Chen Au CEO: Plans to subsidize logistics and taxes with 1 billion yuan

Abstract: In the domestic also can be at the same or even lower prices to buy foreign cosmetics, but also the mail, such a cheap you have ever thought? After the U.S. listing on the negative constantly the biggest beauty makeup vertical electric quotient of the United States excellent products, CEO Chen Au said is tilting the company's power

At home can also be at the same or even lower prices to buy foreign cosmetics, but also the mail, such a cheap you ever think?

After the U.S. listing on the negative constantly the biggest beauty makeup vertical electric quotient of the United States excellent products, CEO Chen Au said that the company is tilting the entire force to support the sea Amoy business, plans to use 1 billion yuan to subsidize logistics and taxes.

Through authentic direct supply, the global package of mail, the Sea Amoy shopping Model Mall, is not the first excellent products, CAT international before that has waded, Amazon recently flagship "internationalization" is intended to buy business overseas. However, the recent subsidies of some vertical cosmetics dealers are clearly beyond the expectations of some of the biggest cosmetics manufacturers in Europe and America.

A big cosmetics industry personage yesterday to South all reporter said, the vertical cosmetics electric Dealer's initiative, the company has been concerned about. And in the face of European and American cosmetics manufacturers, the FTA will also be forced to adjust their other major factors. Some high-end cosmetics group professionals said: The development of the FTA and its impact on the cosmetics industry, we are also closely watched and discussed.

Poly-American subsidy in the touch of cheese

Money is willful, this is Chen Au said. Was "former employees" directed to the media revealed that the company suspected of smuggling the "explosive material", Chen Aulian hair long micro bo for Poly-Mei cry.

At the same time Chen Au also revealed that the main "speed" and "duty-free" two points Hai will be the United States 1 billion yuan subsidy. The realization of the path for the first day of delivery within two or three days of arrival, to solve the speed problem, and then through the subsidy tariff, the legal compliance method to allow users to enjoy low prices.

Poly-Mei so-called "speed" is achieved through the bonded area model. Last September, the United States in the State Council of the first batch of free trade zone to build tens of thousands of square meters self-care warehouse. Warehouse Reserve mode makes overseas purchases within 24 hours after the user orders can be shipped, 3 days nationwide arrival.

According to Poly-Mei excellent products related to the responsible person, the current poly-Mei excellent products overseas purchase of the main channel in Zhengzhou bonded area, the choice of Zhengzhou is mainly to take into account Zhengzhou is the traffic arteries, and is the State Council approved the first domestic bonded zone. In nearly half a year of running-in, Zhengzhou customs is also gradually adapted to deal with the electrical business enterprises, daily audit orders from the original 5000 increase to tens of thousands of single, now there are more than customs in contact with the United States. In addition, Seoul in South Korea and Hong Kong, China has established a total of 3000 square meters of inventory warehouse, the future will be set up in Japan warehouse.

and "tax exemption" is mainly by the full responsibility of cosmetics to carry out postal tax. As we all know, the foreign cosmetics class postal tax is relatively high. Under the "tax exemption" policy, this part of the cost is all borne by the United States. In addition, because of the direct cooperation with major overseas brands and the full commitment of tax, some overseas products are even cheaper than the local ones.

To Clinique Excellent moisturizer gel formula 125ml For example, the marked as the United States original products January 8 in poly-Mei speed duty-free shop only 199 yuan, and this product in mainland China for reference price of 509 yuan. On that day, Lancome clear 滢 Foam Cleanser 125ml, only 199 yuan, the product of the Mainland China reference price of 320 yuan. January 12, the wonders of the abundant wrinkle cream 50ml in the United States price only for the mainland reference price of 44 percent, biotherm Blue source essence of the 50ml discount is also low to 48 percent.

Self-trade Area price leverage will be obvious

In fact, the price pressure placed in front of European and American cosmetics is more than that. Poly United States This because of the so-called "former employees" burst material forced to disclose the whereabouts of the vice President Fei, and the South Korea since the start of the trade area after the Korean version of cosmetics price trend revealed no doubt.

Speaking of Korean products, beauty of the ladies may be the first time to think of cosmetics. In accordance with the idea of internal mail, a Korean version of the Snail mask has been created in the United States one hours, that is, sales of 5,000 records.

"In order to open up a more reliable brand channel for consumers, last year, during the preparation of the online overseas purchase, including Chen Au, Liu Huipu, Daiusen and other senior executives divided five road, in South Korea to find brand-side cooperation, the highest peak when an executive once in a day saw 10 brands." "In accordance with the United States January 11 to the south are reporters to the response, it is clear that to Korea is not only Fei." And China and South Korea duty-free free trade zone start-up, in the United States seems to have great business opportunities.

"In the latter part of the negotiations, Japan and South Korea, many brands have long studied the phenomenon of poly-beauty, electric business channel change brought about by the increase is their unexpected, they do not understand that a channel can be done through the electrical business way so large, through the United States to help their products marketing all over China, is what they hope, both sides hit. Brand side of the favor greatly reduced the difficulty of the negotiations, so that the United States in the grasp of high-quality sourcing at the same time, gripping the advantages of bargaining. Gathers the United States does not need to make the big trouble even, only needs with them to establish the friend the trust, can achieve both sides to win together. As a result, poly United States two weeks to win more than 100 well-known brands of Japan and South Korea exclusive authorization, which, including the beauty of the familiar brand makeup. This directly led to a part of the products on the product line in the United States and even lower than the local price of South Korea, there have been purchasing staff in the United States on the site of the phenomenon of hoarding goods. "Poly beauty products, a relevant person in charge of the south are interviewed by reporters."

In the industry experts familiar with the United States, the United States above the move is in fact for China and South Korea since the opening of the trade zone to prepare. According to the current customs regulations, the Korean cosmetics export China faces the highest tariffs of more than 100%, zero tariff once implemented, imports from South Korea, the price of cosmetics is expected to shrink more than half.

And is expected to realize the zero tariff of China's cosmetics and Australia. Last year, China and Australia have jointly confirmed the substantive conclusion of the Sino-Australian Free Trade Agreement negotiations. According to the negotiations, more than 85% per cent of exports will be exempt from the date of entry into force of the agreement, which will rise to 93% in 4 years, and eventually 95% of Australian products would be duty-free into China.

When it comes to Australian skincare products, you can't just mention the famous Julie. What does it mean to enter China tax-free? Take Julie as an example, if there are about 40% of the import tax, then the brand value of thousands of packages, through the FTA parallel imports, will be able to save a good hundreds of yuan.

[Extended reading] "Sanya" is inevitable

In the FTA policy and the Enterprise Sea Amoy subsidy two-pronged, China's local day, Europe and the United States big brand skin care products or will usher in a reshuffle process. This is a Japanese-industry observer to the south is a reporter's point of view.

From the current sales situation, Poly-American top speed tax-free beauty makeup has been hot to "a thing difficult to ask" the point, and some products open 2 minutes tens of thousands of stolen empty. The cause of this phenomenon is mainly in the price.

According to the current policy, cosmetic imports of the general rate of 6.5%, make-up and perfume for 10%, and this does not include 17% value-added tax, as well as high-end cosmetics 30% consumption tax.

Recently, in the south are reporters asked "in the United States to subsidize overseas business, and the impact of the policy of the FTA, how to view the European and American cosmetics market of the future pattern of change?" "When, Poly-Mei excellent product related responsible person does not have a direct response to the market pattern, but said, at present, the United States excellent products and European and American famous cosmetics cooperation has been more and more, including Julie, Arden, L ' oreal, etc. have been settled into the United States, opened the official flagship store In overseas shopping channels, Poly-Mei is also contacting some French and American cosmetics brands, although these brands are not very knowledgeable about the Chinese market, but at least they know that the market is very large, they do not want to miss. Believe that there will be more and more European and American cosmetics appear online channels.

In the eyes of the United States, the cultivation of overseas purchases of consumption habits and itinerary sales scale is a top priority, as the overseas purchase of the amount of subsidy is not an exact estimate of the number. "It can be said that there is no limit to the number, as Chen Au in the internal Mail said, all the size of the overseas purchase target." Said the head of the Chen Au, who is close to the United States.

Of course, when we see the 1 billion-dollar subsidy, there are also experts in the industry who believe that huge subsidies or not a long-term solution.

And the current duty-free enterprise behavior and the Trade zone policy double impact of the European and American cosmetics, the new changes, based on the efforts to find countermeasures. As of yesterday's deadline, the south has been sent to a number of European and American big-brand cosmetics problems have not been directly responded.

According to Nielsen's 2013 disclosures, in May 2009, the market share of multinational cosmetics brands (excluding Dabao) was 57.9%, and in May 2012 the figure fell to 44.5%. Analysis on the view that the emergence of new duty-free channels will make the above mentioned in the European and American cosmetics in China's share of the decline in the situation has been reversed, to be seen.