Lowering Taxes Is Not The Same As Reducing Prices. Can We Guide The Return Of Consumption In Textile And Clothing Industry?

From the above tax reduction in June 1st, we all think that reducing taxes is about buying foreign products cheaply.

Whether this policy can really return the consumption of textile and garment industry? The textile consumer goods tax reduction, from a short period of time, consumers are undoubtedly the biggest beneficiaries, which can further prevent the long-term consumption outflow.

But in the long run, this adjustment will bring a series of new rules and new standards to the industry. The profound implication of adjusting the industrial structure behind it is inevitable.

The fall in tariffs has become the hottest topic in recent times.

Not long ago, the Executive Council of the State Council decided that in order to improve the import and export policies of consumer goods and enrich the shopping choices of domestic consumers, we should carry out pilot projects to reduce import tariffs on consumer goods with large domestic demand.

Less than a month later, the Ministry of Finance issued the official website: after approval by the State Council, since June 1st, the pilot scheme of lowering import tariffs on some consumer goods has been launched, and tariff rates for skin care products, suits, boots, diapers and other products have been reduced by provisional tax rates.

Then, in June 1st, the senior government of China and South Korea formally signed a free trade agreement in Seoul. The agreement stipulates that tariffs on imported textiles and clothing will be cancelled for a period of time.

For the time being, whether China and South Korea's regional trade agreements were on the previous stage, the consumption tax of the Ministry of finance's tax reduction has been adjusted. The total import tariff rate of 14 daily consumer goods has been adjusted, while textile consumer goods (including fur clothing, wool suit suits, textile shoes, diapers, etc.) accounted for 9 items, and the tariff rate reduction interval was 42.86%~73.33%, with an average decline of more than 50%.

From the perspective of materials used in textiles, it is mainly concentrated in high-grade natural fiber textile products such as fur and wool.

To benefit the people, can we guide the return of consumption?

Undoubtedly, the state allows profits, consumers become the time.

The biggest beneficiaries.

The reporter counted out an account for Burberry, a TRENCH lamb wrapped TRENCH trench windbreaker sold at 6000 euros (RMB 40620 yuan), excluding the exchange rate change and the value-added tax (now the 17% of the luxury clothing is set). If consumers buy them in the territory before June 1st, they need to add 23% of the customs duties, and the price is 49962.6 yuan.

After the tariff adjustment in June 1st, the price dropped to 44682 yuan, which saved 13% of the customs tariff for the consumers by about 5280 yuan.

The most rapid response to this tax reduction is the major luxury brands.

In May 27th, hundreds of people queued up at the front gate of Gucci flagship store in Jinying mall, Nanjing West Road, Shanghai. These Gucci VIP customers became the first wave consumers to catch up with Gucci half off.

In fact, Gucci is not the first luxury brand to reduce its value this year.

In March, the official price of Chanel in mainland China dropped by 20%. In April, Prada said it would follow other competitors in the Asian region outside Japan. In the same month, Dior also lowered prices for two handbags in China. Recently, the lowest 50 percent off clothing sales promotion of Hermes in Conrad Hotel in Hongkong has just come to a close.

Data may explain the reasons behind the trend of luxury brands.

According to the China luxury report released by the Institute of wealth and quality, a luxury research and consultancy agency, the global luxury market in 2014 amounted to $232 billion.

Among them, Chinese consumption amounted to 106 billion US dollars, accounting for 46% of the global luxury consumption, but overseas consumption reached 810 billion US dollars, accounting for 76% of the total.

It can be seen that the consumption outflow has become the pain of Chinese luxury goods brands in the Chinese market.

Coupled with this tariff reduction products are mostly involved in a large number of luxury brands of core products, we can infer that in the future, luxury goods price reduction is the general trend.

However, the retail price of the imported goods will be raised.

The key.

The reporter interviewed a women's clothing brand discount shop located in Wanda Plaza, Jianguo Road, Chaoyang District, Beijing. The store ran dozens of European and American second-line women's wear brands, and shopkeepers Ting Zhang gave reporters feedback on consumers' doubts about the tax cut.

"After all, there is still a certain gap between the intensity of price reduction and that of foreign countries, and many other classic and best-selling goods are always out of stock, with limited choices."

Lowering taxes is not the same as reducing prices.

Tax reduction is not the same as price reduction. After all, the consumer price of the retail terminal is not only a matter of tariffs, but also affected by various factors such as value-added tax, consumption tax and channel business and brand pricing.

At present, many countries have launched quarterly discount activities for many second tier brands. As an important Asian market, China has maintained a high price operation in the past. As more and more consumers choose to field consumption or purchase online, online shopping mode is broken through the information sharing abroad and Internet information sharing, the original market segmentation operation mode has been broken.

This part of the consumer group is basically a highly educated and high-income group. They are concerned about brand information, sensitive to exchange rate, and various ways to understand brand discount. In this situation, we will also choose to lower prices so that more customers can enjoy the benefits.

Ting Zhang said.