But an employee at Hermès stores said that price cuts have little impact

According to reports, some European luxury brands directly benefit from China’s import tariff cuts, have begun to reduce the price of products sold in China, and further narrow the gap with the rest of the world. Louis Vuitton (LV) has cut prices for most of its products, ranging from 300 to 1,500 yuan. Hermès cuts prices from $100 to $500, including belts, wallets, scarves and other accessories, as well as some women’s clothing. But an employee at Hermès stores said that price cuts have little impact on customer traffic because consumers who buy luxury goods are actually less sensitive to price. In recent years, the Chinese market has become the battlefield of global luxury brands. Louis Vuitton, Dior and Cartier have adopted price reduction strategies to win the favor of Chinese consumers. In 2017, the luxury goods market in mainland China reached RMB 142 billion, an increase of 20% over 2016. This is the biggest increase since 2011. According to the research report released by Bain, “China Luxury Market Research 2017”, Chinese luxury goods consumers accounted for 32% of the global market share in 2017, and the growth rate of luxury goods in the Chinese market has surpassed that of overseas markets. The mainland market has increased by 20%. On July 1, the new round of import tariff reduction plan announced by the State Council Tariff and Tariff Commission reduced the average import tariff rate on clothing, shoes, hats and sports and fitness products from 15.9% to 7.1%. Cosmetics such as skin care, hairdressing and some medical and health products. The average tariff rate on import tariffs of products decreased from 8.4% to 2.9%. These luxury brands said that most of the goods have been lowered, but some have not changed. The staff of GUCCI official website said that it can only determine the price adjustment of the products sold in the official website. It is not clear whether the offline stores are synchronized. Although the price has dropped, some consumers have pointed out that the price difference between luxury goods in the Chinese market and overseas markets still exists. In addition, import tariffs only account for 0.5%-7% of the retail price of imported goods. In addition to tariffs, the price of imported luxury goods usually includes import value-added tax and consumption tax (such as cosmetics and high-end watches).

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