3Dconnexion price discrimination problem in mainland China

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luping
Posts: 141
Joined: Wed Mar 20, 2019 5:54 pm

3Dconnexion price discrimination problem in mainland China

Post by luping » Mon Mar 25, 2019 6:26 am

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https://www.3dconnexion.eu/spacemouse_p ... motion/eu/
I'm a native Chinese in mainland China's Zhejiang province. I know that the manufacturing of 3Dconnexion devices are outsourced to mainland China's contract manufacturer Xiamen Intretech Inc, 3Dconnexion's parent company Logitech also outsourced the product manufacturing to this OEM/UDM/JDM firm in Xiamen city.

What astonished me is that the 3Dconnexion spacemouse devices are sold at even higher prices in mainland China than the prices in Europe, USA...

Take 3DX-700075 SpaceMouse Pro Wireless for example, the listed price in Europe:

329.00 Euros
391.51*(* Price includes VAT at 19% (German rate). Shipping charges apply unless stated. )
https://www.3dconnexion.eu/nc/buy/shop/ ... p/one.html

329.00 USD
https://www.3dconnexion.com/nc/buy/shop.html
and according to the Terms and conditions from
https://www.3dconnexion.com/terms.html
§ 4 Prices
The prices quoted on our web page are end prices including taxes.

As the 3Dconnexion's authorised reseller in mainland China, the company Shanghai Want Join Tech listed the 3Dconnexion devices at even higher prices in mainland China's online stores like Alibaba's Taobao online shopping store, JD.com online shopping store.

price on taobao: 3080 CNY=405.59 Euros, 3018 CNY(promotion price)=397.523 Euros
https://item.taobao.com/item.htm?spm=a1 ... 1272466526
price on JD.com: 3080 CNY= 405.59 Euros
1 euro=7.592 China Yuan(CNY), March 25th, 2019
https://item.jd.com/1338975388.html

Why end users as customers of 3Dconnexion devices in mainland China have to bear the extra cost? Is it so becasue of China's heavy taxes? Or are end users as customers in mainland China discriminated by 3Dconnexion?

luping
Posts: 141
Joined: Wed Mar 20, 2019 5:54 pm

Re: 3Dconnexion price discrimination problem in mainland China

Post by luping » Fri Apr 12, 2019 1:57 am

It is important for 3Dconnexion employees to maintain the 3Dconnexion brand so that it is firmly anchored in the society. And represents an attainable target for developing nations' engineers. What drives me to this forum is my passion for 3Dconnexion devices. If you don't want me, I don't love 3Dconnexion.

UtaSH
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Re: 3Dconnexion price discrimination problem in mainland China

Post by UtaSH » Mon Apr 15, 2019 7:00 am

Hello luping,

unfortunately you cannot compare the prices from different countries without knowing the circumstances how the products get there. There are several conditions that we have to deal with, for example the VAT taxes or the customs clearance fee. In addition the price in China includes the domestic shipping fee.

We are happy to hear that you love our products and hope that your love will help you to understand the difficulties we have to deal with to bring our products to the markets worldwide - and as well to the Chinese market.

luping
Posts: 141
Joined: Wed Mar 20, 2019 5:54 pm

Re: 3Dconnexion price discrimination problem in mainland China

Post by luping » Mon Apr 15, 2019 6:47 pm

UtaSH wrote:
Mon Apr 15, 2019 7:00 am
Hello luping,

unfortunately you cannot compare the prices from different countries without knowing the circumstances how the products get there. There are several conditions that we have to deal with, for example the VAT taxes or the customs clearance fee. In addition the price in China includes the domestic shipping fee.

We are happy to hear that you love our products and hope that your love will help you to understand the difficulties we have to deal with to bring our products to the markets worldwide - and as well to the Chinese market.
It's not fair and you're misleading, take spacemouse pro for example, price in China is CNY 2880, that's USD 429.85, a whopping 43.7% percent price hike than price in USA USD 299! Is there any place in China that needs USD 130 domestic shipping fee for spacemouse pro from Shanghai? No, no such place in mainland China. It's daylight robbery.

3Dconnexion devices are contract manufactured by Xiamen Intretech in East China. Can you believe that devices made in mainland China are sold at even higher prices than those devices being exported to North America(USA, Canada), EU countries, even after those customs clearance fee,ocean freight, transportation charge, storage fee are added to the retail prices ? Is your Chinese dealer Shanghai Wantjoin doing poorly in logistics operation than the other dealers in USA, Canada or EU countries? If so, why not cancel dealership contract with poor performance Shanghai Wantjoin?

VAT rate in China is now 13% percent beginning April 1st 2019, down from 16% percent, and VAT rate has already been cut from 17% to 16% in May 2018 by the Chinese government. But there's never a reasonable price adjustment to your 3Dconnexion devices retail prices in China. Do you think the Chinese users are idiots and never hear the media news reports? 3Dconnexion employees did nothing to bring such VAT rate reductions benefits to users in mainland China.

luping
Posts: 141
Joined: Wed Mar 20, 2019 5:54 pm

Re: 3Dconnexion price discrimination problem in mainland China

Post by luping » Thu Apr 25, 2019 7:21 pm

UtaSH wrote:
Mon Apr 15, 2019 7:00 am
Hello luping,

unfortunately you cannot compare the prices from different countries without knowing the circumstances how the products get there. There are several conditions that we have to deal with, for example the VAT taxes or the customs clearance fee. In addition the price in China includes the domestic shipping fee.

We are happy to hear that you love our products and hope that your love will help you to understand the difficulties we have to deal with to bring our products to the markets worldwide - and as well to the Chinese market.
Logistics costs are to blame for the online retail price hikes of 3Dconnexion devices in mainland China. I gave some time to the analysis of cost breakdown structure of 3Dconnexion devices' retail prices, as well as the supply chain. I find that the 3Dconnexion devices are made in mainland China, but exported to Germany, then the authorized reseller Shanghai Wantjoin imported the 3Dconnexion devices back to China to sell them at local online stores taobao.com and jd.com, all these export and import activities add to the extra unnecessary costs.

Why not let 3Dconnexion's parent company Logitech to operate the sales of 3Dconnexion devices in China directly? It will dramatically reduce the costs. Logitech has its local company Logitech Technology (Suzhou) Co., Ltd., and Logitech Technology (Suzhou) Co. already produces printed circuit boards for 3Dconnexion devices. Independent 3Dconnexion sales harms your 3Dconnexion devices' sales volume in China.
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