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    The High Price Of Luxury Consumption In China Is Due To The Comprehensive Import Tax Rate.

    2013/10/22 9:04:00 18

    LuxuryConsumptionHigh Energy Consumption

    China Luxury goods Consumption outflow is not a new topic. As early as 2008, the total consumption of luxury goods in China reached 141 billion yuan, of which overseas consumption (including Hongkong and Macao) was 80 billion 800 million yuan, accounting for 57.30% of total consumption. Today, this phenomenon is further aggravating. According to the 2013 "China tax exemption report" issued by the Institute of wealth quality, only 20% of Chinese consumers are willing to buy luxury goods in mainland China.


     


       50% price difference


    China will soon become the second largest duty-free consumer country in the world, of which Beijing has surpassed Shanghai for the first time, becoming the most popular consumer city in China this year. But unfortunately, making money in China and spending money abroad has become a way of consumption for many Chinese people. In 2013, the tendency of China's high asset groups to buy luxury goods abroad was the same as last year. It is still more evident, especially for those who are worth billions of dollars. 51% of the billions of rich people are inclined to spend abroad.


    Not only is the rich, but the domestic luxury consumption crowd is very extensive. There are a lot of high income white collar gold collar people. There are also many young people who earn a few months' salary just to get a middle and low income package. Compared to the rich consumption habits, they are more concerned about the price. The reason why they prefer overseas luxury goods is mainly the value of money and the price is more satisfactory than the domestic consumption. This is the main reason for the outflow of the consumer goods market.


    What is the bottom line for Chinese consumers to accept the price difference between domestic and foreign luxury goods? The answer is about 20%. However, a survey by the Ministry of Commerce shows that 20 kinds of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, are 20 higher than those in Hongkong. The domestic market is 45% higher than that in the United States, 51% higher than that in the United States, and 72% higher than that in France. This obviously exceeds their tolerance.


       The price difference comes mainly from high imports. consolidated tax Rate.


    Luxury goods enter our country, first of all, 15%-25% tariffs, plus sales tax, value-added tax, business tax and other expenses, the sales price is at least 1/3 higher than that of origin. This year's situation is likely to be more complicated. In August, Lou Jiwei, Minister of finance, reported to the Standing Committee of the National People's Congress on the implementation of the budget this year. He said that the next step would be to expand the scope of the consumption tax levy, and bring some products which seriously pollute the environment, excessive consumption of resources and some high-end consumer goods into the scope of Taxation, and adjust the consumption tax collection links and tax rates. Among them, the high-end consumer goods will be included in the scope of consumption tax, which is bound to cause some high-end consumer goods prices to rise and eventually pass on to consumers.


    Coupled with the blind pursuit of luxury goods by luxury Chinese tycoons, the luxury Brand Company itself has insisted on the "high price" strategy in China, which has led to a high price of high-grade consumer goods compared with foreign countries. After the inclusion of the consumption tax levy, it will undoubtedly further increase the purchasing power of some high-end products to foreign countries.


       Rapid development of outbound travel


    For today's consumers, exit is becoming easier and more commonplace. The China Tourism Research Institute published the annual report on China's outbound tourism development (2012-2013) in Beijing recently. It shows that China's outbound market will still maintain rapid development in 2013, and the number of outbound tourists is expected to reach 94 million 300 thousand, an increase of 15% over the same period last year. Outbound tourism consumption will reach 117 billion 600 million dollars, an increase of 20% over the same period last year.


    The trend of outbound travel is amazing, and buying luxury goods is often a "major event" for people. Chinese consumers have become the largest consumer groups in the global tourism retail sector, supporting the half of the European luxury market. According to the data released by the financial times, Chinese tourists spend about 300 million pounds (2 billion 780 million yuan) a year in the UK. In Heathrow Airport in London, Chinese tourists account for 1% of the total tourists, but they create 25% tax-free income. Burberry's outlets in Hackney, London, about 3/4 of Chinese tourists are on non weekend.


    Not only in Britain, when wealthy Chinese tourists come to Paris, accommodation accounts for 20% of their travel budget, but shopping expenditure is two times that, which is the opposite of the expenditure pattern of American tourists. The main task of Chinese tourists returning is to show off their wealth. They do not mind physical and mental intangible enjoyment.


    Faced with such a temptation of Chinese tourists consumption market, as Pull the economy The important force of recovery is that Chinese luxury consumers have received very warm and thoughtful services in foreign countries, especially in Europe and America. Many overseas luxury stores have arranged special shopping guides for Chinese guests, and free coupons have been prepared for Chinese tourists. Signs of "welcome to use UnionPay cards" can be seen everywhere, and even some shop doormen can speak fluent Chinese. Some American scholars have calculated that the consumption of five Chinese rich people in the United States can solve one job in the US.

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