Analysis Of Advantages And Disadvantages Of Tariff Reduction In Clothing Imports

Recently, the import tariff reduction of the 14 categories of daily necessities has become a topic of major media coverage.

Among them,

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The tariff reduction has also attracted the attention of people in the industry.

From the policy level, it is hoped that this will stimulate the consumption of domestic related products, but it still depends on whether consumers can enjoy the price reduction of final products.

At present, abroad

Has the agent adjusted the price of the product? What kind of market structure will the domestic clothing brand face if the import tariff is lowered?

Tariff "red envelope" is expected to boost domestic consumption

Since June 1st, China has imported cosmetics, suits, fur clothing and short boots.

And other commodities ushered in an unprecedented average of over 50% reduction in tariff adjustment.

Among them, the import tariff of suits and fur clothing related to the textile and garment industry has been reduced from 14%~23% to 7%~10%.

Insiders pointed out that tax reduction measures are expected to boost domestic high-end clothing and related tax reduction products consumption.

In the current cross-border electricity supplier and overseas purchasing popular, or will create a new market structure.

"Domestic consumers have a certain tendency to follow suit.

Once the middle and high-end brands in foreign countries have formed a scale in the Chinese market, they may lead the middle class, including white-collar workers, to consume.

And this group of people is more concerned about the price.

If the selling price of the related products will eventually be lowered, then the purchase intention of the consumers will surely increase.

Insiders say.

Huang Zhaohui, general manager of Beijing Jun Si Zhuo Brand Management Co., Ltd., in an interview with reporters, said: "after tax reduction, it is likely to boost domestic consumer market, and it is also expected to pull some of the consumption back."

At present, China has become one of the largest outbound tourism consumers in the world.

According to the annual report 2014 of China's outbound tourism development published by China Tourism Research Institute, in 2013, China's outbound tourism consumption reached 128 billion 700 million dollars, exceeding any other country.

This is closely related to the high price of imported goods in China.

Foreign famous brand suits in China are priced at a low price of seven thousand or eight thousand yuan and a high price of 10000 yuan.

According to the tariff reduction rate of 7%, the final selling price may be around 1000 yuan after tax adjustment, which is quite attractive to consumers.

The market has the final say.

Of course, all of the above assumptions are based on the fact that the brand and the agent have pferred the favorable benefits of the tariff reduction to the final retail price of the products, thereby benefiting consumers.

However, in an interview, reporters found that foreign clothing brand agents had no action to reduce the retail price of products, and they were more wait-and-see.

Yingshan image management company sells many Italy.

Brand clothing.

Li Chumeng, the buyer of the company, said that in the short term, the prices of suits and fur clothing will not be reduced, mainly because the consumers who are willing to buy international brands at home have certain value recognition for the price of the products.

But she did not deny that next year or the next year it would be possible to cut prices.

"If the competition for similar goods is intensified in the future, we may start with adjusting prices to enhance the competitiveness of commodities."

Huang Zhaohui, general manager of Junsi Yi Zhuo, also said that the price of related products has not been lowered.

All price adjustment plans are still being worked out, because there are many factors that affect the final selling price of goods.

In the past, the company only decided to make price cuts when adjusting liquidity.

Generally speaking, taxes will have an impact on commodity prices, but not the only factor.

The price differences among different brands, the logistics and pportation costs from the imported land to the consumption place, and the management cost of the middlemen will all affect the final price of the imported goods.

But there is no doubt that market demand change is the most important factor affecting the price of products.

The tariff adjustment will reduce the threshold for foreign brands to enter the Chinese market.

With the influx of a large number of "foreign products", the international brand competition in the Chinese market will also heat up.

Once consumers have more choices, price will be the first consideration.

In addition to price adjustment, Li Chumeng also plans to represent more international brands so as to seize market share as early as possible.

In the current Chinese market, the international first-line brand has become saturated.

With the promotion of the good policy of the Chinese government, the small public brands have come to the best time in the Chinese market, and the Chinese fashion industry needs this new force.

Li Chumeng said she is currently working with designer brands from Italy and the United Kingdom to discuss cooperation.

Increasing competition will lead to catfish effect.

The threshold for foreign brands to enter China has been reduced, which means that China's local brands are facing a more competitive environment.

At present, Huang Zhaohui is also distributing some domestic brands in addition to the women's clothing brands in Korea, Italy and Spain.

She believes that as more and more foreign brands enter the Chinese market, China's clothing brands will inevitably press ahead, adjust their business philosophy, and enhance their design capabilities, which is very important for the future development of enterprises.

As we all know, China's clothing enterprises are now facing a complex living environment.

Huang Zhaohui said that compared with the increase rate of 2.5~3 times the cost of foreign brand products, the price increase rate of Chinese clothing can reach 8~10 times. The expenses of channel marketing, store rentals, staff training and other expenses have increased the management pressure of enterprises.

An insider, who declined to be named, pointed out that China's garment enterprises urgently need to change their business philosophy.

"In recent years, a number of domestic fashion groups have been closed down. I think the most fundamental reason is that they have not changed their consciousness.

As far as I know, in the Chinese market, fashion brands such as Maxmara and Zara will hire some Chinese designers to improve their popular styles of clothing sold in Europe and America, and then sell them to the market.

Although these brands have made some achievements in the international market, they are willing to change for the Chinese market, so the brand will have more followers.

In contrast, some garment enterprises in China mainly started from cost reduction, and their investment in fabric innovation and design was relatively low, resulting in the disconnection between products and the market.

Some local garment enterprises may also account for 30% of their cost in the early stage of design and material innovation, but European designer brands usually spend more than 50% of their product design inputs.

There are pros and cons in everything. Some experts point out that the "red envelope" policy of lowering taxes is good for the consumer market. For domestic brands, it is more necessary to make use of this opportunity to enhance the cultivation of quality and brand.

This is actually a "catfish effect", that is, when catfish stirs up the living environment of the fish, it also activates the survival ability of the fish.

Imported products may not be very different from domestic products in terms of quality, but their fashion and brand influence have their own unique competitive advantages. Brand image has gained a higher evaluation in the minds of consumers, which is a need for domestic enterprises to learn and draw lessons from.