Lancome Prices Soared 30 Times The Truth

2010 China

An important consideration in the debate over whether the tax burden of the import and export of high-grade commodities will drop or not is to reduce prices through the reduction of import link tax, so as to solve the problem of excessive price difference between the same brand inside and outside the country.

Then, the main reason for the spread of domestic and foreign spreads is only the tax burden. Trade experts point out that cosmetics vary greatly in terms of specifications and components, and the actual price varies greatly. The comparison of import volume and value can not accurately reflect the actual purchase price of each product.

But this data reflects at least one aspect of the fact that foreign purchasing prices are relatively low.

According to the import price of Lancome daily cream of 50 euros per kilogram, the import price of 50 grams of Japanese cream is only 23 yuan, even if the tax burden reaches 50%, the tax burden is less than 12 yuan, which is very small compared with the retail price of 600 yuan.

50 grams Day Cream import price of 23 yuan to sell more than 600

Beijing grand road, Xinguang heaven and earth, Lancome intelligent happy day cream (50 ml), 695 yuan;

It is an indisputable fact that the price difference between domestic and imported cosmetics is large.

Can we reduce the import tax rate and reduce the price?

A manager of a company engaged in cosmetics import business in Guangdong told reporters: "how much tax should be paid for the import of cosmetics? Besides the tax items and tax rates, the most important thing is the customs declaration price."

A trade statistics in the hands of reporters showed that in 2010, the import volume of cosmetics in China was 47 thousand and 100 tons and the import volume was 997 million US dollars. According to this volume and value, the average import price per kilogram was about 21.2 dollars.

Among them, Lancome day cream, the import price is about 50 euros per kilogram, L'OREAL hair dye (origin Spain), 7.53 dollars per kilogram......

Trade experts point out that cosmetics vary greatly in terms of specifications and composition, and the actual price varies widely. The comparison of import volume and value can not accurately reflect the actual purchase price of each product.

But this data reflects at least one aspect of the fact that foreign purchasing prices are relatively low.

According to the import price of Lancome daily cream of 50 euros per kilogram, the import price of 50 grams of Japanese cream is only 23 yuan, even if the tax burden reaches 50%, the tax burden is less than 12 yuan, which is very small compared with the retail price of 600 yuan.

The expert said that since the import price is the main basis for customs duties, if the price does not share much in the market selling price, even if the tax reduction is made, it is difficult to achieve the effect of a substantial reduction.

Internal and external spreads are not related to import duties.

Experts say that since the import price is the main basis for customs duties (besides pportation fees, insurance premiums, etc.), if the price does not account for a large proportion in the market selling price, even if the tax reduction is made, it is difficult to achieve the effect of a substantial reduction.

Analysts point out that in addition to import taxes, the retail price of foreign cosmetics is also mainly influenced by many factors such as market positioning, marketing strategy, domestic logistics cost, distribution cost, exchange rate and other factors.

"Sales of imported cosmetics in the Chinese market is a high price strategy, and a substantial reduction is unlikely," said the sales manager of a new cosmetics brand in Beijing.

Secondly, the cost of distributing imported cosmetics remains high.

In most cities, most of the foreign cosmetics are located in the gold position of the shopping mall. Besides the expensive rent, the retailers' charging fees, shelves fees and festival fees to the suppliers have become "hidden rules" and will eventually be passed on to consumers.

Is there a consumer misconception about the value of money spent on cosmetics?

Experts point out that there are misunderstandings in the consumer of cosmetics in China: on the one hand, Chinese consumers favor foreign brands, making the cosmetics market almost monopolized by foreign brands; on the other hand, most consumers only look at the short term efficacy of cosmetics and do not pay attention to the inside and outside care.