China'S Luxury: Goods Are Not The Best Price But The Most Extravagant.

Mainland China

The price is almost the most luxurious in the world, and a large number of Chinese tourists go abroad to frantically sweep goods.

In this regard, people often refer to the high tariffs in the mainland.

However, in some industry circles, the tax rate is not a key factor affecting the price of luxury goods. The strong purchasing power and keen consumption desire of the Chinese people are the real reasons for the most luxurious price of luxury goods in the mainland.

Is the price increase aimed at suppressing the exuberant demand in the Chinese market?

High volume

It is generally considered to be the main reason for the high price of luxury goods in the mainland.

However, in some industry insiders, this is not the case. Luxury brands have multiple factors to consider the pricing of commodities. "Tax rate is only a conduction factor, which has an impact on pricing, but it does not play a decisive role."

So why do luxury brands make such a high price in the mainland market?

"When some Hermes stores opened in China, they did not have enough goods to go to the shelves."

Ouyang Kun (luxury industry observer and Analyst):

For example, the most comprehensive tax rate is India. China's comprehensive tax rate is after India, but the price of luxury goods in the global market is almost the highest. Coach, in India, the average price of similar products is only 1/3 in China.

The direct reason why luxury goods are priced high in the mainland is still in short supply.

These brands are limited in quantity every year because the skins they use are from their farms, and there are so many cows and crocodiles that they can't increase their output.

Now, some brands are already over 70% in China, that is to say, when they leave factories in Europe, there are ten thousand pieces altogether, and there may be seven thousand in the Chinese market.

If the demand for Chinese market is not suppressed and the pressure of supply is reduced, it may affect their entire supply chain in the global market.

At present, luxury goods are expanding in China, but they do not want to develop new customers at a very fast rate. On the one hand, they cannot keep up with the supply capability. On the other hand, they also want to have an optimization of their customers.

The role of price increases is to ease the pressure of supply while screening customers.

When they adopted the idea of high pricing, luxury brands found that there was no problem in the Chinese market and the demand was too strong, so they gradually normalized.

We know that the rate of profit retention of luxury goods in the mainland market is usually 50%. If this continues, I think it is also possible to reach 60%.

Our current situation is that the population is too large, the purchasing power is too strong, and the stores are too few.

Yes, we have

After they opened their stores in China, they did not have enough goods to go to the shelves, and there were too many orders.

On the one hand, the supply capacity is limited, and on the other hand, consumers are coming in. This has created a lot of hunger and thirst for shopping, and the price of luxury goods abroad is relatively cheap, so consumers' desire to purchase has been released to overseas markets.

"To raise money is to earn money, otherwise why don't you wave it?"

Xu Tingting (alias) has been saving money to buy luxury goods from the first year of work. So far, there are two figures of famous brand bags:

I may be a little vain small white-collar worker who is a little despised by everyone.

I usually buy two bags a year, usually in August and Christmas two discount season to buy in Hongkong, I rely on this incentive to earn overtime pay!

I am not very happy to say that the price rise of luxury goods in China is to control the supply volume.

What does this have to do with controlling the supply? If you sell it, you won't sell it. It's the same as buying a car.

Even in the fashion brand, like H&M, this parity brand will also offer a limited amount of money to the designer in the season. It is also in short supply, and people will not go up in price.

As for the need to ensure the quality of customers, I think it is an excuse.

Everyone knows that big brands have very detailed VIP customer treatment. They have detailed information and new products. They will notify the high-end customers first. They will never say that the core quality customers can not buy them.

Why do we love luxury?

The Chinese people are undisputed about the exuberant demand and the strong purchasing power of luxury goods. Why is a society so fond of hard work and plain living that it has a special liking for luxury goods?

"Luxury goods, first of all, is a" circle "problem.

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Angela Baby (media man, once entered the fashion circle because of his work relationship):

My first luxury was bought by working relationship. When I was in the fashion media work, I was invited to the Ferragamo company in Florence, where I came to know the design and production process of the top luxury goods, and I felt a bit of a cultural conquest. Moreover, in the producing area, the price of the goods was much cheaper than that of the domestic market, and the people around were buying it. Under that infection, I also bought a pair of more than 2000 shoes, and the similar style was about five thousand or six thousand in China.

Why do I need to buy luxury goods? I think there is a problem in the first place. All the colleagues around me are such a big bag. If you don't, there will be less conversation with others.

And my classmates circle, basically no such ethos. Every year when we meet, it is very casual to take a bag to go, and feel nothing.

However, after I really used the big card, I think it is very good in terms of style and workmanship.

With such a bag and walking among the crowd, others may not feel anything, but I will feel very angry.

"The huge price gap itself is stimulating people's consumption abroad."

Chen Ying only bought luxuries when he was abroad, mainly Buying bags and clothes.

I never buy luxuries in the country, when I go abroad, I buy too much. I bought a LV in France, and the tax refund is less than eight thousand. We get ten thousand three or four here, half or half of it.

Not only luxury goods, but also some domestic skin care products, such as Avene and Vichy, are quite cheap, including Lancome with big cards, which can get 50%-70% discount.

A bottle of sunscreen cream, at least one hundred and fifty yuan in China, is less than ten euro (yuan), and then it is cheaper to pay tax refund.

I think the price difference at home and abroad itself is a reason to stimulate shopping.

There is such a big price difference, and the feeling is that even if the cost of the ticket is counted, you can make it back.

So if you have the chance to go out, it will be very cost-effective to see the difference.

Another reason is that the price of the domestic goods is also rising. We have two or three thousand clothes in the mall. Some of the brands in our country can sell more than 4000 yuan for a skirt. In the old Buddha's department store, some second-class big skirts are two hundred to three hundred euro.

"Chinese people are good faces, big gifts only get gifts."

Xu Tingting: why is the highest price in China?

When they get rich, they point to the famous LOGO. They occasionally bring out an official with a name list and a Hermes belt on the Internet.

Chinese people are good faces. Big gifts give gifts.

Last year, I sent a Lancome skin care product to my son's teacher in charge of class. Although the teacher gave up several times, he could see that he was very happy.

So when I go abroad, I often buy some big scarves, perfume, small purses and so on, so as to prepare for a rainy day.

[truth]

The bad habit of being used to

Although the price of luxury goods seems to be far from the people's livelihood, it is only a game for the rich. But as more and more luxury brands continue to pay money from the Chinese pocket, the problem still comes.

"In foreign countries, luxury is a cultural selling activity, while in the mainland market, it is purely selling goods."

Ouyang Kun: luxury goods have been spoiled by our consumers. For some brands, price increases will not have any effect on their sales share.

Due to the serious phenomenon of luxury gifts in China, the more expensive the products are, the more popular they are.

In addition to the high price, our domestic products are usually three months old than abroad, and many limited edition is not for the mainland market. They must first ensure quality customers.

In the European and American markets, when there are new products coming into the market, there will be many fashion events such as press conferences and appreciation sessions. It is a cultural selling behavior, and after the mainland market, it is purely selling goods.

When you buy in the country, you can also create taxes. If you buy them abroad, you will bring about many problems, such as tax loss, RMB outflow and consumption shift.

There is a saying that the high price of some brands in the Chinese market is intended to let you buy in the place of origin, thereby stimulating foreign related industries.

Government departments are also concerned about this issue. Scholars often suggest that tax cuts be made, but in fact, it is not necessary for you to reduce taxes and reduce prices.

But there is no way to curb the freedom of consumption choice.

To change this situation, our consumers should not be too enthusiastic about the luxury goods and have some proper geography.

Take it as a pure commodity, do not generate consumer dependence, otherwise it is not your choice of luxury goods, but luxury is your choice.

Chen Ying: Chinese people now know less about luxury goods. Buying or buying them is just a few brands. The recognition is not so wide. Many brands do not know, and they go up the price of those brands. If we know more about them, there will be more choices.