What is the reason why the domestic luxury goods market is expensive overseas?

"Chanel's spread in Europe and China is nearly 40%, mainly because of tariffs." This is similar to the statement that luxury goods are expensive and blamed on high tariffs. You believe it is naive! This reporter learned that for such imported luxury goods, only 10% of the tariffs that need to be paid. Its high price is mainly due to the manufacturer's pricing strategy and China's domestic compound tax system. The industry generally believes that the price cuts of Chanel’s concerns by the mafia parties may be a signal that many front-line luxury goods will cut prices for the purpose of robbing the country’s domestic market.

The reporter first compared the prices of several commodities on its domestic official website and the cross-border e-commerce purchasing service. Taking Louis Vuitton's capucines large handbag black classic as an example, the reporter saw in its domestic Chinese official website that the price was 46,500 yuan (***), and the price of the genuine overseas purchasing service provided on the Jingdong website was 44175 yuan. ***, the price given by the United States eBay Shopping Service is 4499.99 US dollars (approximately *** 29340 yuan). In the case of salvatore ferragamo's 2015 spring-summer fashion leather stripe ladies handbag, the reference price in the domestic market is 18,559 yuan, while the purchase price in Italy is 10,836 yuan.

According to a survey conducted by the Ministry of Commerce, the difference between domestic and overseas prices for high-end consumer goods such as watches, bags, and clothing is about 45% higher in the mainland market than in Hong Kong, 51% higher than in the United States, and 72% higher than in France.

So what caused the two days of luxury prices in domestic and foreign markets? The reporter first started with tariffs, queried the “Registration Classification of Entry Articles of the People's Republic of China” and “Price Table of Taxes Imported Goods of the People’s Republic of China” and learned that according to the provisions of the General Administration of Customs, imported cosmetics, leather clothing and Accessories, and bags Tariffs for footwear and footwear are 10%. For top-tier luxury brands, the tariff they pay is only 10%. Taking a Chanel 11.12 handbag as an example, it only paid 10% of the price of its customs quota when entering the Chinese customs.

On the issue of “luxury goods are more expensive than overseas”, at the 2011 annual meeting of the China Development High-level Forum, relevant people from the Ministry of Commerce had analyzed three reasons: First, some overseas markets have no tariffs, such as the implementation of the Hong Kong region. Zero-tariff policy; Second, the distribution system of high-end consumer goods in the Mainland has just been established, with multiple levels and high costs, increasing the transaction costs of high-end consumer goods in the Mainland; Third, after the financial crisis, overseas products have been discounted in order to promote consumption in the countries where they are located. And price processing.

Specifically, a high-end imported cosmetic product itself contains triple tax, 10% import duty, 17% value-added tax, and 30% cosmetic consumption tax. That is, the first entry of luxury goods is the levy of tariffs, the second is the levy of consumption taxes on the basis of tariffs, and the third is the collection of VAT on the basis of consumption taxes. However, the reporter learned that at present, for the first-line luxury luggage, China has not yet included it in the collection of consumption tax, mainly based on concerns about high-end consumer outflow. As early as 2011, when deputy director of the Consumer Economics Department of the Ministry of Commerce’s Trade Research Institute, Zhao Ping, said that the overall import tax rate was too high, it was the main “driver” of domestic and foreign luxury price spreads.

In addition, there are a lot of critics of international well-known brands in the domestic sales hierarchy, and regional agents generally bargaining power is not high, so even if the tax cuts, foreign companies may also control the agent's take the goods price, continue to maintain high prices. In addition, the existence of channel fees, "buckling points" and other unspoken rules in China's retail industry will also push up the prices of imported luxury goods. Therefore, while reducing taxes, we should standardize commercial order and reduce circulation.