Relief for consumers in sight with retailers contemplating price reduction
Indian retailers are thinking of reducing prices for consumers. This comes at a time when there has been some softening in raw material costs in recent weeks. V-Mart Retail may roll back prices by six or seven per cent for winter products and also on products for the upcoming spring/summer season.
Bata has managed to navigate inflationary pressures reasonably well till now but is continuously monitoring the situation and wherever possible is trying to ensure it remains competitive while also maintaining margins. With winters in the North, retailers are witnessing an uptick in winter-related products and the initial trends are encouraging.
Woodland is expecting 20 per cent growth this winter as compared with the last season. Since consumers have not been able to accommodate price hikes, and consumption has been impacted, retailers are adopting this strategy to ensure products remain affordable while continuing to innovate.
Consumers continue to cope with inflationary challenges with nearly 60 per cent of the consumer basket being impacted. While raw material costs for the industry have come down to some extent, they still remain almost 40 per cent higher than the base. Some brands have also begun considering roll back in price hikes for products positioned at the entry level to boost volumes.