In Response To China'S Value-Added Tax Reduction Policy, Luxury Brands Such As LV And Gucci Have Cut Prices In China.

Coming into April, Chinese consumers have a good news: in response to China's upcoming VAT reduction policy, luxury brands such as LV and Gucci have been cut in China.

It is understood that LV has lowered the product price of China's official website by the end of March, with a drop of about 3%.

In April 1st, Gucci will also cut its price by about 3% in the Chinese market.

For the authenticity of the news, the Beijing Commercial Daily reporter has been confirmed from Gucci.

Earlier, part of the purchasing agency announced in a circle of friends that Gucci has increased its overall price in Europe in March 29th and increased by 25%, and China's price will rise correspondingly.

The reporter compared the price of LV and Gucci part of the best selling handbags in China's official website, purchasing channels and European official website, and found that even if the price is reduced, the official price of brand goods in China is still higher than that of purchasing and thousands of dollars in Europe.

In this regard, industry experts said that the price of luxury brands is actually greater than the content, and the brand is intended to release a signal, that is, the difference between domestic and international prices is shrinking, which may have a short-term promoting effect on promoting the return of consumption. However, judging from the consistent pricing strategy of luxury goods, the price difference of different countries will remain at around 20%.

From late mid - 3, the news that Gucci will rise in March 29th is going crazy over the purchase of the euro as the euro slumped.

It is understood that the price rise of Gucci is not the first time. The rise in price caused the strong reaction of purchasing agents because the price increase was said to be "the most crazy" in history, up to 25%.

Reporters saw more than one purchase in the circle of friends released the news.

There is a purchasing agency, said: "Gucci price rises at the end of the month, the whole price rise!

The craziest time ever!

As the euro plummeted, Gucci decided to increase its product by 25% at the end of this month.

The strength is not small, before 5%-10%, long grass hurriedly pull!

(the price increase is determined, 25% is a gossip), if we want to buy it, we should pay more attention to it. After two months, the tax rebate will not be right now.

In addition to the European market, the Chinese market is also known to be in the price range.

There is a purchasing agent in the group shouting: "Gucci short sleeved domestic prices have increased by 1300, at the end of the month, Italy counters are afraid to keep up with this pace."

In order to confirm the accuracy of the news, the reporter inquired about different Gucci shopping.

On the rise in prices, purchasing agents have "confirmed", and stressed that "all commodities are rising" and "Europe and China are rising."

The purchase indicates that German Gucci has risen in price, with an average of 2000 per single product.

But whether China has raised prices or not, it is rather ambiguous to buy on behalf of the country. It means "it seems to have risen".

A buyer told reporters that the price difference between Gucci in Germany and in the mainland is quite high.

"Look at the style, I can help others see at present can be 1000-4000 yuan."

28, the reporter called Gucci China official website customer service telephone to verify the Chinese market price rise, customer service personnel said, at present has not received the price adjustment notice.

Subsequently, reporters also contacted Gucci stakeholders. The other side said that China had not received any notice of price adjustment, and the last price adjustment was a long time ago.

However, in March 30th, there was a "dramatic" turning point in the rumor about the rise in Gucci prices.

According to media reports, following the LV, Gucci also announced price cuts in April 1st.

According to the report, in response to the policy of VAT reduction implemented in China since April 1st, Gucci China official said that the retail price of the brand in mainland China will also be adjusted by about 3%, so as to benefit more Chinese consumers.

Reporters immediately confirmed to Gucci stakeholders.

The person said the situation was true, and told reporters that the notice was received just in the afternoon of March 30th.

The price will start from April 1st, the online official website and offline stores will adjust the price synchronously, falling by 3%.

Will the official price of Gucci in China be closer to the European price after the price is cut?

The Beijing Commercial Daily reporter compared the prices of Gucci and LV hot handbags in China's official website, purchasing channels, and foreign official websites.

It was found that even with a decline of 3%, the official selling price of the two brand handbags in China is still higher than that of European official prices and purchasing channels.

Take the popular LV Mini bucket package (the official name is LV NANO NO e handbag), for example, the official website of the package is currently priced at 8250 yuan, according to the report, it should be the price after the price reduction.

The price of the bag in the French LV official website is 750 Euros (about 5650 yuan), and the quoted price is 8000 yuan.

Another classic LV NEVERFULL medium handbag is currently priced at 10 thousand yuan, the French official website is 990 euros (about 7457 yuan), and the purchasing channel is 8800 yuan.

SPEEDY 25 handbag China official website sells for 10900 yuan, French official website is 1020 euro (approximately 7683 yuan), purchasing channel quoted price 8800 yuan.

It can be seen that the price difference of LV in China and Europe is only 2000 yuan -3000 yuan.

Gucci is the most popular Dionysus in China (official website name is Dionysus series GG trapdoor shoulder bag). The official price of China is 17900 yuan, and the price is expected to be 17363 yuan after 3% reduction.

The price of the same package in European official website is 1790 euros (about 13484 yuan).

Purchasing channel quoted price is 9200 yuan.

Official price difference of 3800 yuan, higher than the purchase of 8100 yuan.

Another net red GG Marmont series trumpet handbag, the official website of China sells for 20700 yuan, and is expected to sell for 20079 yuan after the price is cut, compared with the official offer of 1980 euros (14915 yuan) in Germany and Italy, which is 5164 yuan higher.

The price of the handbag in German purchasing channels is 19764 yuan, which is quite different from that of the Chinese government after the price reduction.

It is worth noting that LV and Gucci are luxury brands that are not easy to cut prices.

Public information shows that LV's last price cut was in mid July 2018, with a decrease of about 3%-5%.

LV had never folded before.

In the past one or two years, Gucci has almost been tied up with the "price increase".

Due to factors such as raw materials, global exchange rate and currency, luxury goods are slightly more expensive every year.

Therefore, the LV and Gucci's "counter trend" price sparked a lot of attention.

It is understood that the price reduction is the brand in response to China's implementation of the value-added tax reduction policy since April 1st, of which the original applicable 16% tax rate was adjusted to 13%, corresponding to the cross border value-added tax also fell simultaneously, so the industry analysis, luxury brands in China or will have a new round of price cuts.

There is news that MontBlanc will also begin to downgrade the price of brand writing tools, leather goods and high-end watches in April 1st.

However, it is easy to see from the above price comparisons that even with the price cut, there is still a big price difference between luxury goods in China and overseas.

For the decline of Gucci3%, there is a purchasing agency, which means that Europe is cheaper than the domestic market, and about 20 thousand of the package will be 4000-5000 yuan cheaper than the domestic market.

In view of the impact of the price reduction of LV and Gucci, Zhou Ting, the president of luxury goods expert and customer research institute, thinks that the price reduction of luxury brands in China is mainly due to the obvious price difference at home and abroad, and the supervision of customs is very strict. This, to a certain extent, inhibits the consumption of luxury goods in China and lowers the price difference at home and abroad.

At the same time, the slowdown in luxury brand sales in the first quarter also brought enormous pressure to the brand. Foreign price increases can stimulate consumption growth in a short period of time, while improving customer prices and improving financial performance.

Zhou Ting said that the integration of global prices has become a trend. The price rise of Gucci is domestic price reduction. The price increase is actually the essence, and the price reduction is only a form, but it is indeed an effort for the brand to achieve global price consistency.

By lowering prices, the brand will slowly release a signal, that is, the gap between domestic and foreign prices is shrinking, thereby promoting the return of consumption.

Zhang Peiying, an Honorary Advisor to the luxury China Alliance, does not see that the 3% decline will cause a great stir to the real purchase of luxury goods. The price reduction can be seen as a marketing behavior of the brand with advertising effect.

The price difference between Europe and China is a differentiated pricing strategy for the brand according to local conditions. The pricing of the brand in China over the years will not change easily, and the greater possibility is that it will continue to raise prices and occasionally reduce prices. The price difference between China and Europe will still remain at around 20%.