Luxury Shopping Industry To Help Pform Funds

According to a recent survey by the Ministry of Commerce, 20 brands of high-end consumer goods, such as watches, bags, clothing, liquor and electronics, are five, 20 higher than the United States, 72% higher than France.

The Ministry of Commerce said that the three measures to improve processing trade related policies, dredging circulation and reducing import tax revenue will be combined with relevant departments to solve the problem of higher price of luxury goods in some parts of the country, so that some domestic prices of luxury goods are expected to be the same as overseas prices.

Insiders pointed out that with the improvement of domestic consumption level, luxury goods that were once considered to have become popular consumer goods, but the domestic consumption policy is still lagging behind, and the comprehensive tax burden of imported high-end consumer goods is relatively high.

Take import clothing as an example, it is necessary to pay three import duties, consumption tax and value added tax. The products are of different types, and import tariffs will vary, ranging from 6.5% to 18%. The value-added tax is 17%, and the consumption tax is up to 30%.

Therefore, it is imminent to further rationalize the tax system.

Under the high tax burden and multi-level distribution system, it has become the main reason for the high price difference between the domestic and foreign markets. Under such a high price difference, a large number of domestic consumers are buying luxury goods in Europe or Hongkong, and many foreign luxury goods purchasing websites have also been spawned.

Feng Po, an analyst at ChinaVenture group, believes that there are two main reasons for domestic consumers to buy luxury goods overseas: first, luxury prices in foreign and Hongkong markets are relatively low, followed by more choices in terms of categories, and luxury e-business websites just meet these two needs.

Purchasing website to seek financial support pformation

However, under the increasing demand for luxury tax reform in China, luxury goods have been rising overseas because of exchange rate problems every year.

The sale of luxury goods and domestic prices narrowed.

Recently, it has been reported that since the international luxury brands raised their prices in July last year, LV, Dior, Burberry, Prada, Celine and other major brands have launched a new round of price adjustment since April 1st this year, and the price increase in overseas markets has reached 5%~15%.

"Under such pressure, some purchasing websites are seeking pformation or extending their business scope."

Li Xuerong, a senior researcher at CIC, said that the initial accumulation of funds was relatively small and could not meet the financial support needed for pformation or business expansion.

Therefore, the choice of wind investment or conditional listing is the quickest and most convenient shortcut to get capital support.

Reporters also learned that there are already 4 VC investments, vip.com won DCM and Sequoia Capital 20 million US dollars, Shang pin was invested by Siwei venture capital and Jinjing venture capital injection of tens of millions of dollars, Jiapin network was awarded the third round of financing of Jinsha River venture capital, and the latest disclosed is walking show network, which recently announced that it had won 20 million dollars in investment.

In the background of seeking capital support pformation on many luxury purchasing websites, the problems of lack of customs declaration procedures and no customs duties have also been highlighted.

The founder and CEO Ji Wen Hong of Xiu Xiu network said that in the past, many domestic purchasing agents had not gone through the formal customs declaration process, and the quantity, quality inspection and arrival cycle could not be guaranteed very well.

China's e-commerce market data monitoring report also shows that last year, the scale of China's overseas purchasing market reached 12 billion yuan, and most of these purchases did not pay customs duties. By 2012, the scale of overseas purchasing pactions will reach 48 billion yuan, and the amount of tax lost will be even greater.

In view of this, the relevant state departments will also introduce the latest laws and regulations to regulate this part of the market. In this new situation, the pformation of luxury goods purchasing websites is imperative.

Expert viewpoint

Strengthening the construction of foreign trade to domestic sales system

It is expected to solve the problem of high price of luxury goods.

For high prices of luxury goods, the call for price cuts is also getting higher and higher.

Li Xuerong, a senior researcher at CIC, pointed out that from the Ministry of Commerce's statement, it is possible to solve the problem of high price of some luxury goods in China by improving relevant policies for processing trade, dredging circulation and lowering taxes.

In addition, solving the problem of domestic sales of processing trade (products exported from processing trade to domestic market) is a key to solving the problem of "buying luxury goods domestically than overseas."

Yao Jian, a spokesman for the Ministry of Commerce, has said that a large number of processing trade in China will be shipped overseas. For example, some electronic products and high-end clothing must be exported after processing in China, in accordance with the current processing trade policy.

Peng Qiang, vice president of Guangzhou Association of business economics, also believes that it is necessary to explore ways to directly sell domestic products for sale abroad. In fact, after the international financial crisis in 2008, many domestic single processing trade enterprises have turned to domestic sales.

This is also one of the ways to solve the high value of foreign luxury goods sold in China.