Zhonghua sells 20 in Japan, and Moutai only sells 600, why are exports cheaper than domestic?

Mondo Tourism Updated on 2024-02-16

Kunpeng Project

Zhonghua sells 20 in Japan, and Moutai only sells 600, why are exports cheaper than domestic?

China's high-end consumer products, Zhonghua cigarettes and Moutai, are frequently appearing in the global market at eye-wateringly low prices, and the tax difference behind them is not only a surprising price tag, but also a silent tax incentive.

Moutai can easily sell for 3,000 yuan in China.

But in Japan, that number has magically dropped to 600 yuan.

This has to make people wonder whether it is Moutai lowering its posture, or rather, is the tax bureau manipulating prices?

1. Cross-border taxation of national liquor.

Tax policy is like a pair of invisible hands, quietly exerting heavy pressure on prices. In China, tobacco and alcohol are subject to higher excise taxes and value-added taxes, making Chinese consumers pay more for this "status symbol".

Every inhalation of China, Moutai's liquor, contains a profound cost to the U.S. tax system. In contrast, Japan imposes fewer tariffs on these two types of goods, which means that customers can purchase such goods at a price equivalent to the cost.

However, it is not enough to look at tax policy alone. This is also a widely overlooked "export return" tactic, which allows export goods to be stamped as "preferential" when they depart from Chinese ports.

This preferential measure for the global market, on the one hand, facilitates the flow of Chinese products abroad, and on the other hand, inadvertently creates a price gap between domestic and foreign countries.

We wonder if such a tax system is really consistent with the equality** and well-being of our customers? Should we change our tax system for high-end consumer products?

Second, Chinese products are drifting around the world.

A jar of "Moutai" in the mountains of Guizhou, drifting across the sea, drifting across the sea, sold to Japan, Europe, and even the United States, the price is not as good as the price of the hometown.

This seems to be a modern version of the "Silk Road", however, behind the logistics costs, there is an unrevealed secret.

Let's find out why. In China, due to the high storage costs, transportation costs, and management costs, a more complex system has been formed. Each step has the potential to lead to price prices**.

And all over the world, a large amount of goods pass through the sea**, which can save a lot of goods, which is like a huge cost killer.

To put it simply, the transportation cost will be reduced, so Moutai can sell at a low price around the world.

This is not just a simple transportation problem, but more importantly, it is necessary to maximize the benefits brought by tax cuts. Tax rebates are implemented for export goods, and transportation costs are subsidized, so that they are in an advantageous position in the competition.

Therefore, Chinese products in the global market are equivalent to the trademark of "preferential", while in China, because there is no such preferential, so they have to bear greater pressure on logistics costs.

However, the mystery of logistical costs has not yet been completely revealed. In China, complex local charges, rebates in various logistics links, and the lack of effective operation and management have quietly increased the value of goods.

All of them, unconsciously, open up the domestic and foreign prices, so that the majority of users have a feeling of confusion when purchasing.

Moutai, Zhonghua and other brands are labeled as cheap in the international market, which is not a simple reflection, but more due to the combined effect of tax policies and logistics costs. Behind the "magic" of transnational pricing is not just a game of data, but a game between politics and efficiency.

3. The battle between popularity and market demand.

If you go to every high-end wine store in China, you will find that it is printed with a dazzling trademark - Moutai - as if whispering to consumers that it has a long history and extraordinary quality.

This one-of-a-kind brand appeal attracts not only customers in China, but also people from all over the world.

However, the connection between the brand effect of the enterprise and the needs of the market is not a one-way street, it is a pluralistic and pluralistic game process.

In China, Chinese cigarettes and Moutai are symbols of social identity, and their supply exceeds demand. This phenomenon has sparked a frenzied market competition, and people are willing to pay high ** in order to obtain scarce resources.

Now, "famous brand" is not only a symbol of quality, but also a proof of identity. And when those brand-name products enter foreign countries, it's a different matter entirely. Although the brand is still very famous, due to the differences between Chinese and British cultures, as well as the differences in usage habits, the demand for it is not as enthusiastic as in China. Changes in market demand have a direct impact on decision-making.

Abroad, Chinese auto companies also need to compete in pricing in order to gain more customers and more market share.

Locally, brands are able to use their market perception to maintain or inflate the price of their products, as customers chase the symbol at almost no cost.

In this kind of competition, in addition to maintaining its original elegance and nobility, enterprises must also adjust their strategies in a timely manner according to the diversified needs generated by global economic integration.

Fourth, shorten the price gap between international and domestic prices.

Moutai and China are very sensitive to the position of the big chess game in the international market.

On the one hand, they are a symbol of nobility in the United States, and they sell for a high price.

But when I go overseas, it's like dropping the bag, and it seems more affinity.

These two roles form a pricing gap, and how to cross this gap is a strategic adjustment.

They adopted a strategy of "boiling frogs in warm water" abroad. They can enter a market at a low price, and then gradually increase their brand recognition, so that they can unconsciously gain a higher market share.

In addition, through limited sales and other methods, we can create a "sense of scarcity" similar to that in China, which can not only improve the brand image of the company, but also pave the way for future price increases.

However, there are certain dangers associated with such a strategy. If the price increase is too large, it will cause customer dissatisfaction and even lose the established market share. Companies need to strike a balance between increasing the selling price of their products and maintaining their demand for consumers.

This requires an accurate eye on the market and the ability to adapt quickly. A brand's internationalization strategy is to learn how to survive in an unfamiliar culture and market through trial and error.

Conclusion. After a series of strategic adjustments, the gap between China and international oil prices has gradually narrowed. Foreign customers have realized that the brand is different, and in China, people respect the brand more than just the price.

In this process, a country's brand has formed an invisible change in the world, so that it can better stand in the world.

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