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    India Garment Manufacturers And Retailers Plan To Cut Prices By 15%

    2011/10/31 10:18:00 26

    India Manufacturers Retailers Plan To Cut Prices

    Even India as a whole

    Inflation rate

    Steadily rising, but clothing buyers in India can now see some clothing prices.

    relieve

    Sign.


    India clothing manufacturers and retailers plan to cut their clothing prices by 10-15% next spring and summer, starting in spring and summer in February.

    The reason for price cut is that sales are decreasing and raw material (cotton) prices are being adjusted.


    Clothing manufacturers and retailers, such as Pantaloon retailers and shoppers, have stopped raising prices by 8 to 18% due to increased consumption tax and rising cotton prices.

    Retailers also cut 2% net profits in the first quarter of 2011-12, due to rising clothing prices and weak consumer demand.

    Sale

    Growth declines.


    In last year's budget, the government imposed a 10% consumption tax on brand clothing, forcing manufacturers and retailers to raise prices.


    Similarly, cotton prices have dropped by nearly 50% in the past 8 months.

    Cotton prices plummeted from 63000 rupees /candy to the current 39300 rupee /candy.


    Rahul Mehta, President of the India Garment Manufacturers Association, said that the real price of clothing will fall in the spring and summer of 2012. From then on, garment manufacturers will consider the factors of falling prices of raw materials, and he expects prices to fall by 10%.


    Some enterprises, such as clothing manufacturers and retailers Provogue, cotton prices

    Fall

    After that, the company's price has dropped by 12-15%.


    However, Arvind Singhal, chairman of Technopak consultancy, a retail consultancy, believes that the price reduction plan is more related to the decline in consumer demand and less related to cotton price adjustment.

    Consumer demand is decreasing. If businesses and retailers want to keep sales, they must cut prices.

    Even sales of Diwali are not as good as expected.


     
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