Quote:
Originally Posted by MMM
I think you are confused. It's when those "stupid" school girls STOP buying expensive handbags that hurts the economy and causes a recession.
Japan already has high tariffs. People in Japan are impressed I drive a Volvo because it is considered an expensive luxury car in Japan. That isn't as true in the US.
Discouraging spending is not the way to solve a recession. When foreign goods are sold in Japan, it doesn't mean that 100% of the money is flushed out of Japan. The goods are tariffed, so the government gets money. Importers and retailers (combined) take 40% to 75% of the take, so a majority of the money from that Gucci bag probably stays in Japan. I think it's time to rethink that strategy.
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interesting numbers. I am a bet skeptical. I don't know the details of the industry so I leave the door open, but I would think brands like GUCCI distribute directly to the small retail stores not to mention the big chain department stores(why would they let a third party in?) . Anytime there is a thrid party the price goes up.
I thought the tariff on clothes bags etc.. was 10~20%? Did it change?
To answer someone else's question about what this has to do with distancing from U.S. the obvious answer is nothing directly. It is important to the economy of Japan and that is what the whole distancing from U.S. thing ultimately is about, Japanese economic future.