Import Tariffs Cut Luxury Brands Price LV, Hermes Dropped By 1500 Yuan.

Thanks to China's import tariff reduction, some European luxury brands have begun to reduce the prices of products sold in China.

Recently, while visiting some luxury stores in Shanghai, LV (LV) and Hermes have already cut down some commodity prices, but more luxury brand stores have not yet been notified.

Surging news found that LV China's official website shows that the price of goods has been modified, and the store clerk of the entity also confirmed the price adjustment.

The price range ranges from 300 to 1500 yuan, and most of the products are involved in the reduction. Consumers who have made reservations before the price reduction can negotiate with customer service or shop assistants.

Hermes also announced that, based on the adjustment of the national import tax rate, Hermes China will adjust the retail price of some products from July 1, 2018.

According to the guide of Hermes store, the price range of products is about 100 to 500 yuan, and the accessories such as belts, wallet, scarf, and some styles of women's clothing are all involved.

However, the store staff said that the price reduction had little effect on the choice of passengers and the choice of goods, because consumers who bought luxury goods were not very sensitive to price.

In addition to the two brands, the staff of Burberry, Gucci, Givenchy and other brand stores have said that there are no products in the shop to adjust prices recently, while Dior clerks clearly stated that they had not received notice of price adjustment.

The background of the European luxury brands price reduction is mainly the reduction of China's import tariffs.

The new tariff reduction plan announced by the Customs Tariff Commission of the State Council has been formally implemented recently. The adjustment covers consumer goods and clothing.

Among them, clothing, shoes and hats and sports fitness products and other import tariffs average tax rate fell from 15.9% to 7.1%, skin care, hair and other cosmetics and some medical and health products import tariff average tax rate from 8.4% to 2.9%.

In recent years, the world's major luxury brands are paying more and more attention to the Chinese market.

Although some brands have not yet made clear that they will cut prices due to tariff adjustments, they have been exploring price adjustments in recent years.

Take the classic and elegant line of Chanel as an example, the brand implemented the strategy of "global coordinated pricing" in 2015. This strategy is mainly aimed at China, a luxury consuming country, to maintain the same price between China and Europe through discount reduction.

And this strategy did promote sales in a short time, which has created a "grand occasion" for the long queues of Chinese stores.

However, the price strategy at that time attracted the industry's query. Some people thought that this led Chanel to develop towards the mass line and deviated from its high-end luxury brand positioning.

After that, Chanel adjusted the previous strategy by gradually increasing the price of some packages.

However, on the official website of Chanel, some classic products will occasionally be offered some discount.

But that does not change the fact that China is an important market for Chanel.

In June this year, the first time in 108 years, Chanel announced its complete results. Europe is Chanel's largest market, accounting for 40% of its revenues, followed by Asia Pacific and the Americas.

Chinese consumers have made a huge contribution to the strong growth of Chanel's performance.

Unlike Chanel's "global coordinated pricing" strategy, in 2015, after Chanel's price cut in China, the luxury brand Hermes made a "disguised price cut" in the Chinese market.

At the time, Hermes announced a 4% rise in Europe.

But the price increase does not involve the Chinese market, which is equivalent to reducing the global spread in disguise.

At that time, because of the low performance of luxury goods, in order to win the Chinese market, many brands such as LVMH, Dior and Cartire had adopted a price reduction strategy in Asia.

In recent years, China

Rapidly growing into a big cake for international luxury brands to compete for.

In January 17th, the 2017 China Luxury Market Research Report released by Bain, a consultancy, showed that sales of luxury goods in mainland China reached 142 billion yuan in 2017, an increase of 20% over 2016, the largest increase since 2011, and surpassed that of overseas markets.

Among them, cosmetics, women's wear, jewelry and other women's category increased faster than other categories.

Bain believes that the Chinese government has further promoted domestic consumption, strengthened control over purchasing agents, and the top luxury brands have begun to actively adjust domestic and foreign markets.

The spread is the main driver of the rebound in the luxury market in mainland China.