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Why Is The Difference Between Domestic And Overseas Luxury Goods Big?

2010/7/26 17:15:00 37

Luxury Brand

"If we simply look at the prices of the two places, the price of" cabbage "in the United States really lets us vomit blood.

The price difference between some Chinese and American packages is even more than doubled. Even after purchasing, the price is cheaper than the domestic price by more than 1/3.


Lisa, a white-collar foreign company working in Xuhui District, Shanghai, found that the biggest difference between the Coach brand package and the official website of the United States is a leopard print large Claire bag. The official website price of China is 15100 yuan. The official website price of the United States is priced at $1200. According to the exchange rate of 1 to 6.8, the price difference is 6940 yuan.


In fact, more than Coach, Prada, LV, Armani, Gucci, VivienneWestwood, Ferragamo and Burberry and other international luxury luxury brands, in China pricing is also higher than the United States at least 1/3.


A Shanghai customs official told reporters that such a luxury like Coach package is an important reason for the high price in China.

"When luxuries are imported, there will be three customs duties, consumption tax and value-added tax. The total amount is about 70%~100%."


In fact, since 2000, Coach has pferred more than 90% of its factories to Asian countries with relatively low labour costs.

The next year after the pfer, the effect began to appear: the gross margin of Coach's product was 64%, even more than 62% of LV, and then it jumped to 77% in recent years.

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