1. China: the new battlefield for luxury brands Leo

2. Contents 1. Bicester Village’s success 2. Why do so many Chinese keen to buy luxury goods overseas? 2. Why do so many Chinese keen to buy luxury goods overseas? 3. Luxury brands are arriving at the Chinese market 3. Luxury brands are arriving at the Chinese market

3. 1. Bicester Village’s success

7. All for Chinese consumers!

8. Celebrating for Chinese new year!

10. Chinese are shopping in London

11. 2. Why do so many Chinese keen to buy luxury goods overseas?

12. Price:100 pounds 1 pound = 10 yuan RMB Import tariff rate 15% Value added tax rate 17% Consumption tax rate 30% Example

13. CIF price: 100 x 10 = 1000 RMB Tariff: RMB 1000 x 15% = 150 RMB Value added tax: (1000 RMB + 150 RMB) x 17% = 196 RMB (rounded) Consumption tax: [(1000 RMB + 150 RMB) ÷ (1-30%)] x 30% = 493 RMB (rounded) Example

14. After-tax price: 1000 RMB+ 150 RMB+ 196 RMB+ 493 RMB =1839 RMB Final price: After-tax price + Transport fee + Profit of importer+-------- > 2000 RMB Example

15. CIF price After-tax Final price RMB 1839RMB 2000RMB 1000

16. wealthy consumer s Chinese luxury consumption groups young white-collar

18. 3. Luxury brands are arriving at the Chinese market

19. In 2013, An outlet village will be opened in Suzhou

20. Suzhou village