China Tax Exemption Report: Chinese Are Still The Biggest Buyers Of Overseas Luxury Goods.

Today, China's luxury market authority Research Institute, the quality and Quality Research Institute, issued the "China tax exemption report" in Beijing for the third time. According to the survey of 25 Exempt Company and 76 duty-free industry executives, about 892 high net worth consumers with over ten million assets were surveyed. The conclusion is that with the rapid development of global tourism, the global tourism retail industry in 2013 has continued to show rapid expansion. However, the tax exempt shopping continues to grow, but the growth rate is slowing down under the pressure of factory stores and high-end department stores.

According to the wealth Quality Research Institute, sales of the global tax-free industry in 2013 amounted to about 44 billion 600 million euros, with an average market growth rate of about 8%, representing a decrease of 15.3% over the 15.3% growth rate in 2012.

From the data of the top ten tax-free groups in 2013, we can see that the sales growth of the main tax-free groups in 2013 is good, and the number of companies has maintained a double-digit growth. Of them, the sales of DFS to 4 billion 65 million euros are the first in the global tax exempt industry, which is 25% higher than that in 2012.

This is due to the huge consumption groups and strong consumption power of tourists from Asia, especially the mainland of China.

China's two Exempt Company have also made great progress in the past year. The duty-free sales in 2013 were 882 million euros, up 37% from 2013, ranking twelfth in the world, and fourteenth in the global group, and 799 million euros in 2013, a 22% increase over 2012. Among them, Sanya business has brought sustained benefits to the group. Sales increased from 2 billion 27 million yuan in 2012 to 2 billion 815 million yuan in 2013, with an increase of 40%.

As the number of Chinese outbound increases year by year, the Chinese have begun to release consumption power worldwide and become the global tourist retail market, especially the largest buyer of the tax-free market.

Although in many countries, China may not be the largest source of tourist customers in the country, but from the perspective of consumption power, the average consumption per capita of Chinese consumers is 1508 euros, the world's number one, which is 3-5 times the average per capita consumption of overseas citizens in many European and American countries.

In 2013, the Chinese bought 47% of the world's luxury goods, about 102 billion dollars, but only 28 billion dollars of consumption remained in China, and China's luxury consumption outflows 73%.

The Institute of wealth studies predicts that the luxury consumption of Chinese people will shift further overseas in 2014. Hong Kong and Macau (30%), Europe (22%) and the United States (21%) are the three most important areas for Chinese luxury purchases overseas, with the US region increasing 7 percentage points from last year, and 6% in Europe.

At the same time, the proportion of Chinese consumers buying luxury goods on the mainland decreased by 2% compared with that in 2013, while Hong Kong and Macao decreased by 14%.

Unlike previous years, although Chinese consumers still like to buy luxury goods in duty-free shops, factory experience consumption is more popular.

The wealth Quality Research Institute found that the proportion of Chinese consumers' duty-free shops in overseas shopping consumption dropped from 65% in 2013 to 62% in 2014, and showed a further downward trend. Factory experience consumption is becoming more and more favored by high-end consumers, and has gradually become a new tourism shopping item.

Judging from the category of luxury goods purchased overseas, the luxury goods of Chinese rich overseas consumption are quite different from those of ordinary consumers. The rich prefer custom made leather goods (23%), watches (21%) and jewellery (19%) and other hard luxury goods, while ordinary consumers prefer to buy big bags (31%), perfume cosmetics (30%) and costumes (21%), and the more they buy, the more value they buy.

A more interesting phenomenon is that China's rich overseas shopping also shows "cost performance", but whether they can get quality assurance is a painful point of consumption.

Relatively cheap prices and quality guarantee are the main reasons for Chinese consumers to choose luxury goods abroad.

The difference is that ordinary consumers are more concerned about the complete range of luxury goods abroad, while the rich consumers pay more attention to the shopping experience.

In addition, it is worth mentioning that ordinary consumers have significantly improved their personalized service and experience in overseas shopping, up from 3% last year to 15%.

The Research Institute of wealth quality believes that there is no future in the tax exemption industry, and that change is imperative.

With the acceleration of the process of global economic integration, the basic tax revenue on the tax exemption industry will be further reduced, and import zero tariff will become one of the tax policies pursued by many countries. It can be predicted that the duty-free industry will have to take further steps to upgrade and pform when facing the risk of subversion.

The tax-free industry will change market positioning in the future with cheap price as the main customer value, and convenience and service will become the main customer value of duty-free shops, and its product types and

It will be affected and changed.

In the Internet era, the tax-free industry will also expand to the network collectively. However, because of policies and other factors, the duty-free shops will not create a climate.

Globally, the tax exempt industry.

With the rapid growth, the advantages of large duty free groups will be more obvious through mergers and acquisitions. Small Exempt Company will be more difficult to survive. Through acquisition, they can survive and develop with the advantages of large Exempt Company and the advantages of service networks.

For China

Zhou Ting, President of the Institute of wealth and quality research, said that the duty-free market in China will be difficult to change in the short term. Duty-free lines and the Sino foreign group will continue to monopolize the Chinese tax exempt market and will not produce the real third pole.

From the policy level, the state will verify the advantages and disadvantages of tax policies through free trade zones and other forms of tax exemption trial and open online shopping regulation, so as to further reduce consumption outflow through appropriate policies, which will have a substantial impact on China's tax-free enterprises.

Hainan Islands tax exempt state will be further liberalized, but it will not be released to other cities and regions, that is, it will not release the duty-free shops in the city.