"There is no domestically produced fabric, leather, cotton, chemical fiber, blended, and so on. What we lack is a strong brand. This is why some of the popular brands in foreign countries have come to China when the Lions open their doors. , and even become a reason for luxury goods. People sell the brand.” Xia Zhilin, chairman of Shandong Textile Industry Association, said in an interview with reporters.

"Using the best leather materials in the world at present, plus the best hardware, the production cost of a top-grade bag is around 500 yuan. Of course, what you put on a diamond is another." Guangzhou Baiyun Leather Goods Manufacturing Co., Ltd. Manager Mr. Kong told reporters in this way: “A Louis Vuitton packs tens of thousands of dollars, and its raw material costs account for less than 10%, showing how profitable it is.”

United States "big treasure"

China becomes "luxury"

"Luxury" is because of "expensive" and luxury, or because of "quality" and "luxury"? Li Jun, chief overseas investment analyst of the Wells Fargo, who had lived in the United States for nine years, said in an interview with reporters: In fact, in the West, luxury goods are more “high-end products” in consumer goods. Consumers Or the public.

He introduced: In the United States, Clinique, L'Oreal, are very popular brands, just like the Chinese people love to use Dabao. Clinique is also in the United States twenty or thirty dollars a bottle, one hundred dollars can be bought from the skin to a set of skin care. The COACH package was originally US$340 to US$100. After discounted, it was more than US$200. “How can we sell more than 5000 RMB in the country? It was originally a supermarket brand, and it turned into a minority when it came to China. A luxury that people can afford."

Ms. Zhao, a middle-level manager of a provincial management company in Shandong province, confirmed to reporters Li Jun’s statement that she had just returned to China this year after studying for two years in the United States. "Clinique has a trilogy, the cheapest in the United States, China's most expensive, the airport Duty Free 125ML butter is 22 knife (Dollar), domestic sales of 480 yuan. Clinique 2nd water 400ML US to sell 16 knives, Domestic sales are more than 300. There are liquid soaps, 200ML, the United States is selling 12.5 knives, and domestically more than 280."

The same kind of cosmetics, a bag, a difference between domestic and foreign so much? On March 14, the reporter interviewed the two luxury goods gathering districts in Jinan Ginza Mall and Hang Lung Plaza and discovered that it was as it was. According to the staff of COACH of Hang Lung Plaza, the price of domestic stores is exactly the same as the price quoted by COACH's official website in China.

The reporter found COACH official website found an embossed crocodile pattern handbag marked on the Chinese official website price is 6950 yuan***, in the English official website price is 598 US dollars (about *** 3861 yuan); another red The price of leather flip handbags is 3,800 yuan in China's official website. It is only 298 US dollars (about 1924 yuan) on the English official website, and the difference between domestic and foreign countries is nearly 50%.

In COACH China's new official product, the lowest price of a handbag is priced at 3,800 yuan. In English, the lowest-priced handbag is priced at only 128 US dollars (about *** *** ) This level of price in the country can only be regarded as high-end consumer goods.

Why luxury goods domestic "lion opening"

According to the official report of the China Decade of the latest released by the World Luxury Association on January 11, 2012, as of the end of December 2011, the total annual consumption of the Chinese luxury goods market has reached US$ 12.6 billion (excluding private jets, yachts and luxury cars). With 28% of global share, China has become the world’s largest consumer of luxury goods.

At the same time, however, the amount of luxury goods purchased by Chinese consumers abroad is several times that of China. Why is luxury goods sold so expensive in China? Why do foreign mass brands become luxury goods in China, and the "lion opening" sells to sky-high prices that are unacceptable to ordinary consumers?

Bensonsung, an overseas luxury goods group, said in an interview with the media that the price of high-end brands in China is very strong, but the prices in foreign countries are much more favorable. Bensonsung, who is in the United States all the year round, said that these high-end brands will hold two or three special sales every year in London, Milan, Paris, New York and other cities, and the prices are as low as 1-2%.

Li Jun, chief foreign investment analyst of Wells Fargo, told reporters that in China, luxury goods as imported high-end consumer goods, depending on the type of goods, generally need to pay import duties of 6.5%-18%, 17% of VAT, and 30%. Consumption tax. Including: import duties = CIF (Cost, Insurance, Freight, cost plus insurance, plus freight) Price × import tariff rate; VAT = (CIF price + tariff) × 17%; consumption tax = [(CIF price + tariff) ÷ ( 1- Consumption tax rate)]× Consumption tax rate...

For example: The price of CIF for a luxury item is 400 US dollars (1 US dollar = 6.4 yuan***), the import tariff rate is 15%, the VAT rate is 17%, and the consumption tax rate is 30%. Then calculate the result -

CIF Price: 400$×6.4RMB=2560RMB

Import tariff: 2560 RMB × 15% = 384 RMB

VAT: (2560RMB+384RMB)×17%=500RMB (take an integer)

Consumption tax: [(2560RMB+384RMB)÷(1-30%)]×30%=1261RMB (Integer)

"That is to say, when the commodity CIF price is 2,560 yuan***, the total tax paid to complete the import is 2,145 yuan***, which has reached more than 80% of the price of the commodity CIF. This CIF price is a luxury of 400 US dollars. The final price in China is at least 4,705 yuan," said Li Jun.

He said that the current domestic luxury prices are much higher than those outside China: on average, they are 72% higher than France, 51% higher than the United States, and about 45% higher than Hong Kong... High tax rates have indeed led to imported luxury goods prices. A key element of high.

Excessive pursuit of luxury goods, so that "heavy taxes are just one of the reasons for domestic luxury fares". Excluding tax points, domestic luxury goods are even higher than foreign prices by about 20%. Li Jun told reporters.

On the price difference issue, COACH spokesman and Victor Luis, president of COACH International's retail business, said in an interview with reporters last year that price differences between foreign brands are a common phenomenon in the Chinese market. In fact, there are many reasons leading to price differences, including transportation and transportation expenses, marketing expenses, store opening expenses, and store operating expenses, which are the factors that cause COACH products to have inconsistent selling prices in China and the United States.

In addition, “We have been in the United States for 70 years and COACH is the number one brand in the local market, so we have economies of scale. However, in the international market including China, we have not yet had these advantages.” Victor Luis It is said that in the market of China and any other countries or regions, the price of COACH products is probably only half of the price of European traditional luxury goods. "Our pricing benchmark is lower than European luxury goods brands."

“Another very important reason is the market. That is to say, consumers in China are always happy with the pursuit of luxury products. They naturally raise their prices and sell them. Even some consumers think that the price is too high to be affordable. It is luxury goods, some foreign brands also comply with the domestic consumer psychology, to raise the price high." Zhou Ting, deputy director of the Institute of Luxury Studies of the University of International Business and Economics told reporters.

Ironically, luxury goods in China, in addition to the rich in consumption, other main forces to buy luxury goods themselves do not have the ability to pursue luxury. The data shows that the mainstream consumer groups of Chinese luxury goods are too young, concentrated between the ages of 25 and 45, and are on average 15 years younger than European luxury consumers and 25 years younger than the United States. While the average level of luxury consumption in the world is 4% of personal wealth, some Chinese consumers use 40% or even more to buy luxury goods.

“I have an employee who earns 2,300 yuan a month, but people save money and spend more than two months of wages and buy an iPhone4s. Nowadays, young people are really different.” Jinan, an advertising company manager Mr. sighed to reporters. It seems that the reason why luxury goods can be consumed at home, the main reason is in fact the difference in consumer attitudes. Adding some concepts such as “paying money”, “showing off the wealth”, “taking comparisons” and “respecting the ocean”, excessive pursuits have made the price of luxury goods soar.

Local brands only look for people to eat "There are no domestically produced fabrics, leather, cotton, hemp, chemical fiber, blended, and so on, what we lack is a strong brand, which is why some of the popular brands abroad When it comes to China, the 'Large Lion's opening' has even become a reason for luxury goods. People sell the brand.” Xia Zhilin, chairman of the Shandong Textile Industry Association, said in an interview with reporters.

The reason why luxury goods are popular in the country, brand accumulation is also an important factor. Zhou Ting, deputy director of the Center for Luxury Studies at the University of International Business and Economics, Zhou Ting introduced that some foreign brands and even popular brands have been able to qualify as first-line luxury goods after entering China. They also rely on superior product quality and brand image, as well as some brand communication. Spirit reached agreement with some domestic consumers.

"Using the best leather materials in the world at present, plus the best hardware, the production cost of a top-grade bag is around 500 yuan. Of course, what you put in a diamond is another." Guangzhou Baiyun Leather Goods Manufacturing Co., Ltd. Manager Mr. Kong told reporters in this way: “A Louis Vuitton package is tens of thousands of pieces, and its raw material costs account for less than 10%, showing how profitable it is.”

However, even when overseas second-tier brands are actively pursuing huge profits in the Chinese market as luxury goods, local Chinese companies can only watch their big share of the Chinese market.

Chen Deming, Minister of Commerce of China, once said that our own national brands and high-end consumer goods brands are still unable to meet the growing material needs. In the world’s top 100 most famous brands, China is still at zero, and we should speed up the cultivation of local luxury goods. Brand. At present, the eyes of the global luxury goods market are all aimed at China. Our country is facing economic restructuring and brand upgrading, and it is imperative to cultivate Chinese local luxury brands.

“There are also a number of business people and excellent designers who are committed to the development of luxury goods, such as Deng Yongyi’s Shang Hai and Guo Pei’s Rose Square. There are also some good luxury products, such as national wine Maotai and jewelry Lao Fengxiang. Chow Tai Fook, the top Da Hong Pao tea, etc., but these luxury goods did not develop into a real luxury brand, its brand line radiation multi-level crowd, not specifically for luxury consumer groups.” Zhou Ting believes that China’s domestic luxury The brand is still in its infancy.

“Luxury brands must be rooted in the soil of culture. For example, French wine conveys the romance of the French. Swiss watches represent the spirit of excellence. Local luxury goods must also be rooted in our profound cultural heritage if we want to develop.” Ting believes that China does not lack the cultural soil that bred indigenous luxury brands. The 5,000-year history of traditional Chinese elements in brand integration requires a long-term process of precipitation.

May 09, 2019