The Tariff Reduction Said That The Price Rise Was &Nbsp, And The High-End Brands Rose 5%-20%

In July, high-end cosmetics ushered in a new round of price increases, luxury brands also continued to rise at the beginning of the year.

The industry said that in order to maintain the high-end positioning of luxury goods, price adjustment is an inevitable behavior.

And some analysts said that the news of the recent tariff adjustment is the reason behind the big concentration of price adjustment.

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, Estee Lauder and Cartire did not act very fast, and the major luxury brands began to adjust prices since the beginning of the year.

Foreign brands are the protagonists of this round of rising prices.

A month ago, almost all of L'OREAL's Lancome products rose in price. The increase was in the range of 30-100 yuan, and the price increase was also at 5%-8%, and the highest did not exceed 10%.

Another brand Biotherm also adjusted its men's skin care range to 30-40 yuan, while the Paris L'OREAL L'OREAL series has also been raised by some $20.

In addition, cosmetics brands such as Chanel will also have a price adjustment of about 10% in the near future, and the Japanese FANCL will also raise some products by 10 yuan.

At the beginning of this year,

Consumers or switching to Hongkong Market

The official explanation for Estee Lauder is the company.

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."

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

As for lowering tariffs, the price of commodity terminals will be reduced. Zhou Ting believes that the price of luxury goods is much higher than that of foreign countries, not only with a barrier of import tariffs, but also on many links.

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