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    Overseas Purchasing Measures Will Be More Severe. How Will Future Electricity Suppliers Cope?

    2015/12/7 16:24:00 76

    Luxury GoodsPurchasing AgentsPurchasing Agents

    The mainland government may significantly curb overseas purchasing services to promote domestic consumption.

    Zhou Ting, President of the Institute of wealth research, said: "the government is considering making more stringent measures against overseas purchasing, such as legal sanctions.

    The new policy will soon come out. "

    The Institute of wealth quality is a market research institution.

    Zhou Ting is also a consultant to China's Ministry of Commerce and the Ministry of finance.

    Buyers buy products overseas, and then sell them to mainland customers to make profits.

    They usually avoid customs duties through various channels to save costs.

    One of the main commodities purchased is luxury goods.

    A report by consulting firm Bain said that in the 2014 year, the scale of luxury shopping industry was between 55 billion and 75 billion yuan, almost half of the sales of luxury brand stores in the mainland.

    A senior developer in Hongkong who specializes in shopping malls in the mainland said some of the top global luxury brands visited Beijing this year to discuss how to join the government in combating purchasing.

    "Luxury brands are not worried about economic slowdown or anti-corruption," the executive said.

    Taking into account the expansion of the middle class, the level of personal spending is not bad.

    They are worried about buying. "

    Zhou Ting said: "purchasing not only damages the local industry, but also confuses the supply and pricing mechanism of luxury brands. In some cases, it will also affect the interests of customers."

    Why are consumers keen on overseas purchasing?

    In the domestic social media circle and the big red man on Instagram, you may find thousands of comments under each picture, and when you open these comments, you will find some unusual responses: a large section of Chinese characters coloured with a colorful expression, plus a chain, leading to another account, usually young Asian women in the fitting room to try out pictures of coats, watches and handbags.

    These accounts are known as "purchasing agents". They often live in the most popular countries in the world, using unique e-commerce social networks to engage in business activities.

    Obviously, purchasing is not common in western countries, but in China, purchasing has become one of the fastest growing industries in recent years. From 2008 to 2012, the market scale expanded by 19 times.

    "Purchasing" refers to the behavior of agents through overseas shopping and resale to Chinese consumers.

    The service items include cream, baby milk powder and even luxury goods.

    But because of its low price and convenient pportation, handbags have become the most popular purchasing products.

    Merchants usually charge 10% to 15% of the retail price of goods as purchasing fees.

    As an industry with an annual income of up to 15 billion dollars, there is no doubt that many entrepreneurs are looking forward to taking the profit train.

    At present, purchasing services for young customers in China's first and second tier cities are mainly managed by Chinese students living in North America and Europe.

    It is mainly because of flexible academic arrangement and extensive personal relationship network that purchasing can easily become a sideline.

    Why are there so many luxury goods stores and department stores in China's big cities? People still have to go shopping in such a complicated way? There are two reasons: first, the huge price difference.

    Seasonal discounts and outlets are very popular in the United States and Europe, which leads to the purchase of luxury goods overseas, which is quite cheap, not high consumption tax and import tariffs to China.

    In the interview, ParisTop merchants said the difference between the two places was between 30% and 50%.

    Besides, for Chinese people, getting a handbag from a boutique in Paris is worth showing off.

    This shows that China

    Consumer

    The trust in local products has disappeared, especially in recent years due to numerous fake reports, such as the sale of counterfeit Prada Saffiano handbags in Chongqing's high-end boutiques.

    According to the RedTech Advisors survey, 81% Chinese consumers are very cautious about counterfeiting and shoddy products.

    "The difference between domestic and overseas luxury goods is too great!" an industry analyst said, because the price of the same brand is 3 to 5 times higher than that of the United States, and the price of all luxuries is at least 3 times higher than that of the United States.

    The most important factor that many people choose to buy or buy abroad is the price.

    For example, the same brand bag sells for 5700 yuan in the mainland and sells for 5000 yuan in Hongkong, while the price in Europe can only be around 4000 yuan.

    More data shows that a Chanel handbag retails in France for 3100 euros (25 thousand yuan), while the Chinese price is as high as 37 thousand yuan.

    According to survey data from relevant agencies, China has the highest price of luxury goods in the world: the average price of luxury goods in mainland China is 45% higher than that in the Hongkong market, 51% higher than that in the US market, 72% higher than that in the French market.

    If the package is not reported for private purposes, it will have serious consequences.

    In 2012, a former flight attendant and purchasing agent did not submit the beauty declaration form purchased in duty-free shops in Korea. After returning to China, the huge profits tax evasion resulted from the resale of the goods was punished by 11 years' imprisonment (then the sentence was reduced to 3 years).

    The French luxury brand Chanel, which is raising its price in April this year, announced that the price gap between the various markets in the world has been coordinated since April 8, 2015, and the price of the Chinese mainland has been lowered, and the selling price in Europe has increased by 20%. The price difference between the two places is no more than 5% after the price adjustment.

    Like the overthrow of Domino, Dior, Versace, Patek Philippe, TIG house and other brands have also expressed their prices in China, but the luxury price difference is still large, and in June the Chinese bought bags in Europe.

    Leatherwear

    And other expenses soared 93.7%.

    Louis Weedon has shut down 3 Chinese branches recently, and will be closing several more in the next few months. The report also quoted insiders that it is understood that LV will cut 20% of the Chinese branches in the middle of next year, equivalent to about 10.

    The global luxury market surveillance report released earlier this year pointed out that the luxury goods market in the Asia Pacific region will be at a standstill this year, and the luxury income in the mainland will be reduced by 2% to 4%.

    Other international luxury brands have also restructured their distribution in China. Comprehensive market data show that the number of luxury brands such as Prada and Gucci in China is also decreasing.

    So far, the weakening of luxury consumption in China has been partly offset by strong overseas consumption of Chinese tourists, especially in Japan and Europe, which will seriously cause domestic shops to fall into the role of exhibition hall.

    As the executives mentioned earlier, luxury brands are not worried about economic slowdown or anti-corruption, but they worry about purchasing agents because they disrupt the supply and pricing mechanism of luxury brands.

    Moreover, apart from the price reasons, the differentiation of luxury brands in China is also the reason why the overseas purchasing market is very popular. "Miss Chen, who has many years of purchasing experience," said, "according to her two years of purchasing experience," in fact, many new brands of foreign brands should be listed in China, at least 2 to 3 months.

    And because of the regional protection of luxury brand sales, many well-known brand new products will not be selected for sale in China.

    For some consumers who are at the forefront of fashion, they will definitely choose to buy abroad.

    Overseas purchasing

    "

    In any case, the purchasing business, which is also troubled by fake goods, may soon find other ways out.

    Last year, the General Administration of Customs of China announced the regulations on goods entering and leaving the Customs: all the packages worth more than 5000 yuan (US $806), marked "private purpose", need to pay customs duties.

    Resale products need to be reported and higher tariffs are required.

    This means that only a few thousand packages can be removed from customs every day, which should be outside the 4% sampling rate or not marked as "private use" or "gift".

    Behind the sale of luxury brands by the luxury brands is the poor sales performance of luxury brands in China, which has led to a lot of pressure on stores that have opened up in the past.


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