Who Has Spoiled The World'S Great Price By Paying Off The Sky Tax?

Foreign goods at a surprisingly high price in China

Quality and service are far lower than the same products abroad.

Finally can afford a thousand yuan. Nike However, it found that the same commodity had less air cushion than the US, and it was 500 yuan more expensive.

Recently, the Beijing industry and Commerce Department issued the first ticket for the "double standard" of enterprises. Nike sports company was fined 4 million 870 thousand yuan for the above problems.

The double standard of foreign brands has existed for a long time. The same LV SPEEDY25 handbag is priced at 19200 yuan in Chinese stores, which is 3600 yuan and 5200 yuan more expensive than that in the United States and France. According to IMF official data, in 2011, the per capita GDP of mainland China was 5414 US dollars, ranking 87, which is estimated to be about 1/9 of the United States, 1/8 of France and Japan, and China. Hong Kong 1/6.

Apart from the staggering price difference, the after-sales service and product quality of foreign brands have also been reported for many times.

　　 Who has spoiled the international brand?

The luxury of sky tax.

Foreign brands differ in price. Luxury goods It can be seen clearly.

"Some mainlanders fly to Hongkong on an airplane, go shopping alone in luxury stores, buy some luxuries, do not speak a word, and then return to the mainland. When nothing happens, they feel that this is a decent life."

This passage comes from "who is the most decent person". Behind the dignity, the mainland has the highest price of luxury goods and the embarrassment that consumers will spread large sums of money abroad.

The same LovelyCrystals watch, which sells for $6600 in mainland China and 5450 Hong Kong dollars (about 4390 yuan) in Hongkong, and 490 euros (RMB 3954 yuan) in Europe, is six to thirty percent off in mainland China (see the following table).

Cui Hongbo, chief executive officer of Shanghai Zheng Jian Brand Management Consultants Limited, said that the highest price of luxury goods in mainland China is mainly due to heavy taxes (tariffs, luxury taxes) imposed by the mainland on luxury brands, and a series of management and sales costs due to the increasingly high commercial rents in the mainland and the cost of opening shops.

"In addition to tariffs and excise taxes, luxury goods sales in China need to pay VAT, business tax and so on. The consolidated tax burden is higher, resulting in the final retail price more than 2/3 above the CIF price." It is reported that there are still high toll, entry fees and logistics fees in the logistics sector.

According to the Research Report of GF, mainland China has a range of tariffs on luxury goods in 6.5%-35%, with the highest tariffs on jewelry and 20%-35% and the lowest cosmetics. Overall, the price difference of luxury goods is above 20%, and the highest price difference is over 300%.

"In addition to heavy taxes, some luxury brands also sell agents while they are directly engaged, and the acting chamber of Commerce adjusts prices according to the needs of the market." Cui Hongbo added.

According to the business department survey, 20 brands of high-end consumer goods, such as watches, bags, clothing, liquor and electronic products, are clearly priced at home and abroad: the domestic market is 51% higher than that of the United States, 72% higher than that of France.

Zhao Ping, deputy director of the Ministry of Commerce of the Ministry of Commerce, said that the high import tax rate is the main driver of the spread of luxury goods at home and abroad. "The tax rate on luxury goods in China is above the international level, and the tax and tariff should be appropriately reduced."

With high prices and incomplete varieties, luxury enthusiasts in the mainland of China choose to vote with their feet and throw money into overseas markets. Since the first quarter of this year, China's mainland market, known as the global luxury growth engine, has shown a downward trend.

In the first quarter of this year, the sales of luxury brands in China dropped by 15%-20% year-on-year, including the top three LV, GUCCI and PRADA. The growth of same store sales in China in the first quarter of this year showed a downward trend.

A recent HSBC report said that about 1/4 of the world's luxury goods buyers are Chinese nationals. According to the relevant data, in 2011, Chinese tourists spent nearly 300 billion yuan on the purchase of high-end goods overseas.

In recent years, discussions on reducing the tariffs on luxury goods are common. In this year's "two sessions", some members objected to the decision of the Ministry of finance to temporarily reduce the import tariff and import consumption tax of luxury goods. Some members also think that China's tax rate and tax base are not enough and the scope is not wide enough compared with the import policy.

The reply of the Ministry of finance is that luxury import tariffs and import link consumption tax are not high, and import tariffs are not the main factors to promote the high price of high-end consumer goods in China. Taking the import duty paid 10 thousand yuan / block of imported premium watches as an example, most of the watches have a price of only about 25% of the retail price. The import tariff and import link consumption tax of 15% and 20% accounted for only 3.8% and 6.9% of the final retail price, which had little effect on the retail price.

Cui Hongbo said that even if Chinese officials lowered tariffs, they could not guarantee that the price of luxury products could be lowered. The high price was the pricing strategy. The initiative to reduce prices would damage the image and sales volume, and there was a game between the manufacturers and the government.

It is reported that after the Ministry of Finance announced the import tariff reduction of more than 730 kinds of commodities in January 1, 2012, many well-known skin care brands including SK-II, Estee Lauder and Cartire have increased their prices, raising the price by more than 10%.

Similar circumstances also have foreign milk powder. In just a few years, the average price of foreign milk powder has entered the three hundred barrier. After the price adjustment at the end of 2011, the price of some of the milk powder rose, and even "ran four" and "ran to five". The tariff cut down, raw materials and cost decreased, and there was no stopping the price rise of foreign milk powder.