< p > Shanghai free trade area is the first free trade area in mainland China. The only cross-border cross-border e-commerce platform in Shanghai is being examined by the Customs General Administration. It can be formally launched on the inspection and acceptance. The price of foreign products sold abroad is expected to be 30% cheaper than that of domestic counters, but the price is still relatively high relative to the offshore market.

We maintain the "super matching" rating of the luxury retail industry.

< /p >

< p > the price is lower than the domestic counter price of about 30%. "cross border" main business commodities include < a href= "//m.pmae.cn/news/index_f.asp" > clothing < /a > clothing, baby products, 3C electronic products, cosmetics, bags and other six categories, positioned in the high-end, and its commodity prices may be 30% cheaper than domestic counters.

At present, there are already many overseas brands such as CK, Coach, Burberry and so on. This business platform has been registered by customs, which avoids the risk of counterfeit goods, and each product is clearly priced, and customs and logistics costs are also clear.

< /p >

"P > Hongkong's tax exemption advantage is still in existence. Cross border links are undoubtedly a potential shock to Hongkong's a href=" //m.pmae.cn/news/index_c.asp "> retail trade < /a >, but we believe that the extent of its impact is still limited because it is not tax-free.

< /p >

The main reason for the low price of "P >" cross border "commodity is that it adopts the Shanghai free trade zone's warehousing bonded import mode, and goods are sold directly from the warehouse to individuals, thus reducing the logistics cost.

On the other hand, the proportion of overseas consumption of mainland consumers in China accounts for 65% of total sales in Europe, 22% in North America and 13% in Hong Kong, Macao and Taiwan.

< /p >

< p > > Golden Week < a href= > //m.pmae.cn/news/index_f.asp > luxury goods > /a > overseas consumption far beyond the territory. The World Luxury Association's "2013 Golden Week" overseas Chinese luxury consumption statistics report shows that, on the 7 day of the National Day holiday, the mainland consumer's outbound consumption luxury goods totaled about 4 billion 100 million euros, an increase of 6.5% over last year's "Golden Week" period, while the domestic luxury goods market decreased by 53% to 1 billion 500 million yuan over the same period, reaching the lowest level in five years.

< /p >

< p > luxury consumers in China will continue to prefer overseas consumption. In 2012, the average price of luxury goods in mainland China is 45% higher than that in the Hongkong market, 51% higher than that in the US market, 72% higher than that in the French market, and the price increase of luxury brands in China is still around 25% every year on the basis of high prices.

In fact, the main factor determining the price of luxury goods is not tariffs. Rather, Chinese consumer attitudes and consumption habits push up the pricing strategy of luxury brands.

Therefore, we expect to maintain a relatively high share of overseas consumption in the short term.

< /p >