Watch Brand Watch Prudently, There Will Be No Big Price Adjustment In The Short Term.

< p > recently, the news of "zero tariff" between China and Switzerland triggered a fever on micro-blog. The first reaction of sensitive consumers is: Swiss watches and watches will be substantially reduced because of "tax-free". However, industry experts, watches brands and dealers told the Yangcheng Evening News reporter that the good wishes of consumers will be lost.

< /p >

< p > < strong > news background: Sino Swiss "zero tariff" < /strong > /p >

< p > "with the signing of the Sino Swiss FTA in July this year, tariffs on Swiss imports of watches and clocks will be reduced by 60% in ten years".

A few days ago, Yu Jianhua, Assistant Minister of Commerce, said at the news briefing of the new China office, "Switzerland will immediately impose zero tariffs on 99.7% of China's exports, and China will finally implement zero tariffs on 84.2% of Switzerland's exports. If we add some products that reduce taxes, the proportion of products that Switzerland participates in tax reduction is 99.99%, and China is 96.5%."

According to the news, the tax reduction scheme is 60% reduction in 10 years, with 18% reduction in the first year and 5% reduction each year.

< /p >

At present, optics, clocks and medical equipment are the most important products of Switzerland's exports to China. In 2012, exports accounted for 30.1% of Switzerland's total exports to China.

China is the world's third largest selling place for Swiss watches, with sales of 1 billion 650 million Swiss francs (about 1 billion 770 million US dollars) in 2012.

< /p >

< p > < strong > Igo interpretation: zero tariff, large price reduction < /strong > /p >

< p > < strong > industry experts have no influence on high-grade watches. < /strong > < /p >

The "P zero" message does not directly mean that Swiss watches, which are widely welcomed by the people, will be substantially reduced because of "tax exemption".

Because import duties other than tariffs are not covered by FTA.

Just looking at the current tax cuts, we can see that the price of imported watches in Switzerland will not change much in the short term.

In addition, there are news that some high-grade watches may be excluded from the agreement, and only some Swiss watches are involved in tax cuts.

< /p >

< p > the tax rate composition of Swiss watches is that the import tariff rate is 11%-20% of the CIF. In addition, there is a 17% value-added tax, and a high-end luxury watch with a price of more than 10000 yuan will also levy a 20% luxury consumption tax. Therefore, the tariff on the high-end Swiss watches with more than 10000 yuan will account for only about 5% of the tariff in the table price.

The 5% decline in 10 years, for the price of watches, the impact is not as big as people imagine.

< /p >

< p > in the industry, "watch the altar of Eight Diagrams king" called the senior clock media people, Kang Wei Kai publicly stated that "zero tariff" message, he received 4 media calls in one day, the public response was enthusiastic.

However, he believes that there is little impact on the high-end watches of more than 10000 yuan, and the more beneficial is the Swiss watches less than 10000 yuan without paying the consumption tax. This kind of watch will not be much different from the purchase price of Hongkong in the future, and the domestic watch brand will bear greater competition pressure.

< /p >

< p > compared with the mainland, Hongkong, as a free trade port, except most tobacco and other special commodities, most foreign goods can be duty-free. At the same time, Hongkong does not levy consumption tax and VAT at the same time. Therefore, many mainland consumers like to buy high-end watches in Hongkong.

< /p >

< p > strong > wrist watch brand prudently wait and see, there will be no big price adjustment in the short term < /strong > /p >

< p > luxury pricing is complicated by considering factors such as tariff and other taxes. Rent, labor and global positioning of their products are all considered factors.

Yangcheng Evening News reporter interviewed several well-known Swiss watches brand in China, and they all expressed a cautious attitude.

"We do not yet know the specific tax reduction policy. We need to wait until the implementation details are promulgated before we can deal with it.

Judging from the current announcement, a gradual tax cut in 60% years is 60%.

This is a unified view of watch brands.

< /p >

< p > some Swiss watch brands such as Constant, who sell and sell in Hongkong and the mainland market, told the Yangcheng Evening News reporter that their pricing strategy was unified pricing in Hongkong and the mainland market. Prices were not added to customs or other taxes and fees.

That is to say, for consumers, the price in Hongkong or the mainland is just the exchange rate difference.

It can be seen that this kind of watch brand has the probability that the price fluctuates sharply in the short term due to tariff adjustment.

< /p >

< p > < strong > distributor is only willing to buy the table "good" < /strong > < /p >.

< p > although the "zero tariff" message is not expected to cause Swiss watches to depreciate in a short time, dealers still welcome the news.

Wan Biao net general manager Xiao Xiao told Yangcheng Evening News reporter, since the news release, customer service has received many customers, consult the table price will be adjusted.

Although everyone has analyzed, reducing tariffs has little effect on the high-end Swiss watches of more than 10000 yuan, but the desire for mass consumption watches is greatly promoted.

< /p >

< p > Xiao Xiao also said that even if the policy was introduced, it would take at least half a year to adjust the price from the brands. Therefore, it is expected that the price of clocks will not change significantly in the short term due to tariff adjustments.

< /p >

< p > < strong > reporter observed 10 thousand -3 yuan price range competition will be more intense < /strong > /p >

< p > in fact, China has advocated frugality since the second half of last year. The price range of 10 thousand -3 million has become a key market for watch brands. This marketing tendency has been evident in the Basel exhibition which just ended in May this year.

< /p >

< p > if the tariff policy is promulgated, the competition will become more intense if the price range is less than 10 thousand yuan.

But most Swiss watch brands are inclined to traditional conservative brand positioning and management practices. This competition may not be a vicious price war.

As Yu Jianhua said at the briefing, the key factor determining the price of Swiss watches is not tariffs, but supply and demand in the market.

< /p >