Home / Knowledge / News / Apparel/Garments / Global apparel brands plan to raise prices in India
Global apparel brands plan to raise prices in India
21
Jun '12
Several international clothing brands are planning to increase their retail prices in India due to the depreciation of the Indian rupee.

“Many international brands/retailers in India like Debenhams, Next, Diesel, Puma, etc. import a large part of their garments, and the depreciation of rupee has increased the import costs by up to 10-15 percent. Hence, many global brands/retailers are planning to pass on this cost to the consumer,” Mr. Amit Gugnani, Senior Vice President, Technopak Advisors, told fibre2fashion.

“Most of the international garment companies already operate on tight margins in India after taking into consideration duties, rentals and low volumes, so they have to cover the impact of dollar appreciation only by increasing prices,” adds Mr. Harminder Sahni, MD, Wazir Advisors.
 
The rupee has fallen by nearly 15 percent in the past three months and it touched a record low of Rs. 56.55 to the dollar on June 21, surpassing its previous low of 56.52.
 
Suggesting a possible solution for the global brands, Mr. Gugnani says, “In the longer term, brands/retailers need to start looking at domestic market for sourcing their garments/raw materials to negate the effect of exchange rate fluctuations.”
 
However, according to Mr. Sahni, “Most of the brands do not have sufficient volume to justify local sourcing and also the competence of local vendors may not be up to the mark.”  
 
Most brands had increased their prices last year due to levy of excise duty on branded garments. However, this year excise duty impact on brands has been reduced and also cotton prices have declined substantially.
 
“The global apparel brands would have also gained from the easing of excise duty and decline in cotton prices,” avers Mr. Gugnani.
 
“In the current economic scenario, any increase in prices would also affect the sales volumes, which brands need not risk for the long term play,” he opines.
 

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search