LV Selling Price In China Is The Most Expensive Discrimination In The World.

When it comes to the high price of luxury goods in the mainland of China, most people will think of tariffs. In fact, the high price of luxury goods in the mainland of China is caused by multiple rules.

Reporters learned that, according to the current import tariff, imported cosmetics, leather clothing and accessories, bags and footwear need to pay 10% customs duties, 17% value-added tax, some high-end consumer goods also need to pay 10%-40% consumption tax.

However, excluding these taxes and fees, the pricing of the same LV product in the mainland of China is still far higher than that in the European and American markets.

Insiders pointed out that LV, as an international luxury luxury brand, has monopoly and pricing power in the market. For mainland China's luxury primary market, LV may consciously raise its price in order to obtain high profits.

At the same time, LV has many different levels of agents in China. These agents often lack the bargaining power. Even if taxes and fees fall by LV, they may still maintain a high price strategy.

In addition, the continued appreciation of the renminbi in recent years and the rise in operating costs such as rent and manpower are also the cause of high prices.

Although Chinese consumers contribute a lot to LVMH group's performance, Chinese consumers want to buy a LV product, while overseas shopping or purchasing is the first choice.

The Beijing Commercial Daily reporter has investigated the price of LV's handbags, and found that the price of China's official website is higher than the price of domestic purchasing websites. The price of domestic purchasing websites is much higher than that of foreign electronic business platforms.

LV a MONOGRAM series LOCKIT medium handbag (model M40606) is priced at 24300 yuan on LV China official website, the lowest price on behalf of Jingdong is 23770 yuan, and the price on eBay is 11442.01 yuan.

In the first half of the LVMH group's earnings report, the performance of the Chinese market and overseas markets showed a trend of ice and fire.

European market growth in the first quarter was 10%, two in the 14% quarter, and 9% in the first quarter and 12% in the two quarter.

The first quarter sales grew by 10%, and the two quarter grew by 34%.

In the first half of the Greater China region, sales fell by 10%.

The LVMH Group believes that the decline in sales in the Chinese market has been mainly affected by the downturn in China's economy, stock market turbulence and the sharp decline in consumer spending in the Hong Kong and Macao region, once a luxury tourist destination for mainland tourists.

In fact, differentiated pricing is also an important reason for the low performance of the Chinese market.

Jean-Jacques Guiony, chief financial officer of LVMH group, said at a conference call: "taking into account the regional price differentials, the shopping destinations of Chinese consumers are gradually shifting from Greater China to elsewhere. Japan and Europe are the most benefited."

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For many years, people in the industry told the Beijing Business Daily that the rapid development of e-commerce and overseas tourism is making the price of luxury goods pparent.

More and more Chinese consumers are buying and purchasing LV products overseas, and middlemen get huge profits from them.

This leads to confusion in channel and retailer, price out of control and counterfeit goods.

Although the sluggish market in China can be offset by growth in overseas markets, in the long run,

The increase in rental and labor costs in China's mainland stores and the decline in profit margins will result in a more severe situation, which will result in a vicious circle. The ultimate damage will be the brand itself.

In addition to revenue, the most important thing for sustainable development of luxury goods is to maintain a high premium.

It is worth mentioning that in the first half of 2015, the Asia Pacific market (excluding Japan) led by China (excluding Japan) accounted for 29% of the global sales of LVMH group, which is self-evident.