The Latest Trend Is That The Price Of Luxury Goods In China Will Be Lower.

According to the world clothing shoes and hats net, the luxury Quality Research Institute, the Institute of wealth and quality research, released its first "guest" in Shanghai on the 27 th.

"Pointed out that the adjustment of China's overall import tariff, the rapid development of cross-border trade, and the intensified competition in the high-end consumer goods market have prompted the brand to actively adjust its pricing strategy in China and coordinate global pricing.

The report also says that China will be the cheapest place to buy luxury goods in the future.

According to the study, compared with 2011, the overall average price difference between China and luxury goods in 2017 will shrink from 68% in 2011 to 16%, and the difference will be narrowed by 52%. "Chinese consumers are the largest single consumer group in the world as luxury brands, and many luxury brands will introduce more discounts and promotions in order to attract consumers quickly after entering the electricity sector. Chinese consumers will welcome their own fixed discount season, so that not only will the whole world achieve the same price of luxury goods, but also the price of luxury goods in China will be lower."

The report of the Institute of wealth and quality research is concerned with eight luxury items, including jewelry, watches, bags, clothing, footwear, perfume, cosmetics and skin care products. There are 100 international first-rate luxury brands and 1000 sample products in the market prices of major luxury goods consumers in mainland China and Mainland China in March 2017.

Chinese consumers are the world's largest consumers of luxury goods. According to the statistics of the Institute of wealth and quality, in 2016, Chinese luxury goods consumption reached US $120 billion 400 million, of which US $92 billion 800 million (about 640 billion yuan) of overseas consumption luxuries meant that Chinese people bought nearly half of the world's luxury goods in the past year. Meanwhile, over 5 years, over 70% of luxury purchases took place outside China.

By 2020, the consumption of luxury goods by Chinese consumers will reach US $121 billion 600 million, and the annual market growth rate will remain 7%.

Faced with the serious situation of luxury consumption outflow in China, the Chinese government has issued a series of consumer stimulating policies in recent years, including expanding import to promote cross-border trade. In June 1, 2015 and October 1, 2016, the import tariffs on clothing, shoes, skin care products, cosmetics, perfume and other categories of commodities were separately lowered, causing widespread concern.

Although the import tariff rate is not a fundamental factor in the high price of international luxury goods in China in the past, it has a strong influence on the pricing strategy of international luxury brands in China, as an important means of regulation in national import trade and domestic high-end consumer market.

June 2015

After the policy of lowering the import tariff rate of some products was released, including the 8 top international watch brands such as Earl, Patek Philippe, Vacheron Constantin, Chanel and so on, they voluntarily lowered the selling price in China, and the price range was between 5%-25%; the top fashion brands such as Burberry and Prada began to cut prices, the highest decline to 20%; and the overseas cosmetic brands were on the whole price cut, especially Shiseido, Estee Lauder, L'OREAL and Procter & Gamble four group's products first adjusted the price, the average decrease was between 8%-25% and the highest 36%.

In October 1, 2016, after the Ministry of Finance issued a policy on the reduction of the consumption tax rate of "high-end cosmetics", the price of foreign cosmetic brands in China almost all fell down in January 2017, which greatly improved the situation of imported cosmetics at home and abroad for a long time.

In the secondary luxury global luxury price monitoring process, 53% of the international luxury brands have an average price difference of 15% at home and abroad, while 29% of the luxury brands in China are reduced to 18% between 15%-20% and overseas, with an average price difference of over 20%.

Among them, the highest price difference between home and abroad is the high-end watches. In 2011, the average difference between the domestic and international categories was as high as 161%, with the highest number of categories in the residence and 6% in 2017.

The external reasons are: first, China's domestic high-end watch consumption, especially the gift type consumption, has been greatly reduced. Two, with the increase of Chinese outbound travel, the proportion of overseas purchases caused by price concessions is increasing. The fundamental reason is that the competition pressure of the watch market itself is increasing, and consumers' consumption of watches is more rational.

In addition, the retail price of top international jewellery brands in mainland China has also shrunk to about 10% abroad.

On the whole, the price of hard luxury luxury goods is the biggest in mainland China, which means that the price of products that do not have real functions in the future will drop more.

Regionally, the cheapest place to buy luxury goods around the world is still in Europe.

Because of the exchange rate, the price of luxury goods in the UK is the biggest difference from that in mainland China, about 24%.

The euro zone's Spain, Italy and France are close behind. The average price difference between China and the mainland is over 20%, plus the local tax refund policy for foreigners, which is more cost-effective for Chinese consumers to buy luxury goods.

In comparison, buying luxury goods in the US does not have a price advantage, and the average price difference between China and the mainland is about 15%.

In addition, as the luxury brands constantly adjust their retail prices in mainland China, the price advantage of Hongkong and Macao in the Asia Pacific region has been greatly reduced, while the price advantages of Japan and Korea are also very weak.

Even higher than the Chinese mainland, only its local products have a certain price advantage.

Although Singapore does not have the price advantage of luxury shopping as a whole, because of its geographical location, anti seasonal products have special price advantages.

More attention should be paid to the world clothing shoes and hats net.