China Is Still The World'S Highest Luxury Goods Country.

An analysis recently released by DDT consulting (Deloitte) on prices in different countries shows that China is still global.

Britain, the country with the highest price, has become the lowest price country in the world because of the sharp drop in pound sterling.

DDT found that after Britain returned to Europe, a common

The speedy 30 shopping bag sells for 1115 dollars in China, only 802 dollars in the UK, 820 dollars in France, and 970 dollars in the US.

A Foulard Fringe from the family of Paris

In Britain, it costs 1312 dollars, which is 353 yuan cheaper than the price in China.

A Brunello Cucinelli's Kashmir shirt is $808 in the UK, much cheaper than China's $1287 and the US $995.

Luxury brands have been working hard to crack down on China's grey market, which is caused by high tariff imports. Many brands try to adjust their selling price to keep balance with the global average price. The brands of price adjustment include Chanel, Cartire, Babel, Patek Philippe, tiger Heuer and Louis Weedon.

In some cases, the price of China can be more cost-effective. For example, the price of the Chinese dress mentioned above is actually 100 dollars cheaper than that of the United States.

But on the whole, luxury consumers in China still face high prices at home. According to L2's 2016 report, only 29% of luxury brands in China are priced at 15% less than the international average price.

Among them, the price of Burberry is 37% higher than the international average price, Louis Weedon Ki 25%.

Surprisingly, the "light luxury" brand has a more exaggerated price difference in China than high-end luxury goods, which stems from the fact that these brands hope that sales in China can make up for the lower overseas sales.

These brands usually locate themselves more upscale in China than in the US and other countries.

China's fluctuating currency exchange rate is a big challenge for luxury brands. One of the most frequent cases is that the low price in the middle of the season due to currency fluctuations will make people feel that the brand begins to "discount".

However, in general, only the new series will adjust the price, and the products that have been placed on the shelf will not change.

The price reduction of Chanel during the peak season in 2015 is an exception. This also proves why high-end luxury brands have a strong desire to protect their brand image: WeChat has been widely rumored that Chanel started to "discount", which led directly to the long queues outside the door.

The representative of Brunello Cucinelli told reporters recently that they will only adjust their selling price according to the currency exchange rate before the start of each new series.

In addition, there is another reason why the Chinese government has tried to crack down on purchasing agents. The gray market has lost a large part of the tax revenue to the Chinese government.

From the reduction of tax on imported products in 2015 to the tax reduction policy introduced this month, and the increase in tax revenue in April 2016, as well as the increase in taxes on more than 5000 RMB products, the Chinese government gradually began to open tax-free and opened tax-free shops in downtown Shanghai and Hainan.

China's luxury grey market is shrinking, but it is still huge.

According to Bain & Company data, the gray market reduced by 43 billion yuan in 2015.

In 2014, the market value of the grey market was estimated at around 550 to 75 billion yuan.

But this reduction does not represent an increase in domestic consumption. While the gray market is weakening, the consumption of luxury goods by Chinese consumers in overseas travel and cross-border electricity providers has reached 293 billion yuan.