Domestic Luxury Price Cut Hard To Cover Price Difference 80% Consumers Overseas Purchase

Recently, DDT consulting has released various countries in the world.

Price analysis shows that China is still the world's highest price country with luxury goods, and 23% of the luxury brands in China are priced at 16%-25% higher than foreign countries.

In this regard, the industry analysis, this is mainly affected by the exchange rate and

The influence of regionalization pricing strategy.

However, as global luxury prices become more pparent, future luxury groups must consider how to further narrow the price differences among regions and achieve global price integration strategy.

Price cuts are hard to cover.

With the rapid development of luxury goods in China, prices have been at a high global level.

Luxury brands in the United Kingdom, according to data from us research institutions.

The price difference between China and Europe is the biggest, and the price difference is nearly 40%.

According to the reporter, LV's speedy30 shopping bag sells for about 1100 US dollars in China, while in the UK it only needs about 800 dollars, and France only needs 820 dollars. Even in the United States, it only stays below 1000 dollars, and the difference between Britain and France is about 300 dollars.

Balenciaga's dress costs up to 1665 dollars in China, but it costs only 1312 dollars in the UK, which is about 350 dollars cheaper than in China.

It is worth mentioning that in addition to the high price of high-end luxury goods in the domestic and foreign markets, the luxury brand is showing an alarming price difference.

For example, the price difference of Coach in China and the United States has reached 40%. The same Coach brand package can be bought in the US for about 1250 yuan, and doubled back to the domestic market.

Although luxury brands such as Chanel, Dior and Burbeey have taken measures to reduce prices in China since last year, they still can not conceal the high price of brands in the Chinese market.

Regional pricing strategy

It is understood that the reason for the high price of domestic luxury goods is that luxury brands artificially overestimate prices, taxes and exchange rates. Among them, taxes and fees are the most common reasons for the rise of luxury goods, but in the industry view, the rise of luxury brands is mainly due to the high market environment and the overvaluation of brands.

Research data show that in 2014, luxury goods imported from China were mainly imposed on consumption tax of imported goods, the duty rate was 30%, the value added tax was 17%, the tariff was 4.4%-60%, and the overall rate of luxury goods entering Customs was basically above 50%.

A luxury brand China official said that luxury tariffs accounted for only about 5% of the domestic price. However, because the price base of luxury goods itself was at a high level, plus layers of taxes and sales costs, the price of luxury goods in China still had a large gap compared with that of foreign countries.

In addition, China's unstable currency exchange rate also led to a big gap in the pricing of luxury goods at home and abroad.

80% overseas purchases by consumers

In 2016, 77% of China's consumer luxury consumption was predicted to take place outside China, according to the wealth Quality Research Institute. The consumption amount was up to $92 billion 800 million, while the local luxury consumption was only $27 billion 600 million, less than 30% of the foreign consumption.

With the vigorous development of China's tourism market, the consumption level of domestic consumers is increasing.

According to statistics, the number of outbound tourists in China has been increasing continuously in the past ten years, and the number of outbound travelers is expected to reach a historical peak this year, breaking 120 million people.

Therefore, the consumption of luxury goods has also increased.

It is expected to reach US $120 billion 400 million this year.

It can be seen that Chinese consumers have become the main force in the global luxury consumption, and the future Chinese consumers will continue to decide the consumption pattern of global luxury goods.

But the price factor is still one of the main reasons why high-end consumers choose to shop abroad in 2016.

For luxury goods group, global price integration has become an inevitable trend, especially the rapid development of the electronic commerce platform. The global price integration of luxury goods is imminent.