General cosmetics cancel excise tax is not necessarily good for consumers

Released the new consumption tax overhaul, according to the financial department of insider: general cosmetics could no longer impose consumption tax. Preliminary opinion, this news is a good policy for consumers, consumers don't have to pay extra for the enterprise. But, how to position 'cosmetics' and cosmetics companies really price is likely to be two new problems after consumption tax reform. Cosmetics market for luxury cosmetics pricing in RMB, but for general cosmetics and high-grade cosmetics positioning hasn't been clear price or materials to distinguish, consumer is your psychological price is relatively high definition for high-end cosmetics cosmetics, but according to the consumption level of each person is different, nature of the orientation is different. So small that the general cosmetics cancel excise tax changes, is bound to cause a cosmetics enterprises between the price of, and consumers is the direct victims. The consumption tax breaks the general cosmetics will not necessarily sought after by all enterprises. Cosmetics consumption group is mainly focused on - now Between the ages of women. Because their consumption idea or economic strength, are no longer buy cheap cosmetics. Once a cosmetics have been divided in the column of 'general cosmetics', it brought about by the economic benefits will definitely lower than high-end cosmetics. Thus, in the market to determine the 'general cosmetics' and 'high-end cosmetics' before, they will have to raise prices to improve yourself, in the form of positioning. Be included in the latter's enterprise continues to the consumption tax and partly due to the senior raw materials of high grade product to earn huge profits, and follow the current increase in the price of cosmetics continued the trend of the blind; As to be included in the former company, they may not really because the government consumption tax relief and to prices of products, we is unclear. General cosmetics consumption tax relief rectification, the cosmetics enterprise is absolutely surprise, but for consumers, need to wait for the actual situation of policy after the implementation of market observation. Editor: xiao-li Chen