GST has levelled the playing field to an extent
It is now more than six months since the Goods and Services Tax (GST) has been implemented. Fibre2Fashion spoke to few fashion and accessories brands about their competition vis-à-vis the unorganised sector.
The GST on socks is in line with the tax structure prevalent previously, hence, there is no change for the compliant brands. However, it would force the non-compliant brands and the unorganised sector to increase their prices, and so has levelled the playing field to an extent.
We see this as a massive opportunity. The unorganised sector traded at a massive discount to the organised, and the implementation of the GST will bridge some of the gap in the pricing. A smaller difference in price is expected to lead to consumers opting for brands they trust more.
Absolutely, GST has given the Indian brands an edge over internationals brands. Most of the taxes have been consolidated into one, and products have started to reach their destinations faster. This has helped us to explore new geographic locations which were earlier out of reach.
With lower cost and taxes, we are able to create a better brand value by offering better quality products.
GST has really not affected our sales because if people have an occasion then they have to buy new clothes. India has lot of elaborated weddings and people celebrate festivals. So, there has been zero effect on our business because of GST.
Published on: 15/02/2018
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.