Analysis Shows That Tax Reduction Is Difficult To Shake Up The High Price Of Luxury Goods &Nbsp; Pricing Power Is The Main Reason.

Tax cuts are hard to shake up the high price of luxury goods.

Tax exempt business practitioners said that pricing power is the most critical factor, and the duty free shops to avoid intermediate links is also a major advantage.

What are the prices of high-end goods and luxury goods? How much is the cost of tax? What are the key factors of high prices? The import price of some cosmetics plus the import link tax has a huge gap with the retail price of the terminal.

It is a misconception that the duty-free shops and the tax shops' price differentials can be regarded as the amount of tax burden.

At present, the focus of discussion on luxury price is focused on import tax and some "Deviation".

Cosmetics prices fall sharply

Beijing's grand hope road, the world's first floor, gathered many high-end imports.

According to the people's Daily quoted trade statistics, the import volume of cosmetics in China was 41 thousand and 700 tons in 2010, and the import volume was 997 million US dollars, and the import price per kilogram was about 21.2 dollars.

Among them, the import price of Lancome Day Cream (France) is about 50 euros per kilogram (about 463.5 yuan).

From this calculation, the import price of 50g day cream is RMB 23 yuan.

If the maximum tariff rate of MFN cosmetics shown in the customs commodity information is calculated, that is, the import tariff is 10%, the value-added tax rate is 17% and the consumption tax rate is 30%, the import link tax of a standard Lancome day cream is 19.3 yuan.

This is not worth mentioning compared with the terminal price of Lancome day cream at hundreds of dollars.

900g import duty of milk powder is 2 yuan.

Milk powder is also similar.

According to the information obtained by customs from the customs, 1668 tons of dairy products were imported from Shenzhen port in 2009, worth 1 million 836 thousand US dollars, or 1.1 US dollars per kilogram (about 7.15 yuan) in April.

According to the customs commodity tax rate, the import tariff of milk powder is 10%, and the value added tax is 17% (milk powder does not include import consumption tax).

The import duty of a can of standard 900g milk powder is only 2 yuan.

In the Carrefour supermarket, the price of imported milk powder from standard cans ranges from 150 yuan to 380 yuan RMB, of which Nestle's low priced milk powder is 156 yuan and Wyeth's milk powder is 378 yuan.

Although cosmetics and milk powder are different in price due to their different brands and components, the general calculation method is not completely accurate, but it shows from one point that the import link tax is very small in the price of imported consumer goods.

Therefore, experts point out that the reduction or even cancellation of import link tax alone can not bring about a significant reduction in the price of high-end consumer goods in China.

Since the import link tax has little effect on pushing up the price, how does the high price of domestic high-end imports come into being?

Focusing on import tax some "Deviation"

The World Luxury Association's luxury sales price formula shows: luxury price = raw material 5%+ processing cost 6%+ luxury brand added value (usually retained profit) 55%+ advertising and public relations activity cost 5%+ flagship store annual cost 3%+ manpower cost 6%+ government tariff, consumption tax, part value-added tax and other comprehensive import tax rate of 20%.

In fact, the proportion of import link tax is far less than 20%.

The Sanya duty free group of the China exemption group has a tax rate when it is priced.

The group told reporters that when international famous brands run their own brands around the world, they will take into account the market sales of tax-free businesses and tax businesses.

"Now everyone is focusing on the import tax. Actually, taxes are very small in terms of the pricing of medium and high grade imported goods, and they are not the main factors that push up commodity prices."

An industry engaged in tax exemption business believes that the focus of discussion on luxury prices is "running away".

Free shops avoid intermediate links

"We negotiated the purchase price of commodities with foreign producers through negotiations, but ultimately the prices of consumers were determined by the original producers. No matter whether the duty free shops or large department stores such as Xinguang heaven and earth have no right to price, the pricing power is in the hands of foreign luxury enterprises, which is the most critical factor in the high price of luxury goods."

The industry insiders say that there are few luxury enterprises in China and can not compete with similar industries abroad.

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In addition, China's unreasonable circulation channel is also an important factor causing the price gap.

Zhao Ping, deputy director of the Consumer Economics Research Institute of the Ministry of Commerce, said that the current distribution system in China is mainly that the people in Hongkong get the general agent right, and then distribute in the mainland, resulting in the high price of terminal sales.

Therefore, we should encourage the agency of imported consumer goods with fewer links to reestablish the circulation channel.

Compared with domestic, foreign circulation links are few and efficient.

The group also told reporters that an important factor for duty-free shops to ensure the competitiveness of retail prices is to eliminate any intermediate links and directly purchase the country of origin.

Case study

Often go abroad to start buying on the way

In Miss Lee's drawer, she often filled with various kinds of imported cosmetics. She occasionally sold these cosmetics to female colleagues at a very low price.

"My friend's sideline is to buy cosmetics."

According to Miss Li, her friends often travel on business and travel between China and Korea. They buy cosmetics in duty-free shops in Korea and China.

Miss Li said that most of her imported cosmetics were bought on behalf of this friend. When purchasing, friends would charge 5% of the purchase fee, even if the purchase of cosmetics was cheaper than domestic cheap at least half off.

"The price of the Estee Lauder facial cleanser he bought for me is 280 yuan in the domestic market, and only 20 US dollars abroad, and only more than 120 yuan is converted into RMB."

Miss Lee once sold a bottle of Avene spray to a colleague at a price of 75 yuan, and the domestic market price of the spray was 150 yuan.

This is also the friend's help buying from France.

He has relatives in France, he collects purchasing needs in the country, then orders an order to his relatives there, and then mails it, sometimes he sends some cosmetics from France over there.

Miss Li said that in order to circumvent the customs regulations, these cosmetics are often purchased or posted in batches.

Airport duty-free shops when leaving China

"Now every time I leave the country, I will arrive at the airport early, so that I can visit the duty-free shops."

Miss Dong said that after the customs, the duty free shop was more exciting, and the goods there were cheaper than 20%-30%.

In 2008, Miss Tung prepared to travel to Thailand, but forgot to bring sunscreen cream. So she bought a temporary emergency before boarding. It was her first experience in shopping at a duty-free shop.

"At that time, I was not very sensitive to the price. Later, I discovered in Thailand that this sunscreen is super easy to use and wants to buy.

After returning home, I paid special attention to the brand in the shopping mall, did you have this product?

It turns out that the price can only be bought in a shopping mall counter, and I have a large cylinder of 125 milliliters.

Two years ago, Miss Tung's brother went to the United States to study. She began to ask her brother to bring cosmetics from the United States.

"Cosmetic prices are related to origin, for example, Estee Lauder is an American brand and is the cheapest in American stores.

I've had a deficit before, I brought Lancome from the United States, I forgot that Lancome was a French brand, and later I found it was more expensive than Taobao. "

Miss Tung said.

Noun interpretation

Import link tax

The import link tax includes customs duties imposed by the import link and value-added tax and consumption tax collected on behalf of the customs.

Import tariff is a tariff imposed by a country's customs on imported goods and articles.

collection

Value added tax is a turnover tax created by the new value created in the links of production, circulation and labor service.

The import value added tax refers to the value-added tax collected in the import links.

Import value-added tax formula: import value-added tax = (duty paid price + tariff) / (1- consumption tax rate) * value-added tax.

The consumption tax is a turnover tax collected from the turnover amount of consumer goods or consumer behavior. The consumption tax of import links is collected by the customs.

According to the relevant regulations, our country now only consumes taxes on goods such as tobacco and alcohol, which are not conducive to good health, luxury goods and high energy consuming high-end consumer goods.