The domestic luxury goods market has been dominated by foreign top luxury brands, lacking the presence of local companies. In fact, China does not lack luxury elements, but how to shape China's luxury brands and transform China from a major luxury consumer to a major manufacturing power has become a problem for Chinese companies.

With the emergence of overseas shopping waves, the phenomenon of an extra flow of hundreds of millions of overseas consumption has gradually emerged. In order to guide the return of consumption, the executive meeting of the State Council decided to launch a trial of reducing import tariffs before the end of June this year, and gradually expand the scope of tax-reduced products. Experts pointed out that this move will help attract national consumption from abroad and stabilize domestic economic growth.

 Consumers not only value price when buying luxury goods abroad

 In early April of this year, Chanel announced the news of price cuts in China, which became the finger to tear down the dominoes. Immediately after Cartier, Dior, Versace Patek Philippe and other luxury brands immediately announced the implementation of a 5% to 20% price reduction in China, and the decision to increase prices in Europe. This move by luxury brands is undoubtedly a piece of good news for Chinese consumers. The price difference factor that has always attracted Chinese people to consume abroad is gradually shrinking. Does this mean that fewer and fewer Chinese people will go abroad to buy luxury goods in the future?

It is understood that a luxury researcher recently said: “Despite the current price cuts of luxury goods in China, it is still impossible to increase the sales of luxury goods in China’s domestic market in the short term.” In fact, the number of luxury brands and related items involved in the price reduction is not Many, Chinese luxury goods consumers cannot change their overseas consumption habits in the short term. More importantly, VIPs of some luxury brands are not simply price-sensitive people. They will still shop in a happy mood abroad for a better experience.

 After Chanel's price cut, there was a long line in front of the store, and some VIPs complained that this is a very inelegant thing. Chanel quickly leveled prices, but was unable to level the service levels in China and Europe in the short term.

 Guiding the return of overseas consumption cannot rely solely on tax cuts

In recent years, more and more people travel abroad. What attracts Chinese people's attention is not only the exotic scenery, but also some local "special" products, such as rice cookers and "toilet lids". Traveling abroad, you can shop at local duty-free shops, or you can enjoy departure tax refund after shopping at ordinary shops. Compared with domestic imported goods, overseas shopping has certain advantages in price.

Facing the "overseas shopping tide", promoting the reduction of import tariffs and increasing the number of duty-free shops will not only help lower the price of imported goods, but it will also be more convenient for consumers to buy these goods. The two-pronged approach will play a positive role in promoting the "return" of consumption.

However, people concerned believe that although tax cuts are conducive to reducing consumption costs and stimulating consumers' willingness to buy at home, the main factor affecting the price of imported goods is the pricing mechanism of the goods. For example, for the same brand-name bag, the manufacturer's pricing in the European and Chinese markets can differ by 40%. The huge domestic and foreign price difference cannot be made up by tax reduction alone. Therefore, lowering the price of imported goods not only requires lowering taxes, but manufacturers should also adjust the pricing mechanism of goods to eliminate artificial "price gaps" and create a fair competitive market environment.

In addition, to guide the return of consumption, efforts should also be made to enhance the innovation and competitiveness of domestic consumer products, cultivate and build more high-end and high-quality domestic brands, and further meet people’s consumption upgrade needs. The real production of domestic products according to high standards is "Made in China "An important way to restore domestic consumer confidence.