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    Tax Cuts Are Good News For Domestic Footwear Industry.

    2016/1/21 13:51:00 41

    Tax ReductionDomestic MarketFootwear Industry

    Following the tariff reduction of some imported products in June 2015, in early January 2016, the government further expanded the scope of tax reduction for imported commodities and lowered the provisional tariff rate of 16 consumer goods, including luggage, clothing, scarves, stalls, vacuum thermos cups and sunglasses.

    Tariff reduction is a good thing for direct sea race.

    According to the whole year, the tariffs on infant formula purchased abroad are the most downregulated.

    Among them, the milk protein partial hydrolysis formula, milk protein deep hydrolysis formula, amino acid formula, lactose free formula and other special infant milk powder import tariff rate from the previous 20% directly to 5%.

    The import duty rate of vacuum thermos cups in daily necessities is 12% and sunglasses are 6%.

    A business that has been running for 3 years has launched the advertising of "the lowest 75% off of imported goods".

    Shopkeepers said that the price of domestic goods has been lowered, especially after the price of luxury goods, the profit margin of purchasing agents is very small.

    In addition, some Hai Tao stores also sell them in the form of a large collection of annual goods, which are more than 10% cheaper than before.

    According to the analysis of the industry, as the tariff of imported products has been continuously lowered, the era of purchasing by selling the single hand to make the difference has come to an end. Overseas purchasing is facing a pformation. It is suggested that private custom goods should be sold. Such products are relatively small, and it will be more difficult to clean up in the country.

    According to relevant data, the growth rate of Chinese tourists' consumption in Australia is more than 3 times that of all overseas visitors to Australia. In the previous year as of last September, the growth of Chinese tourists' spending in Australia increased by nearly 50% over the same period last year.

    In order to guide the return of consumption, China has reduced tariffs on many imported commodities.

    On the same day, a press survey found that a large number of shopping malls selling imported daily necessities in Shenyang had begun to adjust their prices.

    One of the women's fur coats was originally priced at 18888 yuan and the current price was 17888 yuan. Some of the fur scarves and scarves were also sold for 20 percent off.

     

    81 companies: 6 billion 400 million yuan in 3 years

    government grants

    Changshan shares received the highest amount of government subsidy in 2014. In the 12 government subsidy projects, nearly 337 million yuan was contributed by the government's relocation subsidy.

    Similarly, the government received 13 government subsidies in 2013, and the highest amount was government relocation subsidy, amounting to nearly 200 million yuan.

    Like Changshan shares, there are Huamao shares that have been compensated for relocation, and the two government subsidies received in 2014 were more than ten million yuan in terms of relocation compensation and industrial development funds.

    It is understood that Huamao shares also received government subsidies for industrial development funds in 2013, amounting to 33 million 966 thousand and 200 yuan.

    In the 16 government subsidy projects, they rank the top of the grant.

    It is worth noting that the disposal of illiquid assets as a subject of non operating income is also a big magic weapon for "zombie enterprises" to die and resurrection. Although it is a hammer deal, it can be taken at a critical moment before the company assets are cleared.

    In fact, when the company's net profit after deducting non recurring gains and losses for many years is negative, the company's profit has always been very strong.

    More analysts regard investment income as a main business of the company.

    Taking Huamao shares as an example, statistics show that the investment income of Huamao stock from 2012 to 2014 was 588 million yuan, 271 million yuan and 636 million yuan respectively.

    According to the reporter, Huamao shares will get so much investment income mainly from the sale of GF Securities shares.

     

     

    Tax reduction

    Good domestic luxury industry

    In fact, in 2014, just as the luxury industry, Chinese consumers bought 500 billion yuan overseas a year, while the total amount of luxury goods purchased in China was only 180 billion yuan.

    Among them, the main reason for this group of people to go shopping abroad is the international price difference. The import tax of luxury goods is about 30% to 50%, plus the division of agents, which means that domestic sales are double the price of overseas.

    Sun Yafei believes that cross-border electricity suppliers can now be divided into two categories:

    The first category: China does not import goods from abroad.

    The second category: domestic goods, purchased from other sources abroad, acquire lower purchasing prices and earn profits by lowering prices.

      

    Sun Fei Fei

    It is pointed out that after the tariff falls, the brand side will also reduce the price, which will have a greater impact on the second types of cross-border electricity suppliers, because most of these types of merchants are purchasing agents on the C2C, who themselves earn mainly the price difference between overseas and domestic, and domestic prices are falling, and their profits will inevitably decrease.

    "For the first category of businesses, the impact is not, but has a catalytic effect.

    The tariff increases, and consumers stay at home to buy things, which can stimulate domestic consumption environment, and such cross-border electricity providers will also be promoted.

    Sun Yafei said.

    "When the Chinese do not spend all their domestic consumption overseas, the domestic consumption environment will become worse. The Chinese agent of the brand will also cancel the agency because it can not complete the sales task, and the brand will hardly be profitable and will close the Chinese shop."

    Sun Yafei said, "when the tariff decreases, the brand side will have a reason to reduce the price in the domestic market.

    In this way, China's consumption can be left at home.

    In fact, since China began to lower tariffs on some imported products in June last year, major luxury brands have also implemented a "price reduction" strategy in China.

    At the end of July 2015, luxury brand Prada announced price adjustment to many regions including China, and clothing, luggage and other main commodities were in the price adjustment.

    In addition, the international brands of Shiseido, SK-II and L'OREAL have also been cut down one after another.

    South Korea's cosmetics SKINFOOD has even cut its price range by more than 40%.


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    Read the next article

    The Government Led Policy Should Give Way To Enterprise Development.

    At present, cross-border electricity supplier import pilot is mainly for B2C mode, B2B mode tax is basically in accordance with the traditional general trade mode. In the future, if cross-border electricity providers are pushing vigorously, they should further separate the cross-border electricity providers from general trade, and implement differentiated tax policies to promote their role.

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