BEIJING, Jan. 4 (Xinhua) -- High-end cosmetic brands, including Estee Lauder and Amorepacific, have announced price cuts in the Chinese market in the new year in response to lowered consumption tax.
The South Korean beauty company Amorepacific said on Tuesday that the suggested retail prices of 327 items under its four major brands will be slashed by anywhere between 3 and 30 percent starting from January 15th.
Meanwhile, U.S. cosmetics manufacturer Estee Lauder has also announced it will lower the retail prices of a few make-up and perfume products by 7 to 18 percent starting from January 5th.
Chinese Ministry of Finance says China has eliminated consumption taxes on ordinary cosmetics and will only levy the tax on high-end products. The tax rate has also been lowered to 15 percent.
Chen Min, an industry insider, says in addition to the tax reduction, the rapid development of cross-border e-commerce and overseas purchasing services in China have also pushed international brands to adjust prices in the country.
A recent report released by Changjiang Securities, a securities firm based in the central Chinese city of Wuhan, suggests the contraction in high-end cosmetics market in China as a result of slowed consumption growth has boosted markets for more affordable products and forced luxury brands to lower prices in the country.
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