Increased Brand Variety in Stores, Yet Price Reductions May Fall Behind
MUMBAI: The India-UK Comprehensive Economic and Trade Agreement (CETA) is set to enhance retail options for local consumers as new British brands prepare to enter the Indian market. Initial discussions and inquiries from these brands have already begun. However, industry executives caution that consumers may not see immediate price reductions due to the depreciation of the rupee against the pound, which has increased import costs.
British cosmetics brand Lush has decided to pause a planned price hike in India following the agreement’s implementation. Vishal Anand, founder and CEO of Bilberry Brands, Lush’s exclusive partner in India, noted that the company will reduce prices on certain products, such as shower gels and soaps, where duty benefits are most significant. Despite this, Anand indicated that not all products will see price cuts, especially where currency devaluation offsets duty savings. The rupee has depreciated approximately 12% against the pound in the past year.
The ongoing conflict in West Asia has also disrupted logistics, leading companies to shift from sea to air transport, further increasing costs. Radhika Ghai, founder and CEO of Kindlife, an online marketplace for global beauty brands, stated that while tariff cuts may improve margins, the volatility of the rupee and rising global supply chain costs mean that consumers should not expect immediate reductions in maximum retail prices (MRPs). Kindlife is collaborating with 12 UK brands, focusing on clinical skincare and wellness products, with plans to launch in India over the next two to three quarters. Ghai remarked that the conversation among brands has shifted from whether to enter India to how to scale effectively in the market.
Interest from British watch-making brands is also anticipated, according to Pranav Saboo, MD and CEO of Ethos, a luxury watch boutique chain. He noted that the free trade agreement will facilitate discussions for smaller brands looking to enter India. Additionally, Sanskriti Gupta, spokesperson for the bakery and dessert chain Ben’s Cookies India, announced plans to open 8-10 stores in the current financial year.
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