Why Does Costco, The Second Largest Retailer In The US, Enter Tmall?

When the friends in WeChat friends circle forwarding Ali's marketing stickers, they often have to add their own portrayal of a number of exaggeration, it seems that the people only need to pay the freight will be able to buy cheap and beautiful foreign products.

Is this really the case? To answer this question, we need to clarify a few questions:

After 1.Costco enters Tmall, the goods will be duty-free?

I saw Alibaba's WeChat marketing sticker read "it is learnt that the sale of Costco in China will go through the bonded mode, and the goods will be spanported to six cross border pilot cities in China, which are stored in bonded warehouses. After the order is placed, the goods will be shipped from the bonded area, so that only the postal tax will be paid. The cost will be very low. In addition, Ali will cooperate with Costco to provide consumers with full mail. "

The marketing sticker of Alibaba is very misleading. In fact, it is impossible for us to purchase Costco products only on Tmall. When we buy Costco products on Tmall, we still have to pay customs duties.

According to the statistics in 2010, customs duties in China accounted for 1 trillion and 200 billion, accounting for 1/3 of the central revenue. Tariffs on cosmetics, high-end electronics and high-end health care products account for a large proportion of customs duties. The Chinese government may let Costco sell goods to the Chinese people on Tmall without tariffs, which is not common sense.

Therefore, after Costco's entry into Tmall, Chinese people can hardly buy goods similar to those in the US. Because the freight and customs duties are there.

2. why should the Chinese government allow electric business enterprises to use bonded areas to engage in "bonded imports"?

The Chinese government recently called a new deal to encourage the development of cross-border e-commerce, that is, the so-called bonded import mode of the electricity supplier in the bonded area. After the goods are imported, they are stored in the warehouse of the free trade zone. The consumers sell the goods directly from the warehouse to the individual. We see that Alibaba is also vigorously promoting their cooperation with Costco, which is the mode of bonded imports.

Why did the government launch this policy?

It also needs to be discussed from overseas purchasing in recent years. In 2012, the second intermediate people's Court of Beijing sentenced Li Xiaohang, a former stewardess who opened shop to buy cosmetics, to serve 11 years' imprisonment. In 2014, the Beijing Higher People's court finally sentenced Li Xiaohang to 3 years' imprisonment. The reason is that she "takes the goods with passengers, avoids the customs supervision by carrying out cosmetics from no declaration channel, and so on. The tax evasion should pay more than 113 yuan. All acts constitute the crime of smuggling ordinary goods, and the tax payable for escaping is huge, and should be punished according to law".

Although Li Xiaohang, a overseas stewardess, was sentenced, it still can not stop the flood of overseas purchasing. The government must find ways to block the tax loss caused by overseas purchasing, so the bonded import mode of the bonded area is running. The government launched an electricity supplier to buy on behalf of (but must pay customs duties).

　　 Overseas goods From normal channels to enter the country, besides tariffs, freight is also quite expensive. Then, how can we save freight? Obviously, it can be done by piecemeal whole. Large scale imports can reduce the cost per commodity from the source to the user, from the international express delivery fee plus the tariff + inland spanportation cost to the total container spanportation cost sharing + tariff + inland express fee. For example, Costco wants to sell cosmetics in China, do not send goods from the United States one by one, directly spanport one container to the bonded area of China, after paying customs duties, send the express from the bonded area to consumers' hands one by one.

Therefore, the government is very smart, since the Chinese people want to buy foreign goods, rather than indulging in the loss of tax on behalf of the purchase, it is better to import electricity with the help of electricity suppliers, so that a lot of tariffs.

　　 3. why should Costco be stationed? Tmall ?

In March of this year, there was a news "Costco profit forecast", which reads, "the second largest retailer of the United States Costco announced that profits fell by 15% to 463 million dollars (about 3 billion 611 million Hong Kong dollars) in the past 12 weeks as of February 16th, and the earnings per share were 1.05 dollars, lower than the 1.17 dollars expected by analysts of Thomson Reuters. During the period, revenues rose by 6% to $25 billion 760 million, which is also below the estimated $26 billion 650 million.

It turned out that Costco's recent performance growth was weak. In order to boost performance, Costco really needs to find new markets. And Tmall also needs the fame of Costco. As a result, Costco and Tmall hit it off, so there was Costco stationed in Tmall.

Therefore, it is hoped that Costco or other overseas department stores will be able to gain substantial benefits from Tmall in China. I am afraid the vision is very good, but there is still a big gap between reality and vision.