 3100 euros to 3720 euros, and the selling price in mainland China has dropped from 32700 yuan to 26000 yuan, and the price difference between the two places has narrowed to 32700 yuan.

In fact, in addition to the three commodities officially announced,

Dozens of other products have also been cut in mainland China, and the price difference between Mainland China and European markets has been controlled within 10%.

Flying Europe to buy two bags can make the return of airline ticket day seem to be gone.

On the second day of the news release, Chanel made a long queue in China's major stores.

Empty.

In addition to Chanel, Dior was already in early March.

Hongkong and the mainland market reduced the price of two products by 10%.

Italy luxury brand Versace also said it would pay close attention to competitors' actions during its 2014 earnings report, which could reduce the price of goods outside Asia.

In addition, Patek Philippe also said it would cut prices by 18% in the mainland market and 7% in Europe.

In addition, brands such as Jaeger Le Coulter, tiger Heuer, and real time have also expressed their intention to cut prices in China before they sell higher prices in the Chinese market than in the European and American markets.

Statistics from a number of agencies show that Chinese consumers have become the largest consumer group in the global luxury market, but consumption in China is less than 30%.

HSBC's report this month also shows that Chinese consumers now consume nearly 1/3 of the world's luxury goods, and 2/3 of them buy overseas.

Tariffs have long been criticized for many imported goods, including luxury goods.

After investigation, the Beijing Youth Daily reporter found that tariffs actually account for a small proportion of the price of domestic luxury goods.

Since the tariff calculation of goods imported is more complicated, we can get a general understanding of customs duties from the items carried by individuals.

According to the classification list of imported goods in People's Republic of China and the duty paid price list of imported goods in People's Republic of China, the average import duty is 9.8% when the personal belongings enter the country, and the import tariff of middle and high grade consumer goods is mostly between 10% and 25%. Only 65% of alcoholic drinks and other individual varieties are taxed.

According to the regulations of the General Administration of customs, the tariffs on imported cosmetics, leather garments and accessories, bags and footwear are 10%.

That is to say, for individuals carrying large luxury goods, they need to pay only 10% of their duties.

According to customs staff, tariffs are usually higher than personal items when imported goods, but they are not so outrageous.

For this reason, a British luxury brand Chinese company with a history of over 100 years has also confirmed to Beiqing Bao reporter that the tariff actually does not occupy a high proportion in its price cost, and the pricing in the Chinese market is more dependent on other factors.

However, it should be noted that in the import sector, there is a 17% VAT in addition to customs duties, and some high-end consumer goods also levy a consumption tax ranging from 10% to 40%.

From the point of view of taxation procedures, the first step in the entry of luxury goods is to levy duties. The second step is to levy consumption tax on the basis of customs duties. The third step is to levy VAT on the basis of consumption tax. After a series of Taxation, the cost has increased considerably.

In this regard, the Ministry of Commerce has also said that the high import tax rate is the main driver of the spread of luxury goods at home and abroad, rather than focusing on customs duties.