"Boots" Landing &Nbsp; Domestic Luxury Consumption Will Usher In An Outbreak Period.

Rumor has it that the "luxury import tariff reduction" has finally been confirmed.

A spokesman for the Ministry of Commerce said recently that China would further lower import tariffs, including tariffs on some medium and high grade commodities.

It has been revealed that the import tax adjustment of luxury goods will not be reduced to zero as a result of a one-step tariff reduction as previously reported by the outside world. The basic reduction will be about 2%-15%. Cosmetics and high-end liquor and tobacco varieties will go ahead; however, the specific plan and implementation time should be based on the Ministry of Commerce and the Ministry of Commerce.

Under the stimulation of this good news, domestic luxury consumption will usher in an outbreak period.

Bain, a consultancy (Bain&Company), predicted in a research report that Chinese consumers are right.

The high tax rate leads to big difference.

The price of domestic luxury goods is much higher than that of foreign countries.

According to the Ministry of Commerce survey, 20 kinds of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, are at the top of the market. The difference is: the mainland market is about 45% higher than Hongkong, 51% higher than the US, and 72% higher than that of France. Five

In response, Tong Minqiang, general manager of Hangzhou Tower, said that the main reason for the spread was the excessive import tariffs.

At present, the import tariffs of luxury goods in China are generally between 15% and 25%, while others are as high as 50% (such as cosmetics and liquor).

Besides, luxury stores also have customs inspection, shop inspection, value-added tax, etc.

Overseas shopping is 4 times more than domestic.

In order to "escape tariffs", Chinese consumers have been looking abroad, so outbound shopping and overseas purchasing have been very popular in recent years.

According to incomplete statistics, Chinese people spend 200 billion yuan a year on luxury goods abroad.

According to a recent report released by the World Luxury Association, the total consumption of China's luxury goods market has reached US $10 billion 700 million from the beginning of February 2010 to the end of March 2011, while almost all Chinese purchases of luxury goods in the European market nearly total 50 billion US dollars over the same period, which is 4 times the domestic market.

According to the "2010 China e-commerce market data monitoring report", in 2010, the market scale of overseas purchasing alone reached 12 billion yuan, of which cosmetics and luxury goods were the majority. Even though the tax rate was 40%, the annual revenue loss was as high as several billion yuan.

"It is obvious that China's luxury consumption has shifted to a serious extent."

Yang Zude, a senior businessman in Hangzhou, sighed.