At the beginning of 2017, the import of high-end beauty brands are collective price cuts become the first wave of the New Year beauty industry hot spots.
Starting from January 1, Dior cut part of the make-up price, drop control between 5% -10%; January 5, Estee Lauder Group's brands include Estee Lauder, Clinique, Charm, Barbie Polan, Zu Ma Long, TomFord and MichaelKors down part of the make-up and fragrance products, the proposed retail price, involving more than 300 brands, a decline of up to 18%.
Europe and the United States after the big start, South Korea's largest cosmetics company Amore Pacific Group also closely follow, announced that starting from January 15, down its Lange, Yue Shi Feng Yin, Yi Di's house, snow show four brands of 327 single Cosmetics, nail polish and a number of make-up products, in which the L'Oreal Group's Lancome, Shu Uemura (including Lancome, L'Oreal Group's Lancome, , Maybelline, Yves Saint Laurent and so jump into the trend of price cuts.Emergers said that this is simply the make-up sector 'half' are in the price.
This wave of price cuts originated in September 30 last year, the Ministry of Finance and the State Administration of Taxation issued "notice on the adjustment of cosmetic import consumption tax." According to the contents of the notice, October 1, 2016, the scope of cosmetics tax narrowed to high Cosmetics and high-grade skin-care cosmetics, and the standard for the duty-paid cosmetics is 10 yuan / ml (or 15 yuan / piece) or more, while the consumption tax rate of import links From 30% to 15%.
L'Oreal (China) has issued a statement on the day of the New Deal, said very much welcome the Ministry of Finance on the adjustment of cosmetic consumption tax policy program, promised to cut the price of some products accordingly. However, because the tax return from the tax to the real counter has a period of time between, so the effect of tariff reduction is not quickly reflected in the mall, but after two or three months after the brand finally started in the new collective price. But the price cut is only because the tax rate under the influence of the policy response, the reasons behind probably far from that simple.
See is to respond to policy, in order to take the opportunity to cut prices
In response to the tax cut policy on the surface seems to be taken for granted, but the policy of high-end cosmetics tax reduced by 15%, while the brand for some products, the price drop was significantly more than 15%, Amore Pacific Group, Of the house is to cut prices by 30% .Many industry speculation, this round of price cuts actually ulterior motives.The brand is to take this policy landing, by further reducing the price to seize the make-up market.
Last year in June, China has reduced some of the clothing, shoes, skin care products, diapers and other daily consumer goods import tariff rates from July of that year, the price of imported goods in the first half of the year, Day, many imported cosmetics brands in the Chinese market began to lower the suggested retail price, price reduction of about 15% .Similar to Estee Lauder products, for example, when the star products, including small palm bottle price range up to 14%, Clinique efficient skin care Trilogy from 750 yuan to 635 yuan, a decline of more than 15%. Yuet wood source of Dr. Ganoderma Lucidum Huaneng essence 50 ml equipment is reduced by 200 yuan, a decrease of 23% .Holland brand Helena also took the opportunity to make its makeup Product leopard mascara from 420 yuan down to 410 yuan.
You can see, in addition to over-adjustment of retail prices, the foreign brands also appeared clearly is the skin care products tax, but the price of cosmetics products down the situation.This kind of behavior is likely to brand re-adjust the opportunity in China Market price strategy, to attract more consumers.If the high-end brands in the normal price for no reason, to please the intention of consumers is too obvious, will undoubtedly damage the brand image of the tall.
Cross-border electricity providers are squeezed? The power of price cuts is not so great
The big collective price cuts also narrowed the price of foreign counters and domestic counters, this time there is another voice guess, this round of price cuts will squeeze cross-border electricity market, as consumers get back to the brand a good time.
In fact, although the country to reduce the import tax burden, but the brand of foreign products will be imported into the Chinese market, the cost is much higher than the cross-border business.
There have been industry insiders revealed that formal enterprises to import cosmetics to the Chinese market, the market must have a health permit before the approval document, which involves doing a full set of tests, including general products about 9 months time, special products and even to 13 Month, 'the whole application process for a long time, the cost of large.' But cross-border electric business in the sales of cosmetics do not require health permit approval document, the cost is naturally much lower.Meanwhile, this is why many new imported cosmetics in the electricity business and Foreign synchronous listing, but in the mall counter but can not buy the reason.
In addition, from the import tax link, the formal import process of brand enterprises to pay import tariffs, consumption tax, value-added tax. Cross-border business before the tax line by tax, the cost is much lower .This year the national strict cross-border After the import tariffs on electricity suppliers, retailers of imported goods are no longer levied on parcel post, but also on the basis of tariffs on goods and import VAT, consumption tax, which narrows the tax burden difference, according to the Beijing Youth Daily. Which is still a hole in cross-border electricity providers, that is, a single transaction limit of 2,000 yuan, 20000 yuan per person within the annual trading limit of cross-border electricity supplier imports, tariff rate is zero, import VAT, consumption tax according to the statutory 70% of the tax payable.
From this, the cross-border electricity providers in the price and market response is still more than the brand in the domestic market has more advantages, a simple price cuts may usher in more consumers for the brand, but in the country to defeat cross-border electricity providers need to achieve More policy adjustments.