Italian brands ready to conquer the Chinese market
With Beijing cutting import duties on foreign goods, prices of bags and clothes are expected to fall
All of a sudden, Italian brands (as well as any other foreign brand) will find it easier to sell their products to China, and maybe some of them will be even able to strengthen their position in the country.
Earlier in 2015 Beijing already cut taxes on some imported goods with the aim of supporting internal demand on consumer goods. Since this move was not as effective as expected but still helped in stimulating the economy, the country has eventually decided to add some more products to the list of the ones enjoying lower taxes to further boost the level of internal consumption.
According to a statement released by the Ministry of Finance, the new list will be soon including suitcases, bags, clothing, scarves and blankets. As the Minister himself explained, the measure will "give domestic consumers more choice in shopping while helping the country expand domestic demand". This is definitely a good news for Italian fashion companies. The ones that are already present on the Chinese market will most likely enjoy a sharp increase in their sales, as their product will become affordable for a much bigger quota of Chinese customers. At the same time, companies that are not yet present in this market may find it convenient to explore it.
The new measure will become effective on January 1st, 2016, and it is expected to be very welcomed by Chinese consumers as well. Since more and more Chinese can afford to travel abroad, they are more exposed to foreign brands and products and they are getting used to buy either during their trips or online what they cannot find at home. This also one of the reason why Chinese Premier Li Keqiang recently proposed the implementation of an "Internet Plus strategy" to promote a wider use of online and mobile phone technologies to boost online shopping.
If some of these products will become available in Mainland China at reasonable prices next January, Chinese consumers will definitely enjoy the chance of seeing and trying their favourite clothes or accessories before buying them, and foreign companies will most likely see the number of their customers (and revenues) increasing.