The Price Is Higher Than Foreign Countries. Don'T Blame The Tax.

Import watches are subject to import duties, most favored nation import duty rates are 11% for mechanical watches and 12.5% for general electronic watches.

Since July 1, 2014, the tariff rate of watches and parts imported from Switzerland has been applied to the agreement tax rate. The agreement tax rate is reduced by about 18% compared to the most favored nation rate. The agreement tax rate is 9% for mechanical watches and 10.3% for general electronic watches.

Since January 1, 2015, the agreement tax rate has dropped further, which is about 23% lower than the most favored nation tax rate.

If the price of watches imports exceeds 10 thousand yuan or more, they will have to pay a 20% consumption tax.

Therefore, Chinese consumers go abroad to buy,

The main reason is directly related to higher tariffs and consumption tax.

However, some Chinese high-end brand watches are priced too high in China's domestic market than other major overseas markets. Apart from the relatively high tax rate of Chinese watch imports, there are also factors that the brand takes into account in its marketing strategy.

The import tariff of watches has been cut down two times since July 1, 2014, but in fact, for dealers, the price of their imports from brands or brand agents has not been lowered so far. For consumers, the retail price of watches has not been lowered to date.

It can be said that so far, Swiss watchmakers and consumers in China have not benefited from the policy of tariff reduction. The reduction of import tariffs is actually an increase in profits from brand dealers or brand agents.

LVMH group's high-end watch brand HUBLOT (Yu Bao table) is the first Swiss brand to announce the actual retail price of mainland China and Hongkong price in the last year. Most other brands are only nominal in the same price (the Hong Kong dollar exchange rate is different, so the actual mainland price is higher).

however

Such a brand's share in the Chinese market is very small. For the overall situation, it can not play a decisive role in the demonstration and guidance. However, no doubt, its equally pparent price strategy in the world is a direction for other Swiss watch brands.

"This is the trend of the times," said Jean-Claude Biver, chairman of the board and chairman of the watch group of LVMH group, "I think every brand will take this road sooner or later."

This China

Why do we have to pay a higher price for buying watches in China? Why is it more expensive to buy things in our country than abroad? Logically, all prices should be the same.

I will say, thank you for your interest in our products. I will give you the same price, quality, choice, product, and you can buy it in the mainland.

Our global prices are pparent and authentic.

As for why we should absorb the price difference caused by different tax policies in different countries, instead of pushing the responsibility to the Chinese government's tax problems, unlike other Swiss brands, Biver made a very wise reply: "if it is snowing outside, if I am in the house, you are outside, you say cold to me, and I will answer" snow is not my business, that is to catch you away.

If I want to be polite, I'll say - it's not that I've made the world snow, but this jacket is for you. "