Tariff Cuts Say That Luxury Goods Are Rising And High-End Brands Are Up 5%-20%

Entering the July, high-end cosmetics ushered in a new round of price increases.

Gold drill table rose by 30%

These two days are big.

In addition to cosmetics, luxury brands also reproduce "boom".

Since July, Cartire has adjusted some commodity prices. According to Cartire sales staff, the increase involved more than 300 products, with an average gain of 9%, of which gold drilling table rose the highest, reaching 30%.

"The classic LOVE series platinum bracelet was originally priced at 44900 yuan, up 53880 yuan after the price rise, up 20%."

Sales staff said that the higher prices were all classic ones, and the new prices listed at the end of the year were basically unchanged.

Coupled with the increase in March, Cartire rose nearly 20% in half a year, and it is rare to raise prices two times in only 3 months in a year.

International big cards are busy this year.

In fact, the actions of Estee Lauder and Cartire are not fast.

At the beginning of this year, Chanel aimed at the classic and 2.55 series, and the price rose again by 20%. The original 2.55 price of the smallest is still 27 thousand yuan. After the price rises, it reaches 34 thousand yuan directly, which is the cheapest in the 2.55 series.

LV, Luo Yiwei and other prices were adjusted at the beginning of the year. The average value of LV's goods rose by 600-1200 yuan; Luo Yi Wei's bags, belts and glasses rose from 500 yuan to -1500 yuan; Burberry's bags also rose 8%.

Consumers or switching to Hongkong Market

Estee Lauder's official explanation is the increase in the cost of raw materials, as well as the increase in R & D investment, labor costs and logistics costs.

In this regard, consumers said that high-end brand skin care cosmetics brand products are mostly concentrated in the 500 yuan -1000 yuan, even if the increase of about 10% is also 100 yuan, little impact.

"And shopping malls generally have promotional activities now, sending points or sending small samples, and the feeling of rising prices is not obvious."

The price adjustment of luxury brand bags, watches and jewelry has great influence.

"I bought this bracelet a year and a half ago, and now it has gone up thousands of dollars. I didn't expect it to rise so quickly."

Consumer Wang said, but when it comes to whether to buy again, she said that the price was raised a bit high, "we plan to buy it when we go to Hongkong at the end of the year".

However, "we will not abandon the purchase of these brands because of rising prices".

Price increases to protect brand luxury image

"Keeping up the brand's high-end position on the basis of regular price increases is a routine protection strategy for luxury brands."

Cai Sujian, chief executive officer of China Luxury Association, said: "luxury goods themselves have a huge premium space, and the increase in costs does not have absolute impact on them."

Cai Sujian said that compared with the mainstream consumer of luxury goods consumption in China, the price of ordinary luxury goods in China's luxury market is low, and some of the prices are comparable to that of fashionable daily necessities.

Those low priced luxury goods will soon lose their aura of luxury and become mass consumer goods in the face of rapidly increasing China's economic strength and national consumption capacity.

"In the near future, the sound of luxury tariffs will soon be lowered, so that foreign brands must raise their prices.

In this way, even if the state does not impose tariffs, the domestic price of luxury goods will still be higher than the current market price, because luxury brands must maintain their own high-end character at the annual price increase, so as to achieve the simultaneous demand of market synchronization and brand respecting.

"Luxury brands abroad attach great importance to the growth rate of China's economy and national consumption power.

Therefore, no matter whether the country is adjusting the tariff, the brand will surely report the product to the high price of the luxury brand, and firmly occupy the stable sales market.

Cai Sujian said that this is the main reason for the rise of foreign brand prices.

Half a month ago, the Ministry of Commerce issued the news that the luxury tariff will soon be lowered.

Just as people estimate that the LV and Gucci in the shopping mall will be greatly reduced, there is a signal of "no drop" from the Ministry of finance.

The focus of the debate among the two ministries is how to define luxury goods and reduce whether tariffs will affect revenue.

Two ministries disagree, luxury tariffs cut or become extravagant hopes.

"Tongue wars" luxury tariff

It is understood that at present, the import of high-end consumer goods in the mainland of China usually requires three import duties, consumption tax and value-added tax.

On June 15th, Yao Jian, spokesman of the Ministry of Commerce, said at a news conference that the import tariff would be further lowered, including the tariff of medium and high grade goods, and pointed out that lowering tariffs is a general trend. The ministries and commissions of China have reached a consensus on the issue of lowering the import tariff of luxury goods, and reducing the import tariff of luxury goods is only a matter of time.

But this consensus does not seem to have been achieved.

In June 30th, the China finance and economics newspaper, headed by the Ministry of finance, issued a clear tax on luxury import and consumption, and quoted Liu Shangxi, deputy director of the Financial Science Research Institute of the Ministry of finance, as saying that the Levy of consumption tax on imported luxury goods, that is, levying taxes on the rich, is undoubtedly conducive to social equity, not only should not be reduced, but also improved.

The definition of "luxury" remains controversial.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, emphasized in the media that the concept of "high-end consumer goods" has always been used by the Ministry of Commerce, which is not exactly the same as "luxury" in various reports.

Zhao Ping pointed out that "we believe that the tax cuts in the import sector can be targeted at those consumer goods that originally belonged to luxury goods, but have now changed into people's necessities."

For example, some imported cosmetics and imported milk powder.

Tax cuts are unlikely to cut prices?

The industry has predicted that if the import tariff is fixed down, the amplitude will reach 15%, and cosmetics, tobacco and alcohol will be the first to cut prices.

After calculating, the reporter found that if the import tariff of 2%~15% was cut down, the price of terminal market would decrease to 12%.

Liu Shangxi, deputy director of the Financial Science Research Institute of the Ministry of finance, believes that "as long as the domestic pursuit of foreign luxury goods is not diminished, tax cuts may not necessarily reduce prices, but the profit margins of luxury goods operators have thus expanded."

According to statistics, in 2010, three kinds of taxes (including customs duties, value-added tax and consumption tax) were 1 trillion and 251 billion 847 million yuan in the import link. These taxes were all central taxes. They were the main sources of expenditure at the central level. In 2010, the expenditure at the central level was 1 trillion and 598 billion 973 million yuan.

According to the data analysis, the Ministry of finance has proposed that cancellation or downregulation will have a significant impact on fiscal revenue.

Expert opinion: tariff reduction is conducive to enhancing market competitiveness.

Zhou Ting, deputy director of the luxury research center of China University of foreign trade, said that lowering the import tariff of luxury goods will help enhance the competitiveness of domestic luxury goods market and prevent consumption outflow.

We should accumulate experience in the process of adjustment and gradually reduce the price gap.

Zhou Ting said he did not approve of the "taxation of the rich, which is undoubtedly conducive to social equity, not only should not be reduced, but should be enhanced".

Domestic consumption of luxury goods is not all rich people. Many white-collar workers or special workers in the working environment are still important consumers of luxury goods. Is it fair for them?

Others think that lowering tariffs will probably reduce revenue, but tariffs are not the main source of revenue. Lowering tariffs may increase domestic consumption of luxury goods and increase revenue. I think we should increase our domestic production level to achieve the goal of growth.

As to how much the tariff can reduce the price of the commodity, Zhou Ting believes that the price of luxury goods is far higher than that in foreign countries, and it is not only a barrier of import tariffs, but many links will increase the cost of shopping.

Tariffs have been reduced, but raw materials and labor costs have been rising, so the price of terminal products will still not be clear.