Due to continuous increase in raw material prices, increase in transportation costs, among many other reasons, the prices of branded clothing may increase by 15 to 20 percent this year. Industry players say the cost of raw materials like cotton, yarn, and the fabric is rising. The cost of packaging material and freight has increased.
This may lead to people spending more on branded clothes in the new year. This may vary by 8-15 percent depending on the price in different brands. Indian Terrien 8- May increase prices by up to 10 percent.
Many brands have already started increasing their prices. Some brands are planning to increase the prices with the launch of summer collections from March and April. Yuvraj Arora, Partner, Octave Apparels says, Raw material has increased by 70-100 percent.
So, this year MRP is going to increase by at least 15-20 percent as compared to last year. MRP for winter collection has already increased by 10 percent.
In the summer collection, the price will be increased by another 10 percent.
Numero Uno is also increasing the prices by 5-10 percent. Madam is also going to increase the prices of clothes in the summer collection by 11-12 percent. The hike in the GST rate will only affect the prices of brands that sell goods below Rs 1,000 or in the value segment.
The association says that if the GST rate rises, the prices may increase by another 7-10 percent. Manufacturers say the government should intervene to control the prices of raw materials.
Cotton prices in the country have risen in line with global prices and demand. Western sanctions against China have increased the demand for cotton from India.
The companies operating in the export market have started exporting most of their stock as They are getting a better price in the export market. Let us tell you that in the last meeting of the GST Council, even though an agreement could not be reached to increase the tax rate on clothes, still wearing branded clothes in the new year can be expensive.
