Can The Free Trade Area Become A New Growth Point Of Luxury Goods In China?

< p > it is learnt that at present, the duty-free shopping mall in Shanghai free trade zone is lagging behind, but the relevant luxury channel operators and dealers are optimistic about the display function of the free trade area, and actively enter the free trade area early layout.

In the next 1-2 years, consumers are expected to enjoy 30% of the luxury goods discount offered by the FTA.

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< p > however, it is reported that Zhou Ting, President of the Institute of wealth and quality and luxury goods expert, pointed out that at present, the reaction of international brands to the free trade area is not enthusiastic. Most of those who enter the free trade area are the various levels of distributors and distributors in the luxury supply chain.

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Prior to January, in January this year, the China business management group announced that it will build and put into use the largest fashion distribution center in Asia at the end of this year in Fengjing town, Jinshan District, Shanghai, and mainly distribute and operate luxury goods and fast fashion products.

It is worth mentioning that the distribution center will set up a 16 thousand square meter bonded warehouse in the free trade area.

According to the briefing, the distribution center will create the first modern luxury supply chain with parallel imports in the Asia Pacific region, which means that luxury brand wholesalers and brand stores in Asia will not need to go to Europe and other places of origin to purchase goods. The purchase process can be completed directly in Shanghai, and consumers can enjoy luxury goods at local prices.

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Ding Haozhou, China business management group, said, "the gross profit of first-line luxury goods, especially the top luxury goods, is very low, less than 10%."

However, Oteri J (sales of famous brand over season, off shelves, broken yards) products can be slightly higher because of the amount of money they can take.

International luxury brands are hesitant about the mainland market attitude, mainly due to higher tariffs and logistics costs.

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< p > for example, a Gucci commodity, the price is 5000 yuan, Oteri J priced at 3000 yuan.

In the past, customs would collect taxes at the normal price.

Ding Haozhou introduced that in the new policy of the free trade area, if the importer provided the relevant materials according to the customs requirements, the customs would levy taxes according to the actual contract price, that is, according to the price of orters, so that the import cost of outlets could be reduced a lot.

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< p > Ding Haozhou pointed out that the distribution center can guarantee luxury goods, especially the continuous supply of outlets products, strict quality inspection system and efficient, fast and safe payment method, providing luxury goods operators with value-added services such as two packaging, photo shooting and bar code addition.

"Buyers from other Asian countries can carry out one-stop purchase, sampling and payment in distribution centers, and all goods are located outside the bonded warehouse, so goods do not need to enter the country directly into the country where buyers are located."

Luxury distribution is only one form of business. According to the introduction, there are retail formats and brand incubation bases in distribution centers.

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< p > nowadays, luxury related businesses are mostly high-end department stores and Oteri J.

Ding Haozhou said that unlike high-end shopping malls, the biggest feature of distribution centers is that they will provide different services to different target customers.

According to the introduction, the range of goods in the distribution center includes fast fashion consumer goods to light luxury products to high-end luxury goods, while the traditional department store formats and outlets stores are targeted at specific target customers.

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< p > bonded policies in the FTA also attract businesses.

"Before" a href= "http://www.91se91.com/news/index_c.asp" luxury "/a" entry will impose tariffs, which is not suitable for luxury global scheduling industry rules. "

Ding Haozhou introduced, "but now our goods are in the warehouse of the free trade zone, and we can provide luxury goods operators with value-added services such as two packaging, photo shooting and bar code addition to the warehouse."

In addition, buyers from other Asian countries can also conduct one-stop shopping, sampling and payment within the free trade area. All goods are placed outside the bonded warehouse, and goods are not directly needed to enter the country where buyers are located.

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< p > in the view of Ding Hao Zhou, the display function of < a href= "http://www.91se91.com/news/index_c.asp" > Free Trade Zone < /a > is quite superior.

"If the commodity enters the bonded area, if it can not be sold, it can be pferred to other markets such as China, Hongkong, Japan and Korea.

This is not possible before, because goods are taxed when they enter customs, and the cost has been raised. "

Ding Haozhou said that the sale of luxury goods by e-commerce providers is more convenient, and goods can not be sold in the bonded area. This is a huge breakthrough.

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< p > Shanghai free trade zone provides a convenient platform for luxury front-end a href= "http://www.91se91.com/news/index_c.asp" > supply chain < /a >, but consumers want to go to the free trade area to "sweep goods" and have to wait a little longer.

At present, the sale of luxury goods in the free trade area is limited to the display function and has not yet been opened to duty-free commodity stores.

"The sale of luxury goods in the free trade zone is mainly aimed at distributors, playing the role of commodity display and pfer."

Zhou Ting speaks frankly.

In Zhou Ting's view, the benefits brought by the FTA to consumers are mainly the impact on the existing luxury price system.

The sales cost of luxury brands will be reduced under the relevant preferential policies of Finance and trade.

The price of goods in FTA is expected to be about 30% cheaper than that in the mainland.

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< p > it is certain that the price of luxury goods in the distribution center is definitely the most favorable price in the mainland, but the specific level of preferential treatment will depend on the specific preferential tax policies in the coming months.

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< p > "the government is considering building a luxury retail store in the free trade zone. This is not a purely retail store, but a display and sale in the bonded area and a tax preference, but the plan has not yet been formally implemented."

Ding Haozhou, executive director and CEO of China business management group, said that the biggest advantage of the establishment of the FTA for retail industry is the entry of imported commodities, while the mature supply chain platform of foreign countries can be established within the territory. The FTA can effectively integrate the platform of imported goods and foreign supply chain, and greatly improves the time cost efficiency.

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