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    Let The Surplus And Deficit Balance &Nbsp; &Nbsp; When Will The Luxury Price Go On The Balance Beam?

    2011/4/22 9:36:00 68

    Surplus Deficit Luxury Goods

    A pair of UGG Snow boots In the United States, it buys more than 100 US dollars (about 800 yuan), while the Chinese stores even bid about 2000. The price difference between the Chinese and American brands is even more than doubled. Even if it's for purchasing, the price is cheaper than 1/3. The same brand is about more than 4000 yuan in France, and the 6500 price tag in China World Trade Center, Beijing.


    At present, many consumers are concerned about the price gap between luxury goods at home and abroad, so that Chen Deming, Minister of Commerce, has to respond to the "China Development Summit Forum 2011".


    Chen Deming said that China's imports of high-end consumer goods ranked second in the world, second only to Japan. "It is possible that in a few years, we will surpass Japan as the first place."


    For the reasons for the high price of some luxury goods, he pointed out that there are three main reasons: first, China has a certain price. tariff However, some overseas markets and special administrative regions have no customs duties. For example, in Hongkong, a zero tariff policy was implemented. Many people in the mainland found some goods in Hongkong cheaper than those in the mainland. Secondly, China's high-end consumer goods sales system and distribution system has just been established, with many levels and large costs, resulting in the high transaction cost of high-end consumer goods entering China. Third, there are differences in regional promotion methods. Especially after the financial crisis, Western products in their countries in order to promote consumption, discount and price reduction, and the Chinese market has been stable.


      Give Way Luxury goods Price regression


    This sentence may make many domestic brands unpleasant to hear - let us catch up with the fashion culture of luxury for a hundred years at such a fast pace of development. As a luxury and high fashion, its birth and development are all the high-end market demand at that time. And the consumption of these products in the domestic market gradually matured, which means that the soil of luxury culture has been benefited in the development of China. In such a soil, it will be bad for Chinese brands.


    Chen Deming pointed out that in order to make the import and price of consumer goods return to a more correct level, it is the first element to cultivate high-grade and excellent luxury brands. Many European and American brand fabrics are exported from China, and even some of the processing links have been completed in China. China is already the world's largest exporter, but none of the world's 100 most famous brands is China.


    In the future, Chen Deming said that in order to bring the import and price of consumer goods back to normal level, China will carry out five aspects of work: first, cultivate the main body of market competition and cultivate China's high-end and excellent consumer goods brands. Second, improve the logistics distribution system and reduce transaction costs. Third, to transform and innovate the retail mode, we should explore the way to sell the products sold abroad to the domestic market as soon as possible. Fourth, create a fair and orderly competitive environment and further strengthen industry management guidance. Fifth, lighten the burden of retail enterprises and give corresponding policy preferences.


    According to the data of the National Tourism Administration, the number of domestic tourists in 2010 was 2 billion 100 million, with a total income of about 1 trillion and 100 billion yuan and an expenditure of 524 yuan. In contrast, China outbound tourism in 2010, 54 million people, tourism costs $48 billion, and the expenditure is about 5800 yuan. Outbound travel expenditure is 11 times the expenditure of domestic tourists, and 2.5 times of the expenditure of 2300 yuan for inbound tourists. The main reason for the high consumption of outbound tourists in China is shopping, which is mainly luxury goods such as luggage, leather goods and jewelry.


    Wang Jianlin, chairman of Dalian Wanda Group, said in this year's "two sessions" proposal that tourists are flocking to buy luxury goods abroad, mainly because China has imposed high taxes on luxury goods in the import sector, leading to huge price differentials at home and abroad.


    Speaking of the most concerned tax reform, Xie Xuren, Minister of finance, also pointed out in the "China Development Summit Forum 2011" that China will push forward the pilot project of value-added tax reform in some producer services this year, and reduce business tax accordingly, and gradually solve the problem of disunity in the tax policy of goods and services from the system. We should improve the consumption tax system and incorporate some products which are prone to environmental pollution, consume resources and some high-grade consumer goods into the scope of consumption tax.


    We hope that the future of luxury goods, like electronics and digital products, will return to the market demand price from its initial high price.


      Balance of surplus and deficit


    In the first two months of this year and the first half of March, China's trade deficit. The trade surplus of this year is expected to account for the gross domestic product, which will be further reduced on the basis of 3.1% last year. The traditional trade concept is that export is a good thing to earn foreign exchange, and deficit is a bad thing. This judgement has long dominated China's trade policy and public opinion.


    In the eyes of a senior foreign trade expert, foreign trade should pursue a long-term basic balance of imports and exports, rather than a long-term trade surplus. First of all, although the trade surplus increased foreign exchange reserves, but from the perspective of resource utility maximization, resources were not fully utilized. Secondly, the continuous high surplus led to the appreciation of the renminbi, which in turn led to an increase in net capital inflows. The increase in net capital inflows further led to the pressure of RMB appreciation. Once again, the huge current account surplus would be transformed into the pressure of massive currency supply, and became an important factor in the rising inflation rate.


    On the contrary, the consequences of trade deficits are not all bad. First, appropriate deficit is conducive to easing short-term trade disputes and contributing to long-term stable growth of trade; second, deficit can reduce the expectation of RMB appreciation and slow down the speed of net capital inflow; third, short-term trade deficit will help to ease the pressure of inflation in China and increase the operating space of China's monetary policy. From the practice of China's economic development, the year with fast economic growth is a deficit or surplus.


    Chen Deming said that in the future, the retail mode will also be transformed and innovating in China. Many international famous brand products are produced in China. Why are they sold domestically after export? This increases both carbon dioxide emissions and logistics costs. It is necessary to explore ways to sell domestic products exported directly to the domestic market. China hopes that countries with big trade deficits with China can relax export control measures. He stressed that China's current trade surplus of 99% is against a small number of exporting countries, which have deficits in ASEAN, Japan, South Korea and Africa and South America.


    Culture is the mainstream direction of a nation, and it will also affect a lot of consumption factors. The popularity of luxury goods stems from the demand for self-image enhancement, and also provides opportunities for Chinese brands. The brand of international front-line brands is permeated in every corner of the streets, of course, there are counterfeit counterfeit products. What inspiration does this bring to domestic brands?


    Building a fair and orderly competitive environment, further strengthening industry management guidance, and strengthening the efforts to crack down on infringement of intellectual property rights and counterfeiting and selling will be a sign of the balance between the surplus and the balance of the future luxury goods.


    China's ceramics and tea are very expensive in the world, but clothing is not out of the country. The industry does not exclude the large number of enterprises that are perennial in the manufacturing power. Besides, the social responsibility of the domestic enterprises who are good at manufacturing counterfeit brand names is very poor. These are the reasons that prompt people to buy genuine products overseas.


    When does the price of luxury goods go on the balance beam? From the environment of national development, we need both domestic and international social responsibilities. From the small environment of the industry development, it is urgent to upgrade the domestic high-end brands.

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