Volatile Rupee to Fuel Price Hike In Imported Goods .

Sooner or later, all imported consumer articles are going to be impacted by rupee devaluation and retailers expect a six to 10 per cent price increase in most of the international brands of apparels and accessories.

The prices of imported merchandise of Max, the value fashion brand of Dubai-based Landmark Group, has gone up by five to six per cent due to the rupee factor. The merchandise includes high fashion western wear, footwear, handbags and fashion jewellery.

“The cost of the imported goods have gone up by 10 per cent. We are absorbing four to five per cent before passing the rest to the customers. There has been a pressure on the margins and we are also trying to value engineer products that are sourced from our vendors. Max being a value brand, we cannot pass on the entire price rise to the customers,” said Vasant Kumar, executive director of Max.

Max imports 20 per cent of the merchandise from the Far East, China and West Asia, while 80 per cent is sourced from vendors within India.

Shoppers Stop expects the prices of imported brands to go up by 10 to 12 per cent by March if the rupee remains weakened.

“Currently we have enough stocks and by March when we will have to import fresh stocks, there could be a price increase,” said Govind Shrikhande, managing director of Shoppers Stop.

Shoppers Stop too has 20 per cent of its products imported. This includes largely non-apparel items like cosmetics and watches.

However, there could some respite in prices of apparels sourced from the domestic market. “Cotton prices have softened by 25 per cent from their peak levels. This has led to inputs costs coming down by five per cent. By summer, apparel prices too will down by four to five per cent. If the excise duties too are rolled back to around one per cent, a 10 per cent price reduction can be expected in apparels,” said Shrikhande.

Source : mydigitalfc.com