LV'S Rise In Price Once Provoked Controversy Behind The Rise In Luxury Goods Prices.

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201304/24/2013042414414138573.jpg "/" < < > >

< p style= "text-align: center" > < strong > a href= "http://sjfzxm.com/news/index_f.asp" > LV again rises in price < /a > dispute.

The recent global price adjustment of < p > LV has aroused everyone's attention on the cusp.

Although the price increase is limited to some products, it is "the smallest in the world".

Because in the same period, the average LV price in Japan also increased by 12%, which is higher than that in China.

In October last year, LV had risen 10% in France.

"This time it will not only rise but also decrease. In short, the gap between China and foreign countries will only decrease after the global price adjustment."

LV brand related personnel told reporters.

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After P price adjustment, we heard another voice: "the price after LV price adjustment is still higher than France's 30% to 60%."

Before the central media also reported on the price difference of luxury goods, it was considered that the "tariff" that everyone had been shouting about was only a small part. Taking India as an example, the real reason for the high price in China was that the brand pursued profits in China and catered to the mentality of the Chinese people in pursuit of high prices.

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< p > < strong >, what is the truth? < /strong > /p >

< p > < strong > < a > href= > http://sjfzxm.com/news/index_c.asp > > luxury > /a > why should the price be narrowed? The Chinese market is too important to be protected by /strong > /p >

Less than p years ago, the brand began to adjust the difference between overseas and Mainland China, and the advantage of Hongkong, once a shopping paradise, gradually lost.

For example, the price of Swatch group in Hongkong is generally higher than that of the mainland RMB, such as a OMEGA watch, 90000 yuan in the mainland and 95000 Hong Kong dollars in Hongkong, multiplied by the exchange rate of 0.8, about 76000 yuan.

The peak price group still maintained the price of Hong Kong dollar lower than RMB, such as a Cartire watch, RMB 57000 yuan, and Hongkong priced 52700 Hong Kong dollars.

But the gap is less than many years ago.

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No matter where the Chinese people spend, the money will eventually enter the brand's pocket. Why do we have to raise the prices of Europe and the United States and pull the Chinese back to China's consumption? "Because China has the largest profit margin, compared with the US and Europe, it is an emerging market and there are more opportunities to make money." P

In addition, luxury stores have opened so many stores in China in recent years that they have penetrated three or four cities and need to ensure consumption to maintain China's operation.

Zhou Ting thinks.

However, in an interview with reporters, many brands said "actually very grievance".

"To say that the profit of a single product is still high in some foreign markets, because there are too many intermediate links in China.

In China, the market can make money because of the large amount of consumption.

More importantly, the Chinese market is too important to give up. For some brands, the Chinese market is simply 'all'.

In addition, after all, only a small part of the Chinese people have the ability to go abroad, and I want more people to have the opportunity to buy. They are our potential customers. "

A brand official said, "of course, we also recognize the phenomenon that some brands are lifting prices. This kind of brand exists mostly in foreign countries with a high reputation, but the price directly rises to several levels in China, but this is a minority."

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< p > < strong > > a href= "http://sjfzxm.com/news/index_s.asp" > price increase < /a >. Why is the reaction particularly large? The consumer group is expanding and is more sensitive to price < /strong > /p >

< p > luxury prices are not rare. Since the brand came into China, we have been hearing the "boom", and it has basically risen 2 times a year, but the reason why so many voices have recently been triggered is the change in the market population.

"Few people consumed LV in the early years, but nowadays, with the expansion of LV, GUCCI and other brand consumer groups, the number of people who pay more attention is higher than that of price sensitivity."

One industry insider told reporters, "the price of Hermes is not very static. After all, like platinum bags, these products are frequently seventy thousand or eighty thousand or even more than 10 million, and they must queue up for several years. They even need to increase their prices, not the public can consume, and the complaints are naturally less."

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< p > a few years ago there was a voice saying that luxury goods should be renamed "boutique".

Because with the increase in the number of buyers, they are no longer minority patents.

In Europe and the United States, ordinary people's income can buy these products, but their consumption concept doesn't care.

In China, if these products are gradually chosen by more consumers, it will be a good thing to upgrade our dressing.

This is why many people call for lower taxes and lower prices.

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< p > < strong > What taxes do we have to pay? Customs duties, value-added tax and consumption tax are taken up at the same time < /strong > < /p >

< p > taxes on general imports include several categories, one is tariffs, more than 10%, the high may reach more than 20%, different countries are different, and two is value-added tax, generally 17%.

In addition, we tend to overlook the high-end watches (the unit price is more than 10 thousand yuan) and so on. There is a 20% consumption tax. Cosmetics have a consumption tax of 30%, leather goods less than a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > and so on. This tax has been levied since 2006.

The reporter has compared a Bao Ji watch, the price in Zurich, Switzerland is 200 thousand yuan, the mainland China price is about 280 thousand yuan, and how much profit is there in the middle tax collection?

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< p > it is reported that shopping malls for luxury brands are far less than ordinary brands or rents.

For example, the deduction of a famous watch is about 5%, other brands are 8%~12%, and some domestic brands will reach 12%~20% or even higher.

This is indeed a slight pressure on the cost of luxury goods, but this has little impact on pricing.

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< p > strong > the profit is high. Who decides? The market demand is more important than the cost. < /strong > < /p >

< p > whether luxury goods can raise their prices on the basis of Taxation? They vary from brand to brand, but there must be.

For example, a clothing brand is famous for its overcoat. Its T show price is about 12000 yuan in Venice store in Italy, and its selling price is around 29000 yuan in China.

The brand explanation is that this is a limited edition, with a very small number of customers in China, and is very popular with customers.

"The pricing of luxury goods in China is a strategic behavior, and the cost is very low," Zhou Ting, director of the Institute of wealth research, said in an interview with reporters.

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< p > < strong > of course, the industry has another voice on this issue < /strong > < /p >.

< p > "when the product can raise the price will not affect the sales, why not?" insiders said, "if someone thinks luxury is too expensive, they can not buy it, but if a large number of customers do not mind, willing to buy history, technology and other brand value-added, you can do nothing about it.

The price will eventually be regulated by the market, and it will be abandoned by the market if it is too high.

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< p > as we all know, China's gift consumption occupies a considerable proportion of luxury consumption, and this "price insensitive" group has supported the high growth to a large extent.

This year, the consumption power has been suppressed to some extent, which has affected the brand, such as reducing shop opening and changing products.

"If taxes decrease, will the price of luxury goods drop? I think it is possible."

A senior brand name, who does not want to be named, said, "of course, for image, the way of price reduction is more likely to be lowered directly in the pricing of new products."

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