Madame brand to take price increase on its clothing prices by from March, 2022
29 December 2021, Mumbai:
Western wear brand Madame plans to increase its retail prices in India from between 11% and 12% from March 2022 due to increased distribution costs and duties. The brand is on track to reach 170 stores this fiscal.
With rising vessel costs, freight charges, and import duties, Madame has decided to raise its garment prices, ET Bureau reported. The clothing business is confident it can continue its growth trajectory in the country despite this thanks to brick-and-mortar expansion.
Opening around two exclusive retail outlets a month since March this year, the business is on track to reach a store count of 170 by the end of the current financial year. The brand is also rapidly increasing its points of sale and is eyeing double-digit growth for the coming three years.
“Obviously, the costs will go up and in the end, the customer will have to shell more money,” said Madame’s executive director Akhil Jain about the upcoming goods and services tax increase in an interview with ET Retail. “Eventually, this will disbalance the quantity that we plan.”
However, as over 97% of Madame’s inventory is priced over Rs 1,000 ($13.41) and thus already attracts 12% GST, the business will aim to absorb the new 12% GST on items priced below Rs 1,000 internally.
“This is a growing year and we want to have better sales,” said Jain. “So we will be compromising on the margins for this year. But for other companies in retail who have an average selling price less than Rs 1,000, will have to rack up the prices.”
FASHION NETWORK (The news article has not been edited by DFU Publications staff)
Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.
DAILY NEWS:
