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    Thoughts On Shoes And Clothing Brands At Home And Abroad Market Price Difference

    2011/11/10 13:23:00 9

    Market Price Brand Speculation

    As we all know, Nike has always been a dark horse in the domestic market. It has been proved by example that a pair of Nike shoes made in China cost about 59.9 dollars abroad, but when they return to the domestic market, their prices have soared to 1000 yuan. A Italy fur coat has only sold 70 yuan in the United States, and has sold 1500 yuan in the Chinese market. It can be seen that the shoes and clothing made in China earn only 1/3 profits in the foreign market, while the price in the domestic market is double or even several times higher. Such a huge price difference makes Chinese consumers sigh, why do they ask big difference?


    The reason for such a huge price difference is that the import and export tariff of the United States is much lower than that of our country or even other countries. The so-called "Guan Rui", that is, when Chinese enterprises or individuals purchase overseas goods through a country's territory, the customs revenue collected by the customs and Excise Department from the government to import and export countries, because of excessively high import and export tariffs, and much higher commodity tax (value added tax, consumption tax, etc.) than most other countries in the world, result in 1-3 times the price of domestic goods. Therefore, it is more expensive for domestic consumers to buy the same goods in the domestic market than foreign consumers.


    Such a high tariff has also attracted the attention of the domestic government departments. Since last year, the Ministry of Commerce has repeatedly said that lowering tariffs on imports and exports of domestic footwear and high-end goods is a top priority. It is the general trend of development in recent years, and government departments have basically reached a consensus.


    Our country has been emphasizing exports and restricting imports, mainly because we have strong production capacity and relatively weak consumption ability and production technology. With the financial crisis in recent years, China's exports have suffered from setbacks. As customs tariffs gradually increase, products can only raise their prices to maintain costs after reaching the domestic market. Export difficulties can only be replenished through imports. High tariffs affect domestic demand and prices, and as China's national income rises, the demand for shoes and clothing products and some high-end luxury goods is also improving. This part of domestic demand has great potential for mining, which can urge Chinese shoe and clothing enterprises to adopt more advanced and more advanced technologies to improve products.


    The high tariffs are not only manifested in footwear products, but also in clothing, leather goods, luxury goods and so on. The price gap between domestic and foreign commodity markets is huge. The price of goods in the domestic market is 51% higher than that in the United States, 72% higher than that in France, and 45% higher than that in Hongkong. This has led to more and more Chinese consumers choosing shopping. Although there are differences in currency exchange rates between countries, such as the US dollar and the renminbi, the exchange rate is about 6.4709, compared with the purchasing power of the US dollar and the renminbi, most of us will choose to shop abroad. Anyone who has been to the United States will be surprised to find that American goods are very cheap. A dollar is at least 15 yuan, or even 20 yuan!


    Yao Jian, spokesman of the Ministry of Commerce, said that lowering import tariffs is the top priority of the country. Starting from shoes and cosmetics, the decline is about 2%-15%. Suppose that if Chinese shoe enterprises purchase overseas quantities of about 1000 US dollars, so many Chinese businessmen buy goods back to China. Because these commodities are not counted in customs statistics, they actually lead to underestimate the scale of tens of billions of dollars in China's imports, and it will also affect the judgement of trade balance.


    In view of the high tariff problem, some people think that raising tariffs can help rob the rich and help the poor and maintain a high tax rate. Others argue that if the Chinese high paying families pay taxes, they can subsidize the poor in China. The problem is that the rich have paid a lot of taxes, but the poor have not received the corresponding subsidies. Most of the tax revenue is spent on the government's iron chicken and the "three public" consumption.


    Instead, it is more practical for the state to lower tariffs and adjust the prices of commodities in the domestic market.


    Like the famous sports brand Nike and Adidas, they are classified as luxury goods when they are imported. This seems to be a bit unrealistic. Twenty years ago, it was a little difficult for most of the working class. With the development of the national economy, it is also a common thing for the ordinary people to buy famous brand sports shoes. How can they be included in the ranks of luxury goods? If the import tariffs of footwear products are raised, the prices of similar products are 1-3 times higher than that of the United States, and now it is the period of inflation.
     

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