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    Chinese Consumers Blindly Pursue Luxury Goods Prices In The World

    2012/10/18 20:59:00 19

    Luxury GoodsLVTax Rate

     


    High tax rate and blind pursuit is destined for China.

    Luxury goods

    Pricing is the highest in the world. Chinese consumers blindly pursue luxury goods, improve their identities and show off their wealth by luxury goods, leading to luxury goods manufacturers deliberately raising their prices in China.


    Luxury goods in China


    Pricing is the highest in the world


    High tax rate + blind pursuit of domestic luxury goods prices "high"


    "The same one.

    LV

    The SPEEDY30 package is priced at 5750 yuan in the mainland of China, priced at 4841 yuan in Hongkong, and 485 euros in France, equivalent to about 4000 yuan. The luxury price in mainland China is the highest in the world.

    Reporters learned yesterday from the World Luxury Association's 2012 "Golden Week" external consumption analysis report that luxury goods in mainland China

    tax rate

    It is not the highest in the world, but the price of luxury goods is the world's leading.

    Some experts believe that the tariff reduction of imported high-end products can stabilize the high prices and stimulate domestic consumption.

    However, some people in the industry believe that Chinese consumers blindly pursue luxury goods, enhance their identities with luxury goods and show off their wealth, leading to luxury goods manufacturers deliberately raising their prices in China.


    Luxury goods sweeping abroad


    Luxury goods in mainland China are leading the world and are well known to many consumers.

    According to statistics from the World Luxury Association, the average price of luxury goods in mainland China is 45% higher than that in the Hongkong market, 51% higher than that in the US market, 72% higher than that in the French market.

    The average price difference is 180%. The price difference between Mainland and China's watches is 100%~300%, the price difference of clothing and leather goods is 30%, and the price difference of cosmetics perfume is between 40%~80%.


    The high price of high-end luxury goods in China has led many domestic consumers to crave abroad, taking advantage of overseas travel, visiting relatives and business opportunities.


    Reporters yesterday from the World Luxury Association's latest statistics, the golden week seven days, Chinese outbound consumption luxury goods totaled about 3 billion 850 million euros, of which Europe accounted for 63% of consumption, North America accounted for 25%, Hong Kong, Macao and Taiwan area 12%, compared with last year's golden week overseas luxury goods consumption increased by 14%, if coupled with the golden week overseas hidden consumption and luxury service industry consumption, is expected to exceed 6 billion euros, "China Golden Week has become the most important profit cycle of overseas luxury market."


    The highest price is due to Chinese consumers' pursuit of high prices.


    In fact, the price of luxury goods, including high-end imports, is much higher than that of overseas, which has been criticized by the Chinese. Insiders pointed out that the high price of domestic luxury goods is mainly due to high tax rates.

    A number of economic experts have suggested that the state should lower the tax rate of high-end imports, so that the consumption of outflows can be brought back to China.


    Reporters from a survey report, China's luxury goods tax rate is relatively high, take Lancome perfume as an example, including tax categories: 30% import goods consumption tax +17% value-added tax +10% tariff =57%, while in the United States, Lancome perfume tax only 8.25% consumption tax, France also only 19.6% VAT.


    However, Ouyang Kun, China's chief representative of the World Luxury Association, believes that the price of Chinese luxury goods is the highest in the global market and has little to do with the tax rate. "Even if the Chinese government continues to lower the tariff rate, it will be difficult to shake the price of luxury goods."

    The high positioning of manufacturers is due to the popularity of luxury goods by Chinese consumers.

    According to its introduction, the retail price composition of the global luxury brands in China is rather complicated. The most important factor in the price composition is the profit retention rate, which is as high as 50%.

    This factor accounts for 30% in North America and only 20% in Europe.

    He believes that if we want to reduce the price of luxury goods, we must first call on Chinese consumers to calm down and consume rationally so as to make manufacturers rational pricing.

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