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Originally Posted by chiuchimu
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.
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Here's an example, a Fall 2010 Marc Jacobs bag retails for 90,000 yen at Seibu department store in Ginza. The same bag retails for $380 at the Marc Jacobs store in Boston. When you consider the difference in the currency exchange rate at the moment, the bag sells for exactly three times as much in Japan as it does in America. By all rights, with the strong yen, the bag should only cost 30,000 yen in Japan. But once you add the Japanese tariffs on such goods, and the percentages which go to the distributor and retailer, the price becomes as typically outrageous as Japanese prices on luxury goods tend to be. And yes, all this extra money stays in Japan.