14 Categories Of Commodity Tariffs "Half Cut" To Stir Up The Market Pattern

After the Ministry of Finance announced the tariff cut in May 25th, L'OREAL, the world's largest cosmetics group, responded swiftly on the 26 day of the month, saying it would reduce the price of most imports. This means that many brands sold in China, including Lancome and Biotherm, will adjust the price in full.

In May 27th, another cosmetics giant Estee Lauder group also announced its product price adjustment plan in China.

CEO of L'OREAL group, China, said he noticed that the Chinese government lowered the import tariff of cosmetics from 5% to 2%. Although the decline has limited impact on retail prices, the group still decided to take this opportunity to reduce the price of some imported products.

Reporters learned from the Ministry of finance that this tariff reduction locks 14 categories of commodities, an average of more than 50% decline in strength over the past.

Among them, suits,

Import duties decreased from 14% to 23% to 7% to 10%.

Import tariffs dropped from 7.5% to 2%, and import tariffs on short boots and sneakers dropped from 22% to 24% to 12%.

Vice Minister of Finance

It is said that the 14 types of pilot commodities mainly choose commodities that are closely related to the daily life of the people, the higher proportion of domestic consumers shopping abroad, the higher proportion of tariffs in the total tax burden of commodities, and the commodities that have less impact on domestic related industries after tax reduction.

In view of public opinion that the reduction of tariffs may affect some Chinese tourists in overseas hot market areas such as Japan and Hongkong, Shi Yaobin said that the State Council's import tariff policy adjustment is not aimed at any country or region.

"These measures are not intended to bring back the consumption of Chinese consumers abroad, but to facilitate domestic consumption, facilitate domestic consumer shopping, and meet personalized and diversified consumption needs."

He said.

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Why luxury brands have so much rejection of e-commerce?

International brand management expert, Professor Guzez, vice president of the French KEDGE business school, said that luxury brands, on the one hand, believe that consumers can only feel the exquisite workmanship of boutiques and bags by touching. Only physical stores can make people enjoy unique clothing, clothing and other services. Secondly, the entry point of electricity providers is price, while luxury brands are unwilling to lower their prices and images; thirdly, they worry about fake products on the Internet.

Even now, a vice president of global high-end electrical appliances brand, who has entered China for more than 20 years, said in a media interview that he would not consider the electricity supplier for a while. "Because the electricity supplier can not let customers get high-quality experience."

However, Pavlos Ki gradually realized that "the electricity supplier channel can enable us to better understand and serve customers, and strengthen communication with customers.

This is an opportunity to establish long-term good relations with our customers. "

He said Chanel plans to launch a global price adjustment from the 2016 holiday series to match its e-commerce platform.

"No world-class luxury brands can be absent from the electricity supplier market."

Mario Olteli, a senior analyst at Bernstein research, said he predicted that in the next 5 to 10 years, the electricity supplier channel will occupy more than 15% of the total turnover of luxury goods, which is mainly driven by the promotion of emerging markets. Young and wealthy consumers in the market will be digital elite.

Studies have shown that in fast growing markets such as China, India, Turkey and Latin America, customers with purchasing power are more than 10 years younger than developed markets. These young customers generally have intelligent devices and are more interested in digital technology.

In addition, Luca Solca, general manager of Paris bank, once said: "the electricity supplier is still one of the most important sources of growth for luxury companies, and has maintained a steady growth trend."

According to the "digital sales share of luxury market" published by the Bank of Paris, in China and the US market, the turnover of luxury consumers through the electricity supplier channel accounted for over 10% of the total performance, followed by the British and Japanese markets, accounting for 8%, Germany accounted for 6%, and southern European countries accounted for 4%.

Many of the luxury stores no longer drive profit growth, but when consumers start selling online, consumers will revive, he said.