High-end cosmetic price is not cost appearances

Lauder, Clinique and other brands of some products have been rising from July 1. About 1 months ago, Lancome, Biotherm, Armani and other brands have also raised prices, the increase in the range of 5% to 8%.　　Industry insiders believe that this round of high-end cosmetics prices, not because of rising costs, in the price to maintain a constantly climbing state to ensure its high-end, high-end cosmetics brand in the Chinese market marketing strategy. Recently, some of the products of the company's various brands have raised prices by 8% to 10%. At the beginning of the year, Dior, Chanel and other high-end cosmetics have been raised prices, did not expect a few months later, high-end cosmetics again set off a surge in prices.　　For high-end cosmetics are now rising prices, most businesses have said that the rise in costs has pushed up the price of cosmetics, but some insiders believe that the price of high-end cosmetics is only 20% related to costs, high advertising costs, and the recent debate on reducing import tariffs on luxury goods is the direct reason for the rise in the price of high-end cosmetics.　　Part of the price of nearly 10% reporters learned that this round of cosmetics prices of the main brand has Lauder, Clinique, such as the group under the brand, the average increase in the range of 8% to 10%, a broader scope, basically each brand has 10 to 20 categories of goods listed in the price list. Recently, a person of the Lauder Group said, the group owned by the company, such as the Lauder, Clinique and other brands of products have been on July 1, the price adjustment, prices price of commodities have increased.　　In addition, according to the reporter understand, about 1 months ago, l ' Oreal Group's Lancome, Biotherm, Armani and other brands have also raised prices, the increase in the range of 5% to 8%. At several department stores in Beijing, the reporter found that some of the products under the Lauder have been raised prices. A bottle of 15 ml installed in the Lauder Anti-wrinkle Moisturizing Eye Cream, the price has been raised from 480 yuan to 540 yuan. and Lauder star Products "small brown Bottle", "Small Blue Bottle" series, its 50 ml will be installed from 880 yuan, 790 yuan respectively up to 940 yuan, 830 yuan. "We have received a notice of product price adjustment, and has been on time to raise the prices of some of the products."　　"The shop assistant of the China Friends department store said. Under the increase in some of the cosmetics prices, its sales did not appear to reduce significantly, in order to retain the guests, some of the cosmetics areas of the mall also through the way to send sample gifts to reduce consumer sensitivity to cosmetic price increases. "Although some of the prices of our brands have been adjusted, the sales of these already-raised cosmetics have not been affected, and many consumers are still coming to buy them." "The salesman at the China Friends department store told reporters. "Shopping malls are now engaged in activities, although some high-end cosmetics prices rose, but some shopping malls cosmetics zone to do some activities or send a little sample, even if the price increase, guests can accept." "Beijing Beichen Shopping Center cosmetics shopping guide said. [Page] Cost is not the main reason for this view, high-grade cosmetics another round of price inflation has arrived. This rallyWhat is the reason for the price?　　Some businesses and industry people have given the answer. "Price adjustments are the result of a combination of factors, including rising raw material costs, labor costs and transportation costs." "The people at the Lauder Group said. "The cost rises, the company produces the cosmetics price certainly also will follow up."　　"The shop assistant of the special department store in the company told the reporter. Feng Jianjun, deputy director of China Cosmetics Marketing Research Center, said high-end cosmetic costs include four aspects, namely advertising operating costs, promotion costs, labor costs and raw material costs. In the current economic environment, these four major costs have risen, and the most serious growth should be advertising costs. In his view, high-end cosmetics generally profit margins of 60% to 80%, and the above cost growth affects about 20% of the profit. Even so, high-end cosmetics are still profitable, but because their sales growth is not as big as the low-end products, it is still important for companies to maintain their original profits. High-end cosmetics, he says, are facing tariff costs because they are almost all imported goods. At present, imports of cosmetics include tariffs, value-added tax and excise tax, and many other costs. Among them, VAT is 17%, tariffs range from 6% to 10%, and excise tax is levied from 1994 onwards. Initially, make-up cosmetics (including perfume) for 30%, skincare cosmetics for 17%. In 1999, the latter was adjusted to 8% and subsequently cancelled in 2006. However, the consumption tax of make-up products has not changed. "Price rises meet the brand strategy of high-end consumer goods, these brands need to maintain a constant climb in the price of the state to ensure that the high-end, and slow prices will be eliminated by the market."　　Gao Jianfeng to the media. A department store insider, who declined to be named, said high-grade cosmetics are not in accordance with product prices = production costs + research and development costs + marketing costs + sales costs + management costs + exchange gains and losses + reasonable profit + brand premium This principle of pricing, the first is to maintain the fundamental attribute of price, which is the spiritual value of luxury. However, the recent controversy over the reduction of import tariffs on luxury goods has also made some high-end cosmetics ready in advance to safeguard their interests.