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Clothes to get costlier: Branded clothes can be expensive, estimates of 15-20% increase in prices

Clothes to get costlier: If the government decides to increase the GST rates on clothes, then in this situation the prices of branded clothes can be increased by about 7-10 percent.

Clothes to get costlier: People fond of expensive and branded clothes may have to spend more money in this this year. Even though the last meeting of the Goods and Services Tax Council did not agree to increase the GST rate on clothing, yet branded clothes will be costlier for consumers this year. The price of branded clothing is going to increase in the new year due to many reasons including cost of raw material, increasing transportation cost. It is estimated that this year the prices of many branded clothes will increase by up to 20 percent.

Charath Narasimhan, CEO, Indian Terrain Fashions Ltd, told Financial Express Online, “The rising prices of raw materials such as cotton, yarn and fabric, as well as packaging material, freight costs, are a number of factors that have led to the increase in the number of branded garments this year. Prices are likely to increase. At the industry level, it can vary by 8-15 per cent depending on the price structure of different brands. The prices of Indian Terrain brand clothing may increase by 8 to 10 percent.

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There may be so much increase in prices

Many brands have already started increasing the prices of their clothes. At the same time, there are some brands that are planning to increase the prices with the launch of their summer collections around March and April. Yuvraj Arora, Partner, Octave Apparels said, “The prices of raw materials, especially cotton, have increased by about 70-100 percent. If we compare the prices of last year with this year, then the MRP is going to increase by at least 15-20 percent. We have already increased our MRP for winter collection by 10 per cent. Apart from this, there will be a further increase of 10 percent in the prices of clothes in the summer season.

Meanwhile, Numero Uno is increasing its prices by 5-10 percent, while women’s clothing brand Madame is going to increase the prices of clothes in its summer collection by 11-12 percent. Industry association Clothing Manufacturers Association of India (CMAI) said prices will increase by 15-20 per cent on an average this summer. The hike in GST rate will affect the prices of only those brands which sell goods below Rs 1000 or in the value segment. CMIE’s Rahul Mehta said, “If the government decides to hike the GST rate, I expect another 7-10 per cent hike in clothing prices.”

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clothing manufacturers advice

Many textile manufacturers believe that the government should intervene to control the prices of raw materials. The price of cotton in India is increasing in line with the global prices and demand. Due to sanctions by western countries against China, the demand for cotton from India has increased. The companies working in the export market have started exporting most of their stock as they are getting better price in the export market.

(Article: Tanya Krishna)

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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