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High-end consumers remain in the country
Because impose higher tariffs in the Mainland, the price of consumer goods to buy international brands has always been high. In recent years, more and more people to buy luxury goods overseas. To the outside consumption into the territory of purchase, the state decided to cut import tariffs on luxury goods. Data show that last year the global luxury goods sales recovered to the level before the financial crisis, in which the contribution is considerable. Bain & Company estimates that in 2010, the United States, Europe and Asia-Pacific (excluding Japan), the luxury goods sales growth was 12%, 6% and 22%; which increased by 30% growth in luxury sales, higher than the global average level. The Academy of Social Sciences recently released in English in 2011, is also expected to middle-class population in 2011 will increase to 104 million people, with the increase in high-end consumer groups, classic boots luxury spending power will remain. 2015, or the world's largest luxury goods market. The domestic price rise luxury 2 / 3 consumers purchase luxury goods overseas Department of Commerce survey data, women boots, bags, clothes, boots, five of 20 kinds of electronic products, high-end consumer brand, the Mainland than in Hong Kong 45%, 51% more expensive than the U.S., 72% more expensive than in France. Therefore, the majority of Chinese consumers buying behavior occurs outside, only in 2010, Chinese tourists spend in the UK about 10 billion pounds (about 11.2 billion yuan). Minister of Commerce Chen Deming said repeatedly in public that China will solve some of the luxury goods in the domestic price is higher than overseas issues. The luxury import tariff reduction after the most direct result is so huge consumer of luxury goods into domestic demand, which in practice to change this situation --- 172 billion in the global luxury goods market in China (including overseas consumption persons) of the top consumer spending accounts for about 15% of the total, the amount of luxury goods in China accounted for only 5.5% of global consumption, consumption of luxury goods relocation is very serious. Annual revenue loss of up to several billion dollars, it seems that luxury this year, import duty adjustments become urgent. According to the 2010 Chinese e-commerce market data monitoring report, in 2010 purchasing overseas market transactions reached 120 billion yuan, including cosmetics, luxury goods mostly, even if the tax rate by 40% every year billions of tax loss also million. Therefore, the Ministry of Commerce on from last year to examine issues related to lower import tariffs on luxury goods. The luxury import tax reduction after the most direct result is that a huge luxury to stay in the country into domestic demand. 15% tariff reduction luxury cosmetics bear the brunt of alcohol and tobacco Bain & Company announced the show last year on luxury goods suppliers from China's pocket Taozou 68.4 billion yuan. Sales is the largest luxury cosmetics, perfumes and personal care products, the Chinese people to spend in the three above 16.9 billion yuan, ranking second in the watch, total cost of 15.5 billion yuan. So, a year ago, the Ministry of Commerce Bureau of the Division's "motion to adjust import tariffs on luxury goods," will be involved in targeting the types of luxury cosmetics, jewelry, clothing, bags, watches and other luxury imported goods, but the types of goods at that time as it involves too many departments involved in too wide, so the motion has been removed between the various ministries, adjust the category and magnitude of the delay and therefore no final conclusion. And after a year of coordination, informed sources, the import tax adjustment will not take "one step", the lowering of tariffs to zero, but to reduce the basic rate set at 2% to 15% this year, the first ice types of products with higher tariffs will be cosmetic, classic mini boots and other varieties. And had been eagerly anticipating the consumers of this milk is not in the list of tariff reduction. What snow boots into how much tax to pay off, it seems that all claims are not very uniform. According to the Foreign Trade University, WYO, vice president of introduction, 17% of imported milk powder in addition to VAT, in general formula milk and the tariff rate of 5% -10%. Senior Dairy, said Wang Ding, cotton, imported milk powder, the average tariff rate of 40% in the cost of a wide range of cases, accounting for only a small part of the tariff, tariff reduction will only make a higher profit. Can tax cuts as part of the luxury consumer pull back? First, the tariff reduction does not necessarily mean lower prices. Despite the lowering of tariffs, but this can cause a substantial reduction of stores selling luxury goods has not yet been inconclusive. Regular price seems to be a luxury unshakeable iron law. March this year, LV across the board price increases, the average increase of 5%.Then came April, the classic Chanel store also price adjustment, or 20% -30%. Recently, prices of Dior, also joined the ranks of some of the goods or up to 5% -15%. Survey was done in just two months, big rose an average of about 15% of the price. Been transmitted from time to time rumors of luxury global prices, which is also an increasingly popular luxury consumption. In contrast to the global market, the Chinese luxury goods price increases continue to decline, because prices for the tariff reduction will later say difficult to determine conclusively. Second, the tariff rate of decline is too small, driven by consumption of cosmetics, little effect. For the larger decline in the cosmetics, the industry said that the import of cosmetics in tariffs and 30% of the consumption tax out of the way, and with the increasing appreciation of the yuan, there will only be the basic convergence conditions can not be with the domestic cosmetics, even made a direct cross-brand competition. Prices of domestic cosmetics tariff only a small part of lower tariffs ability to attract consumers of cosmetics is unknown. A multinational cosmetics group spokesman said, although its sales in China are double-digit growth every year, but sales in Guangdong has been stagnant for years, even apart from just a few counters, but basically abandoned the market. "Cosmetics in the various categories of tax rates vary, with lipstick, for example, including a 10 percent tariff and 17% VAT and 30% of the consumption tax, if the import price of 1,000 yuan, import duty on the price of 1,100 yuan, parallel to the imposed value-added tax of 187 yuan, consumption tax of about 471 yuan, resulting in entry price of about 1758 yuan, Guangdong consumers naturally to remove this extra 758 yuan away Hong Kong to buy, not to mention the discount rate is now there. " Furthermore, consumers believe that even if the lower mainland luxury price point is not necessarily better than the purchasing price advantage overseas. The purchasing of luxury goods from overseas sellers, said point down the basic tax on their business does not constitute a threat. According to the online survey, purchasing luxury goods abroad mainly in the classic tall boots and classic short boots on. Comparison of some luxury goods overseas and domestic price, the package is not difficult to find women overseas purchasing price of 30% -40% cheaper on average, watch an average 25% cheaper overseas - 40%, the average price of cheaper overseas purchasing cosmetics 30% -50 %. Therefore, as a number of overseas purchasing Taobao sellers said, "Even if 15% of tariffs, and many luxury of purchasing price or cheaper than at least 20% domestic."