Many high-end foreign brands have responded to China’s lowered consumption tax by cutting prices.
Amongst these brands are Estée Lauder and AmorePacific, which announced that it will slash the prices of 327 of its products from anywhere between 3 to 30 percent as of January 15th. This move was mirrored by Estée Lauder, which cut the prices of a few make up and perfumes from between 7 to 18 percent.
The move follows news that the Chinese Ministry of Finance had waived consumption tax on premium products completely in October 2016, in order to help the country stimulate growth and boost domestic spend, while the country is hoping it will make imported luxury goods more affordable for domestic consumers.
The country has lowered consumption tax for other cosmetic products from 30 to 15 percent.