Luxury Industry Experts: "Not Rich Before Luxury", Should It?

In the international research institutions, China has been repeatedly pushed forward as the "world's largest luxury power".

The World Luxury Association June report shows that China will surpass Japan next year to become the world's largest luxury trade and consumption center, and the total annual consumption of luxury goods is expected to reach US $14 billion 600 million.

While the world's luxury sector is in the doldrums, China can maintain its annual sales of two figures.

This makes the world's luxury giants see China as a "savior".

In May and June this year, Prada (Prada), Coach (Kou Chi) and Samsonite (Samsonite) were listed in Hongkong.

"Honey of a, arsenic of B."

In China, the rapid development of luxury consumption is considered by some people to be a "flood".

What is luxury? It is defined as a kind of consumer goods beyond the needs of people's survival and development, which is unique, scarce and rare. It is also called non life necessities.

For this reason, China has been implementing a high tax policy on luxury consumption.

For those who object to encouraging luxury consumption, China ranks fourth in the world, but after spending 100 of the world's consumer spending, the wealth is very concentrated and the gap between the rich and the poor is bigger.

Under such a national condition, the mainstream of consumption should be frugality and moderation rather than extravagance and waste.

There are also different points of view: luxury goods.

As early as 2006, the report of Ernst & young, a well-known accounting firm, showed that China has a population of 13.5%, that is, 175 million people have the ability to buy various brands, of which about 10 million to 13 million are active luxury buyers.

Zhou Ting, deputy director of the luxury research center of the University of foreign trade and economics, believes that luxury represents a market standard. This high-end consumption experience enables Chinese people to integrate with the world more closely, whether they are quality of life or fashion taste.

In June 9th, the China Council for the promotion of commodities and the World Luxury Association jointly established the China luxury Trade Commission. While introducing the world's top luxury resources, China's local luxury products will be excavated, such as tea, jade, and so on.

Should China's luxury consumption be encouraged or extravagant and wasteful?

Distinguished guest

Yuan Yue zero research consultant group chairman

Zhou Ting, deputy director of luxury Research Center, University of foreign trade and Economics

He Gang, a well-known media and luxury industry observer.

Ren Jin, Deputy Secretary General of China Jewelry & Jade Jewelry Industry Association

Chairman of Xia Hua Yi Wen enterprise group

Should we levy heavy taxes on luxury consumption?

The import tariffs of luxury goods in China are generally 15% to 25%, while others are as high as 50%, such as cosmetics and liquor.

According to the Ministry of Commerce survey, 20 kinds of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, account for 45% of the top 20 consumer goods in the mainland market, 51% higher than that in the United States, and 72% higher than those in Hongkong.

The main reason for the spread is import tariffs.

Ministry of Commerce spokesman Yao Jian said in June 15th that China would further lower import tariffs, including some of the tariffs on medium and high grade commodities.

Subsequently, relevant officials of the Ministry of Finance said that they had not heard of adjustment.

Not to mention

Yuan Yue: Yes.

First of all, luxury goods are already an open market in the world. Once the heavy tax policy is implemented, the Chinese will go abroad to buy, resulting in an outflow of purchasing power.

Secondly, today's market is multi-storey, and we need to produce products of different levels for different levels of people.

The added value of luxury goods is very high. China should accumulate wealth with high added value, instead of making hard-earned money by low-end industries.

Third, tax is to receive the tax from the enterprise, and then distribute it in some way.

Today, it is difficult for the government to encourage a luxury enterprise to get tax revenue, but it is very easy to destroy several luxury businesses with taxation.

In the fish pond of China's economy, we can't only keep those low-end fish forever.

What can we do to help the ordinary people improve their social treatment? Therefore, we should not only impose heavy taxes on luxury consumption, but also encourage more effective policies.

Ren Jin: in the big wave of luxury industry or industrial upgrading, China must take care of tax if it wants to have a place.

For high-end industries, we must encourage, rather than limit, use heavy taxes to suppress it.

Then we will popularize it and make today's luxury goods the mass consumer goods of tomorrow.

The sign

He Gang: luxury is not everyone's daily necessities, mainly for high-income people.

They are not very sensitive to price. They will not barge on such goose, they should not pull it out.

Moreover, an important function of taxation is to regulate income distribution, impose heavy taxes on luxury goods, and help the financial sector to allocate more money to the low-income people in the community for proper subsidy or pfer.

When it comes to the problem of heavy taxation shifting consumption overseas, the total sales volume of luxury goods in China in 2009 is about 160 billion yuan, of which half of them are consumed overseas, but there are still nearly 80 billion yuan of consumption in the country with heavy taxes.

Heavy taxes will destroy luxury enterprises? We should not underestimate the creativity and viability of Chinese entrepreneurs.

The result of the support is the "can't afford to fight", which, in turn, enables them to compete in the most brutal market.

Don't worry too much if you can't walk out.

In general, the proportion of luxury goods in the market economy is very small, and even can be ignored.

Tax policy should take care of the overall situation, not for a small number of industries and enterprises to have sufficient room for development.

Should we encourage luxury consumption?

In April 20th, Hainan "Islands tax-free" policy began trial, luxury consumption blowout.

Is this the signal from the state to encourage luxury consumption?

The encouragement

Zhou Ting: luxury goods and freedom are the two gifts that mankind will always pursue. As the Saviour of the world market, China's luxury market is duty bound to encourage consumption.

The state has implemented the "Islands tax exemption" policy in Hainan, which is a signal issued by the state. We should gradually reduce the import tariff of luxury goods and adjust the consumption tax, so that the high-end retail industry and other retail businesses can be orderly integrated to achieve the healthy development of the Chinese market.

Countries see the positive guiding role of luxury goods. Why should we object to their consumption?

To encourage luxury consumption in China is not to say that we must consume foreign brands, but also to encourage the development of luxury brands in China.

Luxury is indeed a niche product, but we can not ignore its leading role in the market.

Yuan Yue: we should encourage the luxury market to develop according to demand, instead of encouraging the excessive distortion of market demand by the government's hand.

In order to truly master the high added value in manufacturing in China, people first need to have a higher consumption taste.

People's exposure and experience of luxury goods will increase their consumption standards and patterns.

After the general public's consumption standards have been raised, the economy has been in scale and the unit cost has dropped.

Luxury is actually the optimization and beautification of our consumption standard. We should not simply demonize luxury goods.

Luxury is like an engine.

Although the general public does not consume, high-end consumption promotes mid-range consumption, while middle class drives low prices, and high-end consumption is the driving force of demand.

Xia Hua: many people are strongly convinced that at present, China's own luxury brands are really not.

But I think this can really happen, and this future must have.

If China's luxury goods fail to come out today, there will be no chance.

The financial crisis is really a very good opportunity for Chinese brands, and raw materials all over the world are open to China.

The market is the public vote with money, which is fair.

As long as you do well, consumers perceive and have it, he will continue to inherit the brand in the future.

China's aircraft and yachts also need some influential VIP to spend first, and their brand experience can be disseminated. This is the most practical thing we should do.

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Should not encourage

He Gang: as far as China's situation is concerned, we are afraid we can not encourage people to spend more on luxury goods.

We can see that in 2009, China's GDP ranked third in the world and GDP per capita ranked 100.

There are still many poor people in developing countries in such a pformation, but they are making the largest market share for foreign luxury goods.

This is not a glory, but a shame.

In 2009, China's total consumption of luxury goods was about 160 billion yuan, of which domestic consumption was about 80 billion yuan.

In the same year, China's total retail sales amounted to over 7 trillion yuan.

District 80 billion is negligible in 7 trillion of social consumption.

If our consumption policy encourages this area 80 billion, and is a luxury that a few people enjoy, and forget to encourage more basic consumption growth, such as health care and education, that policy is putting the cart before the horse.

For the development of an industry, we may have three attitudes: first, let it develop normally.

Second, encourage development.

Third, limit its development.

In China, the most tolerable thing for luxury goods is to let it develop normally and not to be encouraged.

Top 5 leading brands of luxury goods

No.1 Louis Weedon (LV)

Brand value: $21 billion 602 million

Main product: crocodile leather handbag (price 207 thousand yuan)

No.2 GUCCI (Gucci)

Brand value: $8 billion 254 million

Main product: Python leather bag (priced at 59 thousand yuan)

No.3 Chanel (Chanel)

Brand value: $6 billion 355 million

Main product: Chanel No. 5 perfume (1295 yuan)

No.4 Rolex (Rolex)

Brand value: $4 billion 956 million

Main product: Rolex gold watch (price about 200000 yuan)

No.5 Hermes (Herm s)

Brand value: $4 billion 575 million

Main products: mink fur coats (priced at 320 thousand yuan)