International Top Brands Pour Into China'S &Nbsp; Luxury Gambling Tariff Reduction

While luxury tax is expected to be downgraded in China, international luxury brands have been unable to enter the Chinese market at full speed.

A few days ago, LV flagship store, Hermes China's largest store, the world's top jewelry brand Tiffany&Co.

International luxury brands such as Guangzhou's first store and CHANEL's first store in Southern China have been unveiled in Guangzhou's new luxury shopping landmark. 126 international brands are converging among them, of which more than 70 international brands are for the first time in Guangzhou.

The "big names" have concentrated on the layout of the first tier cities, and have gone deep into the two or three line cities.

In addition, as soon as possible to seize the Chinese market, international brands penetrate through the online shopping market, breaking through the limitations of China's vast territory and shortage of channels.

Expanding in the first tier cities?

LV,

In Guangzhou, the latest luxury shopping center is located in Tai Koo Hui. The reporter saw that the largest LV flagship store in the country with a total area of more than 1000 square meters has a complete range of goods. According to the staff of the store, there is a spectacular scene of queuing up every weekend. Hermes has set up the largest store in Guangzhou in Tai Koo Hui, and it has revealed that it has set a record of its single day sale in China in the 14 year of its opening day.

In addition, CHANEL and Tiffany appeared for the first time in Guangzhou.

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In addition to Guangzhou's Tai Koo Hui, there are many luxury brands expanding in Libai square in the Eastern Business District of the city circle. The 200 square meter new shop which is renovated and rebuilt in Libai square is reopened.

Guangzhou has welcomed many luxury brands this year. In fact, it is only a microcosm of "big international" entering China.

In the first tier cities such as Beijing and Shanghai, international brands have been densely arranged.

According to the "Shanghai International Luxury Brand Development Research Report" released by the Shanghai commercial information center recently, more than 90% of the world's luxury brands have been settled in Shanghai, of which 169 international luxury brands have set up retail outlets in Shanghai.

According to the survey, the international luxury group such as LVMH group, Lifeng group, Gucci group and so on all choose to operate direct investment outlets in Shanghai, and choose Shanghai as the location of China's regional headquarters and the location of investment and operation center.

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"Lower level" Nuggets two or three line cities? Ningbo and Hangzhou gather all the international luxury brands.

In the layout of the first tier cities, the two or three tier cities have also become the "big international" attack point.

According to media reports, Xingguang 68 international famous Plaza in Chongqing includes more than 40 international brands including the world's top ten luxury brands.

French luxury brand LV has 27 stores in 22 cities in China, including Changsha, Xi'an, Qingdao, Xiamen and other two or three tier cities. Ningbo and Hangzhou have gathered almost all the international luxury brands.

According to the Research Report of Bain, a consultancy, at present, there are only 30% of the rich class in China living in cities such as Beijing and Shanghai. More than 70% of them live outside the first tier cities. The two or three line cities are the main market for luxury consumption in the future, and have broad prospects for development.

Roger Farah, President of Ralph Lauren, the top luxury brand in the United States, recently said publicly that consumer demand is being released in many two or three line cities in China, and new markets must be opened up in addition to increasing investment in the first tier cities.

Luxury brand penetration through online shopping? The price is as low as half off.

Because of the vast market in China and the imperfect infrastructure construction of various commercial entities in the various regions, the reporters found that many luxury brands speeded up this year through the Internet platform.

Recently, some websites have launched the luxury e-business platform, the former covering nearly 50 brands such as LV, parentheis, Gucci, Dior, Burberry and so on.

The latter is known as 100% genuine guarantee, free shipping and 7 days risk free return.

Since the beginning of this year, new luxury online shopping centers have sprung up in China, including more than a dozen other products, such as Shang pin, Jiapin, Jingzhao international, western fashion, vip.com, Fifth Avenue, Le cool days and Xiu Xiu net.

Reporters saw that these luxury websites have sold 22% off or less than half off of international brands, attracting many consumers.

It is understood that the reason for the low price of luxury online shopping is mainly to save a variety of channel fees, rental fees of physical stores, etc.

According to Sun Yafei, executive director of Fifth Avenue, nearly 200 of its top brands are directly supplied by European and American brand sellers and suppliers, and in the form of bulk purchases, they take some non seasonal goods abroad for a larger discount and maintain online sales of two to twenty percent off over the years.

Overseas luxury websites are also uncontrollable.

This month, a global boutique online boutique in Italy landed in China to work with FedEx to launch a service to any other part of the world, that is, couriers will wait for their customers to check their products, try on their clothes, and decide whether to stay or return merchandise at the door of Chinese consumers.

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According to the latest data released by Analysys International, in the second quarter of this year, the scale of China's luxury online shopping market reached 3 billion 450 million yuan, an increase of 19%.

Policy trends, luxury products, layered taxes, some products are expected to lower taxes.

Recently, there has been a lot of news about the "consensus reached by many ministries on the delamination of luxury goods tax".

At the world luxury forum held in Beijing earlier this month, officials and experts from ministries of Commerce, Ministry of finance, State Administration of Taxation and other ministries participated in the discussions, and the attitude of experts and officials was relatively consistent.

Accordingly, some analysts interpreted it as "the relevant departments have reached a consensus on this issue."

According to the latest report released by the World Luxury Association in June this year, the total consumption of luxury goods in mainland China has reached 10 billion 700 million US dollars last year, accounting for 1/4 of the global share. Nearly the same period, Chinese luxury goods consumption in the European market totaled nearly 50 billion US dollars, which is 4 times as much as the domestic market. The price gap led to a serious "spillover" of China's luxury consumption. "In 2011,"

Earlier, commerce ministry spokesman Yao Jian proposed "tariff adjustments for medium and high grade consumer goods" to expand domestic consumption.

Ouyang Kun, China's chief representative of the World Luxury Association, believes that "luxury" can be divided into three levels. The definition of luxury goods based on different consumer groups can be a basis for government departments to levy taxes on luxury goods.

According to its introduction, "luxury goods can be divided into three levels: the first category, private aircraft, yachts, luxury cars as the highest level of luxury consumption, defined as a luxury category; the second category, brand watches, jewelry, jewelry as the middle level, defined as B luxury goods; the third category, with high fashion, luggage cosmetics, perfume as the basic level, defined as C luxury goods."

After the division of the hierarchy is clear, different luxury goods tax rates can be formulated at different levels.

According to media reports, in the world luxury forum, the relevant officials of the Ministry of finance did not oppose the hierarchical tax adjustment.

It is reported that the Ministry of Commerce will expand the import strategy of the national expansion of import work conference to be held, and sources told the media that the decision-making level may continue to introduce supporting policies to promote exports, one of which is to promote imports of cosmetics, and other parts are still classified as luxury consumer goods import tax reduction.

The media also quoted people close to the Ministry of finance, saying that all parties on the issue of whether or not to reduce the tax on luxury goods should agree that the commodities that are currently taxed in the import link of luxury goods should be re classified and classified. Some so-called "luxury goods" such as some cosmetics that are close to the necessities of life can be adjusted to the category of luxury tax collection.

However, those people also admit that the specific operation rules will be a long process.