Why Buying Luxury Goods Is Like Picking Cabbage?

< p > "don't buy it in China, buy it on somebody's behalf! It's cheap."

Behind this seemingly simple exhortation is the reality of the booming development of China's "professional purchasing" industry.

Because of the high price difference between high-end consumer goods such as jewellery, watches and cosmetics in China and abroad, the industry of professional purchasing has come into being and its scale is bigger and bigger.

According to the monitoring data of China's < a href= "http://www.91se91.com/news/index_s.asp" > e-commerce > /a > Research Center, the paction scale of China's overseas purchasing in 2013 will be expected to reach 74 billion 400 million yuan.

< /p >

Corresponding to p is the frequent appearance of Chinese tourists' outdoors tourism "shopping for tourism" in recent years.

The strong purchasing power of Chinese tourists has attracted the frequent attention of foreign media, which is known as "buying luxury goods like grabbing cabbage".

< /p >

< p > according to the statistics of China Tourism Research Institute, outbound tourism for Chinese tourists cost more than 63 billion dollars in the first half of this year, an increase of 35% over the same period last year.

Among them, 65% of Chinese tourists travel abroad for shopping.

< /p >

< p > December 9th, the Ministry of commerce website information shows that Gao Hucheng, Minister of Commerce, answered the reporter's question on expanding consumption in the business field. When talking about how to satisfy the consumption of high-end consumer brands of Chinese consumers, Gao said that it was recommended to further study policies and measures to optimize the tax structure, expand duty free shops and tax rebate shopping tax rebates, and narrow the price gap between home and abroad and attract consumption reflow.

< /p >

< p > can these policies and measures really reduce the spread of high-end consumer brands at home and abroad, and improve tax loss and spillover? < /p >

< p > < strong > excessive import tax burden is the main cause < /strong > < /p >.

< p > the controversy over the price difference between high-end and domestic consumer goods is not new.

As early as March 2011, Yao Jian, a spokesman for the Ministry of Commerce, said at a regular press conference that watches, bags, a target= "_blank" href= "http://www.91se91.com/" > clothing, /a, wine and electronics had 20 brands of high-end consumer goods, the mainland market price was 45% higher than that of Hongkong, 51% higher than that of the United States, and 72% higher than that of France.

< /p >

< p > this price difference is the profit base for the rise of professional purchasing.

A seller who specializes in luxury goods purchasing in France has made an account of the journalist. "Now the Dior bracelet, which is popular in China, sells for more than 80 thousand yuan in domestic price and more than 70 thousand yuan in foreign counters. After the tax rebate, I bought more than 6 yuan, and generally sold for 70 thousand yuan."

In this way, the profit rate is 20%.

< /p >

< p > the industry generally believes that the high tax burden in import links is the main reason for the spread of high-end consumer goods at home and abroad.

And the price gap further causes consumption spillovers and tax losses.

According to reports, according to the 2012 China tax Yearbook, the current consumption tax covers 14 items of taxes, including cigarettes, cosmetics, precious jewelry and jewels, cars, golf balls and ball sets.

< /p >

< p > > a a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > the head of jewelry marketing department of the agent group told reporters that the high priced consumer goods in China are priced too high, which is directly due to the high cost of the import link consumption tax and value-added tax.

< /p >

< p > take jewelry and wrist watch as an example. Even if the channel merchants purchase at a discount price, plus 30% import tariff rate, 17% value-added tax rate and 20% profit margins of enterprises, the combined selling price has no competitive advantage compared with Hongkong and Paris.

At present, the unit price of more than 100 thousand yuan or even a million yuan products, customers directly to Hongkong and Paris brand counters to buy more affordable.

< /p >

Professor Hong Junjie, director of the school of international trade and economics of University of International Business and Economics and professor of luxury Research Center, told reporters that the spread of high-end consumer goods does exist. The causes are more complicated: first, this is indeed related to the higher import related taxes of luxury goods in China at present. P

Second, this is also a pricing strategy of multinational companies for Chinese consumers' consumption motivation. Of course, the implementation of high price strategy by foreign high-end luxury enterprises is also related to few local high-end brands in China.

Third, this phenomenon is also related to the more intermediate links and imperfect development of China's high-end retail industry.

< /p >

< p > a famous French luxury brand employee told reporters that according to the question of price difference raised by domestic customers, "our official response is that the difference between domestic and overseas prices is very small. We suggest that you purchase it in our store and enjoy the service of return."

< /p >

< p > < strong > the price reduction space exists, and the power is insufficient. < /strong > < /p >

< p > "in fact, we do not want to set the brand price so high."

The head of the jewelry marketing department of the luxury agency group said that the "high price strategy" of high-end consumer brands is to create enough profit margins and retain customers in a discount way.

The vast majority of high-end consumer brands will not take the initiative to choose such a "discount sale" strategy.

In fact, many high-end consumer brands have implemented unified pricing in the world, including the profits they are pursuing.

Such a high price difference is unreasonable, but hinders the market expansion of enterprises.

"The high price in the mainland is really just for customs duties."

< /p >

< p > the person in charge said frankly that the pricing formula of high-end consumer goods is basically: brand standard ex factory price + import tax rate + value-added tax rate + brand profit rate.

Among them, the brand side recommends that the agent keep the profit margin within a relatively reasonable range, generally less than 30%.

The brand does not want its products to be shelved because of the high price, and far exceeds the value of the product itself.

< /p >

< p > "if the tax burden of import links is reduced, our pricing will strive to keep pace with the Hongkong area and take the sales strategy of reducing prices."

The person in charge believes that if the tax burden of import links is indeed reduced, it will attract the 60%~80% consumption reflux.

< /p >

< p > Hong Junjie told reporters that the price reduction of domestic and international high-end consumer goods is certain.

However, whether or not the price will be cut depends mainly on the strategy of different brands in the China cloth Bureau, and is directly related to the development speed of China's retail industry and related industries.

< /p >

< p > however, luxury enterprises seldom use the strategy of direct price reduction to attract consumers. After all, luxury goods enterprises have to create a dream for consumers, especially in China's high-end market. Over the past 10 years, the market has brought the feeling of luxury goods to the luxury enterprises: the higher the commodity price, the more consumers are in the market. Many consumers regard the purchase of high priced goods as a way to display their personal wealth and social status, and many consumers are looking at the characteristics of the luxury goods prices rising year after year. They invest and collect them as investment products, which makes the luxury enterprises have little incentive to reduce prices.

< /p >

< p > Hong Junjie said that narrowing the gap between high-end brands inside and outside the country can not be accomplished by one side. What the government needs to do is to optimize the tax structure from the policy level. In addition, it provides a better platform for the fair and orderly development of the high-end retail industry, and encourages and nurture high-end local brands.

< /p >

< p > < strong > expansion of the tax exemption and refund trial still has obstacles. < /strong > < /p >

< p > is it feasible to expand the tax exemption and shopping tax rebate pilot scheme? The head of the jewelry marketing department of the luxury agency group said, "great pressure".

< /p >

< p > "expand the tax rebate pilot will also divert our customers."

The official said, as an exclusive agent of luxury goods such as jewellery, watches and watches, it is unwilling to see the further expansion of the tax-free tax rebate area, while the direct stores and flagship stores of the brand will not worry about the pressure of customer diversion.

But it does not exclude the current sales policy of its own brand in the future.

< /p >

< p > this year, the Shanghai free trade zone has been established. Public opinion generally expects that the dividend policy can be released centrally in the free trade area.

The general public also raised questions such as "whether the free trade zone will be duty-free shops, and whether to sweep goods" or not. At that time, the official response said that the duty-free shops were not considered in the FTA, which would not duplicate the Islands tax exemption model.

< /p >

< p > "the expansion of duty-free shops may be aimed at expanding the import of consumer goods that can not meet the needs of the domestic market, so that people can get more benefits, so as to reflect the fruits of reform and opening up to the people."

Li Jian, director of the Institute of foreign trade research of the Ministry of Commerce, told reporters that it is not clear how to expand the duty free shopping and the tax rebate shopping pilot.

But from the general point of view, it is necessary to promote free and orderly flow of elements at home and abroad, effective allocation of assets, deep integration of the market, and import and export < a href= "http://www.91se91.com/news/index_q.asp" > policy < /a > should be more "neutral".

< /p >