Chinese Consumers Favor Foreign Products, Which Are Cheaper Than Domestic Ones.

How much domestic goods are much more expensive than abroad?

Lack of competition, high circulation costs, high tax rates and high prices.

A few days ago, customs attention was paid to the taxation of passengers carrying portable tablet computers iPad.

"The reason is very simple, cheap!" Shen Pei, who works at a port in Shenzhen, often travels to Shenzhen and Hong Kong because of his working relationship. He told reporters that the price of the 32G/WIFI+3G version of iPad sold in the Hongkong market has been less than 4000 yuan, while the standard price of the same product in the domestic market is still over 5000 yuan.

The price is more than iPad! Recently, Wang Fei of Beijing came back from the British tour and bought 5 pairs of leather shoes at one go.

He calculated an account: a pair of Clarks (men's shoes), marked 79.99 pounds in the UK, 10% discount on tourist passports, 15% in the exit tax rebate, and actually 60 pounds; while in Beijing, Yansha outlets, the shoes with the same brand and the same brand also cost 1700 yuan after 20 percent off.

Consumers who often go abroad find that in foreign markets, the daily necessities such as electronics, leather shoes, clothing and so on are not much cheaper than those of the same brand. The price of luxury items such as watches and famous brands is even more different from the domestic price differentials.

In the United States, a Lewis (Levis) jeans sells for 19 dollars at discount stores, while the same pants sell at least 700 yuan in the domestic stores. As for Rolex, Louis Weedon, GUCCI and other watches and bags, the selling price in Europe and the United States is usually less than half or even 1/3 of the domestic price.

In recent years, the global market has been speeding up.

More and more international brands are entering our ordinary families.

At the same time, these "high above" foreign brands have joined the "made in China" army in the past. Apple iPad is manufactured by Foxconn factory in Shenzhen and Clarks is manufactured in Dongguan, Guangdong.

But why are these products in China more expensive than those in Europe and America after they are sold back to the domestic market?

Niu Hong, an associate professor at the south of the Five Ridges School of Zhongshan University, said that the market competition in developed countries is fierce. European, American and Japanese brands compete with each other. Many brands have been operating for hundreds of years or even hundreds of years, and have relatively fixed customer groups.

In such a market environment, the high price strategy will not work if we want to win new customers.

In China, due to inadequate market competition, the competitiveness of domestic brands is not strong, and few international brands have taken the lead, forming an oligopoly market. "This is the most critical and structural factor."

Secondly, the high circulation costs in the domestic market also raise the prices of commodities.

In China, a commodity enters the sales terminal. Besides pportation costs, there are also high entry fees and booth fees.

As well as agents at different levels, agents at all levels will be able to deduct a certain proportion of profits and rebates from their sales volume. These costs should be passed on to consumers, and the selling price will naturally not decrease.

Excessive tax burden is also a factor.

Despite China's accession to the WTO, China has repeatedly lowered tariffs, the total tariff level has been equivalent to that of developed countries, but the value-added tax, consumption tax and business tax in domestic circulation are still high.

The iPad import tax of up to 20% is a typical example.

If we do not cut taxes, the price of imported goods will be hard to come down.

Why do you feel "more practical" when buying foreign products?

Domestic manufacturers counterfeit and sell fake products, giving consumers the mentality of relying on foreign brands.

Chen Ran two and a half years son, tiger head tiger brain, very attractive, "the children eat is Japanese Meiji."

She said that the main reason for choosing Japanese milk powder is that foreign products are "more practical", especially after the melamine incident.

Chen Ran, a researcher at a financial institution in Beijing, went to Hongkong on business in early October. When he came back, he bought more than a dozen cans of milk powder.

Analysts pointed out that domestic tourists are keen on shopping abroad. Besides price factors, consumer psychological factors are more worthy of attention. Popularly speaking, they are superstitious "foreign brands" and believe that the "foreign moon is more than China's circle", which is closely related to the current situation of the Chinese market.

"We have been saying," cultivating local brands in China ".

Now many domestic product quality has not lost to similar products abroad, but the brand is still losing.

Chen Ran believes that once the domestic brand has not been established, it will directly lead to the popularity of foreign brands.

In the past few years, some domestic enterprises have been asking for low prices, no demand for quality, Jerry building, or even counterfeiting and selling. In the long run, consumers will naturally rely on foreign brands.

Apart from the fact that tourists feel that the prices of goods purchased in regular stores abroad are more reliable and more reliable, Chinese unique family values and family awareness magnifies the enthusiasm of Chinese tourists for overseas shopping.

Li Xinjian, director of the Department of tourism management of Beijing International Studies University, believes that despite the rapid development of outbound tourism in recent years, nearly 50 million of the number of outbound travelers has been released last year. However, compared to the 1 billion 300 million population, this is still a minority.

Because Chinese families have strong sense of family, many people cherish the opportunity to go abroad. They hope to visit many countries with rare opportunities, and to bring gifts to friends and relatives or even to buy them.

At present, a large proportion of Chinese tourists who travel abroad are high income groups. These people have relatively strong spending power, so the money for shopping is naturally more.

Especially for the first time to leave the country, most of them are traveling through horse lanterns and intensive shopping.

"In 2001, I went to France for the first time. My family gave me a shopping list, and I went home with a group of friends.

Can foreign consumption stay in China?

Cultivate independent brands, improve commodity quality and establish consumer confidence.

According to statistics, outbound tourists spend more than per capita consumption in the US, Europe and Japan.

According to the global tax refund company

Faced with the fact that tens of millions of tourists purchase overseas every year, the official of the Ministry of Commerce said that rather than allowing them to spend their money abroad, it is better to stay at home.

He suggested: "we should consider lowering the relevant tax rates of cosmetics, high-end watches and other commodities appropriately, promoting the import of high-grade commodities with domestic demand, pforming part of overseas consumption into domestic purchases, and expanding the sales revenue of the domestic market."

The head of a high-end department store in Beijing said that after the outbreak of the international financial crisis, a wide range of discount overseas luxury brands attracted many consumers to sweep goods abroad.

She estimates that if the price of luxury goods is roughly the same as at home and abroad, the business will double.

Another international list agent said that at present, 60% of the luxury consumption in mainland China has been lost to Europe, America, Japan and Korea, and Hongkong, China. If the state can reduce or exemption from consumption tax, the sales in mainland China will increase by about 35%.

Of course, the high tax rate is only one aspect of the consumption outflow.

In order to reduce the price difference between domestic and foreign brands and promote domestic consumption, we also need to improve the whole business environment.

For example, we should further open up the market, introduce competition, break monopoly, and guide the reduction of international brand names.

At the same time, we should vigorously cultivate our own brand, enhance the quality of products and establish consumer confidence.

For example, in the past few years, domestic consumers used to have a pair of Nike shoes and a Adidas sportswear.