Why Lenovo's domestic price is higher than that abroad

Lenovo responded that there were differences in services provided at home and abroad, and it did not consider overseas pricing without tax

A few days ago, Lenovo caused consumer controversy due to the different policies of discount promotions at home and abroad. Later, consumers again aroused heated debate because of the difference in Lenovo's domestic and foreign prices. Is there a common problem that Lenovo's products are priced higher at home than abroad? Why are the prices of products at home and abroad different?

Lenovo replied to the Beiqing Daily reporter that the statement that "the domestic price of Lenovo products is higher than that of foreign products" is not accurate. According to statistics, the prices of most mainstream ThinkPad models sold in China are equal to or lower than those in the United States at non promotional nodes. Some misunderstandings may come from comparing the domestic price with the overseas price excluding taxes and software and hardware. The domestic products generally provide pre installed software, mouse and other accessories. At the same time, Lenovo operates independently in different countries (regions) and adopts different product planning strategies and sales policies.

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Lenovo US official website urges 65 fold domestic card payment to be "cut off"

Near the Black Friday, Lenovo launched a promotional discount activity on the official website of the United States. Products including laptops, desktops, accessories, etc. were folded at 65 yuan, and the minimum price of laptops was $270.99, which was about 1886.27 yuan.

However, domestic consumers soon found that the US official website activities with a discount of 65% could not be attended by the Chinese region, and the US official website activities did not support direct mail to China; In addition, some consumers reported that they may be cut off after buying the card with Chinese address and bank card, that is, they will refund the money directly and will not deliver the goods.

Some domestic consumers are dissatisfied, saying Lenovo treats consumers at home and abroad differently. Some products are priced higher at home than abroad, and they are also promoted abroad. Even if international freight and taxes are added, it is also cost-effective. For example, an IdeaPad 720S laptop has a 13 inch screen, an AMD Reelong 7 processor, and 8G+256G. The price in the United States after discount is 579.99 dollars, about 4030 yuan; The price of the same model and configuration in the domestic Lenovo flagship store is 5699 yuan, with a price difference of 1669 yuan. Even if the consumption tax of about 10% and the international freight of several hundred yuan are added, the price is still much lower than that in China.

As early as 2015, Lenovo was criticized because its price in the United States was lower than that in China. At that time, a survey showed that Lenovo's ThinkPad W540 (i7-4700MQ processor, 8GB memory, 15.6 inch full HD display, 500GB hard disk) with the same configuration sold for $1374.95 on Amazon's official website, equivalent to 8520 yuan, The price of JD's official website is basically more than 15000 yuan (the price is 19899 yuan for i7-4700MQ processor, 8GB memory, 15.6 inch full HD display, 1T hard disk configuration), the difference between the two is 6500 yuan, and the difference between the memory configuration is only 500GB. At that time, Lenovo responded that their allocation, tax rate and promotion strategy were different.

After three years, this issue was mentioned again. Some consumers said that there has always been a saying that Lenovo computers, especially Lenovo computers, are more expensive at home than abroad. Many people go abroad and even buy Lenovo computers for them. So are Lenovo computers really more expensive at home than abroad? Why go abroad to purchase Lenovo computers?

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The domestic price of most Lenovo models is not higher than that of foreign models

In this regard, the person in charge of Lenovo replied to the reporter of Beiqing Daily that the statement that "the domestic price of Lenovo products is higher than that of foreign products" is not accurate. Taking the ThinkPad that everyone cares about as an example, according to statistics, most of the mainstream models of ThinkPad sold in China have prices equal to or lower than those in the United States at non promotional nodes. It should be noted that in the price of products sold in China, we adopt the price including tax, while in the sales of most overseas models, because of different market habits, we provide the price without tax and without any software and hardware services, which will also cause misunderstanding among some consumers.

In addition to the price itself, Lenovo said that its products and services at home and abroad are also different. Lenovo said that when we discuss the price, we need to pay attention not only to the absolute value of hardware products. ThinkPad products sold in China provide integrated solutions. In China, in order to better serve users and improve service quality, we have provided ThinkPad users with a more complete product portfolio: including pre installed relevant software, mouse and other accessories. More importantly, we provide ThinkPad notebook users with many value-added services, such as accidental protection, door-to-door service, data recovery services, etc. These are software and hardware applications with high user value.

However, Lenovo also mentioned that Lenovo is a company with product sales in many countries and regions around the world. It operates independently in different countries (regions). We have different product planning strategies and sales policies, and adopt different market pricing principles and sales strategies. Each region will formulate different product prices and promotion policies according to the local market competition environment, promotion nodes and product inventory.

Some people compare Lenovo computers with Huawei mobile phones, saying that Huawei mobile phones are priced higher overseas than at home, so why can't Lenovo computers directly adjust prices, making domestic prices lower than those abroad? Lenovo did not directly answer this question, but Lenovo said that each enterprise has different development stages, positioning, sales policies, and product market share and development goals at home and abroad. Personal computers are a fully competitive market, and all pricing should be in line with market rules.

The reporter of Beiqing Daily learned that some consumers purchase computers abroad on behalf of others under the condition of tax exemption and foreign promotion. The price advantage has been reflected under the condition that domestic computers need to pay 17% value-added tax rate and foreign tourists are tax-free. In addition to foreign promotion activities, the price may be lower than that of domestic computers. However, microcomputers and peripherals belong to one of the 20 kinds of commodities that should be taxed according to the state regulations. No matter whether the price exceeds 5000 yuan or not, taxes should be paid. Specifically, the keyboard laptop is taxed at a tax paid price of 2000 yuan and a tax rate of 15%, that is, 300 yuan; The touch-screen laptop is taxed at the rate of 15%; All in one mainframe and display are taxed at 3000 yuan, a tax rate of 15%, or 450 yuan.

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The difference between domestic and foreign prices of individual models is nearly 7000 yuan

The specific model comparison shows that the price of some models in China is far lower than that abroad. For example, ThinkPad New S2 2018, the best-selling model on the domestic official website, is priced from 5299 yuan (i7-8550U, 8GB, 1TB+128GB) in China. In addition, it also includes Win10 home version pre installed software, basic cleaning and maintenance package, ThinkPad backpack and other gifts, with a total value of 500-600 yuan. The low configuration version of the US official website costs $839 (i5-8250U, 8G, 256GB,). After adding about 10% of the consumption tax, it costs about $923, or about 6460 yuan. According to this calculation, the domestic price is far lower than that abroad.

However, the price of the same official website in the United States is lower than that in China. For example, Yoga C930 (i7-8550U, 16G+1T, pre installed 30 day trial version of Microsoft Office, 30 day trial version of McAfee LiveSafe and Lenovo Vantage software) starts at $1299.99, and after adding about 10% of consumption tax, it is about $1430, or 9920 yuan; At the same time, the official Chinese website Yoga C930 (i7-8550U, 16G+1T, pre installed authentic Win10 home Chinese version, authentic office home and student version 2016) sells for 16888 yuan, and the price in the United States is nearly 7000 yuan lower than that in China. However, the price of genuine software is about 700-800 yuan. From this point of view, the domestic price of this model of computer is indeed higher than that of foreign computers.

In addition, the domestic configuration and price of other products are higher than that of foreign products, so the price difference between domestic and foreign products is not much. For example, a chicken eating game computer host with the model of Legion Y720 costs $719.99 (i5-7400, 4GB independent graphics card, 8G memory, 1T hard disk, 7.4kg) on the official website of the United States. After adding about 10% of the consumption tax, it costs about $792, or about 5500 yuan; The price on the domestic official website is 6499 yuan (i5-7400, independent 4GB graphics card, 8G memory, 1T+128G hard disk, 9.1kg), and the configuration and price are slightly higher than those abroad.

Industry

Huawei mobile phones are priced lower at home than overseas

At the same time, consumers also mentioned another brand, Huawei. For example, the Mate20 series mobile phones just released by Huawei are more than 2000 yuan cheaper at home than abroad. The P10 and P20 series previously released are also cheaper at home than abroad. Yu Chengdong, CEO of Huawei's consumer business, said that Huawei's price in Europe is significantly higher than that in China, while other brands are the opposite. Huawei sells cheap abroad and expensive in China. Huawei is the only mobile phone manufacturer that is expensive abroad and cheap at home.

Huawei generally explains why its domestic price is lower than overseas price as "pricing strategy". Another netizen imitated Huawei's tone by sending a microblog saying, "Give us a few years, when you go abroad, you can turn over several Huawei mobile phones, and you can earn back the money for round-trip tickets." Huawei said that this microblog was fabricated.

In fact, the market situation of mobile phones is different from that of personal computers, and there is no comparability between different brands and products.

At present, as an emerging brand, Huawei mobile phones are on the rise steadily, ranking third in the world, and their market share is only second to Samsung and Apple; Lenovo, an old personal computer brand, had previously dominated the global market share for many years. Its share fell a few years ago, and now it has returned to the first place. In addition, the marketing expenses of different brands and the fees paid to operators and governments in different countries are not the same, nor can they be generalized.

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Domestic enterprises have independent pricing power overseas

Analysts believe that the difference between Lenovo's and Huawei's pricing strategies at home and abroad actually shows the enterprise's independent pricing power in the domestic and foreign markets. Regardless of the market strategy, they can adjust the pricing of their products according to the market and the company's situation, which itself shows that enterprises have a certain say in the international market.

Liu Huafang, founder of Mr. Science and Technology, said that the pricing strategies of Lenovo and Huawei had a large tariff impact, followed by market supply and demand. Lenovo wants to consolidate and seize the American market, so the natural price is lower. The main rivals of Huawei mobile phones in developed countries such as Europe are Samsung and Apple. Consumers have no problem with price acceptance. Moreover, Huawei chips are its own, and the overall domestic cost is more controllable. In addition, the domestic market competition is fierce, so the domestic cost is controllable and the price is low.

Liu Qicheng, Chief Editor of Communication World All Media, said that Huawei's pricing in the overseas European market is higher than that in China. The basic premise is that Huawei has low sales overseas and high revenue costs. After all, the price of this product can go up. "All product pricing is determined by product cost, market size, channels and other factors." He took mobile phones as an example and said that Lenovo's mobile phone Motorola brand cooperation is mainly sold through operator channels in the United States, with a large amount of one-time purchase; However, Lenovo in China uses the market channel, and it is unreasonable to compare the price in the United States with that in China. He said that when Lenovo cooperated with operators, the price was also low.

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