Many brands resorting to price cuts

Global fashion and lifestyle brands are resorting to price cuts to stay competitive and increase their market share in the Indian market. UK’s cosmetic brand The Body Shop has slashed prices across categories in India by 20 to 30 per cent. The price cut will make its products more accessible to consumers. The brand aims at bringing affordable, cruelty-free beauty closer to diverse consumers across age groups and geographies, recruiting new fans along the way and strongly reinforcing its philosophy of beauty beyond boundaries.

US fashion brand Gap will bring down prices of certain products by allowing its Indian franchisee Arvind to make 30 to 40 per cent of the merchandise. Gap currently imports all its merchandise into India and its products are about 40 to 50 per cent more expensive than those of rivals Zara and H&M. Local production will help it bring down prices and compete better with the two faster-growing rivals. Gap tailors sourcing strategies as appropriate for the markets and channels it operates in to enable competitive positioning.

Price cuts are one of the most effective ways of increasing sales and market share in a price-sensitive market like India, particularly in highly competitive and fast-growing segments such as branded apparels and beauty products.