Consumers Should Rationally Consume The Highest Priced Global Luxury Goods In China.

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China's golden week has become the most important profit cycle in the overseas luxury market, the latest 2012 "Golden Week" external consumption analysis report released yesterday.

In the seven days of from October 1 to 7, 2012, Chinese outbound luxury goods totaled about 3 billion 850 million euros, an increase of 14% over the same period last year.

Statistics from the association also show that although the rate of luxury goods in mainland China is not the highest in the world, the price of luxury goods is far ahead in the world.

The report points out that in the seven days of the golden week, China accounted for 63% of Europe's luxury consumption, North America accounted for 25%, and Hong Kong, Macao and Taiwan accounted for 12%.

In addition, the consumption of overseas invisible consumption and luxury service industry during the golden week is expected to exceed 6 billion euros.

Statistics show that the average price of luxury goods in mainland China is 45% higher than that in the Hongkong market, which is 51% higher than that in the US market, 72% higher than that in the French market.

But countries

The price of luxury goods is not directly proportional to the tax rate. The highest comprehensive tax rate is India, but the retail price of luxury goods is the lowest in the world. The lowest comprehensive tax rate is the United States, the price of luxury goods is close to Europe in the global market; the comprehensive tax rate of China is after India, but the price of luxury goods is the highest in the global market.

Take COACH as an example, the average price of similar goods in India is only 1/3 of China.

"The main factor determining the price of luxury goods is not tariffs, but the attitude of consumers."

Ouyang Kun, China's chief representative of the World Luxury Association, pointed out that the retail price of the global luxury brands in China is rather complicated. The most important factor in the price structure is the rate of profit retention, up to 50%.

This factor accounts for 30% in North America and only 20% in Europe.

In the Chinese market, it was originally just a few big brands such as LV that carried out small-scale water trial at a high price.

Other brands followed suit to enter the Chinese market at a high price.

As a result, the high price has changed from trial to normality.

Ouyang Kun pointed out that even if the Chinese government continues to lower its tariff rates, it will be right.

Prices are also hard to shake.

The high positioning of manufacturers is due to the popularity of luxury goods by Chinese consumers.

Therefore, if we want to reduce the price of luxury goods, we must first call on Chinese consumers to calm down and consume rationally so as to promote rational pricing of manufacturers.