Traditional Culture Encyclopedia - Hotel franchise - Why is Sanya Duty Free Shop cheap?

Why is Sanya Duty Free Shop cheap?

There are several reasons:

1. Duty-free policy: Duty-free shops are set up in specific areas and exempt from certain taxes, such as customs duties and value-added tax. Duty-free shops can save these tax costs in commodity prices, thus making commodity prices relatively low.

2. Tax incentives: Duty-free shop operators can enjoy certain tax incentives, such as income tax relief and business tax relief. This preferential policy can reduce operating costs, thus affecting commodity prices.

3. Advantages of supply chain: Duty-free shops can directly cooperate with manufacturers or suppliers when purchasing goods, which saves the cost of intermediate links and thus obtains lower procurement costs. This supply chain advantage can also be reflected in the sales price.