The Price Of The List Will Not Change In The Short Term.
< p > it is reported that with the signing of the memorandum of understanding between China and Switzerland to conclude negotiations on the Sino Swiss FTA negotiations, the topic of "tariff reduction will make the list of Swiss imports lower in price" has attracted the attention of all parties, and even some "Chinese mothers" have begun to pay attention to the price trend of Swiss watches.
Yu Jianhua, Assistant Minister of Commerce, said at a briefing yesterday that Swiss watch tariffs will drop by 60% in ten years.
In this regard, the industry believes that some expect the Swiss watch price will fall with the tariff reduction and consumers will be disappointed.
At present, tariffs are only part of the tax on imported watches, and VAT, consumption tax and so on. Only one consumption tax is up to 20%. Therefore, although tariffs on Swiss watches will be lowered, the impact on terminal retail prices may be limited.
< /p >
< p > < strong > the price of the list will not change in the short term < /strong > < /p >.
< p > yesterday afternoon, the reporter visited many Swiss watch shops in Nanjing West Road, such as Rolex, Longines, Baoxin, Hoya, and other salesmen. "The cancellation or reduction of tariffs does not mean that the final retail price will be reduced," the salesperson said.
At present, the policy has just been promulgated, and it will take at least half a year to adjust the final price of each brand. There will be no change in a short time. "
< /p >
< p > although the major stores have indicated that the price reduction is unlikely in the future, but in the interview, we found that by the influence of the "three public" consumption and the slow down of luxury goods sales, some middle and high grade watches are quietly "lowering their positions". Some of the list stores also offer a discount of "full court 15% off", "full court 8% off" and "top 20 percent off", so as to attract customers to come to buy.
< /p >
Yu Jianhua P said in an interview yesterday: "tariffs on watches and clocks in Switzerland will drop 60% in ten years. From what time it began to fall, it began to fall from the date of the entry into force of the agreement, which dropped by 18% in the first year, down 5% in the first year and 60% in ten years.
As for market prices, tariffs are only one factor, and the key factor is determined by market supply and demand. "
Besides tariffs, there are value-added tax and consumption tax, which are not related to the scope of the free trade area, he said.
So in five or ten years, the price of Swiss watches can be much cheaper in the market.
"The general trend is that prices should be reduced and how much is down."
< /p >
< p > for Yu Jianhua's previous saying that "high-grade watches were excluded from the agreement", he did not explicitly indicate whether high-end watches are in the range of tax reduction.
Analysts believe that this is yet to be promulgated.
< /p >
< p > < strong > the difference between domestic and international price differentials will be less than /strong > /p >
< p > "at present, the Ministry of commerce is discussing the relevant rules, including specific categories."
In the interview with reporters, Zhou Ting, President of the Institute of wealth research and famous domestic luxury goods research expert, said: "with the gradual adjustment of tariffs, Swiss watch brands must readjust their price strategy in the mainland market. However, due to the fact that the current rules have not yet come out, it is not easy to say the specific impact on prices.
To be sure, tariff reduction will definitely reduce the terminal retail price in the future, but the adjustment may not be very big.
Zhou Ting disclosed that the average price difference of Swiss watches in the mainland market and other markets such as Hongkong is as high as 20%-30%. With the limited retail price in the mainland market, the domestic and international spreads will gradually shrink.
< /p >
< p > Yu Wenjing, an analyst with luxury goods industry of an American securities company, believes that the possibility of price reduction is not large. First, because of the high cost of labor and so on, the middle and high grade list will increase one or two times a year. Therefore, under the background of tariff reduction in the future, the greater possibility is that the price of the list will rise from the annual price to the stable one, while other markets may continue to rise year by year, so the price gap is expected to shrink gradually.
< /p >
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Switzerland Proposes Tariff Reduction In Ten Years, 60%, There Will Be No Big Change In The Short Term.
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