Following an overall decrease in retail price of LV, it is easy to find that a lot of top cosmetics and watches of fall/winter new collections also drop around 10%. China Chief Representative of the World Luxury Association Ou Yangkun said, the Ministry of Commerce deciding to lower tariffs on luxury goods. Once the tariffs adjusted, domestic consumers are expected to purchase luxuries in cheaper price.
In addition, the main purpose of this tariff reduction is to encourage consumers to buy luxury goods in mainland market rather than in other places. Some consumers found that the price of LV bag buy from China is cheaper than other countries. Consumer Miss Lee use LV petitNoe bag as an example, price has decreased in China mainland only 6,800 yuan, while Hongkong is priced at 6,850 Yuan, higher than mainland counter.
However, some consumers reflect no mater how reduced the price of luxury goods via tariff adjustment, it is difficult to be balanced, they prefer to shopping outside.
Luxuries tariff trend to decline
Ou Yangkun disclosed that the Ministry of Commerce Market Operations Division and the Ministry of Finance Customs Division, has held internal meetings to discuss “the motion to adjust tariffs on luxury goods”, will be submitted to State Council for approval. According to reports, this proposal focused on leather goods, fashion, perfume, cosmetics and so on. The amount of luxury tax still in the planning.
After the tariff reduction, LV, Gucci and other international brands will not change price immediately, because the stock bear high tax rate and only this stock sold, the price can be reduced slowly.
