tag:blogger.com,1999:blog-6365320.post5072804198078266661..comments2023-05-23T13:50:47.414+02:00Comments on China Herald: Marketing to China's middle class - Tom DoctoroffChina Heraldhttp://www.blogger.com/profile/12661962166788808674noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6365320.post-9771063591523443192012-06-08T07:22:37.333+02:002012-06-08T07:22:37.333+02:00The point being not everyone in Shenzhen can "...The point being not everyone in Shenzhen can "hop over" to Hong Kong. They - and everyone else in China - needs a special permit to do so. That's why you have the apparent incongrinuity of having an Apple store in Shenzhen selling products with a luxury tax price tag, and just across the border in Hong Kong at considerably less. If you can travel to HK, then great. If not, you can hire someone to go buy it for you there - which is why Hong Kong stores like Apple, ina ddition to Gucci, Cartier and LV all have long queues outside waiting to get in.Chris Devonshire-Ellishttp://www.china-briefing.com/en/chris-devonshire-ellis.htmlnoreply@blogger.comtag:blogger.com,1999:blog-6365320.post-87551410792732705282012-06-07T11:50:04.066+02:002012-06-07T11:50:04.066+02:00A, I was too fast
http://www.china-briefing.com/ne...A, I was too fast<br />http://www.china-briefing.com/news/2012/06/07/luxury-tax-in-china.htmlChina Heraldhttps://www.blogger.com/profile/12661962166788808674noreply@blogger.comtag:blogger.com,1999:blog-6365320.post-1492034527277613022012-06-07T11:00:25.775+02:002012-06-07T11:00:25.775+02:00So, do you think it makes sense for a company like...So, do you think it makes sense for a company like Apple in setting up a store in Shenzhen? People are better off when they hop over to Hong Kong.<br />I'm amazed about the huge investments in real estate in cities like Shanghai for luxury brands. Do these investments make sense, when it is mainly for window shopping?China Heraldhttps://www.blogger.com/profile/12661962166788808674noreply@blogger.comtag:blogger.com,1999:blog-6365320.post-39380831527939328352012-06-07T10:57:03.073+02:002012-06-07T10:57:03.073+02:00The main issue with luxury goods in China is the a...The main issue with luxury goods in China is the amount of tax they attract. The component parts of luxury tax - import duty, VAT and consumption tax - imposed on luxury products last year in China equated to income of some USD187.9billion in 2011. The high price of these goods in China as opposed to elsewhere now means that 80% of luxury goods purchases by Chinese nationals are now conducted outside China. Our views on this and the potential for reducing luxury tax can be read here: http://www.china-briefing.com/news/2012/06/07/luxury-tax-in-china.htmlChris Devonshire-Ellishttp://www.china-briefing.com/en/chris-devonshire-ellis.htmlnoreply@blogger.com