India's top brands plans to increase apparel price and introduce premium lines

"Apparel retailer' is the only sector which has been left divided due to desertion economic downturn. As the market is recovering India's top brands are stepping up to increase prices and introduce premium lines. Whereas, on the other side, foreign brands plans to hold on the lower prices of last year or cut the rates some more.

In the increase in prices the Indian brands blames the increase in price rise of raw material, in particular cotton. Brands like - Indian Terrain, Scullers, Allen Solly, Van Heusen and Turtle spent its entire 2009 mostly in attracting buyers with lower prices, but now see a brighter 2010.

As per media reports, Surya Narayan, executive director, Chennai-based Celebrity Fashions Pvt. Ltd, which owns Indian Terrain on the same said, "We are increasing prices after two years and it is due to higher raw material costs."

In fact, now the firm is raising its price of its casual wear brand by 5-15 per cent. Even Turtle (India) Ltd is increasing the price by 5-6 per cent, blaming the increase in cotton price. Cotton price has risen around 8 per cent in the past 8 months to Rs 3,000-3, 200 per 100 kilogram. However, according to the retail consultants the increase in apparel prices has more to do with the cheer that's returning to the sector.

As reported by media, Ashish Dhir, associate vice-president, Technopak Advisors Pvt. Ltd, on the increase in apparel price said, "What many brands are doing is increasing prices by saying it is premium fabric, extra embellishment or launching new ranges. This is because they know that they can't sell the same product at a higher price unless there is some visible difference."

Moreover, among Indian brands the rise in apparel price is more in the higher segment like ' Scullers is maintaining its average price at Rs 1,199 a shirt, but introducing a more expensive brand - Premium League, its prices will start at Rs 1,599. Scullers ' it is a casual wear brand of Indus League Clothing Ltd and a part of Future Group.