Citizen Mentality: Luxury Goods Preferred Overseas

< p > China's luxury market has great potential. With Swiss watches, there are more and more mature consumers in the first tier cities, and they are paying more and more attention to personalization.

We are very optimistic about the development trend of watches in China. As consumer demand for watches and luxury goods increases, especially in recent years, China's two or three tier cities have great purchasing power for luxury goods. Swiss watches will have a better future in China.

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< p > however, we must also admit that the price difference between luxury and domestic goods caused by the high comprehensive tax is real and can not be avoided in the future.

For international luxury brands, the biggest problem in the domestic market is the tax system.

At present, the Swiss table tax collected in China includes more than 11% of import duties and 17% of value-added tax, and watches with more than ten thousand yuan need to levy a 20% luxury consumption tax.

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< p > at present, because of the obvious price difference between imported luxury watches and other neighboring countries and regions, the price of foreign rebates and the exchange rate difference make most of China's luxury purchasing power flow abroad.

If China and Switzerland sign the FTA, Swiss watches sold in the mainland of China will probably be cut due to tariff cuts, which will to a certain extent alleviate the outflow of luxury purchasing power and stimulate domestic consumption.

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< p > at present, because of the fact that the customs regulations have not yet been promulgated, the specific price adjustment has not yet been implemented.

For luxury brands, we still hope to get more policy support. The pricing system of the tax system can not be adjusted in the short term, which will also have adverse effects on the development of the brand in China.

Swiss watches steadily adjust tariffs in ten years, giving brands a cushion process, giving brands more time to readjust strategies and strategies.

The adjustment of tariff policy is more and more tendentious. It also makes the brand more confident of the Chinese market and encourages more and more Chinese consumers to consume luxury goods in China.

(interviewee: Hu He, marketing director of China brand watch, Switzerland) < /p >

< p > < strong > expert opinion < /strong > /p >

< p > < strong > professor Qiang Yongchang, School of economics, Fudan University: < /strong > < /p >

< p > < strong > tax on imported luxury goods should be raised < /strong > /p >

< p > the high price of luxury goods is driven by comprehensive factors such as taxation, circulation cost and consumption behavior. It is of little significance to reduce prices by tariff adjustment alone.

China now imports three items of import tariff, excise tax and value added tax.

In the watch industry, import tariffs only account for 11%~23%, value-added tax is 17%, consumption tax is 20%, and the total tax paid by the highest level is more than 60%. Therefore, the tariff reduction in 60% years in the watch industry can not bring about more price changes.

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< p > we should also see that the impulse consumption of the masses and the system of commercial operation are also important factors to promote the high price of luxury goods.

The high price of luxury goods in China reflects the abnormal market in China. The crisis of confidence in the safety and quality of domestic products makes the demand for foreign products infinitely enlarged.

Some commodities are only ordinary consumer goods abroad, and they become "luxury" in the domestic market.

Many domestic products even went abroad to register as foreign goods, and brands looked at the mentality of the Chinese wealthy class consuming luxury goods, and adopted the strategy of raising the terminal retail price in successive years.

There is a demand and supply relationship between the price of commodities in the market paction, especially the demand for luxury goods. Even if the tax on luxury goods is lowered, these brand-name products will not necessarily depreciate in China.

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< p > therefore, the reduction of import tariffs on high-end consumer goods can not completely control the price of high-end consumer goods in our market.

Regulation of single tariff policy is far from enough, but it needs to reduce high tax rates and high logistics costs.

The production and sale of luxury goods is a trend in the world. It is not whether China will levy tariffs, but on the need to open the domestic product market so that products can flow freely and guide consumers' consumption behavior to become rational.

At the same time, part of the tax system should be considered in order to achieve reasonable effect by setting up the effect, and customs supervision can be more effective. Tax policy must adapt to the overall economic development of China and make reasonable formulation, making our domestic economic operation system more perfect.

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< p > it seems to me that taxation on imported luxury goods should not be reduced but should be increased instead.

The Chinese market is a highly deformed high-end market, and the more expensive high-end products consumers are, the more keen they are to buy, as a show off capital for their self worth.

In China's Hongkong and European countries, people queuing up to buy luxury goods are mainlanders. Many luxury brands, including jewellery and cars, will be robbed of the expensive products when they go to the domestic exhibitions.

These abnormal phenomena are the market malformation caused by specific social and economic development conditions. The irrational behavior of domestic high-end consumer groups in pursuit of luxury goods is not compatible with the effect of high-end products showing the overall quality.

Although China is already the world's second largest consumer of luxury goods, there are still a lot of low-income groups in China.

After all, the consumption of luxury goods in China is only a small number of people. Most people can not afford luxuries. Therefore, the abolition or reduction of the import consumption tax on luxury goods is out of date, and there is no need to further encourage the import of luxury goods.

It is necessary to regulate the distribution of income through taxation. Setting higher tariffs on high-end luxury goods is also true in the world. Mainly from the perspective of maintaining social fairness, we should impose a consumption tax on the products that a few rich people can consume, and increase the income to subsidize low-income groups, thereby narrowing the gap between the rich and the poor and preventing polarization.

Our domestic tax system is biased, especially the individual income tax as a whole. There are still some problems such as high and heavy taxes. Therefore, we should further reduce the tax rate for residents in the overall consumption of residents.

China should also regulate the high consumption through taxation, and give consideration to social equity and justice in order to promote social harmony.

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< p > < strong > citizen's mindset < /strong > /p >

< p > < strong > purchasing luxury goods is still preferred overseas < /strong > < /p >.

P > because of my work reasons, I travel a lot. For me, high-end products enable me to find the most suitable services and products with the least time.

It may cost a lot more than other brands, but I will not be questioned by my customers about my taste and attitude because of unsuitable coats and defective bags.

The luxury of Chinese people is really fierce. Originally, I was also a LV fan. Later, LV on the street made me have to buy Hermes.

If the tariff drops, people will make more luxuries become street goods. Maybe I will go to Paris to update my wardrobe again.

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< p > tariff reduction will bring about the reduction of domestic luxury goods. This is not necessarily true, but I will not have any influence on whether or not it will drop.

Compared with other domestic brands, the sales of luxury goods and the speed of new products are no different from those of other domestic brands. They sell the price of luxury goods, and Chinese people only buy the price of luxury goods. As for whether the brand is famous for its excellent cutting or exquisite handwork, no one cares.

So, as long as you enter the luxury stores in China, you feel that the salesperson is more like God.

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< p > in the future, no matter how much the price of luxury goods has dropped, I will still buy my favorite products abroad, because there is more room for selection, better quality of service personnel and more convenient communication, not to mention a lot of concessions in the promotion season.

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