Foreign labels expected to increase prices due to falling rupee

Most foreign brands selling in India plan to increase their

prices from the forthcoming Autumn/Winter season. They cite two reasons for this move. First, due to the falling rupee, their costs have gone up; second, positive demand for their products in India. It may be noted that the rupee has depreciated by 12 percent against the dollar since February.

With the new season, starting sometime in the second week of August, when most apparel brands and retailers stock fresh collections in their stores international brands are planning to raise prices by at least 10 percent. German sports lifestyle brand Puma, for instance, saw costs go up by 30 percent since January this year and has decided to increase prices by about 10 percent.

Other foreign brands such as Tommy Hilfiger, Mango, Promod and Zara too are contemplating an increase owing to higher costs incurred on imported goods. And Reliance Brands, which has franchise agreements with premium to luxury brands like Kenneth Cole, Paul & Shark, Diesel and Ermenegildo Zegna, among others would also relook its current prices once the full-price fashion season kicks off.

However, brands such as Daniel Hechter and Manchester United, part of Kishore Biyani's Future Group-owned Indus League Clothing, and Benetton as well as Marks & Spencer do not plan to revise rates since they rely more on local sourcing.