Luxury Tax Reduction

The "duty-free shop" is crowded with the subway. Cosmetics are swept away.

If you do not quite understand what luxury tax cuts will bring, you can take the "tax exemption" policy as a reference.

This policy has been implemented for two months, and the first day is a "free tax". It is said that 8 days after the opening of the duty-free shop, the traffic volume has exceeded 140 thousand passengers, while the area for customers in the shop is only more than 1000 square meters.

Miss Chen, a member of the public, had recently returned from her trip. She did not buy anything in the duty-free shop because she was robbed of it.

The price of toiletries in duty-free shops is equivalent to 4 to 40 percent off of the domestic counters. So I took the "mission" to do so, and many friends knew that they were "exempt from tax" and asked me to bring cosmetics, so I made a list of them.

The duty-free shops usually open at 10 a.m., and at 10 o'clock that morning, I arrived at the door and waited for a little while.

As a result, when I went in, I found that the main brands of cosmetic counters were basically empty, leaving only some eyeliner and mascara. As a result, the list in my hands is useless. I can only pick up what I can buy and call my friends on the phone.

At that time, most of the people were crowding in the cosmetics area to grab things. It was really very crowded and crowded with the subway. But there are not many people selling clothes, bags and watches next to them, because these products are less than 5000 yuan, and it is easy to exceed the limit of 5000 yuan.

Less than an hour, until 11 noon, all cosmetics were robbed. I also grabbed more than 3000 yuan of cosmetics.

"Tax exemption" reflects domestic consumption weakness.

Netizens "desert daughter-in-law": on the first day of tax exemption, 7000 people sweep goods is a mirror of domestic demand. This mirror reflects the frustration and disappointment of the public on some domestic consumer markets, and shows that the high tax burden of terminal price will clamp down on the consumption intention and encroach on it.

Are billions of dollars in consumption going overseas? Are tax cuts only cheap for rich people?

The "tax-free" shopping force is actually a small miniature.

According to the data released by the World Luxury Association in June, by 2012, China will spend more than 14 billion 600 million dollars on luxury goods, thus surpassing Japan's position in the world's luxury consumption. At the same time, the report added that Chinese consumption abroad is 4 times as large as that in the domestic market, and consumption is seriously shifting. According to statistics from the Ministry of Commerce, 20 kinds of high-end consumer goods, such as watches, bags, clothing, liquor and electronics, are five, 20 higher than that in the United States, 72% higher than that in France. Last year, 56% of Chinese luxury goods were consumed overseas, and the high price difference between China and foreign countries was the main reason for the extravagance of luxury consumption in China.

How about overseas shopping and domestic consumption? According to the Statistics Bureau, the total retail sales of consumer goods fell 1.6 percentage points year-on-year in the first five months. At the same time, CPI grew by 5.5% in May, a 34 month high and high inflation expectations. Prices are rising and consumption is slow. The Ministry of Commerce's tariff reduction measures also want to keep purchasing power at home.

What is the interest of the middle and low income groups? Luxury goods tax cuts will only be cheaper for rich people?

Can you pull down the price of the domestic brands?

Zhao Qingming, a senior research fellow at China Construction Bank, said he had appealed to reduce the import tariff of luxury goods for many years, "not only to make people buy less expensive luxuries in China, but also to reduce the price of domestic brands through this price adjustment." He explained that because of the high price of luxury goods in China, it also made the general brand of the country "rise to a higher level", which could sell to the high price of the international first-line brand.

Consumption is shifting, and domestic market is catching up?

What is "luxury"? Although there is no precise definition, the object of the Ministry of Commerce's "middle and top grade products" should be beyond the "luxury" category.

The same is true. "Consumption outward" is not all luxury.

For example, last year's milk shortage in Hong Kong and Macao, many people's "outward consumption" is also related to quality and trust. Buying luxury goods is also the case. Fear of buying fake goods or quality is also the reason why many people go shopping at home.

Wang Yong is optimistic about this: the top brands of international brands start in China, which could not be imagined five years ago. But now there are many, and there are even customized products for domestic consumers. I think if the tariff drops, the domestic sales will increase. Foreign luxury goods may increase investment in the domestic market, such as increasing chain stores and increasing supply, so the proportion of buying genuine goods will naturally increase, and it will be like snowballs.

The liberalization of tariffs may have some impact and impact on domestic brands, but in the long run, only enough competition can achieve the same quality of consumer goods at home and abroad. There is a view that maintaining high tariffs can protect domestic brands, which is a great mistake, though I had held this view before. But looking back at the history of Chinese brand development, you will find that the more things you protect, the less you have a way out. China's automobile wants to protect at the beginning. Is there a way out? It is not until the market is opened that we get better. Without industry competition and without open market, there is no hope of forming a brand.