Zara, Gap, Body Shop slash Indian retail prices
In this article (5)
Global brands like Gap, The Body Shop and Zara are slashing Indian retail prices to stay competitive in the heavily price-sensitive market.
UK cosmetic brand The Body Shop slashed prices across categories in India by 20 to 30 per cent last week, and US fashion brand Gap is looking to have up to 40 per cent of its products made locally, which should allow prices to drop by 10 to 15 per cent.
“The process has started,” says CEO J Suresh of Gap’s India franchisee Arvind Lifestyle Brands. The Indian-made items will be introduced next year.
The Body Shop India COO Shriti Malhotra says its price cuts will make its products more accessible.
Spanish fast-fashion brand Zara is also looking at slashing its prices to bring them closer to Swedish rival H&M.
It quotes experts as saying price cutting is one of the most effective ways to boost sales and market share in India, particularly in highly competitive and fast-growing segments.
“Most brands strategically lower prices for the value-conscious Indian consumer,” says CEO Devangshu Dutta of retail consultancy firm Third Eyesight.
Inditex-owned fashion brand Zara reduced prices by up 15 per cent when H&M entered the Indian market in October 2015 with its global strategy of aggressive pricing. The move helped Zara record 17 per cent sales growth last year.
When Arvind Lifestyle Brands took over the business of beauty and wellness retailer Sephora from former franchisee DLF Brands in September 2015, its first move was price correction. “We looked at pricing in Dubai and Singapore and kept it in the band of 5 to 10 per cent lower than that,” says Sephora India CEO Vivek Bali.
Questions & Answers
Q.Which specific brands are mentioned as having reduced or planning to reduce prices in India?
Which specific brands are mentioned as having reduced or planning to reduce prices in India?
The brands mentioned are Gap, The Body Shop, and Zara. The Body Shop already slashed prices, while Gap is looking to reduce theirs through local manufacturing. Zara is also considering price cuts to compete with H&M.
Q.What is Gap's strategy for achieving lower prices on its products in India?
What is Gap's strategy for achieving lower prices on its products in India?
Gap plans to have up to 40 per cent of its products manufactured locally in India. This move is expected to enable price reductions of 10 to 15 per cent, making their items more competitive in the market.
Q.When did Zara previously adjust its prices in India, and what was the impact?
When did Zara previously adjust its prices in India, and what was the impact?
Zara reduced its prices by up to 15 per cent in October 2015 when H&M entered the Indian market. This strategic adjustment helped Zara achieve a 17 per cent sales growth last year.
Q.How did Sephora's pricing strategy change after Arvind Lifestyle Brands took over its operations in India?
How did Sephora's pricing strategy change after Arvind Lifestyle Brands took over its operations in India?
After Arvind Lifestyle Brands took over in September 2015, Sephora's prices were corrected to be 5 to 10 per cent lower than those found in Dubai and Singapore, as stated by Sephora India's CEO.
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