Turbulent Time For Brands
It looks like all those who swear by brands are thinking twice before buying their favourite branded clothing. With prices soaring way above the common man’s reach, at least a part of the industry feels that textiles, especially branded ones, are being compromised upon.R.S. Puram, the city’s nerve centre in terms of shopping activity, has started looking dull these days, remarks P. Rajkumar, partner of Crocodile Gallery. The area has outlets of almost all the major brands of clothing and accessories. With the prices going up, the number of people spending on branded accessories and clothing seems to have reduced, he says.
The Crocodile franchise has increased the prices of the products by 25 per cent. The sudden increase in prices is inevitable, as the costs of transportation and raw materials have touched an all time high, he adds. In addition to the increase in fuel costs, the industry is also bearing the brunt of an increase in cotton prices. The company has two outlets in Coimbatore – at R.S. Puram and Saibaba Colony – which sell men’s clothing and accessories such as leather belts, wallets, sun glasses and watches.
Over the last few months, the sales at the outlets have plummeted. “It has gone down at least by 15 per cent,” Mr. Rajkumar says. Despite offers given by the company, the number of customers has gone down in both the outlets, he observes. “It is indeed a turbulent period for brands to survive,” says R. Sivaram, Executive Director of Classic Polo. However, the company has not really felt the pinch owing to the brisk Aadi sale which offers up to 50 per cent discount on the products.
“Though the prices of raw materials have gone up by 25 per cent, it is impossible to increase the price of products immediately. The rate can be increased only in phases,” Mr. Sivaram points out. The market would not be able to absorb a sudden increase in prices, he says. Nevertheless, people would not compromise much on clothing and the impact has been mild. The regular customer base of the brand remains intact.
